The challenge

Employers have more pressure than ever to fill new jobs efficiently and effectively amid low unemployment and skilled labor shortages. The challenges multiply with the increased risk of talent movement—44 percent of millennial workers will be looking for a new job in two years, and are 25 percent more likely to search for a new job than non-millennials. With average new-hire turnover rates of 14 percent, a clear need exists for improved projects and insights into staging needs and strategies.

Our research found that 83 percent of 924 companies surveyed globally have low people analytics maturity, as compared to the high maturity organizations which have graduated to more advanced practices. The higher maturity organizations build consistent data definitions, use embedded reporting and analytical tools, and are building data integration capabilities to understand employee behaviors.

This indicates that most organizations are under-equipped to identify problem areas and potential solutions to their recruiting challenges. Addressing this capability gap is a business imperative, given the need to effectively manage staffing and meet operational goals.

The opportunity: Why enhanced TA analytics matter

The impact of an advanced, high-maturity people analytics capability on business results is substantial, and enhancing it can increase the value of TA and the HR function to the business.

Considering the "whos" and "hows" of recruiting analytics impact not only helps stakeholders appreciate the value that using analytics for talent acquisition can bring to the organization but also helps guide your analytics approach and develop a roadmap for the journey.

A framework for defining leading recruiting analytics

"TA analytics" refers to the systematic discovery of meaningful patterns in data to support decision making related to recruitment and onboarding processes, activities, and outcomes.  Three primary categories of measurement (efficiency, effectiveness, impact) are leveraged across four types of analysis (descriptive, relative, analytic, and predictive). As the framework progresses from left to right, the model increases in complexity of data used, systems tapped, and the sophistication of analytics techniques used. A robust infrastructure enables the analyses, with multiple data sources, repositories, analytic tools, staff capabilities, and visualization all focused on the business and information needs of the end users.

Analytic approaches

Each type of analysis offers valuable insights toward the overall success of the TA function, and is progressively more sophisticated in its nature. Leading organizations measure and report on all four metrics categories across the analysis spectrum, presenting reports and dashboards specific to the information needs of each end-user group.

A key consideration: Sources of data

Leading companies no longer rely exclusively on the applicant tracking system (ATS) for reporting on transactional data. With the adoption of more advanced systems, data repositories, and analytics capabilities, the aperture expands to provide more integrated insights into the impact of TA processes and practices, including data from:

• Core HR, talent, learning, performance management and compensation systems for new-hire and high-performer demographic information and their influence on talent outcomes
• Skills inventories to identify skill surpluses and shortfalls within roles and geographies
• Candidate relationship management (CRM) systems for talent pool insights
• Social networks for passive candidate and employment brand strength insights
• Employee engagement surveys for evaluating new-hire satisfaction, retention risk, and hiring manager success
• Operational and financial systems (e.g., sales, enterprise resource planning (ERP)) for recruiting costs, and the impact of hiring activity on team, business unit, and/or corporate results

Data from these systems also shed light on the relative talent management value of sources of hire—both internal and external—for generating high performers, highly engaged employees, or future leaders within a critical role, line of business, geography, or diversity group.