Analytics play an important role in the success of businesses around the globe. Using accurate data to make educated decisions supported by statistics can help companies save both time and money. Analytics can act as an invaluable tool for employers whether they see to uncover areas that require improvement or validate new projects. Recruiters can use this data to gain an advantage on competitors in an increasingly competitive and demanding market.
What are Recruitment Analytics?
Recruitment analytics are the combination of data and predictive analysis – i.e. using historical data to “uncover real-time events and predict future events.” The use of these metrics can be an invaluable tool for any employer whether the goal is to find the best talent or to retain talented employees, it has the potential to fully optimize the hiring process.
Why are Recruitment Metrics Important?
Recruitment metrics are important because they can help hiring professionals optimize their recruitment process while minimizing errors. Considering metrics as part of a general recruitment strategy can help employers reduce cost, improve the onboarding process, learn from past mistakes, and ensure that high quality candidates apply for vacant roles.
Not all metrics are created equal however, and recruiters will find some far more valuable than others. Stephen Lowisz warns that recruiters can often focus on the wrong areas to their detriment. Lowisz notes “there is zero room for error when it comes to recruiting” and that in an ultra-competitive market companies can lose out on the best candidates because they “lose the talent war before they even start recruiting.”
The following are some invaluable metrics that can help employers better understand and navigate the world of recruitment.
In 2018 U.S. workers changed jobs at a rate of 2.4%, the highest figure since 2001. Since younger generations have particularly taken to this phenomenon of ‘job-hopping’, retaining skilled employees has become more important than ever before. Companies that employ solid retention strategies will not only keep talented employees for longer but may also improve their ability to promote internally. Hiring professionals can use these metrics to learn from past decisions, thus improving their hiring process by better identifying those candidates likely to gel well within the company and stay for a sustained period.
An important ramification of retention rate is the cost associated with filling vacant positions. The Work Institutes Retention Report states that $630 billion was lost by U.S. industry due to voluntary turnover. Understanding these metrics can not only help recruiters identify suitable candidates but can also drastically reduce the costs of recruitment. Companies that maintain high retention rates will not need to consistently advertise vacancies which on average will cost them $4,129. On the other hand, employers with a high employee turnover rate will need to spend more on recruitment than competitors. By improving retention rates employers can keep their strongest staff members while also reducing recruitment costs, which can then be reinvested into other areas.
Time of Hire
‘Time is Money,’ as the old saying goes, and taking too long to fill a vacancy can lead to unnecessary costs and can indicate serious flaws in your recruitment strategy. An efficient recruitment plan can identify, interview, and hire potential employees within a pre-planned period, while an inefficient strategy may result in roles remaining open for prolonged periods without finding a suitable applicant. By streamlining the process companies can get the jump on potential rivals by making offers to candidates in shorter periods of time. Slow hiring times may mean that “the competition will take this top talent off the market before you have the time to make a hiring decision,” as Dr. John Sullivan notes.
By calculating the average time to fill and comparing it with national or industry averages those companies who outsource the recruitment process can see whether their contracted external recruiter is performing. For those who look after their recruitment in-house, comparing their figure to the industry average may be a general indicator of inefficiencies in their strategy.
Job applicants have an increasing array of online portals to apply for a new position. One of the main goals for recruiting managers should be to find the best possible candidates in both a cost and time efficient way. Dedicated jobs boards such as Indeed and social network sites like LinkedIn offer job seekers the chance to apply for positions with just a few clicks. Understanding where the best applicants originate from can help recruitment teams identify and target these job boards in future.
Deciding on where to allocate time and resources is a vital part of any recruitment strategy, focusing on the most successful channels will help to filter out weaker candidates who may be unsuitable for the role. By measuring the quality of sources, HR teams can save a great deal of time and effort by focusing their attention on those sites that have, on average, provided them with the best potential employees.
The Future of Recruitment Analytics in HR
LinkedIn’s annual Global Talent Trends Report underlines how more companies are investing in analytics, highlighting that over the past five years there has been a 242% increase in HR professionals with data analysis skills. Not only are companies seeking to reap the benefits, but those in a position to use these metrics to their advantage have the necessary skills to do so effectively. Recruitment analytics have come to play a pivotal role in the hiring process with more and more companies seeking to take advantage of what these metrics can offer. Data and insights look certain to be a driving force in the world of recruitment for years to come.
At Barometer, we can help you determine what your employees’ value most, what keeps them happy and what they look for in a job. We can help you better understand why your employees like working for you and why potential candidates may want to work for you. Click here to learn more about how Barometer can help!