As HR and recruitment dive into big data, opportunities to become more strategic in hiring and workforce planning emerge. Big data is driving decision-making through talent analytics, turning all of those guesses and best practices into a thing of the past. From gut feelings to insightful theories to proven processes, recruiters are wandering down this continuum.
Our Powers Combined
Until now, recruiters have struggled with ways to store, organize and make use of their own internal data. Even once they mastered their internal, organizational data, the information wasn’t in alignment with external forces like competitive intelligence and social data. It is through the blending of external data sources and internal data that we really see the full picture and can move into predictive analytics.
This powerful external/internal data combination is especially true of job boards. Already a top source of hire, job boards collect mountains of job seeker data that employers now have access to. When they apply this wealth of additional data to their own talent metrics, the outcome is increased recruiting efficiency across all of the top metrics. One powerful example is when companies can reduce spend year over year and make more effective choices about recruitment advertising.
When we think about the available information from all of the vendors in all of the industries that have been hoarding these data and analytics pools, it makes perfect sense that 85% of companies increased their analytics investment in 2013. In simple terms, people want to know what the heck is going on.
Big data makes sourcing and recruiting quality candidates more cost-effective and far more efficient, but there’s a lot more to it. Now considered the keepers of big data, HR and recruiting are poised to team up with senior leadership in order to assist with analytics-based workforce decision-making. Broadbean’s very own Director of Global Alliances, Alistair Neal said:
“HR is the guardian of information and data that is relevant throughout the entire talent lifecycle. We’re talking recruiting, onboarding, training, compensation, succession planning, employee engagement, performance and beyond. Once thought of (and probably still) as simply a service
department of the organization, the role of HR has changed drastically to a strategic function. HR has the information and ability to ask and answer vital questions about workforce planning.”
No More Guessing Games
Before HR and data created this little dream team, hiring was done on a hope and prayer. Recruiters had to work with opinions, hunches and extrapolate from past experiences. Now, recruiters have the information to ensure spend is allocated and adjusted for optimal ROI, hiring managers are able to hire with solid information, and organizations are seeing the bottom line results of this recruiting and hiring optimization.
Even job board listings are created and placed with data that reveals their performance, so recruiters and hiring professionals can use the job board medium to it’s maximum potential. This use of data can also be applied to social recruiting, mobile recruiting and career site performance.
Big Data for Big Problems
We’ve established that big data is a lifesaver when it comes to attraction, but retention is now weighing heavily on the minds of employers. In fact, retention was listed as a top business concern by nearly 60% of companies surveyed, up from just 28% in 2009. So, it’s safe to say retention is a mounting concern.
Organizations like Xerox are embracing big data in their workforce decision-making, and they’re seeing some intense retention returns. Here’s an expert from the Wall Street Journal’s article focusing on Xerox’s experience using big data:
“For more and more companies, the hiring boss is an algorithm. The factors they consider are different than what applicants have come to expect. Jobs that were once filled on the basis of work history and interviews are left to personality tests and data analysis, as employers aim for more than just a hunch that a person will do the job well.”
2015 is going to look very different with a little help from big data – that is if you’ve made or are planning to make the move. This exciting and dynamic partnership of HR and data is swiftly changing the landscape of HR; so don’t be too slow about it. Before too long this teaming up will be considered the standard, rather than a strategic, competitive move. Good luck in 2015, without big data, you’ll need it.
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