Unlocking the Power of Data-Driven Recruitment: Why Data Should Drive Your Hiring Decisions
Unlocking the Power of Data-Driven Recruitment: Why Data Should Drive Your Hiring Decisions:
In today’s modern business landscape, data is akin to gold, and for good reason. Just as companies rush to extract oil's hidden treasures from the earth, they are now equally eager to harness the immense potential of data. It's not just about collecting data; it's about transforming raw information into a valuable resource that guides informed decisions. Companies are no longer merely data collectors; they are miners, extracting valuable insights to guide strategic decisions. Just like oil, data holds its greatest value when processed and utilized effectively. When employed strategically, data becomes a potent tool, enabling companies to predict market trends and proactively address challenges.
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While recruitment centres around people, the strategic collection of data can prove a game changer in making hiring decisions more efficient and agile. Rather than reacting to hiring needs, you can proactively foresee changes and confront any challenges head-on. This would be using a method called ‘Data-Driven Recruitment’, making business decisions through optimising the use of data.
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In this blog, we’ll delve into –
What is “Data-Driven Recruitment” (DDR)?
In the technology sector, developers follow a “Data-Driven Development (DDD)” strategy. DDD is a software development process where data is used to drive decisions to ensure any decision around design and development is supported by data. As a recruiter, you can harness the power of data in a similar fashion.
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Throughout the recruitment process, it's essential to collect small, meaningful snippets of information that you can provide as feedback to the organization. This data will illuminate your strengths, areas for improvement, and help measure the efficiency of your market approach. In the realm of recruitment, where people are at the heart of your company's success, operating without data is akin to navigating blindly, unable to make informed decisions that profoundly impact the calibre of talent you attract.
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What is the purpose of “Data-Driven Recruitment” (DDR)?
This can be developed in a recruitment setting too. The purpose of using data is what I call ICE Management, ICE stands for “Identify”, “Change/Challenge/Compromise” and “Execute and Evaluate”.
Here’s how ICE Management works:
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I for Identify –
Identify and create a recruitment strategy that will set you up for success or if you’ve highlighted barriers/issues or potential escalation then make a plan to address it using the three C’s to formulate your objective.
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C for Challenge / Change / Compromise -
Once you’ve identified your set objective, think about what the data is telling you and what conversation you need to have with your stakeholders/business groups. Data is a powerful tool to make a difference and can help construct a narrative for positive shift in recruitment strategy. These are the three C’s which can help provide this shift:
Challenge
To challenge we object to something already. We can optimise data to challenge those stakeholders involved to shift their mindset to hiring and challenge what they are currently doing right now.
Change
Once we’ve made a challenge, we want to change the stakeholders’ perspective and use the data to make an impact.
Compromise
E for Execute and Evaluate –
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This is a recommended guideline to install as a recruitment best practice by may have similar methods or processes but as long as the message/narrative is clear then that’s the primary goal you’re aiming for to optimise data.
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Optimising Internal + External Data
When considering your position in the job market, it’s critical to gauge your internal competitiveness versus the external market. To achieve this, you should look at:
-?????? Compensation and Benefits
o??? How well does your internal package compare to industry standards?
-?????? Interview Processes
o??? How many stages do you have in the process and how long will this process be?
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-?????? Skills and Experience of others
o??? Are the internal skills and experience level required in the role aligned to what you’ll find externally?
-?????? Where the talent is geographically
o??? Does your role need to be in the office/country location, or can you hire more broadly/remotely?
-?????? Collect Diversity and Inclusive Insights
o??? Think about how you can grow by diversifying your team.
-?????? Market Trends and Local Trends (such as the increased cost of living or market redundancies)
o??? Consider the current economy and job environment in the region you’re hiring.
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These factors reveal your competitiveness and highlight potential equity issues within your organization. For example, if you’ve researched that the average job role is ￡5,000 higher paid by competitors against your internal position then you can be likely to be at risk of losing staff as you’re not paying a fair salary to new industry standards.
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What Data Points should be collected throughout the “End-to-End” Recruitment Process
Throughout the recruitment process, you should be collecting small snippets of data that will provide a clear picture of the progress on how well recruitment end-to-end has become. Here are some examples of data you can collect:
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-?????? Candidate Engagement:
Collecting comments from candidates can make a huge difference to how you approach the market and how you can influence change or strengthen. Think about gathering the following for example:
How many reach-outs conducted?
How many replies have you received?
How many screenings have been completed?
How many accept in replying/applying?
What is the perception of the candidates regarding the company or role?
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-?????? Marketing Engagement:
Implement A/B testing to refine your outreach strategies, optimizing your advertising spend.
How many clicks are you getting to your careers page?
How many page clicks go into applying?
How engaging are your company’s marketing emails reaching candidates?
Where is it best to spend on advertisements?
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-?????? Interview Progression:
Measure how successful your candidates are progressing at each stage of the end-to-end process. It’s essential to collect comments/feedback from the hiring stakeholders and candidates and measure how many candidates reach each stage.
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-?????? Offer Acceptance:
Collecting data on how positive your closing stages of offering candidates will be is critical as this will highlight how competitive you are compared to others.
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-?????? Candidate/Manager/Stakeholders Experience Surveying:
Asking how the relevant parties felt regarding the process can help future hiring to replicating the positives and recycling them or/and highlighting potential gaps that need to be dismissed or improved.
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This collection of data throughout the end-to-end process of recruitment will provide critical insights into understanding your strengths and analyse your areas for improvement.
For example, you can work out: what type of engagement message worked well while reaching out to candidates, the law of average to how many reach-outs, screening calls, and interviews it’ll take to fulfil the position, the overall cost for the hire and time, and review how the overall experience was internally and externally with a feedback form completed by the parties involved.
Summary
Data-driven recruitment isn't just a buzzword; it's a strategic imperative. By harnessing the power of data, you can steer your recruitment efforts with precision, ensuring your company remains competitive and adaptable in the ever-evolving challenging job market. Make data your ally in the quest for top talent.