Data is the Key to Improving Your Talent Search

You may not realize it, but inside your HR files are the keys to successful recruiting and talent management. Big companies have been doing this for years. And now, more small- and medium-sized companies are using data to reshape recruitment into trategic and evidence-based processes that lead to more successful hires.

Why businesses are turning to data

Using information from multiple sources to analyze, process, manage, and optimize the way you acquire talent is one of the latest ways companies are connecting the data dots. Businesses are leveraging data intelligence and technology to fully understand and maximize their recruitment strategies. Mining your employee data gives you insights into what characteristics make a great hire, why your great hires stay with you — and why they don’t.

To maximize recruitment costs

Knowing how and where you’re spending your recruiting resources can help you uncover ways to trim costs and improve effectiveness. Start by asking these questions:

  • Which talent sources bring in the most qualified applicants?
  • Which ones yield the best candidates with the highest retention rates?
  • Which resources offer the best user experience for candidates?

It’s also important to confirm you’re getting the best value from your talent acquisition dollars. According to research from the Society of Human Resource Management (SHRM), you’ll spend $4,129 on average to fill an open position.2 What goes into this investment? Here are a few examples:

External costs

  • Third-party fees, such as agencies
  • Advertising costs, including job boards and social media
  • Job fair and campus recruiting costs
  • Travel expenses for recruitment
  • External assessments, background checks, and drug tests

Internal costs

  • Salary, benefits, and training of recruiters
  • Talent acquisition system costs (hardware and software)
  • Other fixed costs, such as employee referrals, government compliance, etc.

To fill open positions faster

On average, it takes 42 days to fill an open position, according to the SHRM study. Using benchmark data, you can compare your company to the national average and — more importantly — to the competition to see how you stack up. If it’s taking you longer to fill a position, dig deeper to learn why. For example, your benefits package may fall short of your competitors. If that’s the case, adjusting your benefits could shorten the time to hire key talent and increase your productivity.

To avoid recruiting in the first place

It’s hard to watch talented employees leave before you’ve had a chance to recoup your hiring investment. Using data to examine why people stay and why they leave can help you retain the talent you’ve worked so hard to hire. And it may be tied to something that’s not obvious at first. For example, Wells Fargo implemented a strategy to determine which qualified candidates were also likely to be successful and stay with the company. By analyzing the data on current workers and devising personality tests that aren’t easily manipulated, Wells Fargo discovered that tellers and other customer-facing workers with accounting degrees were top performers, but didn’t last long in their jobs.5

Did you know that:

  • One-third of new hires quit after six months.
  • 45% of referred employees stay for at least two years.
  • 33% of employees know within the first week if they’ll stay with their new company.

Using data to explore the relationship between hiring, onboarding, performance management, and retention makes good sense. What are the trends in your company? What’s working and what isn’t? Where are the opportunities to make adjustments? Collecting and analyzing data about your company’s recruitment methodology puts science behind what your experience and instincts already tell you.

ADP® can help you hire smarter

ADP helps you apply rigor behind your hiring practices that your competitors can’t match. We can unlock your employee data and combine it with ADP’s competitive benchmarks to help you attract and hire the right employees. ADP certified recruiters can also help you target the right job candidates by managing some, or all, of your recruitment tasks.

1 LinkedIn Talent Solutions, Small and Mid-Sized Business Recruiting Trends, 2017.
2 Society for Human Resource Management, 2016 Human Capital Benchmarking Report.
3 DataInformed, 6 Clever Ways Small Businesses Can Use Big Data, by Bernard Marr, October 21, 2016.
4 Society for Human Resource Management, Recruiting Trends for 2016, by Roy Maurer, February 1, 2016.
5 BAI Banking Strategies, Predictive Analytics for Hiring, by Katie Kuehner-Hebert September 6, 2013.
6 TNLT Talent and HR, November 30, 2015, 9 Employee Retention Statistics That Will Make You Sit Up and Pay Attention, by Maren Hogan.

Keywords:
HR Management
,
Human Capital Management
,
Talent Management
Roles:
Research for Human Resources Professionals