SHRM Project DATA DRIVEN RECRUITING

HOW TO INCORPORATE
DATA INTO YOUR HIRING?

Division: HR

Submitted By:

1. Vaishnavi Gotmare - 21
2. Pearl Vakharia - 117

Batch: PGDM HR 2020-22

1. INTRODUCTION

We are living in a time when everything is going digitized. The fourth industrial revolution,
as well as significant advancements in robotics, artificial intelligence, the Internet of Things (loT),
the automobile industry, 3D printing, big data, and nanotechnology, are all stretching the
boundaries we've been used to. In such conditions of disruptive changes, the key factor of
company’s sustainable development and competitiveness is no longer the value of its cash capital
but the value of human capital - talented employees who are open, proactive and innovative.

Developments in the business environment required changes in human resource

management, including the procedures of hiring, development, and retention. The subject of how
to find and attract outstanding people is a special difficulty for businesses and their human resource
management. Human resource management's recruitment of job candidates is becoming a crucial
activity that requires increased investment. The investments are primarily aimed at increasing job
applicant recruitment in order to reduce the time it takes to fill open positions. It is essential to
explain and illustrate the value of the recruiting process to improve the company's operations in
order to make better decisions about it and justify investments in it.

Human resource managers are under increased pressure to justify investments in the
process of attracting candidates to business leaders, as well as to make smarter judgments that will
lead to more productive operations in this respect. Businesses and human resource professionals
are increasingly depending on data-driven recruiting solutions to increase control over both
recruitment efforts and outcomes. Given that managers who rely on data, facts, and research make
better hiring decisions, utilizing analytical activities and certain recruitment metrics lowers the
cost and time required to fill open positions while also resulting in targeted improvements to the
whole recruiting process. The goal of this study is to highlight the relevance of data-driven
recruitment as well as the key obstacles it faces, with a focus on current developments in the
context of the worldwide catastrophe created by the coronavirus pandemic.

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1.1 What is data-driven recruiting?

When you use tangible facts and numbers to support your hiring decisions, from selecting
candidates to building hiring strategies, you're doing data-driven recruiting. Data-driven recruiting
teams are more likely to be efficient, save money, and improve their hiring. Collecting data on
customers and applicants has never been easier thanks to modern technology. However, there is
still a delay in how that data is digested and applied. Marketing, sales, manufacturing, and
transportation are all industries that rely heavily on data to make decisions, and data-driven
recruitment is hot on their heels as a viable alternative to traditional techniques. As a result, it's
critical for recruiters to rapidly grasp what this bold new frontier involves, as well as the potential,
in order to stay ahead of the curve.

The technologies and strategies used to assess a huge talent pool and select applicants with
the appropriate abilities and mentality to assist the organization achieve its goals are referred to as
data-driven recruitment. When used correctly, it can assist firms in identifying people who will fit
into the company culture and become good team players.
According to a recent report from LinkedIn, data-driven recruiting allows recruiters to,
 Ask the right questions
 Navigate a large pool of candidate data
 Analyze the results

Data-driven recruiting is a strategic asset organizations can no longer afford to ignore.

Bersin writes in a 2015 research report from Deloitte: “…cloud computing and Big Data analytics
just arrived. More than two-thirds of our clients are in the middle of some kind of core HR system
replacement.” There are two reasons for the urgency to adopt data-driven recruitment, Bersin says:
 It makes it easier to use the systems
 It improves the accuracy of the database used for people analysis and decision making
In the Bersin report, 73% of organizations seeking upgrades said they want integrated data and
analytics to be part of their new systems. Two-thirds of respondents said they are looking for a
cloud-based solution.

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1.2 How data-driven recruiting can help hiring teams?

