[INFOGRAPHIC] 6 Types of Recruitment Metrics You Should Know About

This infographic presents 6 main types of recruitment metrics every HR professional should track and measure.

Recruitment-Metrics-You-Should-Be-Tracking-An-Extensive-List

The importance of recruitment metrics

Tracking recruiting metrics is the key to HR analytics and data-driven recruiting.

In today’s data-driven culture, most successful recruiters are those who make decisions based on data acquired through HR technology such as Applicants Tracking Systems and Recruitment Marketing Platforms.

According to LinkedIn research, HR teams who track and measure recruiting metrics are 2 times more likely to find talent faster and more efficiently.

This is why HR professionals use hiring metrics – to make better and more informed decisions and find and hire the ideal job candidate easier and faster.

Types of recruitment metrics

Here is the list of 6 main recruitment metrics types:

  1. Recruitment Marketing metrics
  2. Hiring Velocity metrics
  3. Hiring Expenses metrics
  4. Hiring Quality metrics
  5. Hiring Source metrics
  6. Referral metrics

Recruiting-metrics-infographic-1

1. Recruitment Marketing metrics

➡️ Definition

Recruitment Marketing metrics is a group of recruitment metrics that measure the results and effectiveness of your Recruitment Marketing strategy.

2. Hiring Velocity metrics

➡️ Definition

Hiring Velocity metrics is a group of recruitment metrics that measure the speed and duration of your hiring process.

3. Hiring Expenses metrics

➡️ Definition

Hiring Expenses metrics is a group of recruitment metrics that measure the cost of your hiring process.

4. Hiring Quality

➡️ Definition

Hiring Quality metrics is a group of recruitment metrics that measure the quality of the candidates you hire.

5. Hiring Source metrics

➡️ Definition

Hiring Source metrics is a group of recruitment metrics that measure where your candidates come from.

6. Referral metrics

➡️ Definition

Referral metrics is a group of recruitment metrics that measure the results and effectiveness of your employee referral programs.

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HR Specialists Talk About Their Stances On Time Tracking | Featured Image

HR Specialists Talk About Their Stances On Time Tracking

HR Specialists Talk About Their Stances On Time Tracking | Main Image

The exponentially growing digitalization of business and life itself is disrupting almost any industry in every country, and it didn’t bypass their HR departments either. Until recently, HR has operated relatively separately from the other parts of the organization, but the evolution of HRMS and SaaS solutions made the HR embedded in everyday business just as much as Marketing or R&D. On the other hand, just like new technologies have created new forms of organizing work (think about digital nomads and virtual organizations), so must the way of managing those employees differ from the conventional ones.

In my attempts to understand the challenges of managing people in large enterprises, as well as the shift in the approach that technology brings in this area, I spoke to a couple of experts in this area – a director of HR department in a large corporation, and a CEO of HR software developing company, about their views on employee time tracking as a business practice. Their rich experience in “both sides” of human resource management allowed them to discuss the benefits of this concept, but also to elaborate their objections.

It’s not for everyone

The first professional I talked to is Sonja Jovanović, head of HR in Serbian branch of accounting and advisory company Ernst&Young. Besides using manually filled timesheets for tracking revenue streams, and punching cards system for checking in and out of the building (although this serves primarily as a security measure), the company does not use any other forms of time tracking, nor do they intend to in the future. Working hours are flexible, remote work is allowed in some circumstances, and their company culture simply doesn’t leave much room for implementing this type of business practice.

The very nature of the industry of providing high-quality services to business clients requires a substantial level of professionalism and severity of their personnel. It takes a tremendous amount of confidence, followed by the strong and thorough selection, to entrust a client to a group of employees. “ […] Therefore, I do not see a situation in which a time tracking tool could bring any value to our organization,” says Sonja.

In EY, performance reviews and feedbacks are being conducted through the complex network of department managers and counselors, and though the employees do use computers, their performance simply cannot be seen nor measured by the amount of time spent on particular computer activities. “Our HRM is digitized in many ways, but tracking time does not fall into that. It simply isn’t applicable, because you cannot gauge the scope and quality of intellectual work by time,” she explains. “The more you try to frame people and their creative process, the greater the set-down will be, and the poorer results you can expect. This simple principle is something that many discipline-obsessed managers fail to understand.”

It’s about culture and priorities

In order to find which companies do find time tracking useful, or even a must have solution for their business, I spoke to Ivan Petrović, CEO of WorkPuls, a company providing time tracking solutions for businesses around the world.

