Big data makes it possible to track just about every aspect of running a business. This includes nearly everything that goes on in the HR department. For example, did you know that it is possible to track top talent during the recruiting process? Moreover, your chances of landing that talent increase as you employ better tracking methods.
Tracking starts with the right software. A state-of-the-art applicant tracking system (ATS) is a must-have for any company looking to maximize recruiting and hiring. A good ATS does a lot of things, including:
- filtering resumes and applications
- ranking applicants according to criteria
- matching applicants with specific jobs
- creating databases of potential hires for future jobs.
Applicant tracking systems are not only the norm, they are here to stay. The top talent in your industry is already prepared to deal with an ATS, so your company should get one place if you have not already done so.
Track Process Speed
Even the best ATS is limited in what it can do. So in addition to implementing a system, you should also be tracking a number of key points. The first is process speed. Your ATS should be able to measure how much time candidates spend at each step of the recruiting process.
If the process takes too long, candidates could lose interest. They might also be snatched away by the competition. The goal of tracking speed is to make your system as efficient as possible so that top talent is hired before they go elsewhere.
Track Hire Quality
It is important that all of your new hires are tracked for quality during their first year. As a hiring metric, quality is defined as the relationship between the total number of candidates hired and those that still remain employed after the first year. It is a metric that can tell you lots of things, including how good your HR department is at identifying top talent and whether or not your company is capable of retaining those who are hired.
Track Qualification Rates
The qualification rate (a.k.a. business acceptance rate) measures the total percentage of candidates entered into an ATS that are actually presented to the HR department as possible hires. Remember that an ATS screens and ranks job candidates according to specific criteria.
Unusually high acceptance rates suggest that your recruiting process is well defined. Exceptionally low acceptance rates suggest your job postings are appealing to a large number of unqualified or unacceptable applicants. Your goal is to fine-tune the process so as to achieve high acceptance rates without negatively impacting process speed.
Track Offer Acceptance Rate
Next, your ATS should be tracking the offer acceptance rate. This is the rate at which candidates offered jobs accept those offers. A low offer acceptance rate indicates your company may not be offering the right compensation and benefits package. The opposite is also true. High acceptance rates indicate your offers are meeting candidate expectations.
Track Hiring Costs
One last metric to track is the actual cost of hiring. It is never a good idea to spend more than you have to on hiring, but it's even worse if you are spending a lot and not getting top talent in return. Tracking this metric helps you understand if and when adjustments need to be made so that you are getting the most out of every recruiting dollar you spend.
Thanks to applicant tracking systems, big data, and other great technologies, hiring and recruiting is more efficient in the digital era. But it only applies if your company is embracing those technologies.