In 2016, MRINetwork reported that 86% of recruiters believed hiring in 2016 was primarily candidate-driven. That statistic is only expected to rise as more organizations plan for a hiring increase in coming years. Competition for top talent has already reached peak levels and will probably follow the same growing trend, meaning the stakes are getting higher in the already costly process of hiring skilled talent.
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Estimates for replacing an employee who earns under $30,000 each year is around 16% of their annual salary. That number increases to 20% for employees who earn between $30,000 and $50,000/yr. Recruiting needs to be fast, engaging and accurate, or talent acquisition teams could lose amazing candidates and big bucks.
Thankfully, talent acquisition technology is catching its stride, using advanced techniques to both ease the work of recruiters and heighten the quality of hires. There’s no place these approaches don’t touch, but one that’s especially useful in modern hiring is that of diversity. Big Data, one of the advancing techniques, creates a more systemic recruiting program that eradicates bias and tracks metrics directly connected to diversity.
Anymore, there’s little doubt about the benefit of hiring a diverse workforce. McKinsey found in one UK study that greater gender diversity on the senior-executive team could positively affect performance. For every 10% diversity increase, they saw profits rise by up to 3.5%. Organizations know it’s needed, but often lack the ability to ensure diversity hiring is happening within their own talent acquisition programs. Big Data adds that crucial piece.
Numbers Can’t Be Biased
Big Data is one of those terms that has garnered many misconceptions. To some, it’s even reached the level of buzzword. However, its use is anything but a passing trend. Big Data unveils patterns within processes, especially in those of human interactions and behavior, using large data sets and algorithms. It creates a more standardized, statistically-backed reason for making decisions while also providing more direction for future processes.
In recruiting, Big Data reveals which applicants are a better fit for positions within the company, correlating skills and work values to numbers and percentages. It’s not about the name on the resume or cultural background of an interviewee. Instead, companies can focus on the candidates with the right expertise, experience and potential to be productive within their already established teams, provided the humans in the equation eschew their own biases.
Big Data’s Mystery
Right now, misconception and misunderstanding is one of the biggest obstacles Big Data is facing. To put it bluntly, many talent acquisition teams simply don’t have the internal power to begin capturing the right data or don’t understand what the right data is. Some may have the data, but can’t find their unique recruiting story within it.
More often than not, recruiting teams are doing what they’ve always done, seeing the same candidates and visiting the same events. Spending budgets are always categorized to suit those practices, sometimes introducing a new avenue, but lacking real understanding of what those additions are bringing to the table. Meanwhile, those traditional, long-standing programs aren’t getting the audits required to understand actual return on investment.
It’s all in line with the adage, “If you always do what you’ve always done, you’ll always get what you’ve always got.” For more diversity, organizations need the ability to see underlying potential or lack thereof. Does that university’s career fair actually bring in the right applicants or are you wasting precious resources on it every year? How about those niche job boards? Is your targeted talent finding your job posting and are they actually fitting your needs?
Using Big Data for Diverse Hiring
As mentioned, Big Data tells the story of your recruiting strategy. If an organization desires more diverse candidates, Big Data uses algorithms and previous hiring initiatives to identify what is delivering and what is a waste of budget. Those powerful data sets supply predictive analytics, pointing recruiters to the places and events that actually produce diverse candidates.
Our Diversity solution, for example, gathers applicant and hiring data for each recruiting event a team attends. It captures information based on each individual candidate and produces easily-digested reports. When used in combination with our Intelligence product, recruiters can compare the details of candidates to the potential of their success within your organization. The reports also provide a look into the total cost of the event or recruiting initiative to unveil the return on investment in actual dollars. Meanwhile, Intelligence and Recruit provide an evidence-based method to identify and remove potential unconscious biases in recruiting that may be ignoring or accidentally discriminating against qualified, diverse candidates and measure the impact. Learn more about WCN Diversity.
Hiring a diverse team can be a profitable decision, but that doesn’t mean it’s easy to do. Using Big Data allows recruiters to understand what’s working within their strategy and what can be adjusted for better results.
WCN Diversity maximizes and deepens engagement with candidates by identifying promising diversity talent. Leverage best-in-class recruiting software to achieve demonstrable ROI in diversity recruiting events. Speak with WCN to see how we can help!