Using data in your hiring process increases your quality of hire. Data-driven recruiting also helps
you:
 Allocate your budget. For example, to wisely spend your budget, track source of hire to
determine which recruiting channels bring in the most qualified candidates.
 Increase productivity and efficiency. For example, track how many emails members of your
hiring team exchange with candidates to see if there are specific stages where you can speed
up your time-to-hire.
 Unearth hiring issues. For example, review your application form conversion rates to
determine if you need to tweak your questions or redesign your page. Same with diversity:
look at candidate demographics to see if you are unwittingly discriminating against protected
groups.
 Benchmark and forecast your hiring. For example, recruiting yield ratios can show you how
many applicants you typically need to make one hire. If you have too few applications, consider
sourcing or re-advertising the role.
 Reach more objective (and legally defensible) hiring decisions. For example, selecting the
best candidate based on assessment scores and structured interview results is an effective hiring
method.
 Make the case for recruiting process improvements. For example, if you know that your
company needs to invest in a referral program, you can present data that shows the
effectiveness of this method to solidify your argument.

1.3 Importance of Data-Driven Recruitment

Many companies are prioritizing recruitment as they struggle to deal with labour shortages
and the so-called "fight for talent." (Uggerslev, Saks, 2009). In a poll of 1,396 human resource
practitioners from over 60 countries conducted by Deloitte (2005), the capacity to attract and retain
new talent was identified as the two most crucial people management concerns facing their
organizations today. A total of 74% of respondents said there was a moderate or high shortage (or
expected shortage) of salaried personnel, while 53% said there was a moderate or high shortage

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(or expected shortage) of hourly staff (Christensen, Rog 2008 p.746- 747). Companies that need
to attract and recruit individuals in the future will need to develop new strategies and techniques
to fulfil both current and long-term demands for reaching a specific population of potential
employees. During the recruitment and interview process, employers must also "sell" the position
to a potential candidate." (Hamilton, 2009 p.34).

As a result of the above, businesses are being forced to invest more in processes and new
recruitment strategies. The application of sophisticated technology, social networking, artificial
intelligence, and gaming, which aims to automate the recruitment process, and recruitment
marketing, which aims to create a company image as a desirable candidate with a good reputation
in the labour market, are the two main recruitment trends. The drive for additional investment and
important trends necessitates a shift away from traditional recruiting and toward data-driven
recruiting.

Data-driven recruiting is having a system in place to track, measure, collect, and analyze
candidate and employee data in order to make better hiring decisions. In addition to assisting with
recruitment, it also aids in presenting new possibilities to existing talent in order to increase
employee retention. The main concept of recruiting metrics is to develop a standardized method
of measurement. Recruitment metrics are a tool that may help you make better hiring decisions
and get the best return on your investment. Information will be acquired, analyzed, and successful
recruiting decisions will be made using the metrics. The candidate quality measures are
quantifiable and can be compared to established benchmarks. Recruitment metrics are measuring
standards used by human resource professionals to collect, evaluate, and provide relevant
information during the hiring process, however they differ from company to company. To get the
highest return on investment, these statistics can be used to make better recruitment/hiring
decisions. The metrics should be actionable and predictive, consistent, establish a standard for
internal performance, be open to peer comparisons, and aid in the best quality of hire, as well as
deliver a return on investment. (Prasad, Mangipudi, Vaidya 2019)

The importance of data-driven recruiting is to: provide key information to management

and provide advice on business strategy challenges; improve human resource standards to align

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company goals; and assist in building strategies to focus on what is important and expected. Allow
for the most effective and efficient use of limited resources with a strong business impact and
ongoing recruitment process improvement. Recruiting metrics are used to improve the recruitment
process by assisting in the alignment of an organization's objectives, vision, and mission. Metrics
also provide the recruiter credibility and consistency, which encourages the organization to adopt
aggressive recruitment techniques while maintaining accountability. (Prasad, Mangipudi, Vaidya,
2019)

1.4 How to incorporate data into your hiring?

Here’s what to do to shift towards data-driven recruiting:

1. Choose the Right Data and Metrics

Begin by identifying a few key hiring metrics to monitor. Measuring quality of hire is
beneficial to all businesses since it demonstrates the overall success of your hiring
operations. Other often used measures are as below:

 Cost-per-hire
 Time-to-hire
 Source of hire
 Candidate experience scores (e.g. application conversion rates, candidate feedback)
 Job offer acceptance rates
 Applicants Per Hire

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  Candidate Experience
 Quality Of Hire
 Vacancies Vs. Positions Filled
 Diversity
 Recruiter Efficiency Rate
 Manager Satisfaction
 Retention Rate
 Application Completion Rate
 Candidate Call Back Rate
 Candidates Per Hire
 Fill Rate
 Turnover Rate
 Response Rate
 Qualified Candidate Per Opening
 Recruitment Funnel Effectiveness
 Selection Ratio
 Recruitment Funnel

Differing companies may pay different amounts of attention to certain types of data. Meet
with senior leaders and ask them which facts they care about the most to discover what
matters the most. One can ask below question to hiring manager:

 What do you wish you knew about your hiring process?

