Data-driven recruiting can help organizations make better hiring decisions, reduce bias, and improve retention rates. It’s a handy tool that can help your business grow. Tools like Talroo Insights, our award-winning recruitment marketing intelligence tool, help you collect and analyze real-time talent data.
In this article, we’ll talk about data-driven recruiting, why it’s a boon for your business and companies that have successfully implemented data-driven recruiting strategies.
What is Data-Driven Recruiting?
Data-driven recruiting is when a company or hiring manager collects and analyzes statistics to understand their hiring strategies and how to improve them.
By collecting data on your hiring practices and analyzing the statistics, companies can highlight what hiring strategies are working and which aren’t when it comes to the bottom line.
Most companies who use data-driven recruiting measure:
- The length of time it takes to fill a job vacancy
- The length of the application process in total
- Cost-per-hire to determine the cost of hiring
- Which job boards or referrals work best
- Candidate’s professional experience or skills
- Quality of hire and best fit
- Application conversion rates
- Percentage of job offers accepted or not accepted
- Retention rates and how long employees stay at the company
- Diversity, inclusion, and candidate experience
- Recruiting ROI
Understanding these metrics can help streamline your hiring process and make life easier for your hiring managers. They’ll have access to data that can help them change the process if necessary. Or, they can keep up with certain practices if the data shows a specific method is effective.
Why is Data-Driven Recruiting Helpful?
So why is this data important?
If your hiring managers are blindly sticking to the same method of recruiting, they are not getting the best hires possible and could be budgeting more efficiently. Increasing the efficiency of the hiring process can also ensure that the hiring process is done as ethically as possible.
Data-driven recruiting can help with the following:
- Making the most of your hiring budget and allocating efficiently
- Improving job board and social media recruiting based on the most effective channels
- Speeding up the hiring process, increasing hiring speed and efficiency
- Uncovering potential bias, unethical hiring issues, legality, or discrimination issues
- Forecasting hiring needs and automating job postings
- Improvements to the recruiting process, including new recruiting methods
- Improving employee retention and candidate or interview experience
Data-driven recruiting gives you and your hiring managers tangible steps to take since you have the complex data to back it up.
For example, if you receive your recruiting data and notice that it takes a long time for the process to be completed from start to finish, you can analyze precisely what steps are being delayed or slow. You can then communicate that with your hiring managers so they can make any necessary adjustments.
Companies Who Have Successfully Used Data-Driven Recruiting
Robinhood constantly changes its hiring processes to ensure that its hiring practices stay consistent and that every candidate has a good interview experience. They use data-driven recruiting to self-evaluate, collect feedback, and change their processes if necessary.
Uber is a gig-based business, so it has unique hiring processes. They use data analytics to see which areas need more drivers, which sites make the company the most money, and where to find the most efficient and competent drivers.
In our business, we use the phrase “listen to anecdotes; act on data” for a reason. It’s essential for hiring teams to listen to candidate and employee stories about their experiences (in candidate surveys, for example), but when it comes to taking action, having the data on which to act is crucial for success.