Almost 75% of recruiters do not use data driven processes for making decisions. There are many reasons why this happens and one of them is intimidation. They rely only on other human resources strategies. The work is done manually.
The corporate world can use a wide variety of sources for its recruitment process. Companies are increasingly using data driven processes for recruitment. Companies are using data driven processes at different levels which can be optimized, stable, developing and casual.
- Casual Companies. These companies follow conventional methods and do not use data or metrics.
- Developing Companies. These companies try to plan but are unable to do so. This is because the plan can’t be supported. They use a few performance metrics but are not able to support the HR team.
- Stable Companies. These are companies with good performance and use a system of metrics. However, they are not there all the way.
- Optimized Companies. These are excellent companies with a management strategy. They use metrics like measuring the performance of the teams. They also address the talent needs. Planning is done based on each stage of the process. They make the perfect decision and always stay ahead or in the leading position.
Most of the companies are in the developing category and very few companies are in the optimized category. It is important to choose the right tool for the right job. Such tools should support the pipeline metrics, sourcing metrics, and metrics of hiring plan.
Modern data driven processes can increase the efficiency of recruitment process. Let’s take look at these processes. Following these processes can help you to become a data driven recruitment firm:
Estimation of Costs. You must know how much money is being spent and where it is being spent. This will help you understand your organization more. There are different metrics for this purpose:
- Total Cost
This includes the cost of all sources like social media websites, job boards, applicant tracking system, advertising, agencies, and recruiters.
- Per Candidate Cost
Find out the cost of every candidate hired once either once a month or once every three months. This can be done by dividing total cost of finding candidates by candidates added to the system. This will help you to find out what goal you need to achieve in a specific period of time.
- Per Candidate Cost by Source
Find out how much money is spent on the candidate sources (Facebook, LinkedIn, job boards, technology, recruiting agency, etc.) and divide it by the total candidates. Now you will know how much money is being spent on the candidates by source. Try to invest more in the sources which have lesser cost per hire.
In part two of this article, we’ll look at determining KPI and budget planning.
Author Bio: Kelly Barcelos is a progressive digital marketing manager specializing in HR and is responsible for leading Jobsoid’s content and social media team. When Kelly is not building campaigns, she is busy creating content and preparing PR topics. She started with Jobsoid as a social media strategist and eventually took over the entire digital marketing team with her innovative approach and technical expertise.