 What data do you use (or would like to use) to become more productive when hiring?
 What hiring problems/ bottlenecks do you see often?
 Which recruiting sources/methods do you trust, but aren’t able to prove their
effectiveness with data?
 Which recruiting sources/methods do you consider unreliable, but don’t have the data to
prove it?
 What recruiting data would help you build reports for your managers?
 What does a successful hiring process look like to you?

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2. Collect Data Efficiently
Data collection is often time-consuming. Aim to make it as painless as possible. Here’s how:
 Use software to your advantage. Your applicant tracking system (ATS) may already
have reporting capabilities that will do your work for you.
 Find different ways to collect data. Some data can easily be gathered via Google
Analytics (e.g. careers page conversion rates) or via simple surveys.

3. Act on the Data

One you’ve collected your data, determine what you will do with it. Here are examples of
common recruiting issues that data will help you uncover, along with ways to address them:

Long time-to-hire: If your time-to-hire is consistently greater than your industry average,
examine which stages of your recruiting process lag. Here are some common bottlenecks:
 Sourcing: Consider diversifying your sourcing methods with social recruiting or using a
sourcing tool to help you reach more candidates faster and build talent pipelines.
 Screening: Include qualifying questions on your job application forms and prepare
effective phone screen questions before you start screening applicants.
 Interviews: Consider using software that will help you effortlessly schedule interviews
with hiring managers and candidates across multiple calendars.
 Job offers: Write winning formal job offer letters that encapsulate your positions
accurately and entice candidates to accept.

Low job offer acceptance rates: Having your best candidates turn down your job offers
translates into higher costs and positions remain vacant for longer. If you find that a high
percentage of your job offers gets rejected, consider a few fixes:
 Create more competitive job offers. Do more thorough research on benefits and salaries
through sites like Glassdoor and PayScale.
 Gauge candidate interest in the position early on. Ensure you communicate effectively with
candidates during phone screenings and interviews (e.g. discuss their motivations and
concerns) about the role.

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  Ensure your candidate experience is positive. Make sure your team treats candidates
properly (e.g. gets back to them on time, makes them comfortable during interviews.)
 Write job offer letters that reflect candidates’ expectations for the job. For example, if
you’ve told candidates during interviews that a job requires 20% travel, and the job offer
mentions 50%, candidates will be unlikely to accept.

High new hire turnover: New hire turnover reflects the number of employees who leave
shortly after they were hired. Here are two common remedies when your new hire turnover is
too high:
 Communicate well with candidates about the job. Ensure candidates understand the job
duties, requirements and team and individual performance expectations, well before they
receive your job offer. If your new hires feel you misinformed them about the role, they
may leave.
 Create an effective onboarding process. Welcome your new employee with an email.
Ensure your new hires feel welcome, receive appropriate training and are given
opportunities to do meaningful work right from the start.

4. Know the Limitations of Data:

Data alone will not tell you why something occurs. By mixing diverse sorts of data, you can
gain a deeper understanding, but you must still interpret your findings. Your problems will not
be solved by data. Data reveals what your teams excel at and where there may be issues to
address, but what you do with that information is entirely up to you. Data isn't always unbiased.
If data is being generated by members of your team, be prepared to accept the results with a
grain of salt. For example, if applicants' tasks are graded by software rather than by a person,
the findings will be more trustworthy.

5. Use data to evaluate the past and plan for the future:
Even if your hiring teams are accustomed to making selections based on gut instinct, statistics
will prove to be a more powerful ally. Data will allow them to identify what worked and what
didn't in previous hiring procedures, allowing them to make better hiring decisions in the
future.

