I speak with a lot of organizations who, for a variety of reasons, are trying to deliver better business results from recruitment and talent acquisition.
In these discussions, the common factor (which should come as no big surprise) is actionable insight into data – collected and connected from your recruitment, core HR, Talent and business outcomes systems.Building upon a prior blog I wrote on Creating Business Value through Talent Acquisition, I’m here to proclaim that data and analytics are crucial to this journey – and key industry Analysts like Kyle Lagunas (Brandon Hall) also share that perspective.
Given my conversations with CHROs, and our team’s first-hand experience working with some of the most business savvy and forward-looking Talent Acquisition Leaders around, here’s a synopsis of the Four MUST HAVE Focus Areas for Talent Acquisition Analytics.
Attract & Source
First Year Outcomes
Recruitment Channel Effectiveness
Business Impact of Talent Acquisition
Attract & Source focuses on the traditional view of the speed, process efficiency and cost of talent acquisition/recruitment. While this is absolutely necessary, it tells us nothing about Quality.
By measuring First Year Outcomes, first year productivity, first year turnover, fit, onboarding experience (etc. etc.) we get to understand quality dimensions. This reveals an amazing amount of information about the candidate experience, onboarding and manager readiness, alignment between what the TA team are selling, and what the organization can deliver, and even though the TA team filled the seat, is it with the right person who contributes as expected?
Then we move to Recruitment Channel Effectiveness – which tells you where to build your employment brand equity, where to spend more time early in the funnel, and where you need to steer clear of. At the end of the day, it may be worthwhile to invest more in a specific channel, if the returns are higher. Mapping first year (and ongoing) performance to a Recruitment Channel is a great way to do this – as are some of the costs.
This leads to the last category, one which is so often missed. What’s the Business Impact of Talent Acquisition? What’s the return on investment of a higher quality hire? What’s the impact on the business in terms of sub-optimized productivity, undelivered services, and missed revenue of unfilled positions beyond target? While this is unique for every company, in many of the cases we have worked with, in the mid-market (500-5000 employees), these opportunity costs very quickly drive into several $ millions. And when you add that to a very conservative 1xSalary cost of turnover, the numbers can become staggering – very quickly.
Armed with this data, decisions can be made about how to optimize your Talent Acquisition and Recruitment strategies, programs and investments.
And juicy conversations like the Missed Revenue Opportunity of Unfilled Positions can get C-Level attention - fast.
Take it from me, actively using and driving decisions from your data will act as a catalyst for change in your TA capability - raising your profile and delivering business relevant results (improving processes, improving talent quality, improving service to your hiring managers, and improving financials).
What’s your experience?
To read a real-world example of analytics making a difference to business click below: