Recruiting is an essential process for any organization as it directly impacts the organization’s success. A successful hiring process requires a strategic approach that relies on the use of data and technology to make informed decisions. We will outline the strategies for a successful hiring process, focusing on the importance of using data to make informed hiring decisions.
Data-driven hiring involves using data to make informed decisions at every stage of the hiring process, from job descriptions to onboarding. By analyzing data, companies can identify trends and patterns that allow them to optimize their recruitment strategies and make more informed hiring decisions. The use of data also ensures that the hiring process is fair and unbiased, leading to better diversity and inclusion outcomes.
According to a survey by LinkedIn, 79% of business leaders believe that using data can help them make better hiring decisions. The survey also found that companies that use data in their hiring process are twice as likely to improve their recruitment ROI and three times as likely to reduce their time-to-hire.
Implementing a data-driven hiring process requires careful planning and execution. We have identified several similarities when comparing companies with a successful data-driven process and most follow these steps to begin the process.
1. Define your hiring goals: Before you begin collecting data, it’s important to define your hiring goals. What kind of employees are you looking for? What skills and attributes are most important to your company? Once you have a clear idea of your hiring goals, you can begin collecting data that will help you achieve them.
2. Identify the data you need: Once you have defined your hiring goals, you need to identify the data you need to achieve them. This may include data on past hires, the skills and competencies of job applicants, and potential biases in your hiring process.
One company that identified data to improve ROI was Xerox, a leading technology company that specializes in document management and IT services. The company faced the challenge of attracting and retaining top talent in a highly competitive market. To address this challenge, Xerox implemented a data-driven approach that focused on using data to identify the key traits and competencies of successful employees. By analyzing data on the skills, experience, and performance of successful employees, Xerox was able to identify the key traits and competencies that were most important for each position. As a result, the company was able to improve its recruitment ROI and reduce its time-to-hire.
3. Collect and analyze the data: Once you have identified the data you need, you can begin collecting and analyzing it. This may involve administering skills tests, conducting pre-employment assessments, or analyzing the success rates of past hires.
4. Develop a data-driven hiring process: Once you have collected and analyzed the data, you can use it to develop a data-driven hiring process. This may involve developing a profile of the ideal candidate, creating job postings that emphasize the most important skills and attributes, and using data to screen job applicants.
5. Monitor and adjust your hiring process: Once you have implemented a data-driven hiring process, it’s important to monitor its effectiveness and adjust as necessary. This may involve collecting feedback from hiring managers and job applicants, analyzing the success rates of your hires, and making changes to your hiring process based on this feedback.
There are several software solutions that can help companies analyze data in the hiring process. Some popular options include:
1. Applicant Tracking Systems (ATS): ATS software can help companies collect and track data on job applicants, including resumes, cover letters, and interview notes. Many ATS solutions also include analytics and reporting tools that can help companies identify patterns and trends in their hiring data. Examples of popular ATS solutions include Greenhouse, Lever, and Workday.
2. Pre-employment Assessment Tools: Pre-employment assessment tools can help companies evaluate the skills and competencies of job applicants. These tools can include skills tests, personality assessments, and cognitive ability tests. Examples of popular pre-employment assessment tools include Criteria Corp, Plum.io, and Wonderlic.
3. HR Analytics Software: HR analytics software can help companies analyze data on their hiring process, including data on time-to-hire, cost-per-hire, and turnover rates. These tools can also help companies identify potential biases in their hiring process and take steps to mitigate them. Examples of popular HR analytics software include Visier, BambooHR, and SAP SuccessFactors.
4. Video Interviewing Software: Video interviewing software can help companies conduct remote interviews with job applicants, while also recording and analyzing these interviews for data insights. These tools can help companies evaluate candidate communication skills and other non-verbal cues. Examples of popular video interviewing software include HireVue, Spark Hire, and VidCruiter.
5. AI-Powered Recruitment Tools: AI-powered recruitment tools can help companies analyze large amounts of data on job applicants, including social media profiles and other online information. These tools can help companies identify candidates who are more likely to be a good fit for the company culture and job requirements. Examples of popular AI-powered recruitment tools include Eightfold AI, Pymetrics, and Hiretual.
Overall, the software used in the hiring process will depend on the specific needs and goals of the company. It’s important to carefully evaluate different software solutions and choose those that align with the company’s hiring goals and data analysis needs.
Data-driven hiring is a crucial strategy for a successful hiring process and becoming one of the leading steps in understanding and securing top talent. By using data to make informed hiring decisions, companies are optimizing their recruitment strategies, reducing their time-to-hire, and improving their recruitment ROI.
For more information on how you might streamline your hiring process please email [email protected].
Looking For Your Next Job Opportunity?
If you’re seeking a new role but don’t know where to look, Summa is here to help! Get in touch with our team today to learn more about our Job Opportunities.