Scenario: You recently hired a candidate for a position that was difficult to fill in the first place… but you hired this candidate because they were the lesser of two evils. Their qualifications barely met the minimum requirements and their personality was close enough to a cultural match. As you probably guessed, close enough and bare minimums don’t cut it. Your new hire quit after 7 months because they didn’t feel the job was right for them. Your recruitment department is left to fill the position again using time and resources...
More than ever, it is important to make educated recruiting decisions because the stakes are much higher. Tighter budgets, reductions in hiring time, and urges towards rectifying lost opportunities forces recruiters to look for better ways to attract candidates. The need for reductions in hiring time however, can hurry the process to its detriment and that of the organization. With big data analytics, on the other hand, you can force poor habits to abdicate their seat at the recruitment table.
Bad recruitment practices can result in poor allocation of budget - as the example above shows. Faulty recruiting and hiring decisions can lead to:
- 8.5% - 50% of the employee’s salary
- 5% - 40% higher recruiting costs and recruitment time
- 5% - 20% higher training costs and time
Using big data can, especially with our BDAS, you can find where you’re spending too much on recruiting due to inefficiency and where you’d like that money reallocated to. The data aggregated and analyzed by the system will give you insight into the efficiencies and deficiencies of your recruitment department. This is the tool you need to make the process better for your team so they find on-point candidates, as well as for candidates so they don’t spend time in a position they don’t fit.
Hiring Time Rises
The problem is, so many companies have begun to rest on their laurels in recruitment. Unfortunately, that means a longer hiring process which is aggravating for candidates and recruiters alike. In fact, the longer the hiring time, the more likely a company is to lose their prized candidates. The top reason candidates refuse job offers, according to 31% of recruiters, is simply because they’ve chosen another company… because your hiring process took too long.
Using analytics to assess the quality of candidates can reduce hiring time. HR departments across the board have begun to integrate big data to predict the quality of their candidates. Mark Feffer, said:
“Predicting turnover and assess flight risks is one of the key areas in which [Rishi] Agarwal sees predictive analytics being applied. Others include assessing the quality of hires, and forecasting the benefits and return on investment of training programs.”
How much does bad recruiting cost? Lost opportunities.
- Wasting time during the hiring process loses companies valuable candidates to talent competition.
- Poor recruiting practices take resources and time from other important recruiting responsibilities.
Optimize Recruitment Spend
With the right tools, the recruitment department can reduce costly aspects of the budget and improve where and how you spend the talent acquisition funds. One BDAS client reported the quality of their applicants increased by 100% simply by using the right tool. For this company, BDAS acknowledged the effectiveness of their recruitment email marketing. With that data, the system confirmed that while they were attracting numerous candidates, they were not attracting quality candidates. With BDAS they were able to evaluate the performance of each recruiter on an individual basis and the recruitment department as a whole. Both sets of analytics were able to give leadership the information they needed to optimize recruitment spend and performance.
The lost opportunities may not seem like much when your organization occasionally looks for a new employee. After a few poor hires, after a few lost dream candidates, the costs of these poor practices really begin to add up. Sometimes the problem isn’t enough resources to assess candidates in a timely and efficient manner. Enter the Broadbean Big Data Analytics Suite, or as we like to call it BDAS. It helps recruiting departments get the data they need in digestible bits of information with all of the information you need to get a full picture of the effectiveness of your team and current practices. Pick the best candidate for the position, not just the not-so-bad.