Modern hiring practices have required a more fast-paced approach, whereas recruitment data analysis is continually needed for success. As more companies fill positions quickly, data-driven insights from recruitment analysis will refine quality-of-hire and other metrics to reduce employee turnover.
First, we will have a general discussion about recruitment analyses. Then, we will dive into defining objectives for these analyses, identifying key metrics, and how to collect and analyze the data.
What Is Recruitment Analysis?
Data analysis for recruitment is an essential process where metrics about the hiring process are collected and evaluated for strategy refinement going forward. We will touch on each of the key metrics that are crucial for recruitment analysis later on.
The overall goals of recruitment analyses are to understand the current trends, improve them for efficiency, and make data-driven decisions. Evaluating how effective the main hiring strategy is at the current moment and making improvement plans will help keep a business competitive against rivals to hire the best talent.
Define Your Objectives
The first step in starting recruitment analyses for your business is defining your objectives. What does your firm want to glean from conducting these analyses? How will the information collected benefit the company in the future? Here are the most popular objectives that are usually defined when conducting data analysis of corporate recruiting.
Improving Efficiency
Streamlining the hiring process is the key function of improving recruitment efficiency. Automating communications to candidates, sourcing them quickly with job board integration, and quicker screening with AI are just some of the many features that improve efficiency.
Cost Management
How much is the company currently spending to achieve candidate outreach and onboarding? Evaluating where most of the money is going for current recruitment efforts will give insight into where the company can cut costs.
For example, if too much money is allocated to sponsored ads twice a month on external job boards, publish only one sponsored ad monthly. You can edit this monthly ad by refining its written delivery to increase clicks to your job ad.
Quality of Hire
The effectiveness of finding the most high-quality hires is essential for employee retention. In 2022, studies found that 62% of the highest-quality hires came from candidate sourcing rather than talent placing applications.
Hence, enhancing the quality of hire means refining a candidate sourcing approach. Company recruitment software should include job board integration features to reach the best talent. Social media integration will also assist this strategy.
Candidate Experience
Improving the candidate experience should always be one of the top objectives of recruitment analyses. Reach out to candidates by texting or emailing surveys to them to receive feedback on the application experience. Utilize this information to improve the hiring process going forward.
Identify Key Metrics
Multiple key metrics round out a quality recruitment analysis. Evaluating each metric and implementing improvement plans will expedite future hiring efforts and keep costs low.
The Difference Between Time-to-Hire and Time-to-Fill
Time-to-hire is the time it takes for a candidate to accept a position after they have formally applied for it. Every industry has varying time-to-hire metrics, but a proper range is between 30 to 50 days depending on different circumstances.
Time-to-fill is the amount of time it takes to fill a position. This time range is measured from when a job is posted to when a candidate accepts the position. The Society for Human Resource Management reports that the average time-to-fill metric for companies employing 1,000 or more people is about 43 days.
Both key metrics are essential for recruitment data analysis because quicker turnaround times benefit the company. Hence, maintaining productivity when there is employee turnover starts with refining the time-to-fill and time-to-hire metrics.
Cost-Per-Hire
Reducing cost-per-hire will help the company to put those financial resources back into other parts of the business. The cost-per-hire metric involves evaluating financial resources spent on recruitment advertising, any costs associated with job board integration, and monthly expenses for recruitment software. Even the time recruitment personnel spends evaluating each potential hire adds to this cost.
Source-of-Hire
Whether it’s job boards or social media platforms, your company should evaluate where the best source of hire has been in finding quality candidates. Prioritize outreach efforts on the one or two sources that have instilled the most success. However, keep other sources open in case there’s a diamond in the rough that comes from one of them.
Quality of Hire
The quality of hire means that the candidate chosen has the best skills necessary to fulfill the job’s requirements and stays with the company as long as possible. If there is a hiccup in hiring someone that the company thought was quality, but they quit too quickly, this can cause issues for employee turnover.
Collect and Organize Data
Data collection will be a continuous action when conducting recruitment analyses. You will garner current data to make informed decisions about your recruitment strategy. At least a couple of times per month, you will recollect this data to see if any changes occurred and refine your plan accordingly. We will discuss the importance of iterating data collection later on.
Applicant Tracking System (ATS)
An applicant tracking system will reveal the most detailed recruitment metrics to use for your recruitment analysis. Having the highest-quality ATS will initiate a healthy return on investment (ROI) for your company while streamlining the hiring process.
Cadient’s applicant tracking system will benefit your company’s recruitment strategy by:
- Implementing applicant pooling to quickly fill positions.
- Having a refined hiring management console for candidate outreach.
- Making a more seamless onboarding experience for candidates and recruitment personnel.
- Integrating with popular job boards such as ZipRecruiter and Indeed to enhance candidate outreach.
Human Resource Information System (HRIS)
HRIS primarily analyzes employee retention and the overall performance of each team member. Evaluating this information is essential for improving productivity in the company by retaining the best talent with the most quality performance metrics.
Conduct Surveys
You can have a survey populate at the end of an application or send one to a candidate’s email or smartphone to fill out. Surveys are crucial for gathering feedback on what candidates think about the user experience of the recruitment software. From there, you can coordinate with the software’s customer service team for improvements or upgrade your recruiting technology.
Analyze the Collected Data
Analyzing the collected data and drawing data-driven insights will evaluate the current strategy’s effectiveness and open improvement opportunities. Data analysis and interpretation of the recruitment and selection process are important.
Identify Trends and Insights
Evaluate which recruitment sources are most effective for onboarding candidates. Is it a job board like Monster or a social media platform (LinkedIn)?
Identifying any hiccups in the hiring process can help the company to alleviate them to increase efficiency. Do candidates feel the recruitment process is prolonged? Or perhaps the job description needs touching up because it’s not explicitly clear for job seekers.
Analyze the connection between time-to-fill and candidate quality for your company. In some cases, you could achieve better candidate quality with a higher time-to-fill metric and
Benchmarking
Benchmarking is essential for seeing how your company’s recruitment metrics stand in comparison to industry averages. For example, if your time-to-fill metric is higher than the average across various companies, it may be time to revamp your recruitment strategy to reduce it.
