Data analytics involves the collection and interpretation of relevant data. In recruitment, this process allows us to predict better ways to source, assess, and select candidates. As a result, we’re able to hire more efficiently and effectively.
Below, we’ve detailed five important ways that data analytics enhances the recruitment process.
1) Benchmarking candidates
Recruiters can use data analytics to evaluate new candidates. For example, by pinpointing the company’s top performers and identifying their hard and soft skills, we can determine appropriate qualifications and expectations for potential employees. This allows us to meet business requirements and make more lucrative hires.
2) Improving candidate sourcing
By analyzing the quantity and quality of applicants from various job boards, you can identify and prioritize the platform that works best for your needs. This way, you’ll avoid wasting resources on platforms that don’t bring in high quality leads, thereby improving your time and cost per hire.
3) Setting key performance indicators
Key performance indicators (KPI) can help you measure hiring success. By strategizing and setting goals against your KPI, you’ll know where to direct your hiring efforts.
4) Reducing hiring bias
All companies can benefit from a diverse workforce. Data-driven recruitment often allows us to see candidates from a more objective viewpoint. Instead of hiring based on biases, we can use data to evaluate a potential employee’s skills and qualifications. Data analytics can also help us understand current company demographics and set diversity goals for the organization.
5) Building a more cost- and time-effective strategy
Analyzing recruitment data can help us recognize bottlenecks in our recruitment strategy. This practice can enhance our hiring processes and improve the quality of our hires.
Next, let’s consider four important recruitment metrics.
1) Number and quality of applicants
The number of responses to your job postings can help you assess and adjust your recruitment process. For example, if a job posting yields many low-quality applicants, this could indicate that the job description is too vague. If a lot of candidates abandon the application process partway through, it could mean that your application is too complex.
2) Applicant-to-interview ratio
Tracking the applicant to interview ratio can help you better understand what to look for in a candidate. By using proper screening and assessment tools, you can analyze patterns and improve the efficiency of your hiring process.
3) Offer-to-acceptance ratio
If more candidates are rejecting your offers than accepting, this is your cue to reevaluate your approach. You may need to provide better offers, revamp your employee value preposition (EVP), or improve the overall candidate experience. Setting industry benchmarks to elevate employer branding and revise compensation is key to attracting and retaining talent.
4) Time and cost per hire
Tracking the time and cost per hire can help you optimize your recruitment strategy. By reviewing the steps of your hiring process and the average time to hire, you can see which parts of the recruitment process need improvement. The cost per hire can help you analyze which resources provide a better return on investment.
Implementing data analytics
Applicant tracking systems and recruitment dashboards help track data, interpret patterns, address bottlenecks, and give actionable insights on ways to optimize the hiring process.
It is important to gather enough data from different sources to identify trends. We suggest defining the metrics you’d like to analyze over a period and collecting the appropriate data.
Data analytics can also help recruiters proactively plan targets, deadlines, and budgets.
Zoho Recruit provides a customizable dashboard that tracks the candidate’s journey from start to finish. Our software’s advanced analytics provides built-in visualizations and enables you to sync candidate data from your other platforms. You can also develop and analyze reports with stakeholders to create the perfect recruitment strategy for your organization.