Make Better Hiring Decisions with Help from Analytics

By admin fallon
On June 30th, 2014


Q. How can data analytics help with recruiting?

A. HR and recruiting organizations are increasingly using data in several ways:

  • To screen potential employees; for example, to identify high risks for stealing, drug addiction, or disability claims.
  • To forecast staffing needs.
  • To predict how a candidate will perform in a job.
  • Ask an expert

Xerox, for example, uses Evolv workforce analytics software to screen applicants. The Wall Street Journal notes that Xerox used the software to analyze call center employee data. The results determined that the best employees in that job weren’t necessarily those
with experience, but those with a certain personality type. Xerox then adjusted the personality tests that it gives potential hires to screen for the desired personality type. As a result, employee performance has risen by 3-4% and retention has improved.

Using predictive analysis in hiring has several potential advantages:

  • It’s more precise and objective than conventional hiring methods.
  • Using tests to gather the needed data and then using that data to predict success seems to reduce employee turnover.
  • It makes it easier to find employees that are a good fit for the company’s culture.
  • Companies can use data to improve candidates’ hiring experience.

The Washington Post notes that the best systems collect real-time data and then act on that data quickly to improve the interaction. For example, if candidates are frustrated because a job description is inaccurate, you can flag that description for review. Real-time data allows recruiters to “course-correct.”

Of course, there are also risks to using data in the hiring process:

  • This method does not guarantee that a particular hire will be successful.
  • The tools require good data to be effective, so you need an extensive body of historical data for each job position.
  • The tools do not directly assess whether a person can do the job; rather, they indirectly assess the person’s fit for a particular job.
  • Some questions could violate Equal Employment Opportunity (EEO) laws if the resulting data is used to screen certain statistical groups and eliminates too many candidates in a protected group.

Businesses should carefully review the details of any software and use predictive analytics carefully to avoid legal risks.

Despite some resistance, analytics as a hiring tool is probably here to stay. It makes the process more efficient and removes some of the recruitment burden from HR departments. A consultant that provides data analytics and HR services, such as Finance Analytic Corporation or Fallon Consultants, can provide further expert guidance to help you refine your company’s recruiting process, so you’re hiring the best-qualified candidates who fit with your company’s culture.

For more information about how a solid strategic plan can benefit your business, contact Fallon Consultants at info@fallonconsultants.com or 845-624-3504.

 

 

 

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