“When it comes to implementation of time tracking solutions in medium and big companies, there are two basic factors that affect this. The first is the company culture, and the way productivity is understood in the company. The second factor are the individual views of managers, especially the HR Directors and their priorities”, says Ivan. WorkPuls works with various companies, from BPO companies, software and video gaming companies to construction companies and e-commerce businesses. While they think that there are certain patterns that one might observe among use cases of different customers, they say that there are also differences among specific goals different managers want to achieve.

“If you are in charge of HR in a company that has more than 500 employees like one of our clients, and your top level management has an initiative to increase productivity, or just wants to gain better insights into current ongoings, you might sometimes feel that it is impossible to know what everyone is working on currently, how happy or productive they are, and whether some teams or employees might be too loaded with work. So you want to find a way to get your insights efficiently, and this is what a good time tracking solution should provide. Such software gives you an easy overview of what your employees are doing at any given time, if this is what you want to know, but also whether they are getting more or less productive over a specific period of time; if they have too much work to do, whether they are “morning birds” or “night owls” and so on. With these insights, it is easier to work together with your employees to optimize workflow, provide a better working atmosphere, and consequently bring up the productivity of the whole company. Of course, all under the condition that your employees’ work is dominantly computer-bound,” explains Ivan.

Smaller companies, however, seem to have a different motive. “Speaking of smaller to medium size businesses, many times owners or managers look for an easier way to monitor whether everyone is working as promised, or they want to use insights to reduce the waste of time,” explains Petrović. “But there have also been cases where business owners used time tracking to see whether their employees needed any additional training with the tools they use. If some of your employees are spending way more time on those Excel sheets or Google Translate then the rest of the team, that might suggest that it’s time for additional training in that specific area.”

Since large companies already have their own payroll accounting solutions and punch in/punch out systems, the analytics side of time tracking software here becomes much more significant. Ivan mentions security related questions, along with the need to integrate time tracking data with other data in the company.

“There is an increasing need in this field to provide ever more flexible solutions, balancing the transparency for the employees with solid protection of security and privacy, within the company, but also towards the outside. Integration with other systems is also important.”

Control or motivation?

The overall impression was that for companies like these time tracking would not be yet another control mechanism, but a tool for improving the insight of HR professionals in everyday work and interactions of their people as well. It seems that if you are willing to dig deeper into the metrics, you might discover some remarkable ongoings which would hardly be detected in traditional ways of performance management. For many managers, this feels like a big step forward.

Although the digitalization of HR activities has opened great opportunities in terms of increasing the speed and quality of analytical processes and providing greater insights into organizational affairs, while at the same time reducing costs, there are still some downsides to be looked after. Downsizing the HR departments or burdening HR professionals with technical details are the first threats to successful adoption and modernization of people management. The serious threat to privacy that technology presents is the main reason why the initiative for using such tools should and must come from the HR. Bearing all this in mind, we can conclude that the basic challenge of the profession will be to recognize, develop and exploit the positive potentials of digitalization, while at the same time avoid, or at least minimize the concomitant risks.


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7 Recruitment Metrics Essential For Your Hiring Success

7 Recruitment Metrics Essential For Your Hiring Success

7 Recruitment Metrics Essential For Your Hiring Success

As employers continue to face falling candidate availability and rising demand for staff, understanding your recruitment metrics is vital to attract, source and retain the talent your business needs. Metrics are used to measure and monitor the progress and success of your talent acquisition strategy. Here are 7 you need to know:

Time to hire

For companies new to recruitment metrics, measuring time to hire should be your priority. On average, it takes employers four weeks to fill an open job but talent disappears from the job market within a matter of days. A prolonged time to hire indicates a number of issues including a repetitive application process or poor decision making on final candidate selection. Reduce your time to hire by tagging your referred or priority candidates through your applicant tracking software and offering a registration of interest to capture the contact details of qualified candidates.

Source of hire

Understanding the source of your most successful hires enables HR to focus on those channels to fill future jobs. Candidates enter your recruitment funnel from a variety of sources including your careers website, employee referrals, social media, your own talent pool and job boards. Focus on the sources that provide the most qualified candidates for a better response to your next vacancy. Ideally, employee referrals should provide your top source of quality hires.

Candidate drop-offs

An estimated 90% of candidate drop-offs are a direct result of a poor time to hire. If your HR analytics reveal alarming levels of candidates abandoning your hiring process pay attention to that metric. A prolonged application process and failure to engage with applicants in your pipeline and a negative candidate experience all affect this vital metric.