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2. LITERATURE REVIEW

Author Year Findings

DeCenzo and 2007 Theoretical basis of data-driven recruitment:
Robins Human resource management has been attempting to quantify its
contribution to company in order to become strategic by focusing
on efficiency indicators such as hiring cost per person, turnaround
time, and effectiveness metrics such as employee engagement or
retention.
Mohapatra and 2017 Link between the quality of data-driven recruitment and the
Sahu quality of the business:
Organizations are rapidly realizing that hiring the right people at
the right time, in the right role, and at the right price is critical to
their success.
Breaugh 2008 Exploring the recruitment options:
In recent years, scholars have paid much more attention to the
subject of staff recruiting. Aside from an increase in the number of
studies published, there has also been an increase in the number of
recruitment subjects studied. Many of the early studies, for
example, concentrated on the use of realistic job previews (that is,
providing job candidates with factual information about what a
position in an organisation entails), recruitment strategies, and
recruiter characteristics (e.g., their behavior). More recently,
research has evolved away from these three areas, focusing on
themes such as the timing of recruitment actions, recruit site visits,
and on-line recruiting.
Taylor and 2000 The theoretical basis of the development of data-driven
Collins recruitment:
A rising number of studies have empirically studied the influence
of recruitment efforts, typically in conjunction with other human

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 resource practices, on indicators of organisational performance,
according to Enhancing the intersection of research and practice.
Taylor and 2000 Relationship between recruitment and firm-level measures of
Collins performance:
Each study supported the expected positive effects of recruitment
activities, albeit in two cases, the effects of recruitment were
merged with those of other practices to create an overall score
rather than being evaluated separately. As a result, there appears to
be pretty strong and consistent data, including one set of recruiting
effectiveness measures, regarding the function of recruitment as a
correlate of company performance.
Saks and 2009 Effects of recruitment information from multiple recruitment
Uggerslev stages:
Most recruitment research, on the other hand, has focused on a
specific activity or stage of the hiring process (for example,
realistic job previews, recruitment sources, recruitment interviews,
and site visits) in isolation from other hiring activities and stages.
As a result, we know very little about the cumulative effects of
several recruitment stages' information.
Breaugh 2008 Recruitment Process:
According to James Breaugh's recruitment method, the recruitment
process must begin with the establishment of recruitment
objectives and end with the comparison of recruitment outcomes
to the objectives. Furthermore, the article emphasises the
importance of taking a strategic approach to data-driven
recruitment because the goals, methods, and sources of
recruitment are all influenced by the company strategy and must
be aligned with it.
Gupta and 2019 Traditional VS Modern processes of recruitment:
Mohan The recruitment process has undergone a full metamorphosis as a
result of changes in the corporate environment, especially as a

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 result of the growth of information technology. The evolution of
the Internet, artificial intelligence, gamification, and other
technologies has had a significant impact on how companies
identify, attract, and choose job candidates. The company's
success is becoming increasingly reliant on fresh information,
competences, and abilities, which have become a scarce resource
and a source of competitive advantage. Employee recruitment and
selection research has traditionally centered on an understanding
of the process from the perspective of the employer. Since not
only do firms select employees, but applicants also select the
organisations in which they wish to apply and are prepared to
work, modern research studies have looked at the process of
recruiting and selection from the applicant's perspective.
Tanwar and 2017 Integration of Data-driven recruitment with strong employer
Prasad brand:
The need to look at recruiting metrics from a different perspective,
that of the job candidate, arose from employer brand research,
which contributed to the creation of data-driven recruitment from
this angle by researching this phenomenon. Most recruitment
measurement methodologies now focus on determining the
relationship between marketing media (source) and desired
outcomes (applications and quality hiring), but they rarely include
data on brand reputation and experience. Internally, most
employee surveys look at the relationship between overall job
satisfaction and engagement, but they rarely look at the impact of
more specific brand connotations. The concept has acquired a lot
of attention in recent years as a result of the benefits that a strong
employer brand can provide an organisation in terms of talent
attraction and retention.

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3. HOW IT IS PRACTICE IN THE INDUSTRY?

