In an increasingly competitive talent environment, organisations are searching for ways to streamline their hiring process for several reasons: making better hires, improving retention and lowering costs. Predictive hiring assesses the likelihood of a candidate’s success in several areas, including promotion, performance and cultural fit. Using predictive hiring all but guarantees that the right hire will be made first time, every time.
Avoiding the cost of bad hires
REC data shows that a poor-quality mid-level hire can cost a business £132,000. However, the actual cost to the organisation is likely to be much more when considering recruitment costs, loss of productivity, and increased turnover. With 85 per cent of organisations admitting to making hiring mistakes, it’s easy to see how the cost of bad hires can quickly turn into millions every year.
Investing time and capital in a system which can create a blueprint for success is something hiring managers and recruiters have always dreamed of, but business leaders are now also waking up to the importance of investing in innovative HR technology to avoid the costs (financial and otherwise) associated with bad hiring. By moving into a predictive hiring model not only can financial losses can be avoided; hiring the right person first time can result in the optimum outcomes for a new start – increased productivity, performance, retention and staff morale.
Interviewing unsuitable candidates is frustrating for both parties. Predictive hiring can ensure that an organisation’s employer brand stays positive by narrowing their focus onto suitable candidates only. What’s more, word of mouth is a powerful tool in the social media age, and review sites such as Glassdoor mean that candidates can anonymously rate employers based on their experiences. Top-quality candidates therefore have their pick of the best employers.
An organisation’s culture can be hugely improved by using predictive hiring to assess what candidates will add to the team, as well as how they’ll perform in their role. Over a quarter of global business leaders surveyed by Deloitte are using games and simulations to assess potential candidates, which demonstrates just how much credence is being given to hiring for skills and personality over experience. HR leaders understand that relationships between managers and team members as well as within teams themselves can matter far more than the credentials an individual brings to the table.
‘Gut-feel’ is becoming a dirty word in the HR sphere – data-driven decisions are the future, and the most mature hiring teams have already adopted a mentality geared towards evidence-based strategies. There are countless anecdotes about companies who have completely shifted their years-old hiring strategies after analysing data and discovering that what they believed was wrong all along. Predictive hiring can make a real difference to challenging embedded assumptions; that graduates perform better in-role than non-graduates, for example.
One of the most impactful elements of predictive hiring is that it allows an organisation to continually improve and refine its hiring practices. Keeping assumptions in check, providing evidence to back up HR’s claims and providing a blueprint for success means that hiring teams can finally join the boardroom debate fully armed with comprehensive facts on what works, what doesn’t, and which kind of person is destined for success within an organisation’s cultural and commercial environment.
Content Marketing Specialist
Gianna is a copywriter with degrees in English and Marketing. She is passionate about the ever-evolving world of technology, and uses her skills to research the latest industry trends and insights.