Quality of hire

Under a quarter of UK employers are confident in measuring their quality of hire. The easiest way to gain insight into your quality of hire is by measuring your attrition rates among your most recent recruits. Incorporating pre-hire assessments, reviewing your screening parameters and carrying out exit interviews with your departing employees will enable HR to gain clarity around this issue. With an estimated two out of every five hires now failing, understanding your quality of hire is essential.

Retention

The problem of retaining new hires is shaping up to be one of the major recruitment trends for 2017. A new report from CV Library found that one in five new hires leaves either during or before the end of their probationary period. If your recruitment data shows a disproportionate level of early departures focus on your interviews first. Unrealistic expectations result in your candidate leaving early but the problem may also lie in your decision making. 75% of decisions are based on the interview alone, leaving your process at risk of unconscious bias and bad hires. Support your decision with the evidence in your recruitment analytics.

Cost of hire

A recent report from the Recruitment and Employment Confederation (REC) found that 85% of hiring managers admit to making a bad hiring decision but one third believe there are no costs relating to this decision. One in five also have no idea how much a bad hire costs their business. The report suggests that, an unsuccessful hire in a position with a salary of £42,000, for example, costs your business over £132,000. Your cost of hire will include job adverts, internal hiring costs, interviews and agency fees. The final cost should also be measured in terms of both the financial impact and the impact on the morale and performance of your existing employees.

Job acceptance ratio/Reneged job offers

Job hoarding candidates became a very real problem for UK employers last year, particularly for graduate recruiters where the number of reneged job offers meant that 1,000 graduate jobs went unfilled. A poor job offer to acceptance ratio will be affected by a number of issues, including an irresistible counter offer, a poor candidate experience, a salary which doesn’t reflect market rates or delays in making a decision on candidate selection. Reneged job offers also suggest a potential problem with onboarding. Your onboarding process should begin as soon as your job offer is accepted to prevent your new employees going AWOL on their first day.

Advorto’s recruitment software provides workflow and structure across the entire hiring process and offering a dynamic database of candidates and analytics. Used by some of the world’s leading organisations, it provides a straightforward first step into people analytics and big data. Contact us today.


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Moving Towards People Analytics Is Now Critical For HR | Featured Image

Moving Towards People Analytics Is Now Critical For HR

Moving Towards People Analytics Is Now Critical For HR | Main Image

HR as a whole has resisted a move towards people analytics for some time but the need is becoming critical.

Recent developments have provided employers with urgent reminders of just why:

  • One third of working life (or 80 working days per year) is spent on completing ‘administrative or repetitive tasks’ according to a new report, costing the UK service industry alone over £400 bn. For HR, not only is it unproductive time but it also diverts attention away from focusing on sourcing talent and employee engagement.
  • That’s not all. The Open University’s (OU) Business Barometer found that the skills gap is now costing the UK an estimated £2.2 billion per year. Delays and skills shortages are driving up recruitment costs as business are forced to pay more to attract the talent they need or turn to temporary workers and recruitment agencies.
  • The problem is compounded by the rise in failed hiring decisions identified by the Recruitment and Employment Confederation.

Moving towards people analytics is vital to help HR to address those issues and adopt a much needed a long-term approach to talent acquisition and retention. Deloitte’s 2017 Human Capital Trends Survey notes that people analytics is undergoing a ‘seismic shift’ and is now going mainstream but employers risk being left behind.

Effective people analytics enables HR access to ‘real-time analytics at the point of need in the business process’ according to Deloitte. In its most basic form, it enables HR to access live data through recruitment software to begin to build a picture of what exactly is shaping the success or otherwise of your hiring process.

The principles behind effective people analytics

For HR, it is essential that decisions related to talent acquisition and employee development are based on data. Hiring teams which are able to understand the benefits of this analysis and the way in which it ultimately impacts business performance and influence future hiring needs will be more successful in attracting talent. This is achievable with people analytics.

Understanding where to begin

Ask questions : Moving towards people analytics begins with the questions asked of your hiring process. For example, less than a quarter of UK business are confident in measuring their quality of hire. Asking questions about the retention levels of recent hires is the first step towards understanding that.

