Unlocking Talent Secrets with Data (63 metrics inside) ???

Only every third TA team listed “Data & Metrics” in their TOP-3 priorities for 2024, and shockingly, only half of these teams actually measure performance metrics (1).

Surprising, isn't it??How can we talk about the business partnering role of Talent Acquisition if we don’t even know how to measure our success and efficiency? Without a data-driven recruitment strategy, Talent Acquisition risks remain confined to the support function category for business leaders.?

But what does it truly mean to have a data-driven recruitment strategy?

In a nutshell, embracing a data-driven recruitment strategy is a thoughtful way to approach talent acquisition, utilizing insights to make well-informed and cost-efficient decisions.

In this article, you will explore the importance of data-driven strategies. From understanding key metrics to creating effective dashboards, we'll dive into market research and the impact of data on decision-making. We'll also touch on benchmarking performance, using analytics for diversity goals, and strategic workforce planning. Lastly, we'll highlight the crucial role of maintaining data integrity in talent acquisition.?

Ready to dive in? ???

Measuring What Matters: Key TA Metrics

Worth mentioning, that the situation with TA data is not as catastrophic as I mentioned earlier. The importance of Data in TA has been growing in the last few years.

Roughly one-third of companies said they planned to increase their investment in reporting/analytics tech this year and the year ahead (2).

But what to measure though? And why it’s so important?

Measuring how well you're bringing in new talent is a crucial part of smart hiring. It's like checking the score of your game to see how your team is doing. And you need to know the team’s statistics to make changes in your tactic to play better next game.

So, talent acquisition metrics are like your team's stats. They help you see if your hiring game plan is working and how you can make it even better. Of course, tracking the right metrics can speed up hiring, save you some cash, and make sure your hiring game is on point, attracting and holding onto the best talent for your team.

But where to kick off? There are tons of metrics out there, and each year, influencers toss in a bunch of new ones that swirl around conferences and articles from thought leaders.

Here's my golden rule: less is more.

Instead of pursuing quantity, create a step-by-step approach with a small number of metrics that can be game-changers in your process improvement adventure. To do this, identify your specific business problem and then measure relevant metrics to fine-tune your processes accordingly.

I prepared the document with a buffet of 63 metrics for various purposes and comments on them. For folks who might wonder how to gauge the success of their employer brand efforts, I suggest keeping an eye on various metrics because your employer brand can influence different parts of the hiring process. Check this document from Linkedin, I bet you find it interesting.

Now, let me spotlight the key metrics I'd suggest kicking off with (a short description of each of them you can find in the document I shared in the previous paragraph).

Visualizing Success: Dashboard Design

So, you've got loads of data, but how do you keep track of it all? Let's talk about recruitment dashboards and why they're the secret sauce for simplifying your hiring game.

Imagine a recruitment dashboard as your trusty advisor, making the whole hiring process a breeze. It's like a visual magic wand that organizes all your recruitment data, making it easy to see how you're doing. But here's the cool part – it doesn't just stop at looking good; it can also do routine and time-consuming tasks for you. By automating parts of the recruitment process, it saves you time and money. You can tweak it to fit your unique needs, making it a breeze to keep tabs on how things are going and make smart decisions.

Still not convinced? Check these out:

1. With the new data-driven strategy, Dropbox sees improvements in talent diversity by hiring as many as 42% of underrepresented groups from total hires. (3)
2. In organizations using visual data discovery tools, 48% of the managers can find the information they need without help from others. And 74% of organizations that use visual data discovery empower managers to make decisions when necessary. (4)
3. The use of visual language is proven to increase meeting effectiveness and efficiency, leading to 24% shorter meetings, and showing a 21% increase in reaching consensus compared to groups that did not use visuals. (5)

Million-dollar tip - don’t try to put all metrics on one page of your dashboard.

Instead, ask your users, and yourself a question on behalf of users, “What information do I want to get from here? Does it bring any value to me?”. A few examples - “What is the path-through rate of females in the Tech department after tech interviews compared with males?” or “How does the duration of the recruitment process affect the OAR?”.

Got it! But how do we build a dashboard with all this data, you might wonder? Let's simplify the process of creating your recruitment dashboard:

1. Step 1: Choose the data you want on your dashboard: pipeline stages, recruitment sources, cost per hire, recruiter metrics, time to hire, you name it.
2. Step 2: Identify recruitment software tools that will help you generate the data you need.
3. Step 3: Connect your software to visualization tools like LookerStudio (my favorite one), Tableau, or PowerBI for real-time insights. Even Google Spreadsheets is a good tool for visualization of your data.
4. Step 4: Design your dashboard with your brand's vibe, using logo, fonts, and colors.
5. Step 5: Showcase the dashboard to your team, explaining the metrics and their significance for optimizing processes.
6. Step 6: Train your team to use the dashboard daily, applying metrics and making decisions based on insights.

