Although talent analytics has existed for several years and top management realizes its potential, only a few firms have completely adopted the approach. According to a study by Deloitte, only 4% of businesses have predictive talent analytics capabilities, 14% have some type of talent analytics program in place, and 60% of businesses intend to develop a talent analytics strategy.
To implement a talent analytics strategy, what is required for an organization is a complete understanding of talent analytics and the means through which the data can be put to productive use.
To help you get started, we will explain what Talent Analytics is, what sort of data you should gather, and the advantages of using talent analytics data.
Talent analytics provide insight into both the prospective applicant pool and your existing employees.With a talent analytics platform, you can form credentialed strategies concerning the recruitment process; identify prospective candidates whose skills can boost your company’s productivity, and conduct assessments of existing team members to ascertain their skill gaps.
Historically, talent analytics has been around for quite some time and goes by a few different names, including:
Human resource analytics
Human capital analytics
Why is Talent Analytics Important?
By using talent analytics data analysis, you will get insights into employee-related issues like performance assessment, hiring, teamwork, and leadership.
Based on the data obtained, you can build a plan for identifying top performers at your company; get an understanding of employees’ work satisfaction levels, and develop employee retention strategies.These insights can help to understand the capabilities of current and prospective employees, as well as their shortcomings and how to improve them.
What Type of Data do You Require for Talent Analytics?
For analytics to be useful and assist recruiters in making smarter recruiting choices, talent acquisition teams must know what kind of talent data they should gather. Below are the four types of data you need for talent analytics:
Data from job portals
Tracking data from job websites will provide you with more insight into the performance of your advertisements. You will get a deeper understanding of how many people are applying for a job; which positions attract the most applications, and what types of devices do candidates use to apply for jobs?
Data from social media
Social media is an excellent tool to engage with younger prospects, but you must monitor data to see whether your recruiting plan is successful. For instance: Which social media outlets have the most impact? Which social networking platform produces the most qualified candidates? How many candidates are generated by each channel? What is your cost per acquisition?
Data related to CRM (Candidate Relationship Management)
CRM data may assist you to monitor different forms of data associated with candidate applications, such as application abandonment rate and the number of prospects in your pipeline and talent pools. It would also offer information on how long candidates spend on each step of the application process; the time to hire; hiring cost; the referral rate, etc.
Recruitment analytics data
Recruitment analytics will assist you to gather data that offers you knowledge of:
Hiring insights: Why prospects drop off, and which aspects of the process need adjustments.
Operational insights: Determine the efficiency of your recruiting process and pinpoint any bottlenecks.
Personality insights: What sorts of applicants apply for your available positions, and how do they stand when compared to your top performers?
Candidate experience insights: Are candidates with higher experience willing to apply for the job?
Examining the advantages of talent acquisition analytics
Utilizing data analytics in your talent acquisition approach has a multitude of significant advantages. Here are the four most important advantages of talent acquisition analytics:
Once you have targeted the exact talents and traits you are looking for in a candidate, you can utilize data to determine where would you get in touch with such applicants (certain social media sites may assist you with this). You can then publish your job advertising according to the requirements. You may even tailor the wording of the ad or job description to match the personality of the applicants you’re seeking.
2. Eliminate prejudice
Data does not care about an applicant’s age, gender, or color; but, on the other hand, humans may make some biased decisions, based on these characteristics.
Based on the existing knowledge associated with social events, attitudes, cultures, stereotypes, and emotional responses, our brains may develop unconscious biases. Using facts and statistics as a basis for your judgment can prevent prejudice in recruiting.
3. Predict applicant success
Organizations may utilize analytics to forecast the future performance of job applicants.
Using talent analytics, businesses may determine the characteristics of a competent employee and create a candidate profile to match it. Thus, while making hiring decisions, they might seek comparable qualities, education, and experience.
4. Customize employee benefits
Talent analytics helps you to make smart decisions based on a candidate’s personality and preferences.
The overall aim would be to turn employees productive and efficient. For instance, you may encourage outstanding prospects to join your team by aligning perks to their specific beliefs, personality, and habits.
Another instance would be that a job applicant with an introverted personality who may prefer a calm place to work may welcome the possibility to work from home once a week. Not only will this appeal to the prospect, but it will also help optimize their potential as an employee and boost employee happiness.
While managing the recruiting process, talent analytics goes beyond ordinary data by providing information on various sources, such as hires, onboarding, retention, cost, and even candidate relationship management (CRM).
For a speedy, effective, and fair recruiting process, you must give equal significance to the types of data you should gather. Different types of data from a wide variety of sources are crucial to a recruiting team because it allows them to begin crafting a recruitment plan that delves further into when, where, and how they should invest their efforts in filling vacancies with the finest available individuals.
Want to know how you can recruit and retain top talent in an era of The Great Resignation? Book a live demo with us.
Srikant Chellappa is the Co-Founder and CEO at Engagedly and is a passionate entrepreneur and people leader. He is an author, producer/director of 6 feature films, a music album with his band Manchester Underground, and is the host of The People Strategy Leaders Podcast. He is currently working on his next book, Ikigai at the Workplace, which is slated for release in the fall of 2023.