The Internet has transformed the computer and communications industries like nothing else
before it. According to Kling (1994), computerized systems offer exciting possibilities for altering
large amounts of data quickly and with little effort to improve control, create insights, search for
information, and facilitate collaborative work between people. Organizations value recruitment
because it serves the critical function of attracting an important resource, human capital, into the
organization (Boxall& Purcell, 2003; Galanaki, 2002; Malinowski et al, 2005; Parry, 2006; Parry
& Tyson, 2008; Singh & Finn, 2003).
Because of data and analytics technologies, the recruitment industry is undergoing
significant change. Automation is playing a larger role in intelligent recruitment. New tools are
being developed to assist HR teams in identifying and evaluating the best candidates. And
platforms like LinkedIn and Glassdoor provide valuable big data to any employer, large or small.
The two most popular models used by the industry to make the best data-driven recruitment
decisions are as follows:

3.1 Data driven Appointment & Recruitment System (DARS):

Because of the rapid changes in job demands, as well as the required expertise and experience,
it is becoming increasingly difficult for recruiters to find employees who are right for their
firm. The data-driven appointment and recruitment system (DARS) was constructed in such a
way that the appointment module handles the appointment system, such that appointment
booking by appointees is determined by matching the appointee option with the staff's stored
appointment data. Following that, the recruitment module handles the recruitment process, in
which a match is crafted between the employer's demands and the credentials of the jobseeker
in order to make an informed recommendation.

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 In today's world, especially after a pandemic, the developed model will be database-driven.
The database will be held on a local server. In other words, the site will be hosted on a local
server. The database is set up in a manner that form data is compelled to it for the purpose of
form submission. The user can only access the database when submitting forms and cannot
collect information from it.

3.2 The Data-Driven Recruiting Model

The data-driven recruiting model takes into account the entire hiring process by utilizing data.
It is essential to have the right information in order to extract value by gleaning insights that
inform overall organizational decisions and guide behavior. Companies are eager to follow this
model in order to configure the right fit in a successful data-driven recruitment environment.
The Foundational 4 is a straightforward formula that a recruitment team can use to embrace a
data-driven recruiting model and achieve dramatically different results.

1. Creating one’s Foundational Data

Building foundational data is JOB-1 in data-driven recruiting. The volume of such a
foundation should be surprisingly small. It's structured and packaged so that it's easy to
locate. It's simple to understand, informative, and, most importantly, actionable. It is
intended to solve existing problems as well as provide answers to existing questions. It

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 should only focus on the Total Addressable Market (TAM), which is the entire market of
talent who meet a company's specified requirements, skills, and experience. It's a
personalized dataset based on what matters to a specific company, and it includes not just
too active talent but also a much larger pool of passive talent.

2. Use Foundational Data to Engage Talent

Data is only useful if it is being used. The second stage in the Foundational 4 is to put your
data into meaningful information by attracting top talent. Fundamental data enables multi-
channel talent engagement. This process of recruiter outreach through use of multiple
channels enables talent acquisition to connect with the right talent via their specific
channels and locations. The large percentage of talent acquisition teams fail to engage the
larger desired pool of passive talent simply because they lack the channels to engage. They
are unaware that through recruiting investigations, these engagement channels can be
explored and leveraged.

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 3. Use Foundational Data to Inform
The third step of the Foundational 4 is to inform utilizing foundational data.
Being data-driven is usually assumed to indicate gathering applicant data from each stage
of the recruitment and selection process in order to optimize the candidate journey and
inform the business. However, being data-driven involves much more than just optimizing
stages of your recruiting funnel.
Given the company's TAM's rich engagement channel data, this will influence and inform
candidate engagement strategies.

