Are you tired of the traditional trial-and-error approach to recruitment? Wondering what are the 3 most important recruitment analytics? Let’s find out!
Imagine if you could revolutionize your hiring process with the help of cutting-edge analytics. So, let’s unveil the three most vital recruitment analytics that can transform your talent acquisition strategy. So get ready to harness the power of data and take your hiring efforts to new heights!
What is recruitment analytics?
Recruitment analytics is all about using data to make smarter decisions during the hiring process. It involves collecting and analyzing information to improve how companies find and hire the right people. In addition, by studying hiring data, companies can predict future hiring needs and improve the process.The use of data in recruitment has become more popular as technology has advanced. Companies now have access to tools like applicant tracking systems and talent sourcing software, which help them find the best candidates for the job. In fact, around 88% of companies worldwide are using AI for HR tasks to some extent.Analyzing data in hiring is important because it helps businesses understand the impact of their choices. By looking at the numbers, companies can make fact-based decisions that lead to better hiring results. So, recruitment analytics is a valuable addition to data-driven hiring practices.
The top 3 levels of Recruitment reporting and analytics
- Level 1 – Operational Reporting – Describing the Basics
Recruitment analytics can be categorized into three levels, starting with operational reporting. At this level, we focus on commonly known metrics that provide insights into the core aspects of recruiting. These metrics include the cost, source of hire, number of applicants per job opening, selection ratio, time to fill positions, time to hire, hiring manager satisfaction, and more. These measurements are usually easy to capture using an Applicant Tracking System (ATS) and require minimal additional calculations.
- Level 2 – Advanced Reporting – Going Beyond the Basics
Moving up to level 2, we delve into advanced reporting. This level requires combining data from multiple sources to generate meaningful insights. For example, assessing the candidate experience involves mapping different stages of the recruitment cycle and collecting feedback through surveys or questionnaires.
Other metrics at this level include financial recruitment metrics such as cost per candidate per sourcing channel, sourcing channel conversion rates, recruitment funnel conversion rates, cost savings, employer branding impact, and more.
- Level 3 – Analytics – Unleashing Strategic Power
The highest level of recruitment analytics is level 3, which encompasses strategic and predictive analytics. Strategic analytics involves segmentation, statistical analysis, and developing people models, while predictive analytics focuses on building predictive models and strategic planning.
For instance, segmentation in job advertising and programmatic advertisement allows for targeting specific groups of job seekers through various online sources. However, this requires careful monitoring of advertising expenses and continuous optimization to improve conversion rates and reduce costs. Other examples include predicting ideal candidate profiles, the time to hire, and optimizing the recruitment funnel.
Case Study to Understand Recruitment Analytics – From Implementation to Success
To illustrate the impact of analytics, let’s examine the case of chatAssess, a chatbot implemented by Rolls-Royce to optimize its application process. Rolls-Royce closely tracked conversion rates of online applications to measure the impact of chatAssess.
After the chatbot’s implementation, the completion rate of applicants from the Business stream significantly increased from 74% to 96%. This demonstrates how technology solutions like chatAssess can provide valuable data for recruitment analytics.
Tracking completion rates may fall under level 1, but measuring drop-out rates at each step, analyzing conversion improvements for different segments, and determining statistical significance fall under level 3.
Boundaries during Analytics
It’s important to note that the boundaries between operational reporting, advanced reporting, and analytics are not rigid. Often, organizations need to progress through different levels to gain deeper insights from their data. By embracing recruitment analytics and exploring the layers, companies can unlock the power of data-driven decision-making to enhance their recruitment processes and achieve better outcomes.
3 most important recruitment analytics
- Hiring the Best – Evaluating the Quality of Hire
Finding the perfect candidate for a job is not just about their initial performance. It’s crucial to consider their long-term impact on your organization. While having a top performer on board is great, looking beyond that and evaluating their contribution is essential.
The quality of hire goes beyond their skills and capabilities; it also encompasses factors like employee retention and their ability to represent your organization positively.
To accurately measure the quality of hire, you need to analyze recruitment analytics, leverage big data, and employ predictive analyses. These tools provide valuable insights into what it takes to hire and retain top performers effectively.
- Speed of Hire – Swift Recruitment and Its Impact
Regarding recruitment, there’s a direct correlation between speed, quality, and cost. The faster you can complete the hiring process, the more likely you will attract high-quality candidates at lower costs. It’s important to realize that leaving a position unfilled for an extended period can have significant consequences, especially for critical organisational roles.
Research conducted by BCG/WFPMA in 2012 revealed that high-performing organizations move 1.6 times faster from the unofficial opening of a position to its approval. This emphasizes the importance of swift recruitment in securing the best talent efficiently.
- Benchmarking – Assessing Recruiting Costs
Benchmarking out-of-pocket recruiting costs against those of your direct competitors provides valuable insights into the effectiveness of your recruitment strategies. By comparing your costs with those of other organizations in your industry, you can assess the performance of various sources, such as employee referrals, internal promotions, and direct sourcing.
However, it’s important to remember that focusing solely on cost-per-hire or the success of low-cost, high-quality sources is insufficient. For instance, if your competitor hires 60% of their workforce through employee referrals while your organization achieves 30%, your competitor may have a stronger magnetism for talent.
Thus, considering different recruitment sources’ overall performance and effectiveness is crucial for a comprehensive assessment.
So, all measurable aspects of recruitment should be connected to return on investment (ROI) and offer valuable insights into improving quality, speed, and costs. Recruitment is a critical HR function that significantly influences revenue growth and profit margins, and we must demonstrate its impact.