Know your key metrics : Knowing and understanding your metrics drives successful recruitment. Time to hire, the source of your most successful hires and the ratio of accepted versus rejected job offers are all examples of information provided by your recruitment software. Companies relying on manual recruitment or outdated HR technology will be hindered in measuring these metrics accurately.

Analyse the data : Understanding the underlying issues indicated by recruitment data enables HR to adjust hiring processes. For example high levels of candidate drop off rates may indicate a prolonged or repetitive application process. It may also indicate a lack of engagement with the talent in your pipeline. Time to hire is another crucial metric. The OU’s report found filling open jobs is problematic for three quarters of all employers – on average, it is taking one month and 24 days longer than expected. These are issues which can be identified and streamlined with effective HR technology.

The step towards evidence based HR

Simply put, evidence based HR means that hiring decisions are made with reference to supporting data, yet for too many organisations this is not the case. One in five hiring managers make snap decisions on candidates within one minute, according to research from TotalJobs.  Only one third wait until after the interview has ended. Data from your recruitment software should reinforce or challenge your final decision. The potential for human error and bias are also minimised through the use of data driven recruitment.

Once the obstacles to successful hiring are identified, HR can begin to address them and adopt a long-term approach to planning. People analytics can then help to predict the most likely source of your next new hire based on your data. Without this knowledge, it is impossible to improve your hiring process.

Getting started

Recruitment software is the most straightforward way for your business to move towards people analytics. It immediately reduces the time spent on time consuming ‘administrative or repetitive tasks’, streamlines the hiring process to minimise delays and reduces the potential for failed hiring decisions. Making that move is now critical for HR.

Advorto’s recruitment software provides workflow and structure across the entire hiring process, offering a dynamic database of candidates and analytics. Used by some of the world’s leading organisations, it provides a straightforward first step into people analytics and big data. Contact us today to take that first step.


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Statistics

Hiring Statistics You Need to Know for 2017 (Infographic)

Statistics

While we are aware that the job landscape is always changing – with new technology, automation and outsourcing removing jobs, and new startups popping up everywhere you look – it’s sometimes hard to see the big picture. But, as a hiring manager or even business leader, it is important to know where the industry is headed. Background check company, EBI, has put together a list of 60 hiring statistics that are important for every HR professional. Looking at everything from the hiring process to gender and diversity breakdown in the workplace, it paints a telling picture of the issues HR professionals face every day.

You can see the highlights in the infographic below:

Hiring Statistics You Need to Know for 2017 | Infographics by EBI


Source: 60 Hiring Statistics You Need to Know for 2017

Unlocking Business Growth through HR and People Science

Unlocking Business Growth through HR and People Science

Written by Adam Hale, EVP of Sage People.

Why fast-growth companies are bounding ahead?

For businesses to sustain growth, be more productive, and attract and retain the best talent in today’s increasingly global and competitive climate, they need to use data intelligently. Data analytics has been happening for a long time in marketing, sales and finance, but now we’re seeing HR wake up to the benefits. Traditionally, HR functions capture information about employees passively in order to meet legislative requirements but organizations are now realizing it has far more potential with data analytics which is also leading to the rise of the Chief People Officer role.

While 83% of HR leaders recognize that all people decisions should be based on data and analytics, the reality in the workplace is very different. Recent research Fairsail (now Sage People) conducted amongst 500 global HR leaders for its report ‘The use of people science in fast growth companies’ showed that only 37% of those surveyed claiming to already use a data-centric approach.

Why fast-growth companies are bounding ahead

However, there is one business group making the most of its people science capabilities: the fast-growing ‘gazelle’ organizations – companies which have increased their revenues by at least 20% annually for four years or more. The research shows that these organizations are far more advanced in HR than the average company. They have full HR automation (80% v 53%) so they can report faster and more easily on a range of influential HR metrics. If asked to report on headcount within a single day, 84% can do it; that’s 16 percentage points better than non-gazelles. They can more easily report on high potential employees (58% v 42%) and on personal growth (58% v 41%).

These gazelle organizations can see what’s working and what needs to change and can take action confidently to make sure they’re supporting employees to achieve their potential. While gazelles are the one’s bounding ahead, all is not lost as almost every organization we spoke to did have an awareness of the potential to use people and HR data to improve their business.

Use Chief People Officers to close the gap

Even if they haven’t yet marshalled it effectively or decided exactly how they’ll use it, a staggering 92% said they’d like to use people science to improve their business. And another 65% said that in the next 12 months they need to achieve greater data visibility.

