How to Turn Recruitment Analytics into Action

Data is often described in almost magical terms because of the valuable insights companies can unlock and the power it has to impact business outcomes. Recruitment analytics especially give HR departments the ability to understand the talent an organization attracts, to change hiring and talent management outcomes, and to determine the number of professionals required to achieve their organization’s talent management goals.

When we talk about data & analytics (D&A) in the corporate sphere, we’re referring to the steps organizations take to manage data so that it can be used for analysis and decision-making. As Gartner notes, data is not just useful in helping companies uncover questions or offer solutions to nagging questions, but it is also a “catalyst for digital strategy and transformation.” This is an essential advantage in a fast-paced business environment.

With D&A capabilities, HR departments can solve difficult problems and make better decisions. The most common ways that recruitment analytics can be utilized to aid HR department activities include the following:

1. Providing insight into the hiring practices that are working and aren’t
2. Identifying the most effective recruitment sources,
3. Assessing candidate and employee experiences,
4. Identifying resource needs and inefficiencies,
5. Ensuring equity in compensation,
6. Measuring the cost of operations. 

Applicant tracking systems (ATS) and recruitment CRM solutions are some of the HR tools that can provide the data to help HR leaders understand their teams’ performance in these areas and make informed decisions to improve their hiring strategy and processes. 

Analysis of the global HR analytics market shows that demand is growing sharply. The industry is estimated to grow at a CAGR of nearly 17% from 2022 to 2031, reaching $11 billion by 2031.

Research indicates that only about 27% of Chief Data and Analytics Leaders and other C-suite executives at large organizations claim to be data-driven. Nearly four out of 10 HR leaders in the United States say that HR insights and data analytics is their top challenge, with 31% of HR professionals describing their organization’s talent acquisition function as “improvisational, chaotic or nonexistent.”

This shows that while HR departments have made positive strides in technology adoption, the reality is that harnessing this powerful data is still a dream for many organizations. This must change if companies want to leverage the power of recruitment analytics in their talent acquisition activities. Achieving this goal is only done by the few companies that have both the tools and the resources to use it correctly and a commitment to becoming a data-driven enterprise.

Simply having data will not automatically yield insights that business leaders can act on. Spending weeks or months capturing data, preparing it for analysis, and reviewing reports defeats the purpose of being agile in an ever-changing market. This is why it is essential to establish a team centered around its recruitment analytics so that action can be taken from the insights instantly.

Becoming more data-driven can help HR leaders have a meaningful impact on the department’s decisions. These four steps can set HR departments on the path to developing a culture built on data they can act on to improve hiring outcomes. 

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Define what metrics to measure

HR tools generate massive amounts of data on a daily basis - and that is just a small fraction of the total amount of data companies generate per day.  All of it can appear important, but it likely isn’t all pertinent to your HR goals. Therefore, the first step on the path to leveraging data is defining what activities you want to track and which data points are important to your team’s operations.

The most common recruitment metrics to monitor include:

• Time-to-hire: the time it takes for your team to select and hire a candidate.
• Time-to-fill: the time it takes to fill a vacancy from the moment the job listing is posted.
• Cost-per-hire: the costs associated with hiring a candidate, including advertising a vacancy, background checks, and the time and resources associated with interviewing candidates.
• Rejection rate: the rate at which candidates who are offered a job decline job offers. 

Many top recruitment platforms already include this data and make it easy to see in a dashboard. Once you know what to measure, collecting and analyzing this data will become a much more feasible activity. Additionally, those metrics should be also monitored with multiples dimensions to get an holistic view of the performance ; hence it is also good to segment those data by recruiter, by department, and by sourcing channel to collect further insights.

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Audit existing tools

The next step after defining the metrics you want to measure is taking a close look at your HR department’s existing tools to determine if these resources are providing the data you need. Conducting an audit of your ATS, recruitment CRM, HRIS, and other tools will show you what kinds of data you can expect to receive from each platform. Each solution generates unique and sometimes overlapping data that can be extremely valuable. The key is to assess what data you are getting from each tool and determine what is important for you to measure on a regular basis. Integrating your solutions can also make it simpler to see what you have available. Keep in mind that every piece of data may not be essential to capture and analyze, so only prioritize what will help you measure your team’s activities.

It is also essential to ensure that your data is secure and that candidate data is kept private in your systems. Any tool you deploy in the organization should have strict privacy and compliance mechanisms to protect their users’ data and a process for regularly updating the software to remove security vulnerabilities. This, paired with your organization’s security protocols, will ensure that data is protected from malicious hacking efforts. 

Identify resource gaps and needs

After reviewing your existing tools, the next area of exploration is your team’s resources. In order to have data that is actionable, it needs to be collected, scrubbed of personally identifiable information, and formatted before it can be analyzed. 

Does your organization have the employees to conduct these tasks on a regular basis? Large organizations may have the budget to hire business intelligence and analytics teams that are responsible for synthesizing and sharing data with relevant stakeholders.

However, it is no secret that the ongoing global talent shortage in the tech space is making it difficult for organizations to hire the number of resources required to build comprehensive business intelligence and analytics programs. 

The Bureau of Labor Statistics anticipates that the number of mathematical science jobs, including operations research analysts, will increase by 27% from 2016 to 2016. The infusion of artificial intelligence into many HR solutions is helping to fill that gap. However, as Nicole Janssen, Co-founder and Co-CEO of AltaML, points out:  “Any process that involves the making of a prediction involves AI, and it is data scientists who create the algorithms that drive the underlying intelligence of these prediction processes.”

If your organization does not have access to these types of resources, you may need to determine if your recruitment tools have automated analytics capabilities that can help to fill talent gaps in your organization. An ATS solution like Manatal makes it easy for anyone in the department to analyze recruitment analytics and review customized reports on the team’s performance and your recruitment metrics.

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Transform processes and culture

Once you have a clear understanding of what metrics you want to measure, where this data will come from, and the personnel or technology required to analyze this data, the next step is to establish processes that support the use of recruitment analytics. Additionally, initiating a change in culture will ensure that new processes stick. While this is a difficult task - and many companies fall short - it is essential to implementing real change in how people operate in an organization. There are countless examples of digital transformation projects that do not live up to expectations because employees are not on board with the changes.

A vital part of changing the processes to support the use of recruitment analytics is creating policies that guide data privacy, collection, and usage. There should also be a process for auditing and deleting unnecessary information. The legal and reputational consequences of non-compliance can be significant for organizations, so it is vital to get the processes right.

Aligning HR processes and expectations around the team’s activities with data analysis and decision-making are crucial steps in becoming a truly data-driven enterprise. Only then will companies be in a position to make more informed decisions about their team’s activities and talent management strategy. 

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Turn insights into action with Manatal

Manatal empowers companies to take action from their recruitment analytics. With a customizable dashboard, HR leaders can quickly see the results of their team’s activities, trends related to the hiring process, and metrics associated with candidate sourcing, such as where they are coming from (i.e., job boards, social media, or the career page) and how effectively positions are being filled. From a centralized location, HR leaders can see where there are problems in the process and quickly take steps to improve how hiring is done in their organization. In essence, that is what actionable insights are all about.

Start a 14-Day free trial today to see how Manatal’s applicant tracking system can transform your recruitment activities.