What is data-driven recruitment?
Data-driven recruitment is an approach that uses data analytics to optimise the hiring process, allowing organisations to make more informed decisions. Recruiters and managers can be more objective and hire based on evidence rather than intuition.
The approach involves collecting data, analysing it, and leveraging it throughout the hiring journey. It differs from traditional recruiting methods that may rely on subjective judgement.
Additionally, data-driven recruitment strategies speed up the hiring process and improve the quality of hires. The insights gained from data allow recruiters to make quicker decisions and assess candidate performance.
Related: Data analytics in HR: how businesses are missing out on untapped potential
Values of data-driven recruitment
Data-driven recruitment offers significant value to organisations that harness it. Here are some of the key benefits of this recruitment strategy:
Factual and informed decision-making
Data-driven recruitment allows organisations to make sharper decisions and refine their strategy using clear, actionable data. With the right insights, businesses can track recruiter performance, candidate success, and market hiring trends. If data indicates an increased demand for a specific role, the organisation can proactively source, vet and qualify candidates early.
Data also helps optimise recruitment teams. For example, if one recruiter consistently hires faster than others, they can be assigned to time-sensitive roles.
Better accuracy in hiring
Standardised metrics take the uncertainty out of the hiring process. Instead of relying solely on CVs and interviews, businesses can use data from screening and assessment tools to identify candidates more likely to succeed in the role.
Analysing past hires, performance data, and sourcing channels helps spot patterns. Recruitment teams can determine which traits define top performers and which hiring strategies work best. With this insight, the search for candidates can be refined from day one.
Improves candidates’ experience
A personalised approach is highly valued by applicants. By leveraging candidate data, organisations can tailor their communication and accommodate individual preferences. This level of responsiveness creates a more engaging experience and ensures candidates feel valued at every stage of the hiring process. A data-driven approach improves satisfaction and strengthens employer reputation.
Reduces bias through fair evaluation
Using data in the recruitment process significantly reduces bias. Decisions are made based on objective metrics, such as a candidate’s performance or qualifications. Data-based evaluation eliminates unfair judgement and helps create a more inclusive workplace.
Streamlines the hiring process
Recruiting new employees can be a lengthy process that is time-consuming and resource intensive resources. Adopting a data-driven recruitment strategy streamlines the process and increases its efficiency by quickly identifying bottlenecks and focusing on the most effective sourcing channels.
Related: How Indeed can support a digital recruitment process
Saves on recruitment costs
As time-to-hire decreases, the costs associated with the hiring process are positively impacted. The allocation of hiring budgets can be reassessed to further optimise the process. For example, the recruitment technology stack can be audited and improved, or investments in recruitment software can be considered.
Related: Allowing employees to work remotely as part of a lifestyle benefits package
Metrics and tools of data-driven recruitment
Data-driven recruitment strategies rely on metrics that determine the performance of both the recruitment process and candidates. These KPIs can be evaluated through HR tools. This section examines the indicators used in data-driven talent acquisition and the tools available to businesses for optimal performance.
Data-driven recruitment metrics
Using KPIs to track recruitment performance is essential assessing efficiency. Here are some metrics that are worth implementing to continuously evaluate the hiring process:
Cost-per-hire
Cost-per-hire is a metric that measures the costs associated with each recruitment, including advertising the role, agency fees and employee referral bonuses.
Time-to-hire
This KPI measures the time taken to fill a vacant role, from the opening of the position to the acceptance of the offer.
Quality-of-hire
The quality-of-hire KPI assesses the performance of selected candidates, including retention and their influence on the organisation’s culture and objectives.
Offer acceptance rate
As its name suggests, the offer acceptance rate identifies the proportion of candidates who accept job offers. A low acceptance rate may indicate that the compensation package is too low compared to competitors or that candidates do not align with the company’s values.
Sourcing effectiveness
Measuring the effectiveness of sourcing channels is essential and can be a game changer. The sourcing channels used by the business should align with where candidates are searching for their next opportunities.
Candidates’ satisfaction metric
This KPI gauges candidates’ experiences and assesses their perception of the recruitment process, including onboarding.
Diversity of hires
This KPI measures the representation of various demographic groups, such as gender, ethnicity, and disability, within an organisation’s new hires. Diversity in the workplace fosters innovation, and including this measurement in corporate governance can be valuable.
Related: Using Data from Performance Reports to Improve Job Listings on Indeed
Data-driven recruitment tools and solutions
Technology in recruitment accelerates the hiring process. Businesses should establish robust and user-friendly frameworks for their HR teams, which may include:
Recruitment CRM
A recruitment CRM solution helps maintain strong candidate relationships by tracking interactions throughout the hiring process, creating better experiences and improving engagement over time.
Applicant tracking systems
Also known as ATS, this system simplifies the application process and collects data on candidate sources.
Recruitment management systems
An RMS manages the hiring process end-to-end, streamlining tasks from job postings to onboarding and ensuring a more efficient workflow.
Screening tools
Screening tools are commonly used by businesses to automatically evaluate candidates’ suitability against job postings.
Recruitment analytics software
Recruitment analytics software tracks key metrics to improve hiring strategies, leveraging data that organisations can use to make informed recruitment decisions.
Related: 7 talent management system tools
Tips for creating best-in-class data-driven recruitment strategies
To maximise the value of data in recruitment strategies, consider some key points. This section provides tips on embracing the use of data in recruitment.
Have clear recruitment goals
Aligning the data-driven recruitment strategy with overall recruitment objectives is essential. These goals should follow the SMART framework, being specific, measurable, achievable, relevant and time-bound.
Related: A better recruitment strategy makes for a better candidate experience
Collect and cleanse recruitment data
This initial data collection step is essential for the accuracy of the output. It is recommended to collect data from various sources and centralise it. The data should be consolidated and cleansed by removing duplicates and addressing inconsistencies, resulting in an accurate dataset for analysis.
Related: Data protection and HR GDPR for employers
Leverage technology
With clean data, businesses can establish a system for ongoing insights, which can be done through an integrated analytics platform. Implementing specialised software may facilitate smoother processes with easy integration and user-friendly data visualisation.
Related: Mastering digital HR: a guide to HR transformation
Implement measurement metrics
To track progress towards recruitment goals, identify and monitor KPIs. Use the previously outlined KPIs for a holistic assessment of the effectiveness of your hiring process.
Develop a strategy
Analyse your KPIs to develop your strategy. The results will help identify trends and areas for improvement. Link insights with your overall recruitment strategy to align your goals.
Train your teams in data literacy
For a data-driven approach to succeed, team members must be engaged. If necessary, train your HR teams to understand and use data analytics tools effectively. Data literacy training is essential for the success of data-driven recruitment, ensuring all recruiters are confident in using data.
Related: What is data literacy and how it can benefit employees
Continuously look for improvements
Recruitment is ever-evolving, driven by market shifts, new technology, and changing client and candidate needs. Therefore, data should be regularly assessed, and new KPIs may emerge. Continuously tracking results will help you stay ahead, gain new insights, and refine your strategies.
Related: Social media recruiting tips and strategies
A strong data-driven recruitment strategy prioritises quality over quantity. Cleaning the data and implementing clear processes enables hiring teams to work smarter and plan for growth. Data also improves talent sourcing, candidate experience, and decision-making while supporting diversity and inclusion efforts.
Related: How to find good employees