The research also positively showed a movement across all organizations to make a highly visible change that reflects the shift to a people focus: 17% have appointed a Chief People Officer to put people science at the heart of their business. The gap between the gazelle approach and the non-gazelle approach looks set to narrow in the very near future, as all businesses take action on their ever-growing awareness of the importance of people analytics.

Tap into data to unlock rapid growth

So what can we learn today from these market-leading organizations? Seeking and seizing opportunities and using every lever a company can get its hands on to improve performance is the key to rapid growth. Organizations shouldn’t be afraid to explore the latest people thinking, or adopt the tools that gather data and turn it into business intelligence. The challenge is to put systems and tools in place to collect and analyze it for tangible benefit – as 31% revealed, they don’t currently have the right technology in place to interpret the necessary people science. Automation helps companies move away from old-style HR with its laborious administration and manual processes and spreadsheets. With this, people teams should be able to explore the workforce data to understand what employees want and need. They can take action to provide great workforce experiences that makes the most of talent to fuel productivity and business growth.

To read the full ‘The use of people science in fast growth companies’ report, please visit www.fairsail.com.

About the Author:

Adam Hale, CEO at Fairsail

Adam Hale, EVP of Sage People, previously acted as Executive Chairman and Non Executive Director having spent over 30 years in the technology industry. He was formerly Head of Software and European Technology at Russell Reynolds Associates, the leading executive search firm and before that ran large system implementation projects at Accenture. Adam is also a committee member of the Technology Leadership Group (TLG) for the Prince’s Trust.


If you want to share this article the reference to Adam Hale and The HR Tech Weekly® is obligatory.

Employee Relations: The Last Bastion of Manual HR Processes?

Employee Relations: The Last Bastion of Manual HR Processes?

Today our guest is Deborah J. Muller, CEO and Founder at HR Acuity®: a leading provider of employee relations and workplace investigation solutions.

Deborah founded HR Acuity, LLC in March 2006, after she spent more than 20 years in key HR leadership positions at numerous Fortune 500 companies, including Citicorp, Honeywell, Marsh & McLennan and Dun & Bradstreet.

HR Acuity designed and developed HR Acuity On-Demand, an essential web-based application that minimizes an organization’s legal and financial risks.

HR Acuity On-Demand, winner of the 2009 Top Product of the Year award from Human Resource Executive® Magazine, enables consistent documentation of employee issues, a structured process for workplace investigation, and immediate search and reporting.

The recently released 2016 HR Acuity Employee Relations Benchmark Study analyzed employee relations practices related to organizational models, case management processes, metrics and issue types, volumes and trends. The entire study had 74 organizations participate representing over 870,000 employees with the goal to establish a foundation for the development of a unique set of best practice employee relations benchmarks.

The interview is hosted by Alexey Mitkin, Founder, Publisher and Editor-in-Chief, The HR Tech Weekly® Online Media Co.

  1. Hi Deborah, and first of all thank you very much for this interview with The HR Tech Weekly®. You started HR Acuity® operations ten year ago. What has changed during this time in the employee relations management landscape?

Over the last ten years we have seen a real shift in the intersection of HR and technology. Organizations are looking beyond the traditional HRIS data to get insights that can be used to understand, diagnose and even predict how employees – their human resources – will behave and perform. And the relationships between employees, employer, co-workers, and customers – must be part of that story. What can we learn from those interactions (the good, the bad and the ugly) to become smarter in hiring, developing, managing and motivating our employees to drive business success? As a result, we have seen our conversations with clients make a real shift from educating about the power of employee relations to strategic dialogues about capturing and deliberately using this information.

  1. Why did you decide to perform the Employee Relations Benchmark Study, and how long did it take to get the results?  

For the past eight years we have been conducting an annual survey take get a pulse on employee relations issues and practices. But over the last few years, our network has been asking for more. When it comes to employee relations issues, organizations want to know what is “normal?” How many harassment issues should we expect? What should we expect our caseloads to be like given our size or industry? How do similarly situated organizations model their employee relations resources? The data had not previously been available and we were in a position to capture it. That being said, we were very fortunate to form an incredible advisory board from organization such as ADP, TIAA, MetLife, LinkedIn to help develop our Study questions.

The result was an in-depth questionnaire that required participants to take the time to gather the data requested sometimes from multiple constituents within their organization. In the end, their willingness to do so with such granularity speaks volumes about their desire to get their hands on this valuable information.

