Perspective: What I’ve Learned About HR Data and Analytics
Like many people that work in the talent acquisition and recruiting world, I’m new to HR data. It’s a trend that is taking the HR world by storm. Yet, despite the success early adopters of HR analytics are seeing, many companies and talent acquisition teams do not want to get involved.
At first glance, I can understand why. HR data can be confusing, getting started is a huge roadblock (as is budget), and analyzing the right data can be a challenge, just to name a few.
But after reading countless articles and blogs, and listening to expert after expert talk about HR data, I have come to learn a few things about HR analytics, and the benefits they provide talent acquisition teams.
HR Data Is Important To Recruiting
If there’s one thing I have learned since I started following HR data, it’s that it is a growing trend in HR that is key to talent acquisition success. Being data-driven allows you to identify problems in your recruitment process, and then address those issues before they harm your efforts.
In many cases, you can also use data to improve your current apply process, as well as prepare your team for future recruiting projects.
This is important because what you learn from your apply process data can be used to improve candidate experience, which will ultimately lead to more applicants and faster time-to-fill numbers.
Not Many Talent Acquisition Teams Are Using Data
Despite many experts saying that HR data is a trend that will only grow in importance, most companies are hesitant to adopt a data-driven model. In fact, according to a SoftwareAdvice study, only 13% of large companies (2,500 employees or more) are using HR analytics software.
The biggest reason why, in most cases, is that talent acquisition teams just do not know where to begin. The other problem is that many companies get consumed with the idea of “big data,” and often overlook other information that can help them get started.
Lars Schmidt, founder of Amplify Talent, says it best: “Before you get consumed with ‘Big Data,’ make sure you’re leveraging your ‘Small Data’—ATS, turnover, performance, etc.”
Those Who Overlook HR Analytics Will Get Left Behind
HR data and analytics are currently a popular trend in recruiting. While most trends tend to slowly fade overtime, HR data is one that will only grow in importance. The SoftwareAdvice study found that companies using HR analytics outperform those that do not across the board in KPIs.
Essentially, failing to adopt HR analytics will cause you to fall behind your competition. And I am not the only one who thinks this. According to Gerry Crispin, Co-founder of CareerXroads Colloquium, when it comes to HR data, the “fear of not getting it right will undoubtedly delay the inevitable or cause a leading firm to fall behind its competitors.”
HR data and analytics are an exciting and important new aspect of recruiting that can greatly impact talent acquisition. Those companies that are starting to adopt analytics software are already seeing results that are better than their competition.
However, many companies are hesitant to move to a data-driven HR model. The reasons why vary from company to company, but generally boil down to one main problem: most people do not know where to start.
But the benefits that they provide cannot be overlooked. “Analytics will take action or make a recommendation, “ explained Holger Mueller, VP & Principal Analyst at Constellation Research. “As such they make a recruiters’/business users’ life easier.”
To learn more about recruiting metrics, and the role of analytics in helping talent acquisition leaders make better decisions, read our whitepaper, Analytics in Talent Acquisition: The Hype, the Reality, and the Future.