— March 14, 2018
Sourcing and recruiting has always been highly focused on attaining a deep understanding of talent. From uncovering fit to evaluating skills, traditional hiring is really an educated guess. There are a number of ways to assess applicants, but at the end of it all, recruiters and hiring managers have always had to hire with a hope the candidate will perform well. Unfortunately, the gamble can be costly.
Why Do We Need Predictive Analytics?
- Proves ROI on New Hires
- Sets New Hires Up for Success
- Builds Institutional Confidence By Reducing Turnover
- Increases Time to Hire
- Saves Recruiters Time
If the new employee doesn’t fit or only lasts a few weeks, the time and money spent training, onboarding and welcoming the individual are wasted. Meanwhile, your already established team might suffer from a loss of productivity. The stress is multiplied depending on the demand of training or the responsibility the new hire was supposed to assume. Due to sourcing, recruiting and development investments, replacing an employee can cost anywhere from 16% to 213% of the individual’s salary or hourly wage.
Now, HR and recruiting have finally found the game changer that will increase confidence and improve outcomes in hiring. Talent acquisition tech has tapped into machine learning and intelligent algorithms to harness the power of predictive analytics.
What is Predictive Analytics?
Predictive analytics is an area of statistics that extracts information from historical data and uses it to predict future trends. Used across numerous industries to meet diverse purposes, predictive analytics help people make more informed decisions for better results. For instance, Amazon suggests items of potential interest, encouraging another purchase by comparing your buying history with similar users. Email filters, text suggestion/autocorrect and streaming recommendations are just a few everyday instances of predictive analytics.
You probably already use predictive analytics if you’ve shopped online or Spotify has suggested a new music station based on your tastes. In the same way, predictive analytics can take your sourcing, hiring and retention data to show you which candidates you might hire in the future. Better yet, predictive recruiting can potentially increase retention!
The future is here and it’s making hiring a whole lot smarter. With Predictive Recruiting Scoring and analytics, organizations can improve everything from the candidate experience to overall company performance.