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Analysis


TALENT ACQUISITION ANALYTICS


USING ANALYTICS FOR SMARTER SOURCING AND HIRING DECISIONS

The talent acquisition (TA) environment is becoming increasingly complex and
competitive for organizations recruiting new talent. Data-driven approaches can
deliver insights critical for improving operational and business outcomes.
Whether it’s better awareness of candidate fit, process and technology
optimization, or increased understanding of talent acquisitions impact on the
business, analytics is a powerful force in the quest to source and hire top
talent.

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 * Save for later



EXPLORE CONTENT

 * The challenge
 * Why enhanced TA analytics matter
 * A framework for defining leading recruiting analytics
 * Analytic approaches
 * A key consideration: Sources of data

 * Creating high impact and value with cognition
 * How organizations can begin to upgrade
 * Let's talk
 * Related topics


THE CHALLENGE



Employers have more pressure than ever to fill new jobs efficiently and
effectively amid low unemployment and skilled labor shortages. The challenges
multiply with the increased risk of talent movement—44 percent of millennial
workers will be looking for a new job in two years, and are 25 percent more
likely to search for a new job than non-millennials. With average new-hire
turnover rates of 14 percent, a clear need exists for improved projects and
insights into staging needs and strategies.

Our research found that 83 percent of 924 companies surveyed globally have low
people analytics maturity, as compared to the high maturity organizations which
have graduated to more advanced practices. The higher maturity organizations
build consistent data definitions, use embedded reporting and analytical tools,
and are building data integration capabilities to understand employee behaviors.

This indicates that most organizations are under-equipped to identify problem
areas and potential solutions to their recruiting challenges. Addressing this
capability gap is a business imperative, given the need to effectively manage
staffing and meet operational goals.





Take this report with you. Talent acquisition analytics Download the PDF



THE OPPORTUNITY: WHY ENHANCED TA ANALYTICS MATTER



The impact of an advanced, high-maturity people analytics capability on business
results is substantial, and enhancing it can increase the value of TA and the HR
function to the business.

Considering the "whos" and "hows" of recruiting analytics impact not only helps
stakeholders appreciate the value that using analytics for talent acquisition
can bring to the organization but also helps guide your analytics approach and
develop a roadmap for the journey.

The first step to closing the capability gap and increasing analytics maturity
is to understand how talent acquisition analytics affects key stakeholders and
what both they and the organization can gain from it. You should consider the
outcomes stakeholders are driving toward, and the types of insights that will
support achieving those outcomes.



Back to top






A FRAMEWORK FOR DEFINING LEADING RECRUITING ANALYTICS



"TA analytics" refers to the systematic discovery of meaningful patterns in data
to support decision making related to recruitment and onboarding processes,
activities, and outcomes.  Three primary categories of measurement (efficiency,
effectiveness, impact) are leveraged across four types of analysis (descriptive,
relative, analytic, and predictive). As the framework progresses from left to
right, the model increases in complexity of data used, systems tapped, and the
sophistication of analytics techniques used. A robust infrastructure enables the
analyses, with multiple data sources, repositories, analytic tools, staff
capabilities, and visualization all focused on the business and information
needs of the end users.



Back to top





Click to enlarge




ANALYTIC APPROACHES



Each type of analysis offers valuable insights toward the overall success of the
TA function, and is progressively more sophisticated in its nature. Leading
organizations measure and report on all four metrics categories across the
analysis spectrum, presenting reports and dashboards specific to the information
needs of each end-user group.

DESCRIPTIVE ANALYSIS

Provides a view into activity, such as requisition volume, applicant or talent
pool size, source of hires, etc. It reveals the levels of activity and
efficiency in candidate generation, and is a simple expression of volume, time,
cost, or source.

RELATED ANALYSIS

Offers insights into TA performance against requirements or standards, including
cost-per-hire, time-to-fill, pre-hire assessment scores, etc. It compares
performance to budgets, tests, service level agreements (SLAs), or benchmarks,
is represented as ratios or comparisons, and is critical to the efficient
operation of the TA function.

ANALYTICAL ANALYSIS

Answers questions regarding the relationship between activities and outcomes, as
in the quality of candidates or hires, skill match between candidates and
position requirements, critical skill hire retention, speed to competency, etc.
It uses basic statistics and multiple datasets to map TA activity to subsequent
talent outcomes.

PREDICTIVE ANALYSIS

Identifies statistical relationships between multiple activities and outcomes to
either:

 1. Predict what will happen in the future or to explain the drivers of that
    outcome, such as a candidate’s likely cultural fit, level of performance,
    and retention.
 2. Detect potential talent shortages/skills gaps, and market availability
    (workforce planning).

