Firms would be better served by prioritising higher-level recruiting analytics as they go about trying to attract the top talent in their industry, according to Chief Executive magazine contributor Kate Donovan.
Most of the metrics used today are transactional, like time-to-fill, cost-per-hire, applicant-to-hire rate, and so on, claims Donovan. However, with the search for talent more of a struggle than ever for firms, Donovan suggests that a new model is needed to ensure higher return on investment.
More than a third (38%) of companies have difficulty filling jobs due to lack of available talent, according to a recruitment industry survey from last year. This is contributing to companies increasing their talent acquisition spend and their recruiting headcount.
With that, Donovan has come up with a three-step journey that ends with companies understanding how to capture, analyse and deploy more advanced recruiting analytics that are aligned with long-term strategic goals.
The first step is to get a clear picture of the baseline. "These are the transactional metrics that ensure the operation is running smoothly on a day-to-day basis," Donovan explains. First things first, firms should have systems in place to capture and report on this data.
Once the baseline is evaluated, companies can start to lay the foundations for more optimised metrics by ensuring the appropriate technology and human resources are in place to capture employee and candidate information as well as merge existing data sets.
Then comes the "visionary stage" in which the recruiting function and related measurement is fully integrated across the enterprise. "Commitment starts at the top and is likely to reach the board level in terms of support for system-wide investments and expectations for continually evolving data capture and analysis," writes Donovan.
She wraps up by stressing "transactional metrics represent the floor, not the ceiling" and that the more advanced recruiting analytics are out there – they just need capturing.