Recruiting in the era of personal data
Khary Francis, Co-Founder of Quantize, a predictive analytics company, will be speaking at an upcoming PD&T event ‘Recruiting in the era of Big Data: Using personal data to find top talent’ on 21 April. Here is a taster of his upcoming presentation on predictive talent analytics. To get tickets to the event, click here.
Recruiters today are faced with hundreds if not thousands of online applications to manually screen through in order to find the handful of candidates that warrant a closer look. For busy recruiters, this is a nightmare, adding hours of screening to an already slow hiring process, which takes on average two to three months. For companies, every additional day spent filling a vacancy adds to the recruiting cost, which is, on average, £5000+ per hire. Careful screening of applications is critical for finding the perfect hire, yet there is a frightening amount of guess work and gut judgments involved in screening. This brings into question not only the quality of candidates passed on to interview but the efficiency of recruiting given the recent surge in online applications.
In June 2015, the Chartered Institute of Personnel and Development (CIPD) in cooperation with Hays, published a survey report for resource and talent planning. In the report more than 75% of the companies cited challenges in recruiting with roughly 20% of new hires considered to be ‘regretted decisions’ by hiring managers. A separate report from Corporate Executive Board (CEB) highlighted the inefficiency of the traditional recruitment process and cited a loss of $25m in corporate performance. Clearly, business as usual is not working.
Applying predictive analytics to talent acquisition
For the majority of companies participating in the CIPD survey, more than 80% of their recruitment process relied on traditional assessment methods of interviews, CVs and aptitude tests. Less than 1% used hiring algorithms to assist their decision-making processes and we believe this is a huge missed opportunity.
However, the dark ages of paper applications with no ability to identify the gems are coming to an end. Recent technological advances make it possible for employers to use algorithms to identify the candidates that are statistically most likely to thrive. This is based on their similarity to past top-performers and allows companies to reduce attrition rates and hire candidates who fit their culture.
These algorithms also automate your screening process, filtering through high volumes of incoming applications in seconds, allowing your recruiters to focus only on the most promising candidates. This saves recruiters and interviews time as well as making the process more fair for the applicant, as each is scored objectively, reducing human-bias, and minimising interview ‘misfits’ and hiring mistakes.
One of a handful of companies delivering these algorithms is Quantize, which assesses a candidate’s likelihood to succeed based on their CV. CV-based assessments are important since they don’t require applicants to complete long questionnaires, which significantly drop the number of completed applications. Furthermore, it’s often the best talent that abandons an application that requires too many hoops, as they’re likely gainfully employed elsewhere. CVs are a rich source of information, which predictive analytics companies can use to pinpoint the key attributes that are most relevant to candidate success, including softer elements of culture and behavioural fit. Unlike other solutions who focus on matching CVs to job descriptions using simple keywords, these solutions raise the bar and match CVs to similarity to other top- performers in a given role.
The availability of historical employee performance data and online professional profiles such as LinkedIn make it possible to pinpoint what factors actually matter to a candidate’s success in a given role. Assessment algorithms identify these factors and score incoming applicants against them automatically, allowing recruiters to identify the best applicants in seconds, streamline the screening process and becoming a strategic partner to their organisations as they hit hiring goals with top-quality talent.
To attend the event, click here.