There are two meanings to the idea of working in a good company. On the one hand, it means working in a successful or promising, well-built and well-managed business. On the other hand, it is working in a good company of people, having great co-workers. These two meanings are closely related, as good companions make good business. That is why hiring is such a crucial part of a well-structured business. Ensuring high quality in recruitment is one of the top priorities for growing businesses. Data-driven hiring comes as the state-of-the-art way to do it, thus HR managers are increasingly turning to it.
How does it work?
To understand the growing popularity of data-driven recruitment, we need to look into how and why it works out better for businesses than the old-fashioned hiring methods. Let us start by looking at how it works.
Naturally, it all starts with data. As all data-driven processes, data-driven recruitment is based on the idea, that information is a powerful tool, and the more you have of it, the better you will do. In the case of hiring data firstly means information about potential recruits, whether they are looking for a job, or currently working elsewhere.
Thus, when HR and management are working on a data-driven hiring model, they would start by collecting and acquiring as much information as possible on the talent pool. This includes all the relevant information about potential recruits, their histories, and features. Such information can be supplemented by data on the hiring habits of other companies, as it can assist in improving the model and provide insights into competition.
Here it might be asked how much data one needs to collect for such a hiring model. The simple answer is as much, as one can handle. This brings us to the next aspect of data-driven recruitment – data handling tools. High-quality data-driven recruitment requires tools capable of sorting through and analyzing lots of data as fast as possible. Companies can build these tools and train algorithms to suit their data-handling needs. But to do this, once again, it is necessary to have some data to build on.
The better your tools are, the better your recruitment system will be. From then on it is all about practice and trials to calibrate the model as nearly perfect as possible.
Why does it work?
The fact that data-driven recruitment is an improvement as compared to the traditional methods of hiring has been noticed for quite some time. Since it works better, more and more established brands or growing companies are turning to it. But why does it work so well?
The most obvious reason is statistical probability. AI-based tools can sort through more candidates in less time and collect more relevant information on them in advance. When one looks at more places and more thoroughly it is simply more likely to find the best fit. Thus, a data-driven recruiting model has a better chance of finding what the company is looking for.
What may be a less obvious explanation of the success of data-driven recruitment is its ability to minimize bias. Human bias, much like human errors, tends to stagnate business procedures and negatively influence decisions. A well-built data-driven hiring model will allow to select the top candidates without bias before humans meet them. This will help to create a diverse and well-structured business environment.
Finally, data-driven recruitment is simply more efficient. When we are looking for a specific piece of information it is faster to use an internet search engine than to go to the library and look for it manually. Similarly, it is more effective to sort through the talent pool and find the most promising candidates with tools made for that purpose. This makes the work of HR and managers more efficient and frees up the time to concentrate on building a better work environment with current employees.
Who does it work for?
The last aspect of data-driven hiring to conclude this short guide with is the people that get the most out of it.
From what has been said above, it is clear that data-driven recruitment is great for HR and management. It leads to better hiring, high-quality long-term recruitment strategies, and increased efficiency. This would naturally make the procedure itself less stressful and more pleasant.
Importantly, the latter aspect also goes for the potential recruits. The data-based hiring procedures will be faster, better-targeted, and thus less inconvenient for prospects. It will save their time and retain a reasonable level of satisfaction even when not hired.
Lastly, data-driven recruitment works great for the entire staff, as it highly increases the ability to bring together people who are going to work well with each other. This makes for a healthy workplace atmosphere which leads to higher work satisfaction.
Thus, embracing data analytics for hiring works great for everyone in the business. This means that it is likely to stay and grow as a major method of hiring.