Analytics: Recruiting Professionals’ Changing Attitudes Toward Data
While many articles and discussions in the talent acquisition space this year seem to have focused on topics like candidate experience and employer branding, a healthy buzz has been growing around analytics and—more specifically—the idea of recruiting with data.
In fact, if you’ve been paying attention to what thought-leaders have been saying, then you know attitudes toward using data to guide and drive future decision-making in recruiting have shifted dramatically in the latter part of the year.
A recent study we conducted with Beamery, which pulled together the thoughts of almost three hundred recruiting professionals, highlights this shift. In this post, we’ll discuss three key points from the research that tell this story.
Analytics, Recruiting and What You Need to Know
Recruiting analytics can transform the way talent acquisition teams look at the world, although “analytics” is a broadly used term in many areas of business. By definition, analytics typically involve some type of statistical modeling that helps garner insights from what would otherwise simply be collections of data.
Many organizations are in the early stages of developing their recruiting analytics capabilities, often leveraging spreadsheets and simple formulas to monitor recruiting metrics and KPIs. On the other end of the spectrum, some companies are using talent acquisition analytics, recruiting solutions that automate, standardize, and centralize data collection and analysis in ways that could only be dreamed up by professionals in the past.
We asked survey takers how important recruiting analytics were to their organization in 2015. Not surprisingly, more than seven in ten ranked that importance as “high.”
What’s interesting is that despite a vast majority of respondents reporting a focus on recruiting analytics, only 15% said they had access to a dedicated recruiting analytics tool. This indicates most companies that participated in the survey are using ad-hoc methods for capturing and analyzing data.
Satisfaction With Analytics, Recruiting & Performance Management Tools
As a follow-up question, we asked whether or not companies were satisfied with their current recruiting performance management tools. Based on the data shared above—71% of companies with a high priority on recruiting analytics and only 15% with a dedicated recruiting analytics tool—the responses reported weren’t all that surprising.
58% of respondents said they were dissatisfied with their performance management tools in 2015. Because of the relatively recent surge in interest around the topic of recruiting analytics, it’s likely the number of dissatisfied professionals would have been significantly smaller at the beginning of 2015. However, awareness around the opportunity cost of not using data is changing that.
Outlook on 2016 Analytics, Recruiting Initiatives
When asked whether they’d be increasing, keeping the same, or decreasing their recruiting analytics spend in 2016, 70% of respondents from companies with more than 1,000 employees reported plans to increase.
We chose to inspect budget plans at companies with more than 1,000 employees because pressure to monitor and improve performance is definitely something felt at larger organizations, particularly in the realm of upper management. Talent acquisition leaders at bigger companies are often under the pressure of higher reporting requirements.
This is not to say, though, that talent acquisition teams at smaller companies aren’t held responsible for reporting, or that they won’t be increasing their budget for analytics. In fact, the simplicity of Software as a Service (SaaS) delivery models and the consumerization of analytics, as well as generally raising awareness around the importance of becoming more data-driven, will all likely accelerate recruiting analytics adoption among businesses large and small in 2016.
Analytics: Recruiting Performance Going Forward
Based on the data, we’re hopeful that more companies than ever will make performance management in talent acquisition a priority in 2016.
It’s often said that recruiting is converging with digital marketing in the way professionals make use of the internet to drive interest in their employer brand and career opportunities. That said, it only makes sense that recruiting will follow on the same path toward data-driven decision-making that marketing has become so well-known for.
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