How to use Data to be more Decisive in Hiring
If many of the HR and economic predictions prove to be accurate, 2014 is firmly positioned to (finally) be a year of growth. Since 2008, many companies have been forced to focus on transformation. Therefore causing their demand to be driven by transformation and restructuring. With current predictions for the New Year, the strategy is seemingly going to be focused, for the first time in several years, on pure growth. As with any major change, companies will now be tasked with aligning their strategies for talent acquisition to meet a change in the cause for growing demand. Already, many organizations are challenged with attracting talent in a number of functional areas, manufacturing and STEM (Science, Technology, Engineering and Mathematics) workforces. A recent McKinsey research project suggests there will be a shortage of 30 to 40 million college-educated workers by 2020. Adding increased competition and a continued exodus of baby boomers from the workforce, companies will need to address their approaches to attracting talent on many levels, including strategies that encompass more than HR alone and both internal and external talent management. The power of the employment brand will be more apparent than ever, and should focus on attracting and retaining top talent.
Businesses in the US currently spend more than $110 billion on talent acquisition alone. This staggering number represents the costs of acquiring talent in a transformational era. Imagine the impact of an increased level of demand and competition based on growth. If attracting and acquiring the talent is an organization’s biggest challenge, the cost is certainly a close second. The risk associated with cost of hiring, even interviewing, a candidate who is not likely to be engaged and productive in the organization can be debilitating. If that risk had the luxury of paralyzing a decision in 2013, that is not likely to be the case in 2014, as more decisive actions will be required to compete for high-demand talent.
Business driven talent analytics reduce the associated risks exponentially. With varying levels of sophistication (and of course, associated cost), understanding the external market and skill-specific talent intelligence can increase speed and efficiency in hiring without increasing the cost, time and (already overburdened) resources within the organization. While it’s likely no surprise that data can reduce risks and even help save on money and resources, the reality of an increasingly competitive and growing market will increase the importance of utilizing data to be more decisive and expeditious in hiring.