Perhaps you already understand how data can help streamline your business processes. Maybe you’re one of thousands of worldwide companies that have adopted RPA technology, using CRM systems to measure A/B testing in Marketing efforts or utilizing AI software to calculate time-tracking for ultimate Supply Chain efficiency.
As the Tech industry becomes ever more competitive, it’s vital to stay on top of the latest developments to optimize output. Currently, there’s a prominent area of business growth where incorporating data has been proven to generate high success that is highly being ignored: Recruitment.
Intelligent recruitment “aims to use all of the data available to a recruiter – not just resumes or cover letters – to make the right decision” (Source: Recruitee). In a world where wage salaries and benefits make up 40-80% of gross revenues, nailing your Human Resource Management and Recruiting practices can save you from costly onboarding processes only to lose your new recruit within a few weeks.
THE HIDDEN COSTS OF TURNOVER
According to Oxford Economics and Unum, the average cost of turnover per employee is £30,614. That’s a decent yearly salary for a lot of Tech employees and a significant chunk of profits for any business owner. Contributing to this average sum is:
Recruitment Costs: Even if you have an in-house HRM team responsible for reviewing applications, recruiting costs can stack up fast. Alongside salary wages for lengthy review processes and interview times, many executive searches involve costly advertisement prices and external search firm help.
Onboarding and Training: The average cost of training, providing resources, and promoting employee development is £920 per staff member in your organization, per year. Regularly losing staff means extra onboarding costs and frequent training sessions to keep employees up-to-date with work processes.
Backward Motion: Turnover can disrupt teams, and the loss of staff members (or even teams that clash with new recruits) can cause a drop in work productivity, as focus and attention are brought elsewhere.
Loss of Work: Naturally, losing an employee means you have a lower work capacity until the role is filled. Consequences of turnover often include pushing client work back until you’ve found a replacement - disrupting revenue significantly.
6 RECRUITMENT DATA METRICS YOU CAN MEASURE
According to 4 Corner Resources, 78% of recruitment professionals said that using an Applicant Tracking System (ATS) “was a worthwhile investment, and has helped increase the quality of candidates they hire.” Data you can track using software like ATS include:
It might sound a little obvious - but knowing the movements of your staff and average length of stay will help you predict changes and onboard new staff in response. This is especially important for industries like Hospitality who are likely to have multiple student-hires who‘ll graduate and finish work around the same time.
2. Time and Cost Per Hire
Knowing the average time commitment and cost per hire can help you predict turnover costs when employees leave. For example, knowing that it would take you 2 months to fill a marketing role within your company allows you to adapt work contracts accordingly, requesting a required 2 months’ leave of notice. This will help you reduce loss of work and backward motion during cross-over periods.
3. Pass-Through Rate, Offer Ratios & Application Success RatesPass-through rates compare how many employees you have at each stage of a multi-layer interviewing process. Application success measures the likelihood of you filling roles within your company on an ongoing basis. Paying attention to both of these rates allows you to estimate a “barrier of safety” when going into recruiting practices. Nobody wants to be halfway through a search for a new employee and then reach the end of their budget - disrupting vital HR work and upsetting valuable employees.
4. Growth vs Employee Wellbeing
Human Resource Management software with timetable systems are hidden gems for recruitment practices. Paying keen attention to staff hour requirements will allow you to judge growth versus employee wellbeing. If your staff members are committing to more and more overtime, it’s likely you’ll need a new employee.
5. Internal Applicants and External Hires
Measuring internal versus external hires for executive positions in your workplace is vital to ensuring low turnover and longer retention rates amongst staff.
Research shows that rejected internal applicants vying for promotion are twice as likely to quit work compared to average turnover statistics.
If you’re a large company dealing with lots of recruitment, it’s important to pay attention to internal applications and support staff within your workplace as they try to move up the career ladder. Plus, they’ll often have less training costs required and have already proven they can mesh well with your teams (helping you make the perfect hire).
6. Hire Source and Quality of Hire
If you are working with external agencies, understanding the average quality of hire is vital for improving your long-term recruiting practices. This will help you make informed decisions whether to continue work with a recruitment firm, or find one more specific to your niche.
USING THE RESULTS TO IMPROVE HIRING PROCESSES
As data-driven recruitment is a relatively new concept, connecting the dots between the data from certain metrics and exploring the solutions is in the hands of individual businesses and progressive recruitment firms.
Being responsive to results is all about using your keen insight and general awareness, preparing to:
- Incorporate changes in your workforce for reduced turnover
- Be clear about expected work expectations to increase retention rates
- Respond to data metrics to improve your hiring processes
nufuture is an IT & Tech recruitment specialist dedicated to finding the right talent for our clients - especially ones who are just as committed to you, as you will be to them. If you want ethical hiring solutions, and keen insight into data-driven recruitment: we’re specialists in our market and our knowledge runs deep.
Connect with nufuture today to find out how we can help you.
Call us on 01344 289224