Predictive techniques also identify possible adjustments to TA strategies and
the opportunity to deploy automation and/or contingent workforce solutions.
These techniques leverage advanced statistical and modeling techniques with
large, integrated datasets.



Back to top






A KEY CONSIDERATION: SOURCES OF DATA



Leading companies no longer rely exclusively on the applicant tracking system
(ATS) for reporting on transactional data. With the adoption of more advanced
systems, data repositories, and analytics capabilities, the aperture expands to
provide more integrated insights into the impact of TA processes and practices,
including data from:

 * Core HR, talent, learning, performance management and compensation systems
   for new-hire and high-performer demographic information and their influence
   on talent outcomes
 * Skills inventories to identify skill surpluses and shortfalls within roles
   and geographies
 * Candidate relationship management (CRM) systems for talent pool insights
 * Social networks for passive candidate and employment brand strength insights
 * Employee engagement surveys for evaluating new-hire satisfaction, retention
   risk, and hiring manager success
 * Operational and financial systems (e.g., sales, enterprise resource planning
   (ERP)) for recruiting costs, and the impact of hiring activity on team,
   business unit, and/or corporate results

Data from these systems also shed light on the relative talent management value
of sources of hire—both internal and external—for generating high performers,
highly engaged employees, or future leaders within a critical role, line of
business, geography, or diversity group.



Back to top





CASE IN POINT

A global financial services organization sought an analytical approach to ensure
that its future customer service workforce would be successful in a new
organization model. A robust pre-hire analytics model was developed to predict
employee success on the job. More than 6 million records were amassed using 12
internal and external data sources that spanned 70+ disparate files and
contained 100+ data elements. The model validated that representatives in the
highest predicted success group realized a 45 percent actual success rate versus
8 percent in the lowest predicted success group.





THE FUTURE OF TALENT ACQUISITION ANALYTICS: CREATING HIGH IMPACT AND VALUE WITH
COGNITION



High-impact, high-value applications of using analytics for talent acquisition
focuses on desired talent and business outcomes to provide actionable results.
These enable robust decision support related to candidate selection, process
design, budget/resource investments, and TA activity’s contribution to business
objectives.

New advancements in cognitive technology are gaining a foothold in TA, creating
opportunities for increased efficiency, accuracy, and insights. While these are
advancing rapidly, the most ready-now solutions exist in candidate sourcing and
screening and can potentially increase new-hire quality and reduce the impact of
selection biases.



Back to top





Click to enlarge




GETTING STARTED: HOW ORGANIZATIONS CAN BEGIN TO UPGRADE



Moving beyond traditional analytics into an expanded range of insights starts
with understanding the needs of your business and stakeholders—a valuable
opportunity to improve their experiences and outcomes. To understand the most
useful recruiting analytics, we recommend focusing on:

 * Business strategies
 * Decision support
 * Benchmark measurements

In addition, include these infrastructure considerations when designing your
delivery of new talent acquisition analytics:

 * Data source integration
 * Visualization
 * Analytic capabilities

Analyzing these areas gives you a gauge of where you stand, where strategic
opportunities lie, and what infrastructure components to target so you can begin
to use analytics for talent acquisition and derive tangible insights and
business value from your existing data.

HAVE QUESTIONS ABOUT TALENT ACQUISITION ANALYTICS? CONTACT US.






LET'S TALK

ARTHUR H. MAZOR

GLOBAL LEADER – HUMAN CAPITAL PRACTICE

amazor@deloitte.com

+1 404 631 3917

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Art is Deloitte’s Global Human Capital Practice leader, leading the Global Human
Capital Executive Team, and a member of the Global Consulting Offerings and
Assets Leadership Team. Art is accountable ... More

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EXPLORE CONTENT

 * The challenge
 * Why enhanced TA analytics matter
 * A framework for defining leading recruiting analytics
 * Analytic approaches
 * A key consideration: Sources of data

 * Creating high impact and value with cognition
 * How organizations can begin to upgrade
 * Let's talk
 * Related topics

Did you find this useful? Yes No
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 * Save for later


RECOMMENDATIONS

HR TRANSFORMATION STRATEGY

Creating a strategy for sustained performance



ORGANIZATIONAL NETWORK ANALYSIS

Gain insight, drive smart

REIMAGINE AND CRAFT THE EMPLOYEE EXPERIENCE

Design thinking in action




RELATED TOPICS

 * Talent
 * Human Capital
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