As we begin a new year, whats your human resources departments resolution? Developing a robust HR analytics program that will help you use data to improve the hiring process might be a goal you want to consider. This type of initiative can clearly demonstrate how your HR department can deliver business benefits and justify HR budgets in the areas of hiring and recruiting.
A recent Harvard Business Review blog post described three characteristics of powerful HR analytics. They should be:
1. Relevant to key business issues, such as productivity and costs.
2. Based on quality data, resulting in metrics that are credible to business leaders.
3. Actionable, so managers and executives can make informed decisions.
A good HR analytics program should focus first on recruiting. Researchers at Cornells Center for Advanced Human Resource Studies break sourcing metrics down into two broad categories:
– Efficiency. Recruiting efficiency focuses on measures that affect how long it takes to fill open positions. Examples include time to fill, number of candidates interviewed per position and recruiter workload.
Time to fill is calculated by determining the number of days from when a job requisition was opened until an offer is accepted. According to the Society for Human Resource Management (SHRM), this metric offers insight into how long it may take to hire employees for specific types of positions. With this data, managers can reduce the impact on productivity by redistributing work while positions are open. The information can also be used for budget planning and in performance evaluations for recruiters.
– Effectiveness. Recruiting effectiveness relates to the cost and quality of new hires. Examples of effectiveness metrics include cost per hire, number of hires per recruiting source and manager satisfaction with the recruiting process.
Tracking the source of hire demonstrates which recruiting strategies are most productive. This metric can help recruiting managers focus on outcomes and the business impact of their work. SHRM reports that cost per hire is one of the most useful HR measures because it creates a connection between recruiting activities and the cost impact for the organization.
Tips for Building Analytics into Your Hiring Strategy
The first step when creating an HR analytics program is to choose the right metrics, based on your organizations business goals and strategy. Experts suggest that metrics should be defined in a standardized way, so benchmarking and comparisons can be made internally and also with data from similar organizations.
Its also important to equip the recruiting team with tools and technologies that make it easy to compute metrics. Look for applicant tracking systems that offer out-of-the-box analytics and reports, as well as the ability to create customized reporting that is tailored to your organizations unique needs.
Systems that capture real-time metrics help HR teams engage in more efficient and effective hiring, and also provide data archives to demonstrate throughout the organization how their work contributes to the bottom line.
Are you ready to use HR analytics to improve your hiring process? Contact us to learn how applicant tracking software can provide all the data you need to make better hiring and recruiting decisions in 2014.