In the fast-paced world of talent acquisition, many businesses are turning to innovative solutions to help streamline their hiring processes and make more informed decisions. One such game-changer is predictive analytics, which uses historical data and statistical algorithms to forecast future outcomes.
Predictive analytics is already proving to be a transformative force in the hiring process. It helps recruiters and human resources (HR) professionals take a data-driven approach to identifying and securing in-demand talent. Far from just crunching numbers to reveal the current state of the market, predictive analytics can help your business foresee and prepare for future hiring and retention trends.
How can you tap into the power of predictive analytics to boost hiring success? This blog helps to answer that question. But first, let’s take a closer look at what predictive analytics is and how it works.
Predictive analytics is a branch of advanced analytics. It uses statistical algorithms, machine learning, and data mining techniques to analyze historical data and identify patterns and trends. The primary goal of this process is to forecast future events or outcomes based on the analysis of past and present data.
You might be using predictive analytics without even knowing it. For example, say that you reached this website by typing “Robert H” into Google’s search bar and watched as the letters “alf” appeared unprompted. This wasn’t by magic — or even by guesswork. When you began typing those letters, Google used predictive analytics to foresee the most likely outcome.
Similarly, a recruiter can employ predictive analytics software to identify the most likely outcome when they hire someone, based on factors like the job candidate’s historical performance, alignment with the company’s values, social media presence and references. Over time, this helps talent recruiters to develop a broader understanding of what leads to good hires.
So, in the context of hiring, predictive analytics can help organizations forecast candidate success by analyzing relevant data points such as skills and experience. It can even shed insight on whether a candidate is likely to thrive in the company’s corporate culture. Ultimately, predictive analytics enables more informed and objective decision-making throughout the recruitment and hiring processes.
Here’s a closer look at six ways that predictive analytics can help you build successful recruitment and retention strategies for your business.
Imagine a technology firm is on the hunt for a talented software developer. With a specific project in mind that requires specialized skills, the company faces the daunting task of finding the right star among a galaxy of applicants. This is where predictive analytics can come into play.
Using sophisticated software, the company can sift through LinkedIn profiles, GitHub portfolios and other online platforms to look for candidates who have worked on similar projects and demonstrated skills that align with the role’s requirements.
But there’s more. The tools can also analyze patterns from past successful hires within the company or the industry, considering factors like knowledge of programming languages, collaboration in team projects, problem-solving abilities and adherence to deadlines.
These insights, combined with the candidate’s education, employment history and personal attributes, can paint a detailed picture of how this person can contribute to the project’s success, and whether they’d blend well with the team and work environment.
Your potential talent pool includes people who aren’t seeking a new role but could be open to the right opportunity. By analyzing data points like tenure, career progression and social media activity, your firm’s talent recruiters can identify suitable candidates who might be ready for a move.
For example, say that your company is looking to hire a senior marketer. You might use predictive analytics to scan LinkedIn profiles for professionals with a solid history of helping companies grow their brands, but who haven’t changed jobs in several years.
Predictive analysis can also support your employee retention efforts. By digging into worker behavior and performance data, you can identify early signs of dissatisfaction or burnout in staff members. Typical scenarios include recognizing patterns in absenteeism, productivity and team collaboration.
The software you use for predictive analytics might be able to identify the causes of dissatisfaction as well. For instance, you might find that staff working for certain managers are more prone to leaving. This insight allows your business to act to correct the issue — such as providing targeted training to effect a change in management style.
Every second counts in a competitive hiring market. Taking too long to make an offer to a top candidate can cause you to miss out. Predictive analytics speeds things up by automating time-consuming tasks.
Suppose you’re looking for an office manager. With predictive tools, you can swiftly analyze candidates’ previous experiences with budget management or team leadership, pinpointing individuals likely to perform strongly in the role. With these insights in hand, you can move promptly to the interview and offer stages — and stay ahead of less-nimble rivals.
Candidates appreciate a fast and efficient hiring process, even if they’re not ultimately selected for the role. Predictive analytics helps recruiters quickly identify high-potential candidates, which speeds up decision making and avoids wasted time for everyone involved.
A potential hire who is swiftly rejected but also given clear feedback as to why may leave the process with a positive impression of your company. They might even feel encouraged to reapply for a different role for which they may be better suited.
Predictive analytics also allows for a more personalized candidate experience. Equipped with analysis of how an individual’s skills and experience will shape their future performance, your hiring managers can create tailored interview questions that make the candidate feel uniquely considered.
Predictive analytics can empower businesses to adjust and fine-tune their recruitment strategies to anticipate changing hiring trends and market conditions.
Imagine a global business that uses a mix of online job boards, social media and campus events to recruit talent. By analyzing data, this company can predict how effective each approach is at pulling in promising candidates. If the data shows that social media will connect them with top tech talent next quarter, they can invest more in that strategy. And if college recruiting events are expected to bring in the most promising candidates, they might step up their campus recruiting efforts.
As your business strives to stay ahead in today’s competitive talent landscape, embracing predictive analytics in recruiting and hiring can provide you with a strategic advantage. Rather than relying entirely on gut instinct, hiring managers in your organization can make more data-driven workforce decisions. This, in turn, can improve the quality of your hiring process — as well as the candidate experience.
Need help with your talent search? Reach out to Robert Half today. Our experienced recruiters are here to help you
