Why Data is the New Recruitment Superpower

It’s no surprise to anyone that the world is becoming increasingly digitised, but what makes data so important to recruitment professionals?

Talent acquisition teams are facing three main problems today; new job types, shrinking talent pools, and increasingly intense competition. Future-facing companies understand that the only way to overcome these challenges is to get ahead of them, and LinkedIn’s Global Recruiting Trends 2018 shows that harnessing the power of data can ensure that you remain able to attract and retain top talent.

The Data Landscape

The benefits of using data to improve quality of hire are already being embraced: 64% of recruiters and hiring managers use data occasionally[1], and 78% of UK respondents to a Deloitte survey rate people analytics as ‘very important’[2]. In fact, Deloitte’s research concludes that for talent acquisition, analytics are now ‘a critical part of high-performance hiring’[3].

Gathering data is the first step in feeding AI software, which empowers your organisation to make robust hiring decisions and have confidence in the long-term success of your hiring decisions.

“Companies need to take stock of their workforce goals and consider how AI can improve them. Finding a recruitment partner with experience in the industry and the most advanced technology will lead to better and faster hiring.”

– Gal Amog, CEO, Talenya [4]

Why it works

– It replaces assumptions with facts

LinkedIn’s report uses airline JetBlue as a case study to illustrate exactly how data use can inform hiring priorities for the better. With over 125,000 applicants to evaluate for flight attendant roles annually, the company was basing their hiring criteria on the assumption that ‘niceness’ was a key quality their candidates should possess. However, after analysing their data, they found that ‘helpfulness’ was actually a far better predictor of performance and company fit. After making this small change to their priorities, customer satisfaction improved, and employee absence decreased by 12%.

– It removes bias

Diversity was also identified by LinkedIn as being a primary driver for talent acquisition teams in 2018; evidence proves that diverse teams are more productive, more innovative and more engaged [5]. There has been a lot of buzz in the media and from politicians around the importance of increasing diversity within companies, but unfortunately organisations may often struggle to recruit and retain diverse talent. By removing unconscious human bias from the selection process using AI, candidate fit can be assessed purely on skills and suitability for the role.

“Unconscious bias can still exist even when great efforts are made to eliminate it… After all, if the AI system is instructed to compile a shortlist by focusing solely on data around a candidate’s role suitability, it will ignore demographic information such as age, race, and sex.”

– Alistair Cox, CEO, Hays [6]

– It increases retention

One of the most appealing benefits talent acquisition teams stand to gain from AI technology is that they’ll spend less time having to repeat the process! The ability to robustly assess candidates before interview and once they’ve settled into their new role will be invaluable in ensuring attrition rates fall, and employee satisfaction increases. Global corporation Nielsen used data to understand how they could improve their attrition; after discovering that internal movement was a key driver of employee satisfaction, there was an 8x increase in internal mobility, and a 5-10% increase in retention during the initiative’s first year alone [7].

– It can predict candidate success

Understanding the kind of employee who will thrive within a company is priceless. Every talent acquisition manager wants their hires to succeed, and being able to pinpoint the required qualities for this success naturally streamlines the hiring process. Not only does it reflect well on the hiring manager’s ability to identify top talent, it also improves morale within an organisation, and can have a knock-on impact on the company’s reputation too.

“By evaluating candidate characteristics and information, AI can predict who an organization’s future high performers will be, who will stay on the job longer, and who is most likely to receive a promotion.”

– Jill Strange, VP Science Applications, HCM [8]

With fairer, more successful outcomes for both companies and candidates, the case for data and AI becoming mainstream in the recruitment industry is clear. Never before have we had the ability to so clearly predict the impact of our hiring decisions, and we look set to see ever-more automated, data-driven processes in future.

To find out more about how your candidate quality, post-hire performance and retention can be improved using AI and data, request a free demo of Talenytics today.

 

[1] Global Recruiting Trends 2018, LinkedIn, https://business.linkedin.com/content/dam/me/business/en-us/talent-solutions/resources/pdfs/linkedin-global-recruiting-trends-2018-en-us.pdf

[2] 2017 Global Human Capital Trends, Deloitte, https://www2.deloitte.com/global/en/pages/human-capital/articles/introduction-human-capital-trends.html

[3] 2017 Global Human Capital Trends, Deloitte, https://www2.deloitte.com/global/en/pages/human-capital/articles/introduction-human-capital-trends.html

[4]Traditional Recruiting Isn’t Enough: How AI Is Changing The Rules In The Human Capital Market, Forbes, 2018 https://www.forbes.com/sites/groupthink/2018/02/09/traditional-recruiting-isnt-enough-how-ai-is-changing-the-rules-in-the-human-capital-market/#c1ed632274a7

[5] Global Recruiting Trends 2018, LinkedIn, https://business.linkedin.com/content/dam/me/business/en-us/talent-solutions/resources/pdfs/linkedin-global-recruiting-trends-2018-en-us.pdf

[6] AI will be a big part of our future – but what does that mean for businesses searching for talent?, Alistair Cox, Hays, 2018 https://www.hays.co.uk/blog/AI-will-be-a-big-part-of-our-future/index.htm

[7] Global Recruiting Trends 2018, LinkedIn, https://business.linkedin.com/content/dam/me/business/en-us/talent-solutions/resources/pdfs/linkedin-global-recruiting-trends-2018-en-us.pdf

[8] The Integration of AI into HR: The New Psychological Frontier, Jill Strange, HR Technologist, 2018 https://www.hrtechnologist.com/articles/performance-management/the-integration-of-ai-into-hr-the-new-psychological-frontier/

Gianna Legate

Gianna Legate

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.