3 Trends Accelerating the Adoption of Analytics in Recruiting
The perception talent acquisition professionals have around recruiting analytics has changed dramatically in recent years.
Not all that long ago, the team here behind the Data-Driven Recruiter was at an HR event, listening in on a presentation, when a noteworthy speaker mentioned what a pipedream it was that recruiters would be leveraging analytics and data in their everyday routines anytime soon.
Less than a year later, at a different conference, we heard that same speaker give a presentation on the power of recruiting analytics.
We don’t hold it against this speaker for altering the tune of his story within such a short timeframe. In fact, with so much change happening in the world of analytics in the past few years, attempting to predict the future has been even more difficult.
In this post, we’ll discuss three trends that have impacted the analytics market in general, and as a consequence the adoption of recruiting analytics in the talent acquisition environment.
1. Consumerization of Analytics
Data never really mattered to people outside of the business world. But the digitization of our lives has brought with it incredible amounts of information. And where there’s information, there’s the opportunity for intelligence. People are starting to crave that intelligence as a means to be healthier, save money, and so on.
Take for instance Fitbit and other health and activity trackers. You can now easily track every step you take, monitor your heart rate, and so many other wellness metrics. All that information is tied back to an app, which visualizes your performance and lets you drill down into specific variables.
It is often the consumerization of technology that accelerates the value particular IT categories bring to business environments. Not only that, business people start to expect the same level of usability and accessibility of technology available in the consumer world. This has no doubt impacted analytics adoption and perceptions in the realm of recruiting.
2. SaaS-ification of Analytics
The Software as a Service (SaaS) solutions market has been experiencing impressive growth for years.
SaaS has revolutionized the business environment in many ways—perhaps above all by enabling affordable, widespread access to solutions that previously required significant investment. SaaS solutions are accompanied by less maintenance costs, automatic updates via the cloud, a quicker time to value, and a vast pool of other attributes that make them appealing to broader business segments. On top of that, solutions can generally be accessed anywhere, anytime.
It’s these factors combined that make SaaS-based recruiting analytics attractive to many companies. The rise of SaaS is perhaps the greatest enabler of adoption.
3. Rise of Data-Driven Recruiting
As mentioned, not long ago, many experts balked at the idea of analytics in talent acquisition, but today most are touting the importance of “data-driven recruiting.”
We’ve spoken to lots of practitioners who are actively trying to foster a culture of data-driven recruiting, and that mindset has only become more widespread in 2016.
If you take a look at data from a study we conducted with Beamery last year on recruiting metrics and analytics, what’s interesting is that all signs point to a future of recruiting analytics adoption.
We asked nearly 300 talent acquisition professionals how important recruiting analytics were to their success. Not surprisingly, more than 7 in 10 respondents regarded recruiting analytics as highly important.
But when we asked those same professionals how satisfied they were with their current performance management tools, almost 60% were dissatisfied. More likely than not, the “tools” they were using were spreadsheets and other manual data collection and analysis methods.
As more companies focus on a future of data-driven decisions, the performance management tools they’ve been using for years are quickly losing relevancy.
It’s a combination of these three trends which are accelerating the adoption of analytics in recruiting. We expect to see a record number of companies using recruiting analytics by the end of the year.