Recently while hearing the story of how the Email was invented, I thought about the time without the computers and mobiles (that I do incidentally remember). How did we ever communicate efficiently before? Considering how many devices we interface with, it is not surprising to note just how much data we share via the world wide web. All this ‘big data’ is usually seen in context of marketing and many brands and consultants tout the usage of these data driven insights for firms to be able to sell better.
It is increasingly interesting to note the potential effects big data may have on human resources. Recent articles by experts are sharing details on this emerging trend in human resources management. As a CEO or a manager you need to keep tabs on this new trend. Find out exactly how is recruitment changing with big data.
How is Recruitment Changing With Big Data
a. Challenging Old Hiring Practices Through Big Data Analysis
Gartner’s oft talked about case study deserves a mention here as well. A large firm was hiring Sales Professionals and usually selecting them from a pool of great colleges, ensuring high academic grades among other things. However, when they used big data analysis by correlating the performance of a new employee with their grades and schools, the results indicated that these metrics didn’t quite matter.
Previous job successes were more important. In fact so was having no typos or grammar mistakes in the resume. Considering that close to 40% of a company’s cost are payroll costs, the company changed its hiring practices with this new analysis and was able to increase revenues by $4 million within 6 months of implementing the new process.
What may work for one job profile to another may vary and considering such data exists within most companies, it may make sense to run an analysis on the numbers and not go by the ‘gut feeling’ alone.
b. Leveraging Big Data Talent Analytics Models
Bersin & Associates have shared a Deloitte Talent Analytics model showcasing the whole range of activities in the Human Resources domain where Big Data can be leveraged and how. Firms that are on very high maturity levels on this model are doing significantly better and research shows that their stock market returns are 30% higher than the S&P 500, they are twice as likely to be delivering high impact recruiting solutions, and their leadership pipelines are 2.5X healthier.
This means that big data can have impact across the recruitment funnel: from building better candidate pipelines, expected profile need analsysis, active sourcing, employee performance analysis to employee retention analysis. At each point if the company is prepared fully, it is able to lower its risk of hiring wrong and in fact going to increase innovation and performance significantly.
c. Recruiting Right Using Big Data tools
Firms are using various tools and technology platforms to analyse data and come up with meaningful analysis. Some examples include: TalentBin, Evolv, Klout, Gild, even an effective Google search to come up with comparative results for talent selection and checks. Many firms have built proprietary tools to be able to ascertain whether they are hiring right.
The key to the success of any Big Data implementation however remains: 1) Selecting the right tools 2) Being able to put big data analysis into context by comparing it with market and business conditions, career levels etc. 3) Ability to influence behavior among hiring managers and HR teams after revealing the insights from data.
Have you carried out any specific big data implementation for talent management in your company? Do share your experiences with us!