As recruiters and human resources practitioners, we’re knee-deep in people data. If you use software for recruiting and hiring, you can probably find data on your company’s application volume to acceptance rate; interview ratings to new hire engagement performance; and everything in between. But are you taking advantage of your HR data to make better decisions or just running a report every so often?
You need more than just access to accurate, comprehensive people data — you also need to know how to use it to level up your HR strategies and compete for qualified candidates. According to SHRM, 71% of HR executives using people analytics say it’s essential to their business strategy. That’s probably why HR analytics is the leading area of investment and focus for businesses and CHROs this year.71% of HR executives say #PeopleAnalytics are essential to business strategy. Learn how to use your valuable data for better #recruiting:
With the right talent acquisition software, you can track the data that matters to your organization and use HR reporting and analytics to understand what it means and how to apply it to your strategy. Keep reading to dig into HR analytics tips for talent acquisition and learn how to find a software solution that best fits your needs.
What is HR analytics?
HR analytics, also known as people analytics or workforce analytics, is the practice of analyzing people data to gain insights and using what you learn to inform your strategies. HR analytics includes myriad data points associated with employees and candidates, such as performance metrics, recruitment data, employee engagement surveys, and more.
Statistical methods and data visualization enable HR teams to uncover trends, patterns, and correlations in their data that likely would have gone unnoticed otherwise. Teams use what they learn to drive strategic workforce planning and improve talent acquisition efforts.
First, let’s note that we’re looking specifically at talent acquisition vs. talent management, terms that are easy to conflate. Talent acquisition is a critical function of HR that focuses on attracting, identifying, and hiring top talent. Traditionally, this process relied heavily on manual methods and subjective decision-making. But thanks to the robust HR analytics software available today, organizations can now leverage insights backed by their own data to enhance their talent acquisition strategies.
The Benefits of HR Analytics Software
If you’ve ever wondered, “Why is talent acquisition software important?” look no further. Without it, it’s impossible to collect and manage the massive amounts of HR data available, no matter how large or small your organization, let alone analyze it. You miss important insights and remain unaware of how your strategies impact your people.
With HR analytics software, you can tune into your workforce and get answers to questions like, “What is contributing to new hire turnover increases among new nurses?” and “Which skills do the highest-performing warehouse managers share?”Uncover the answers to important questions about your #recruiting strategy with #HRanalytics:
Below, we’ll break down some of the benefits of HR analytics software for your talent acquisition strategies.
1. Reviewing Candidate Experience
The candidate experience is the foundation of employee experience, so you want to be sure it’s positive. But unfortunately, recent research from Talent Board shows that candidate resentment is on the rise, and most employers are not providing an excellent experience.
With HR analytics, your team can leverage both the people data collected by your system and voluntary employee feedback data to put their best foot forward to candidates.
- Take a look at metrics like application completion rate, job offer acceptance rate, and new hire retention to gauge the success of your hiring process.
- Send Quality of Recruiting surveys to your new employees within a couple of weeks of their start date to get fast, firsthand feedback on your hiring process.
Many companies don’t realize that onboarding is an extension of the hiring process. Employees are still new, and you need to build their connection to your company to solidify long-term loyalty. Send a Quality of Onboarding survey after the employee finishes their onboarding program to get timely feedback and address any issues the employee may have had.
2. Improving Hiring Quality
High-quality hiring is essential — replacing employees can cost up to 40% of their salary and several valuable hours for busy HR teams and hiring managers. With HR analytics tools, it’s easy to compare candidate data points to those of your longtime, high-performing employees and make smarter hiring decisions. Data to compare includes:
- Shared skills, qualifications, or experience
- Interview ratings with Interview
- Scorecards Interviewer feedback
After making your next great hire, follow up to confirm that your data led you in the right direction. Send a quality of hire survey to hiring managers after new hires have been on the job for a few months to find out how they’re doing. You’ll be able to confirm whether or not you’re making the right hiring decisions and continue refining your strategy.
3. Identifying Trends and Patterns
You might recognize recurring patterns in recruiting depending on your organization and industry, like a seasonal hiring boost annually in July or an increase in turnover every winter. Without HR analytics, it’s harder to identify trends, which are changes in data over time — for example, a steady increase in new hire retention ever since your HR team introduced a structured onboarding process.
Use analytics to ensure you’re correctly identifying data patterns and staying on top of workforce trends. These insights can inform your talent acquisition goals and strategic decisions.
4. Enhancing Source Quality
Reliable candidate sources are recruiters’ bread and butter. Knowing which sources reliably produce quality candidates is important so your team doesn’t waste time on ineffective channels. HR analytics enable you to quickly generate reportsHR Analytics Tip: Automate reports to stay up-to-date.
HR analytics software makes monitoring source quality effortless with automatic reports. Create automatic email reports that summarize the quality of your candidate sources monthly or bi-monthly. You’ll never be caught off guard by a dip in source quality or fail to nurture a fruitful source.
5. Increasing Diversity
Diversity in talent acquisition is required for organizations committed to diversity, equity, inclusion, and belonging (DEIB). With HR analytics, you can keep a close eye on diversity across your organization, your candidate pool, and the interview process. Ensure you’re meeting diversity goals, sourcing from diverse candidate pools, and assembling a diverse interview panel with the help of HR analytics.
HR analytics uses data to tell your company’s DEIB story, illustrating trends in diversity of race, gender, age, education, and other characteristics over time. It also helps your HR team maintain diversity and set new standards for your company as it grows.
The Need for HR Analytics Software
HR analytics software is a game-changer in today’s recruiting and hiring. By harnessing the power of data, organizations can execute more thoughtful strategies, streamline their recruitment process, and attract top talent. From determining skill gaps and identifying trends to improving hiring quality and enhancing sourcing strategies; HR analytics software provides valuable insights that drive efficient and effective talent acquisition.
Are you part of the majority of HR teams increasing their investment in analytics software this year? Don’t put off your search for the right solution — your competition isn’t. Move the needle toward a more effective talent acquisition strategy with robust, tailored people analytics software.
Embrace the future of HR analytics to transform your talent acquisition process and position your business for success in a rapidly evolving talent landscape.
Leverage your valuable people data and HR analytics to build the most effective talent acquisition strategy possible. See your data in action by signing up for a personalized demo of ClearCompany — ask your rep about our talent acquisition reporting capabilities.