A few more recommendations to help you perfect your data-driven decision mindset within the TA organization:

1. Regular Check-ins. Schedule sessions with stakeholders to review progress and strategize hiring objectives, covering pipeline stages, cost per hire, recruiter metrics, sources, and time to hire.
2. Access and Understanding. Ensure all team members have dashboard access and understand metrics for quick, informed decisions.
3. Stay Informed. Notify teams of changes in data, prompting corrective action if metrics decline.
4. Spot Trends. Use dashboards to identify trends like success rates or team performance, optimizing processes for better results.
5. Reporting. Use dashboards to whip up reports for everyone involved in hiring at your company. These reports highlight success stories and point out where we can tweak our recruitment process.

Looking for some inspiration with visualization, feel free to check the document by Gem and templates by Slideteam. Also, highly recommend reading this article by RecruitingDaily about how to create the perfect recruiting dashboard.

Benchmarking Talent Acquisition Performance

Benchmarking your talent metrics is like giving your performance a reality check against what's trendy in your industry. When you stack up your metrics against the standards and what the competition is up to, you figure out where you shine and where you could but don’t for now. It's not just about setting goals; it's about setting goals that actually make sense. Plus, it helps you show off your strengths and what makes you stand out to everyone who matters – candidates, employees, managers, company leadership team, you name it.

To effectively benchmark and assess your talent metrics, it's crucial to leverage reliable data sources. Internally, draw insights from your historical and current data sources, including your ATS, HRIS, and candidate surveys. Externally, tap into public data and reports provided by trusted sources such as industry associations, research firms, vendors, and recruitment agencies. Additionally, use more online platforms like LinkedIn Talent Insights, Glassdoor, and Indeed for benchmarking data and analytics. Making connections with peers in your industry and region is key for sharing data and best practices, facilitated through online communities, webinars, events, and surveys dedicated to fostering peer-to-peer benchmarking and collaborative learning.

Now that you've got your benchmarks, what's the next move?

1. Spot the gaps and juicy opportunities for improvement.
2. Craft SMART goals straight from your analysis.
3. Roll out action plans to level up your hiring game.
4. Keep an eye on your progress.

And remember, this isn't a one-off thing. You've gotta stay on top of it 24/7.?

Seeking a good TA metrics benchmark, I stumbled on two benchmark reports. The first one is by Gem, and the second one is created by Crosschq.

Incorporate your TA Data in Strategic Workforce Planning?

So, if you've checked all the boxes above, you're all set to dive into the big leagues - Strategic Workforce Planning with TA data. Strategic workforce planning is like the matchmaker for a company's big dreams and the folks they need on board. First, dive into what the company wants, then take a good look at the crew you've got.?

But how do you do that the right way? Here is a simplified action plan.

Step 1: Define Business Objectives. Initiate the process by defining key business objectives. Establishing a precise direction and understanding organizational goals is fundamental to effective strategic workforce planning.

Step 2: Workforce Analysis. Together with colleagues from Talent Management and/or HRBPs conduct a comprehensive evaluation of the existing workforce. Capture an overview of skills and knowledge that current employees contribute to your company.

Step 3: Forecasting Future. Equipped with knowledge of business objectives and workforce analysis, you are ready to foresee future hiring needs.?

Step 4: Strategy Implementation. Merge business objectives, workforce evaluation, and future forecasts into a TA action plan. This phase is vital for optimizing and planning the TA workforce. It assists in budgeting for TA needs effectively.?

Remember, at this stage collaboration with colleagues from other departments and business leaders is key to success - without a synergy of all stakeholders, you will walk in the dark without a torch but with a bunch of frequently changing assumptions about future hiring needs and reactive recruitment.

Data Quality is Key

Making sure your TA data journey is smooth starts with nailing down data accuracy and completeness. Trust me, dodging the pitfalls of poor data quality is the first challenge you’ll tackle in this adventure called TA Data.

Do you know that employees waste up to 50% of their time dealing with mundane data quality tasks? (6).

Here are some tips to keep your data neat:

1. Set the Standards. Define and inform your teams about crystal-clear data quality standards.?
2. Regular Check-ups. Keep tabs on your talent acquisition data with regular audits.?
3. Clean Sweep. Regularly validate and clean your data.
4. Knowledge Boost. Training and support, especially for those who are responsible for data entry, is key to keeping things clean.
5. Ensure Data Security. Set up access controls, keep an eye on who has access to data, and make sure the data is stored securely.

Final Words

In a nutshell, this guide spills the beans on how diving into data can amp up your talent acquisition game – from key metrics to dashboard design, benchmarking, strategic workforce planning, and data quality. But before you go, a few things about TA data and dashboard, just to be fully clear:

1. Data won’t tell you the full story. Dashboards are not your oracle; it's just the messenger.?
2. Having data and numbers won’t solve your issues with hiring for you. You still to need act properly and make the right decisions based on data, not assumptions.
3. Accuracy matters; it's the backbone of information. On the flip side, do not be frustrated if you can’t reach 100% data accuracy. You work with humans, and they make mistakes often.

There you have it – the playbook to keep your TA data game strong!

References:

1. The Firm. Annual Report. Understanding Priorities and Trends in Talent Acquisition
2. Employ. Employ Quarterly Insights Report
3. SHRM. Data Plays Growing Role in Driving Hiring Decisions
4. Aberdeen Group. Visualization. Set Your Analytics Users Free
5. AMA. Using Visual Language to Create the Case for Change
6. MITSloan