How Do Big Data Analytics Benefit the Hiring Process?

By using analytics, you can uncover meaningful, actionable, and valuable insights about your hiring ...

Posted by Berkshire on August 10 2015
hiring process
By using analytics, you can uncover meaningful, actionable, and valuable insights about your hiring practices.

Human intuition and the “eyeball test” can provide valuable insight for any number of actions. But with the increase in available technology and its ability to provide meaningful analysis, it’s no longer enough to rely on human intellect alone. In the recruiting world, these data and metrics can change the way you find and hire excellent candidates.

Part of using this information technology is to leverage applicant tracking software to gather data, identify trends, organize and streamline the process, provide feedback on which job postings reach which demographics, and more. Such a system can be a huge advantage and put the power of analytics at your fingertips. Read on to learn about four data insights that go beyond what you can learn through intuition, prescreens, and interviews alone.

1. Find patterns, increase predictability
Big Data is a hot term these days. It refers to the ability to analyze “human capital information and numbers with the goal of finding patterns to support and make better business decisions,” according to Jessica Miller-Merrell of Blogging4Jobs. It has huge ramifications across the business world, but can be particularly helpful in your hiring efforts. By uncovering patterns and trends, you can learn which traits make the best candidates, and which job postings attract the finest applicants.

Finding patterns and predicting events doesn’t just apply to finding the right candidates—it can also help you determine when your company will need to fill a position. Rather than reacting when an employee departs, you can foresee such openings and be prepared when it happens.

hiring process How can analytics improve your hiring practices?

“Data can help you examine candidates in ways a job interview and prescreen cannot.”

2. Establish longevity, build consistency
To take the first point a step further, data cannot only predict open positions and find the right candidate, but also keep those new employees around longer and create a more consistent workforce. That’s because the best candidates are the ones who can perform the job excellently but also intend on sticking around as long as possible. That requires examining candidates in ways a job interview and prescreen cannot, according to Dr. Kirk Borne of George Mason University.

“I believe that one of the fundamental characteristics of big data that is relevant in the hiring process cycle is that big data provides a ‘360 view’ of the candidate,” Dr. Borne told Jobvite. “The traits, skills, background, strengths, weaknesses, employment history, references, and so much more are now available and searchable, in a non-biased way.”

3. Remain compliant with OFCCP regulations

One of the most important aspects of a successful OCCP regulated Affirmative Action Prgram (AAP,) is the proper analysis of data. According to Berkshire Associates Director of Regulatory Affairs, Lynn Clements, OFCCP practices:

...“following the numbers’ in compliance reviews—an approach which focuses on all statistically significant adverse impact findings, regardless of who the protected group is. Simply put, any analyses of a federal contractor’s personnel activities or progress in meeting placement goals is only as good as the initial data that is used to create the analyses.”

With the right AAP data and analytics, federal contractors will remain compliant during the hiring process, and avoid the risk of liability.

Register for Fundamentals of Affirmative Action Click Here for Berkshire’s Signature Training Course  Learn how to prepare your plan. Includes New Veterans & IWD regs. 

4. Stronger internal communication
If you need to demonstrate to your managers how hiring efforts are succeeding or not, or how current tactics could be improved, anecdotal evidence will only get you so far. But by relying on hard facts—statistics and data—you can demonstrate a need, back up your strategy, and keep tabs on the process. W. Edward Demmings, whom many consider to be the world’s first data scientist, once said: “You can’t manage what you don’t measure,” according to FirstRound.

You won’t be able to carry out data-based hiring efforts if your higher-ups aren’t on board with it, but they’ll get on board if you can prove its success in an empirical way. Importantly, you must also demonstrate how the first two steps can result from data-driven hiring and use that to bring value to the organization. The great thing about using data is it provides a trail of evidence—everything is measured carefully so there is no way to misinterpret the results.

As a hiring manager, your own experience and intuition are irreplaceable. But those abilities should supplement a robust, analytical hiring process featuring an applicant tracking system and other informational tools.Want to learn about out one of the best applicant tracking systems on the market? Visit now!

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