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 4. Use Foundational Data to Drive Change
The Foundational 4's final stage is to use foundational data to drive change. You are
transforming your recruiting model to provide a measurable effect on the organization.
The five broad data-driven recruiting categories that talent acquisition should monitor and
manage are listed below. These are regarded to as the Impact areas:
a) Quality
Total Addressable Market (TAM) allows team members to engage more of the right
people sooner. This improves the high caliber of the individuals in the pipeline. It
fundamentally improves your quality metrics, resulting in greater overall hires.
b) Diversity
Leveraging foundational data to engage more of the right diverse talent, empowers the
company’s aspirations for full representation.
c) Speed
Consider eliminating sourcing and replacing it with engagement channels to improve
the talent acquisition group's speed of outreach. And, with the right people involved,
the process works faster, up for a short hiring cycle.
d) Volume
Pipelining and engaging more of the right talent faster is vital to high-volume recruiting
and hiring success. The talent acquisition team will have more bandwidth to address
that volume now that sourcing has now been eliminated and a proactive delivery model
has been implemented.

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 e) Savings
Money is used to measure business impact, and data tells a great narrative of cost
reductions. Some of these stories can be easily told by trying to point to line items on
the profit and loss statement that display money saved by eliminating outside recruiting
fees or reducing the number of consultants and contractors. Other stories can be
translated into money saved for the company by improved metrics, such as:
• Cost-per-hire
• Time-to-fill
• Quality-of-hire
• The number of hours of time stakeholders have been given back
• Productivity impact on your stakeholder’s entire team

Finally, the following are notable industry practices that aid in the improvement of recruitment
activities:
1. Understanding and boosting your employer brand
A strong employer brand can make or break an organization's efforts to retain employees and
attract top talent. According to one Risesmart study, 84 percent of employees would consider
quitting their current job to work for a company with a stellar reputation – even if the pay
increase wasn't significant. Conducting sentiment analysis on interview and survey responses,
as well as social media posts, for example, to determine how successful one's employer brand
is. Alternatively, if the company undergoes major changes, including a major restructure,

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 employee sentiment can be measured before and after the changes to assess the impact of the
brand.
Short, anonymous pulse surveys can reveal whether employees are likely to recommend the
company to others. Importantly, rather than taking the temperature once a year in a huge staff
survey or asking the question during exit interviews, pulse surveys allow you to ask employees
once a week, once a month, or once a quarter to get a better sense of how they're feeling
throughout the year.
According to the Severance and Workforce Transition Study, bigger and bigger businesses are
mining social media and employer review websites like Glassdoor after laying off an
employee. Furthermore, feedback of anyone who has voluntarily left the company will provide
valuable insights into people's views of the brand.

2. Focusing on the best recruitment channels

The beauty of data is that it enables for far more accurate diagnostics of recruitment channels
and monitoring of success rates. Rather than focusing on obvious indicators such as the amount
of CVs obtained in response to different channels (which only tells you quantity, not quality),
somebody could instead look at more valuable indicators such as the number of offers made to
candidates from specific channels. Alternatively, you could assess the most successful
employees in specific roles and determine where they came from.
The goal is to target recruitment so that one can reach out to the exact types of people that the
organization wants to attract. A good example of this comes from Marriott Hotels and its
impressive social recruiting strategy. Marriott Hotels has the largest recruitment page on
Facebook, with more than 1.2 million likes and thousands of people interacting with the page
each week.

3. Identifying and assessing talent

Many HR professionals or hiring managers would probably admit that they make appointments
based on gut feeling. But data and analytics are helping employers take the guesswork out of
recruitment, and find more suitable people who will stay happy and in the position for longer.
The beauty of data is that it enables for far more accurate diagnostics of recruitment channels
and monitoring of success rates. Rather than focusing on obvious indicators such as the amount

DATA DRIVEN RECRUITMENT - HOW TO INCORPORATE DATA INTO HIRING? 18

 of CVs obtained in response to different channels (which only tells you quantity, not quality),
somebody could instead look at more valuable indicators such as the number of offers made to
candidates from specific channels. Alternatively, you could assess the most successful
employees in specific roles and determine where they came from.
The goal is to target recruitment so that one can reach out to the exact types of people that the
company wants to attract. The automation of certain processes can help the HR team to focus
on other responsibilities.
JetBlue Airlines is a great example as to how data analytics can be used to find the best
candidates. Previously, the company emphasized 'niceness' as the most important characteristic
for flight attendants. Then, after conducting some customer data analysis with the Wharton
Business School, JetBlue discovered that, in the eyes of their customers, being helpful is
actually more important than being nice – and can even compensate for people who are not so
nice. The company was then able to use this information to more effectively narrow down
candidates.

