Understanding the steps needed for successful recruitment analytics – and the improvements required to achieve profitable growth – hinges on your ability to source and use relevant data. This makes recruitment analytics a vital commercial asset, as long as you know how to use and optimise your recruitment metrics dashboard.https://www.vincere.io/blog/why-candidate-care-matters-in-the-recruitment-process/Recruitment strategy
There’s a lot to learn in the realm of analytics, and analytics teams should be well-equipped to source and review business data to better inform business strategy. The main strategy used by modern recruiters is utilising recruitment analytics software to analyse data effectively. Let’s explore recruitment analytics software, and the benefits it can bring to your company.
What is recruitment analytics?
Recruitment analytics finds helpful patterns in the recruitment process – for example, job turnover, age range, cost of hiring and more. Knowledge is power in any business, and this means knowing what data you need, and having the ability to gather, sort and examine that data in a productive manner.
The best recruitment analytics dashboard provides your organisation with access to a wealth of end-to-end data, as well as tools to examine it, and the capability to formulate purposeful reports that benefit the recruitment process.
Why do I need recruitment analytics?
The main reason you need to master recruitment analytics is that your business survival could depend on it. Data transparency and control is how you know that your commercial strategies are proving effective, and that your candidate and client handling tasks are working well.
On the reverse side, recruitment analytics flags up issues and oversights as part of your continuous improvement. You don’t want a serious dip in income to be the first sign that something is wrong. Recruitment analytics will enable you to use recruitment technology – particularly an applicant tracking system (ATS) and candidate relationship management (CRM) software – effectively and efficiently.
It comes down to one fundamental question: can you afford to stand still as a recruitment organisation, or are you seeking to use modern technology to create more assured profitable growth?
The benefits of recruitment analytics
Your recruitment metrics dashboard is vital to business decision-making, so it’s worth focusing on some of the advantages of optimising it. Ultimately, investing in recruitment analytics will help you to understand your recruiting data.
Improve quality of hires
One of the most important business ‘secrets’ hidden in your recruitment analytics is whether your talent pool and applicants are hitting all your business aims and objectives. For instance, are you achieving a consistently positive candidate and client experience, and if not, why not? Have you experienced bottlenecks, overlaps, duplications and errors in your hiring processes and data that are eroding your quality as a recruiter? An example of recruitment analytics in action would be data that shows that your hires are proving temporary or otherwise inappropriate. This is a red flag that your systems for sourcing, selecting and placing candidates must be matched more exactly to job specifications and client goals. Alternatively, you can use data on successful hires to replicate the steps involved consistently.
Diversify your workforce
Recruitment analytics is a platform to grow your talent pool in a focused and meaningful way. Having confidence that candidates’ relevance and calibre are keeping pace with your marketplace will be based on solid facts.
However, you can also use recruitment analytics to monitor and measure whether you are meeting the diversity, equity and inclusion aims inherent in your hiring practices. Knowing how to use diversity metrics – and recruitment data to diversify your workforce – can be key to remaining demonstrably compliant.
Predict future recruitment needs
Sorting and reviewing forensic and real-time data enables you to make robust day-to-day decisions to run your recruitment business in a productive manner. However, predictive analytics underpins confident decision-making and performance improvement. It can ensure that you have a strong grasp of trends, patterns and future client needs so that your talent mapping and candidate attraction stay one step ahead of your competitors.
Higher retention rates
The highly competitive and fluid nature of modern hiring means that complacency is a commercial downfall. Having a firm grip on recruitment analytics makes you more efficient and effective, but also more agile in your engagement with candidates and clients. Attracting and retaining top talent demands a wholly positive candidate experience, and your data is your ‘roadmap’ to ensuring this.
Most important metrics in recruitment analytics dashboards
Every organisation has individual data characteristics and requirements. However, there are certain recruitment metrics of universal value and importance.
Cost per hire
Insightful recruitment analytics that pin down your financial health and opportunities is always crucial. Insights on cost-per-hire enable you to increase efficiency and become more profitable in recruitment.
Quality of hire
Not all types of recruitment analytics are quantitative or financial; some are skewed more to qualitative aims. This includes measuring how well you meet hire specifications and expectations, and whether you need to go right back to your talent pool to make improvements.
Candidate satisfaction
This is another valuable qualitative measure to consolidate or grow your business proposition as a recruiter. Data analytics provides insights into whether candidates are being attracted, retained and placed in a manner that secures their loyalty. You may create advocates to grow your talent pool via word of mouth.
Booked fees per recruiter
Booked fees per recruiter is a crucial metric for evaluating individual performance, offering you a clear snapshot of each recruiter's revenue-generating capabilities. By comparing recruiter numbers, you can identify top performers, assess team efficiency, and make informed decisions about incentive structures.
Booked fees per company (client)
This metric provides valuable insights into the health of your client relationships. By tracking booked fees per company, you can determine which clients are driving the most revenue, identify key accounts, and understand revenue concentration.
Avera
Average placement value represents the average fee generated per successful placement. This metric is a key indicator of the profitability of different roles, client segments, or recruitment channels. By analysing this data, you can optimise your recruitment strategy and focus on higher-value placements.
Forecast fees (best case prediction)
Based on current pipeline and market conditions, this metric provides an optimistic estimate of future earnings. Forecast fees is a valuable metric for financial planning, resource allocation, and setting performance targets.
Average redeployment rate
By tracking average redeployment rate metric, you can assess the effectiveness of your efforts to transform temporary workers into permanent employees. A high redeployment rate can significantly impact your overall revenue.
Temp/Contractor growth
To find out the performance of your temporary staffing division, it’s important to track this metric. With it, you can measure how fast your temporary and contract placements are climbing.
How to develop a proactive recruitment strategy with recruitment analytics
The best software solutions for recruiters streamline and automate many of the operational and marketing tasks involved, and deliver advanced data analysis and reporting tools.
For instance, Vincere’s CRM and ATS data-driven platforms provide personalised recruitment analytics potential and user-friendly metrics dashboards. Once you have the right recruitment software in place, you can use it to proactively find, collate and interrogate data to produce reports that underpin confident decision-making in recruitment.