This post was originally published in July 2023 and updated in October 2024 with new information about HR analytics software for talent acquisition.
In recruiting and human resource management, we’re knee-deep in people data. If you use an applicant tracking system (ATS), you likely have access to data on every part of the recruiting process, from application volume to acceptance rates, interview ratings to new hire performance, and much more. But the question is, does your team leverage HR analytics — using that talent data to make better decisions — or do you just run a few cursory reports?
Access to accurate, comprehensive people data is only the beginning. You need to interpret and apply that data to level up your HR strategies and compete for qualified candidates. Chances are, your competition is already using analytics, and if they do, they’re quickly realizing the benefits.
According to SHRM, 71% of HR executives using people analytics say it’s essential to their business strategy. New research from Deloitte shows that companies with a mature people analytics function are “twice as likely to treat people data and analytics as core assets that create a competitive advantage.”
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 for HR analytics tips for talent acquisition and on how to find a software solution that best fits your needs.
The Role of HR Analytics in Talent Acquisition
HR analytics, also known as people analytics or workforce analytics, is the practice of gathering and analyzing employee data to gain actionable insights. You can use what you learn to develop more effective talent management strategies. In talent acquisition, HR analytics give hiring teams a deeper understanding of the efficacy of the recruiting and hiring process at their organizations.
By examining key recruiting metrics — like application-to-hire ratios, time-to-fill, source effectiveness, and candidate quality — recruiters gain a clear view of their recruitment strategies and identify areas for improvement. Statistical methods and data visualization enable recruiting and HR departments to uncover trends, patterns, and correlations in their data that could have easily gone unnoticed.
Teams use what they learn to drive strategic workforce planning and improve talent acquisition efforts. Your team will be able to make data-driven decisions grounded in evidence, making your company a more competitive employer.
Be sure to 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 truly impact your people.
Today, great talent acquisition software can produce robust data visualizations and insights in moments with the help of artificial intelligence (AI). With AI-enhanced HR analytics software, you can dial into what’s happening among your workforce and instantly get answers to questions like, “How long is the average time-to-hire for nurses?” and “How often do we hire employee referral candidates compared to external applicants?”
Below, we’ll break down some of the benefits of HR analytics software for your talent acquisition strategies.
1. Upgrade the Candidate Experience
The candidate experience is a preview of the employee experience, letting candidates know what they can expect if they work at your company. For many, it’s the reason they accept or reject a job offer. Needless to say, you want your candidates to have a positive experience.
But, unfortunately, recent research shows that candidate resentment is on the rise. After poor experiences, candidates are less likely to refer others to your company or feel any brand affinity — and they probably won’t become customers, either.
With AI-enhanced HR analytics, your team can leverage both the people data collected by your system and voluntary employee feedback data and put your best foot forward to candidates.
- Take a look at metrics like application completion rate, job offer acceptance rate, and new hire retention to gauge whether your job board posts, descriptions, and ads are reaching the right audience.
- 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.
- Use HR analytics to monitor the length of your hiring process, including stats like the time spent on candidate sourcing, the length of each stage of the interview process, and time-to-fill. You can ensure your team is working efficiently to hire top talent faster.
HR Analytics Tip: Don’t forget onboarding.
The onboarding process is really an extension of the hiring process. Your new hires 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 new employees finish their onboarding program to get timely feedback and quickly address potential issues.
2. Make Better Hiring Choices
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 and AI tools, it’s easy to compare candidate data points to those of your longtime, high-performing employees and make smarter hiring decisions.
See how top employees and candidates compare when it comes to:
- Shared skills, qualifications, or experience
- Interview ratings and feedback
- Career or professional development goals
3. Proactive Talent Acquisition > Reactive Talent Acquisition
Do you find it harder to fill open roles in the summer compared to the winter months? Depending on your organization and industry, recurring recruiting patterns aren’t unusual — maybe you see a seasonal hiring boost annually in July or an increase in turnover every winter.
Some trends, like hiring fluctuations, are noticeable and predictable, but others are less obvious if you’re not using HR analytics. Without technology, a steady increase in new hire retention that began when your HR team introduced a structured onboarding process might fly under the radar.
HR Analytics Tip: Use AI to reach the best candidates faster.
Using AI candidate sourcing tools not only helps you find more candidates — it helps you reach top talent first. An ATS with AI scans your candidate pool and ranks your candidates based on how well they match your job description and other requirements. You can better plan your outreach efforts to prioritize candidates most likely to excel in the role.
You need HR analytics to correctly identify data patterns and stay on top of workforce trends. Insights from analytics can help you set and achieve impactful talent acquisition goals and make smarter strategic decisions.
4. Find High-Quality Candidate Sources
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. With AI and HR analytics, you can quickly generate reports that show you where the best candidates are coming from. Run the reports automatically so your team receives regular updates on candidate sources and can adjust strategies accordingly.
HR Analytics Tip: Create custom dashboards to stay up-to-date.
HR analytics software with AI makes monitoring source quality effortless with interactive dashboards. Take reports to the next level with shareable data visualizations that always display the latest information.
5. Uphold DEIB Commitments
Diversity in talent acquisition is an absolute must 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 business goals for diversity, 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. If you send employee surveys on the subject, analytics software can even help you monitor how employees are feeling about your DEIB approach. Using analytics also helps your HR team maintain diversity and set new standards for your company as it grows.
The Need for AI-Powered HR Analytics Software
HR analytics software with AI is a game-changer for recruiting and hiring today, and it’s quickly becoming essential. Your team can automate the most time-consuming parts of talent acquisition and spend their time on more important tasks. By harnessing the power of data, organizations can execute more thoughtful strategies, streamline their recruitment process, and attract and retain top talent.
AI-enhanced HR analytics software provides valuable insights that drive efficient and effective talent acquisition. From enhancing sourcing strategies to improving hiring quality to identifying skill gaps, analytics are the answer to all of your critical questions.
Embrace HR analytics and AI to transform your talent acquisition process with ClearInsights, the AI-powered talent analytics sidekick from ClearCompany. With ClearInsights, you can:
- Source qualified candidates and build strong talent pools instantly with AI Sourcing Engine
- Quickly rank potential candidates who are most aligned with your job descriptions based on their skill sets and experience
- Reach out to the best-fit candidates faster than ever with personalized messages and self-schedule interview links
- Build interactive dashboards that update in real time to stay on top of important talent acquisition metrics, like application completion rate, time-to-hire, and offer acceptance rate
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 AI-powered people analytics software.
See your data in action by signing up for a personalized demo of ClearCompany — ask your rep about ClearInsights.
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