In today’s fast moving business world, a company’s stakes are very high that it cannot afford to back a wrong horse. So, recruiters carefully avoid making decisions based on gut- feel, intuition or perception. They resort to analytics- a systematic computational analysis of data/ statistics, before making any proactive or reactive decision. They also agree to the fact that evidence- based decision making is only a safe bet in achieving more quality workforce. Hence we can say that data analytics is an invincible arrow in every company’s quiver.
HR analytics basically correlate people data with business data and establish a cause and effect relationship between them. There are two aspects to HR analytics - Talent acquisition analytics and Workforce analytics. While Talent acquisition analytics shed light on the strategies that can lead to efficient recruitment processes and an increased number of quality hires, Workforce analytics provide insights on how employee behaviours affect business outcomes. HR analytics basically help enhancing intangible business outcomes like increased individual productivity, group cohesion, cultural fit that directly influences the more tangible business outcomes like ROI, increased volume of sales etc.
Every company can pile up mountains of data. But deriving meaningful, timely and relevant conclusions from them is where the analytics come in. Here are few metrics that a HR department should not ignore.
Optimum Candidate Volume for a particular Candidate Requirement: High quality candidates don’t carpet bomb their resumes to all the vacancies they come across. They look for brands and also keep following them. Hence attracting a good number of quality candidates for the job postings is very important.
Channel Mix: Recruiters advertise job vacancies in various channels: Therefore, knowing which channel contributes more quality candidates can help them manage ad expenses efficiently.
Cost per Hire: It not only includes the ad cost, hiring managers’ fee and administrative costs but also the loss a company would incur due to low productivity, resignation, retraining and rehiring.
Open Vacancies Vs Positions Filled Ratio: This helps the organisation to understand the dynamics of their company’s recruitment needs.
Offer Vs Acceptance Ratio: This ratio basically shows how positive is the company’s brand image among the qualified candidates. How much of the candidates who were offered the job actually get converted into employees.
Hiring Time: From the time of actual job posting to the time the candidate actually comes on board is called as hiring time. Lesser the hiring time taken to zero in on a best hire, more efficient is the hiring process.
Revenue per Employee, 360 degree feedback, frequent highly targeted surveys can leverage the performance levels of the company.
Human Resource is a best asset that a company can always boast about. So having the best in the market on board is a priceless core competency for any company. HR analytics can aid you in achieving that.