What You Need to Know About Data-Driven Recruitment

Only 4% of companies in 2023 said that their organization is currently very effective at hiring the talent they need. That’s pretty staggering for such a vital task. No wonder many companies are turning to data to make better hiring decisions. 

Using data in the right ways can accelerate your hiring process and help you find the best candidates for your open roles. But for most companies these days, the hurdle for making better recruiting decisions with data isn’t a lack of data — it’s so much data that it becomes overwhelming. 

That’s why you need a smart, strategic data-driven recruitment plan in place before you start incorporating more data into your recruiting decisions. Here’s what you need to know. 

What is Data-Driven Recruitment?

Data-driven recruiting is, simply put, recruiting that uses a data-driven approach to sourcing, evaluating, interviewing, and hiring. It’s a more objective way of looking at hiring processes than the traditional methods of hiring, which often rely on instinct and similarity in looking at resumes, education, and other markers that aren’t actually a strong indicator of future success.  

Data-driven recruitment works by providing accurate, insightful data to recruiters at each step of the hiring process. This can look like: 

• Knowing which sources of applications have a higher likelihood of being a good match so you can invest more recruiting resources there 
• Scanning resumes to pick the most promising candidates to move forward into the talent pool
• Incorporating skills assessments to test for the skills that actually indicate a high success rate in the role 
• Evaluating the likelihood that candidates will stay in the organization longer if hired so you can hire for the long-term

The Benefits of Data-Driven Recruitment 

Eliminates Bias 

This type of recruitment is also less biased — but only if you use the right data sources. In fact, bad data is worse than no data at all, as Amazon found when it tried to create a data-driven recruiting process years ago without accounting for bias. To get the bias-free data you need, you should look at certified bias-free platforms like Cangrade that allow you to use data-driven recruiting without the risk of amplifying biases. 

Decreases Time-To-Hire

Looking at the right data can make narrowing your applicant pool much faster and simpler for recruiters, particularly in the early stages of the hiring process. By making decisions faster and simpler, you can reduce time to hire, which means you won’t miss out on top talent because they took another, faster offer. 

Increased Efficiency 

By giving your recruiters more helpful and targeted data at each stage of the hiring process, they can make decisions more efficiently. They can use the time they gain from having access to these insights at their fingertips in guiding and getting to know the best candidates and enhancing your employer brand, among other value-add tasks. 

How to Start Using Data-Driven Recruiting 

Instituting a data-driven recruiting process in your company is a big project, but here are a few good ways to get started. 

Find Your Most Important Metrics 

You likely have access to a huge amount of data, so start by determining which metrics actually matter to your hiring process and which will help you improve it the most. Then, figure out where you can source this data, whether it’s in your ATS, your HR systems, or somewhere else, and give your recruiters access to it so they can use it to make decisions (preferably in a recruiting dashboard). 

Act on That Data 

Now that you have the data you need, strategize about how to incorporate it into your hiring process. Perhaps you use skills assessment results to pick out the top 20% from your initial applicants, or invest in targeted LinkedIn ads because you get high-quality applicants from that platform. You can also use a talent acquisition platform like Cangrade to take these actions with high-quality, bias-free data. 

Measure Progress and Make Adjustments 

Data matters in measuring your progress too. Be sure you’re tracking key metrics of success, like new hire retention rate or quality of hire, so you know how well your changes are improving your hiring process and your candidate experience. If changes are needed, don’t be afraid to adjust as you go. 

Lastly, be sure to watch our in-depth webinar about everything you need to know about incorporating data-driven recruiting into your organization. It covers key actionable points you’ll need to know to make your recruiting more data-driven and more successful.