Data is no longer a supplement to talent acquisition decisions. Top-performing companies are five times more likely to use data for their decision-making because data is empowering. But why use data?
Big data is a massive amount of structured and unstructured available to anyone. Data shows previously unknown patterns of human behavior. The data undergoes various types of analysis, and insights can be churned out to be used by multiple business processes.
While hiring fills positions based on qualifications and immediate requirements, talent acquisition is about paying attention to the candidate’s skills and talent instead of certifications.
Though certifications are also considered, big data lets recruiters approach hiring strategically and eventually turning out to be beneficial to the finances.
Talent Acquisition and Big Data Improves Experience
Big data saves time and money for talent acquisition teams. Currently, recruiters sift through a vast amount of data. However, humans can’t analyze all the data quickly. Instead of hiring more recruiters, companies are now turning to algorithms to swiftly analyze all the data, making recruitment a memorable experience for both candidates and employers.
Recruiters can get a full image of the candidate before they even step into the room for the interview, especially relevant for technical and management positions. Big data is also helpful in improving your employees’ retention metrics as it allows the talent acquisition team to predict the circumstances of people’s decision to leave.
Talent acquisition processes require significant financial input. Hence, strategic talent acquisition is the answer. Big data reduces the number of suitable candidates to minimize expenses made during talent acquisition and recruitment. Big data and analytics make those talent acquisition process more efficient but also predict future hires.
Case in point, Oxygen by Google uses big data during their talent acquisition process. Google’s talent acquisition team understands and improves Google’s management practices by collecting data from interviews with potential candidates along with surveys to understand the key factors that make a manager a good one. It helped Google to reduce the time taken to acquire talent and optimize manager performance.
Predictive Analytics is Transforming Talent Acquisition
What was a bastion of a select few is now applied to the talent acquisition process. Perhaps the HR leaders and organizations will combine the scientific and the human aspect of HR to create an efficient talent pool with significant tenure.
Big data is pinpointing the skill gaps in a workforce, analyzing market trends, and tracking the financial KPIs of hiring and demographic traits. It provides critical information to set the hiring quota of future hires, make budgeting forecast and identify the key talents and skills to look for in candidates.
These five key areas of human resource processes and implementation demonstrating their effectiveness.
Predictive analytics hires the right people
Companies are increasingly looking at candidates with the cultural fit – a metric that is hard to quantify than candidates with the most experienced, qualifications, etc. Cultural fit is essential to the organizational fabric. Innovative predictive analytics-driven talent intelligence platforms deploy analytics to sift through data to determine which candidate will match the culture of the existing force.
The traditional talent recruitment process involves background checks and outlining strategies to gain a helping hand from analytics. Technology is efficiently extracting these critical insights from what is a veritable mountain of historical data.
Data offers wisdom into employee competitiveness
Identifying candidates that fit with the company culture and onboarding is a part of what data and analytics can do. HR must next maximize their role in the company using analytics, focusing on their performance, progress, areas of improvement, and successes.
Aggregating this data offers key insights into who is likely to outperform their peers, who could potentially improve with further training, and who could be the most open to mentorship and be a frontrunner to leadership positions. HR leaders can assign scores to each candidate and learn who the best candidates are.
Predictive analytics is a game-changer in human capital management
Mexico government’s Ministry of Energy used a predictive analytics model for workforce planning and talent acquisition to locate and eliminate skill gaps in critical oil and gas occupations (both existing and potential) in 2016. The solutions take several factors like adjustable macroeconomic variables, which correlate to the industry’s demand and supply of skilled labor.
Talent acquisition predicts skills gaps in the company and plugs them with minimal lags through employees training, saving money. Predictive analytics tools make things simpler than before. The implementation of predictive analytics is not limited to large-scale and bespoke implementations; we have small companies in the mix.
Data-driven environment automates HR Affairs
With employee satisfaction hard to measure due to non-numeric data like surveys, feedback, and personal interactions, workforce planning teams are getting little value in their talent management process.
Predictive analytics tools can leverage insights to understand employee morale and motivation needs. These ideas not only help tweaks workforce practices it can reshuffle how managers practice talent management. While employee experience programs used to take months to make data useful, using digital technology to support mental resilience can foster deeper employee engagement.
The workforce planning team invests resources into talent acquisition activities like identifying, onboarding, and talent management, including learning and development. High attrition could negatively impact employer brand turning into a vicious circle.
Predictive analytics analyzes old data of organizations to identify the biggest influence on employee flight risk. With the insights provided, the talent management team can address potential issues before they crop up.
Big Data and Predictive Analytics in HR Will Find Widespread Acceptance
The wide acceptance by workforce planning teams means this tool can add tremendous value to an organization’s bottom line. Measuring unquantifiable data is now much easier, and then the metrics can change the way organizations conduct workforce planning activities.
AI-driven reskilling and talent intelligence platform like Draup has extensive knowledge of the talent market. It analyzes and evaluates the underlying talent attributes across individuals, industries, regions, and firms.