The HR teams that are and will seamlessly working with data are the ones who will recruit
most successfully in the coming years.

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4. EMERGING THEMES

Recruiters had a difficult year last year. The pandemic and its ramifications devastated
some talent acquisition teams, piled new demands on others, and proved to be a legendary change
agent as virtually recruiting and onboarding remote employees became the norm for many.
At a time when virtual recruiting is the new normal, more companies are adopting virtual recruiting
technologies, shifting talent attraction efforts to remote candidates, considering internal talent
pools, and focusing on diversity, equity, and inclusion. The latest recruiting trends are extremely
different compared to previous years. As we are experiencing more uncertain times than ever
before.

The latest recruiting trends are extremely different compared to previous years. As we are
experiencing more uncertain times than ever before.

4.1 Data-Driven Recruitment Using AI

Data-driven recruitment is a new trend that hiring managers should be aware of in order to deal
with pandemic-related disruption and maintain business continuity.
The traditional hiring process will be upgraded with the assistance of Artificial Intelligence by
complete automation of employee verification and onboarding practises. AI-powered Chabots
are also becoming more common as companies begin to use them for resume screening prior
to scheduling candidates for in-person interviews, as well as understanding and responding to
candidates' queries in real-time. Furthermore, the speed and accuracy provided by AI-based
tools have become a requirement for recruiters.

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 Data analytics can play a significant role in achieving the long-term goals of the recruiting
department. Organizations can now forecast future trends and use them to improve HR and
recruitment operations. Recruiters can save time and money by not interviewing multiple
candidates if they have the right data. Instead, thanks to data analytics, businesses can more
effectively sift through applicant lists and only interview top candidates who are a good fit for
the role.

4.2 Building A Data-Driven Hiring Culture for 2021

The 4 steps in this structure are the ways of Building Data-Driven Culture in an organization
a) Know Your Destination
Prior to gathering data, one should have a goal in mind. As a result, he and his team can
work toward that particular goal while also increasing the efficiency of the data-driven
hiring culture. The relevant metrics for tracking time to hire, source of hire, rate of job
acceptance, and so on should be determined.

b) Selecting the Appropriate Technology and Tools

The technical tools involved or used in data collection are equally important. As a result,
one must decide which technology will best fit their requirements in order to achieve the
best results. Applicant Tracking System, for example. After gathering the data, metrics
such as time-to-hire can assist in determining whether we are going higher or lower than
the average industry.

c) Maintaining Inclusion for All

The final hiring decision may rest with the highest-ranking executives, but the process's
execution is the responsibility of the entire team. It is critical for a successful hiring process
and execution that all parties involved recognize that it is a team effort.

d) Promoting Professional Development

Finally, preparing the team for 2021 is one of the most effective ways to build a data-driven
culture for 2021. Encouraging the team to attend workshops relevant to their field in order

DATA DRIVEN RECRUITMENT - HOW TO INCORPORATE DATA INTO HIRING? 21

 to improve their skills and overall performance would result in better professional growth
from employees.

4.3. Prioritizing candidate experience is vital

Creating an outstanding candidate experience has become vital for a company looking to gain
a competitive advantage. For making candidates feel welcomed throughout the hiring process.
It is critical to have the right mix of technology and personal touch points
a) Technology: Make it easy to find and apply for jobs – for example, mobile-optimized
websites, autofill functions on applications, and so on.
b) Personal: Internal and external recruiters play an important role in providing a positive
candidate experience because they act as brand guardians in every interaction with
potential candidates.

Positive candidate experiences increase the likelihood of accepting a job offer by 38%.
Applicants who are satisfied with their candidate experience are more than twice as likely to
recommend the hiring organization to others as those who are dissatisfied (62 percent vs. 28
percent). – IBM

A good candidate experience, according to 87 percent of talent, can persuade them to

reconsider a company they previously questioned. On the other hand, 83 percent of talent say
a negative interview experience can cause them to reconsider a role or company they once
liked. – Deloitte

4.4 Deeper insights through People Analytics

"If you can't measure it, you can't improve it," Peter Drucker once said.
"People Analytics" is a data-driven strategy to human resource management. People Analytics
is an HR trend that analyses and maximizes an organization's talent management strategies
using data. According to statistics, 71 percent of businesses consider people analytics to be a
high priority. However, only 9% believe they have a thorough understanding of it.

