Data Analytics in HR is Transforming Recruitment


Have you ever wondered how much data we generate every day? As of 2020, people churned out 1.7 MB every single second. That translates to about 1.15 trillion MB in total per day. Research shows that by 2025, there could be over 200 zettabytes in cloud storage. With more people using the digital space, we can expect the figures to continue to rise. Without a doubt, data analytics has a critical role in any organization. Data helps the company understand the market better. The insights from analytics play a big role in decision-making. Indeed, no department within the organization does not use data. And that includes HR as data analytics in recruitment dimension. 

Our article explores how data analytics is transforming recruitment.

How Does Data Analytics Transforming Recruitment?

1.Data Analytics and Recruitment


The success and continuity of any company reside in its people. Getting the right talent onboard is a critical HR function. They will spend hours and days going through applications. The aim is to narrow down the best candidates for the open position. Recruitment Process Outsourcing (RPO) companies can also help with this critical role. These are third-party service providers who deal with talent sourcing and onboarding. 

Forward-looking companies invest in the best technologies to help with the processes.

Data analytics in recruitment is taking a more prominent role. RPO talent acquisition incorporates the use of data to find the best candidates. Data-driven AI tools increase diversity in the hiring process. 

Client mapping and candidate sourcing give RPO consulting companies better industry insights. This increases the chance of finding better candidates for recruitment.  

Yet, the use of data is in no way a new concept. For a long time, recruiting managers have used data to help make decisions. Companies would, for instance, require candidates to take aptitude or IQ tests.

But now, thanks to technology, HR can go through tons of data in a very short time. The tools allow for further exploration of a candidate’s suitability. It removes the focus from using grades or experience only. Artificial intelligence, for example, can provide more insights into a candidate’s personality.

The tools can also read nonverbal cues. The insights will let managers know whether the person will be a good fit for the company.

2.Candidate Benchmarking with Data Analytics

Data analytics provides benchmarking metrics for the company. HR will know the hard and soft skills necessary by looking at top performers. Then, they use this to establish appropriate KPIs for the job qualifications.

Take the example of the critical role of soft skills. Candidates may come in with very high scores from academic institutions. Yet, they may lack soft skills like humility, leadership, and collaboration. That could impact their ability to be successful in the job position.

Insights from data analytics can be an internal process. The company can also use the same for benchmarking against the industry. It helps the organization understand the type of talent it has.

Further, the teams can use the insights to optimize or improve workflows. The direct result will be higher efficiency.

3. Predictive Analytics in the Recruitment Process

Predictive analytics provides valuable insights based on historical data. The HR team can use this to predict the type of candidates to hire. The process incorporates statistics, modeling techniques, and machine learning. This can predict what could happen in specific scenarios.

Predictive modeling will help determine if the candidate would be a worthwhile hire. RPO recruiting companies use this as the basis for decision-making. 

Looking at the available data will let the team know how well the employee will perform in the future. They will know how likely the candidate is to stay in the job position. Such analytics provide an effective way to overcome some of the hiring challenges.

4. Greater Objectivity with Data Analytics

The reality is HR comprises human beings. The teams are subject to human failures that can impact recruitment. One of the most common is hiring bias, which will result in a lack of diversity and inclusivity.

RPO solutions providers use data analytics because it allows for a focus on objective factors when sourcing candidates. The tools consider factors like educational background and job qualification. Aspects of race, sexuality, gender, and religion do not come in at all.

Knowing where to look for candidates is also critical. There is no point in having job postings if the target will not see them. Narrowing down on the right channels or platforms will cut down on expenditure. The company also gets the chance of hiring high-quality candidates.

Data insights show the number of applications for the vacant posts. If the number is too low, or the quality of candidates is not good, it shows there is a problem. It could, for example, stem from the type of job postings. They may be too vague or complex, thus not communicating well. Feedback from applicants can also let HR know what they need to improve upon.

5. Better Employee Management with Data Analytics


As stated above, data insights will help the company find the best employees for the job position. A good understanding of their capability means assigning responsibilities they can excel at.

A team member who feels disengaged is not likely to stay. Inability to perform jobs outside of their qualifications will impact output. The employee ends up seeming unproductive. It could hamper any opportunities for career growth.

HR will find itself in a revolving door of incoming and outgoing employees. A staggering 63% will leave a job because they do not see any advancements in their role.

Data analytics can be the solution to overcoming recruitment and retention challenges. Some insights will let HR know where to focus its attention.

Let’s take the example of understanding why employees want to work for a company. Or why do other companies never seem to struggle with staff turnover? The teams can use the insights to create a better work environment.

Final Thoughts

Data analytics has been a game-changer in recruitment. The insights provide a lot of information HR can use to improve or optimize the processes. That is why professional RPO recruitment companies depend on such information. 

Furthermore, data-driven decision-making removes the guesswork from the operations. The company can achieve greater diversity and inclusivity by eliminating bias.

And it doesn’t end there. The company can better manage its employees. It can, for example, match candidates with the job that they can do well. The data is also crucial for benchmarking and setting KPIs. Finally, predictive analytics is critical for future HR processes by considering historical data.


Related posts

Leave a Comment