In today’s highly competitive talent recruiting environment, adopting a data-driven approach to hiring is a must. Without analyzing recruitment data, predicting factors such as candidate compatibility and employee turnover is tantamount to a guessing game.
Predictive analytics help to provide insight into the effectiveness of a company’s recruitment and hiring program. Prominent organizations like Google, Deloitte and Cisco are actively embracing recruitment and predictive analytics in their hiring processes with notable success.
What Is Predictive Analytics In Recruitment?
Predictive analytics in recruitment is the analysis of historical recruitment data from all aspects of a business. Recruitment analytics tools convert this data into insights by looking for patterns in the sourcing and hiring data. Hiring managers can use these insights to improve hiring decisions, workforce planning, and recruiting strategies. Predictive analytics enable recruiters to pinpoint trends with a considerable degree of certainty, allowing them to optimize their actions for superior results.
What Are The Top Recruitment Metrics To Analyze?
Predictive analytics looks at a number of different metrics in recruitment. Here are some top metrics where predictive recruitment tools can provide valuable insights:
- Time to screen
- Time to hire
- Quality of hire
- Candidate sources
- Candidate retention rate
- Cost per hire
- Job satisfaction
- Offer acceptance rate
- Time to productivity
- Hiring bottlenecks
How Predictive Analytics Can Improve Recruitment
A single recruitment failure can cost a company approximately $15,000 in today’s market. Using predictive analytics can save your organization in costs and more. Check out the top ways in which predictive analytics can improve recruitment.
Hiring is a prominent area where an organization can benefit from analyzing data to help assess candidates. People are a company’s most important assets, and as such they need to be at the core of any hiring strategy together with the top predictive tools.
Predictive hiring technology learns from current and past employee data to predict a candidate’s potential fit. AI and predictive analytic algorithms narrow down candidates before they even make it to the recruiting manager, assess candidate fit and readiness, and recommend only the best people. This saves the recruiter and the company time, costs, and resources. It is also possible to predict the future performance of a candidate with the help of prototypes that utilize a combination of metrics like production performance, employee lifecycle information, data on attrition, and engagement survey feedback.
Reduced Employee Turnover
It is an undeniable fact that employee turnover is expensive. In today’s market, the cost and time spent by an organization to hire a replacement are significantly high. The position that is left open also causes the company to lose money on lost productivity.
Research shows that more than 75 percent cases of turnover are preventable. When a candidate is matched to a suitable position using analytics tools, it ensures greater job satisfaction and benefits the company. Analyzing your candidate retention rate can provide useful insights into how long an average employee is remaining at your organization. A low retention rate indicates issues with your hiring practices or within the company that need to be addressed on a priority basis. Predictive analytics tools can also gauge which employees are most likely to leave based on a review of employee attributes, and the financial impact that will have on the business.
Enhanced Speed of Hiring
Time to fill and time to hire are two important metrics that significantly impact recruitment. Time to fill measures how long it takes to fill an available position, from the time of the job posting to the time it is filled. Time to hire tracks how long it takes to hire a given candidate from the first communication to the time of acceptance.
Using predictive hiring, recruitment managers can now analyze and reduce the time taken to fill an open position. This makes the hiring model highly fine-tuned and streamlined, improving the ability to rapidly select the most suitable applicants. to Using predictive tools, recruiters can cut through unnecessary clutter, connect instantly with the right candidate, and move ahead faster.
Better Talent Sourcing
Talent acquisition costs have skyrocketed in recent years and making sure you are sourcing the right person promptly and cost-effectively has become more crucial than ever. Given the current talent crunch and competitive recruiting environment, companies need reliable and productive methods of talent acquisition if they want the best candidates.
Passive candidates are a huge target for recruiters at the moment. Predictive analytics are invaluable in creating a talent pool of people who are not actively searching for a position but might be looking to change their jobs in the near future.
Predictive tools look at candidate data from a variety of sources, such as social media activity, online profiles, company news and updates to predict which people could be potential passive candidates. These tools also analyze factors such as overall company attrition rates and the candidate’s personal tenure rate. Using this data, recruiters are able to source promising prospects and accordingly customize their hiring strategy to suit different types of candidates.
For companies, tech recruiting firms, and IT recruitment agencies to stay ahead in the recruitment market, predictive analytics should be a critical part of their talent acquisition program. Recruiting heads need to grasp the immense potential of the complex and copious amounts of data that they have at their fingertips, and use the power of technology to make better, faster, and smarter hires.
At Employvision, our expert recruiting team has access to the latest predictive analytics tools in sourcing and recruitment to provide you with outstanding Talent Acquisition and Management solutions. We help reduce your recruiting cycle time while improving your candidate experience and retention.
Contact Employvision and start hiring the best IT talent today!