DATA DRIVEN RECRUITMENT - HOW TO INCORPORATE DATA INTO HIRING? 22

 It is critical to implement People Analytics not only to describe data about what is happening,
but also to delve into the 'why' of an organization's recruitment metrics. Once the 'why' is
understood, the approach should be modified to meet strategic objectives.

DATA DRIVEN RECRUITMENT - HOW TO INCORPORATE DATA INTO HIRING? 23

5. CONCLUSION

As organization increasingly adopt information technology into their operations, it has

become important for them to move their operations and services to a new paradigm by wholly
embracing the use of data driven recruitment system for handling recruitment process and also
making use of right recruitment tools to reduce waiting time and manage appointments.

In data-driven recruiting, everything flows from your data. It’s easy to be focused only on
getting the data right through analytics, but it’s equally important to get the right data; foundational
data. Without both in place, you’re operating with limited visibility, and as organizations strive to
become more data-informed, stumbling in the dark is no longer acceptable. Data-driven recruiting
with foundational data provides your team with the necessary tools, elevating talent acquisition
into strategic talent advisors.

Data driven strategy is one of the latest recruiting trends. Information and data will continue
to pile up with remote work and ever-emerging changes that the coronavirus is inducing in the
world of work. That is why managers will have to thoroughly understand data, budgets, and other
essential information for a healthy bottom line. Hence, they will ensure that every strategy aligns
with crucial data and reports.

Finding new and more effective approaches of creating effective indicators for data-driven
recruitment is happening on a daily basis in many organizations. The data-driven system provides
metrics that help management to track and control results, spot problems and take corrective
action. When we talk about data-driven recruitment, we need to keep in mind that this is a
company’s very complex intangible asset and has different motives for measurement.

The key motives for establishing and developing data-driven recruitment practices can be
summarized as follows: improving recruiting activities (monitoring current results for the purpose
of undertaking corrective actions, identifying strengths and weaknesses of process in order to make
better decisions, encouraging changes in processes, baseline for determining which activities are
most appropriate for the company from financial, time and human reasons, possibility of

DATA DRIVEN RECRUITMENT - HOW TO INCORPORATE DATA INTO HIRING? 24

comparison with other companies in this field), proving the importance of recruiting for the
company (justification for investing in activities, proving that recruiting is equal with other
activities in human resources management, collecting data for the purposes of promoting these
activities and future programs) and determining the impact of recruitment on the organizational
performance (building a database which helps to determine the recruitment contribution to
organizational performance, calculate the return on investment in a programs, predict the future
benefits of various recruitment programs).

Because of the novel area of data-driven recruitment and the still very limited amount of
academic research, it is likely that there still can be found many challenges that have not yet been
identified. The challenges that have been recognized are classified in five different types. The first
type of challenge is the data related ones. Many have been concerned with the challenge of too
much data and metrics. If organizations try to measure everything, know everything and control
everything, the task in hand might be too extensive and as a result nothing gets measured properly.
The second type of challenge is the recruitment analytics process related ones. Recruitment
analytics is not only about collecting data, but also knowing how to use it. If too many metrics are
used, the result might only lead to a significant number of reports that no one is reading. The third
type of challenge is the people related challenges. Analytics might offer a good excuse to treat
employees as pure resources and special attention should be paid to the “human side” of human
resources. The fourth types of challenges are the managerial challenges. Organizational culture
and/or management do not support the analytical culture or its development. The fifth and last type
of challenges is the ethical and privacy related challenges. Organizations need to be able to protect
the sensitive employee information. Collecting and using data from different internal and external
sources might expose the organizations to discrimination lawsuits”

DATA DRIVEN RECRUITMENT - HOW TO INCORPORATE DATA INTO HIRING? 25

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