  1. Did you have any assumptions before performing the Study, and how different were they from the outputs?

Since I live employee relations day in and day out, I had some hypothesis going in but clarity of what we heard was most surprising. First of all, we knew from our clients that organizations were making a switch to centralized employee relations teams – this is something the Study confirms. What surprised me was uniformity of rationale for this change. Organizations are looking to drive consistency of process, ensure neutrality how issues are handles and safeguard that those handling the situations have the right expertise.

Secondly we knew there was steady increase in the reliance of organization to track employee relations metrics. When we started surveying organizations in 2009, less than 15% used an employee relations management system and over 50% didn’t track at all. What was surprising to us with the Study was how far this has shifted in the last seven years — basically flipping around. Now over 45% of organizations use some form of an employee relations management solution or case management system while only 12% reported not tracking at all.

And finally, in one of our open ended questions we asked about how caseloads have changed recently. Almost everyone who commented used the exact same word to describe what they were seeing…”complexity.” Cases are just more complex than they were a few years ago. Not a big surprise given the growing number of regulations that need to be considered but very powerful reading through comments from strangers who all use the same terminology.

  1. What are the core statistics and findings of the Study? Could you just lift the veil for our readership please?

So to give you a peek at some of the results I’ll share three areas of information the Study explored:

Organizational change. Not only are organizations moving to centralized models but our data shows that that type of organizational model uses 25% fewer HR resources than those with Mixed and Decentralized Models.

Analytics. Most respondents described employee relations analytics as “early stage.” However those that are ahead of the curve are actively monitoring key metrics and provided insightful examples of how the information measured has been used to impact key business drivers – all which we included in in the Study results.

And finally case and staffing benchmarks. The Study provides some “normal” on numbers and types of cases that employers are dealing with. In most instances we were able to break those numbers down by size of organization and organization model so that as a reader you can consume what is most similar to your needs. For example, for every 1,000 employees, our Study found that organizations will receive approximately 4.44 allegations of discrimination or harassment.

  1. On one hand, there are plenty of HR Tech solutions for recruitment, employee engagement and other things often called disruptive. On the other hand, some employee relations statistics may surprise you. What about solutions for managing risks, preventing and resolving conflicts at workplace?

I love that you bring up this point. Employee relations seems to be the last bastion of manual HR processes. And when you speak to HR practitioners they totally get it. The reality is that most HR professionals already capture employee relations information on a daily basis but in spiral notebooks or at best on excel sheets. By “digitizing” this last piece of the puzzle organizations can create tremendous impact and ROI without disruption. Instead of spending millions of dollars to figure out something intangible like employee engagement, having an employee relations management solution can uncover why employees are disengaged, what are the trends that drive inappropriate behaviors or subpar performance, what can you do to reduce incidents and drive growth: very tangible and very straightforward.

  1. Your Benchmark Study covered the corporate world. Do you have any observations regarding SMB companies and recommendations for them to mitigate risks of employee relations?

At HR Acuity we always say that employee bad behavior doesn’t discriminate…whatever size or industry, you need to be ready to face issues or allegations that will pose risk for your organization. Process missteps can be costly and particularly detrimental to the health of a smaller organization. So our recommendation is to be prepared. Have a process. Know who will be involved and ensure they have the proper training to handle the incident in a compliant manner. HR Acuity has some great free resources and tools on our website that we encourage folks to download.

  1. The last but not least question I love to ask my guests is what are upcoming challenges for you?

For us it is about Managers… How can we leverage technology to provide managers the tools to do their jobs more effectively? Those tools will not only help drive consistency but can be used to validate that good management and leadership practices drive business results. Once that happens, the relationship between managers and HR will change to become less traditional and more strategic.


If you want to share this interview the reference to Deborah J. Muller and  The HR Tech Weekly® is obligatory.

50% Hiring Cost Reduction through increased Quality and Speed: The Nord Stream 2 Project

The Landfall of the Nord Stream Pipeline in Germany

Nord Stream 2 AG is a project company established for the planning, construction and operation of the Nord Stream 2 twin pipeline to transport natural gas from Northern Russia to Europe. New hires were needed for multiple business and technical functions. Nord Stream 2 wanted a data-driven, comprehensive, time saving process that would result in candidates who could immediately fit into their high-speed, international culture and who would produce results on Day One.

Interview/Hiring Ratio of 4:1

With softfactors, Nord Stream 2 soon learned that softfactors’ methodology reflected current research conducted by the Stanford Research Institute International and the Carnegie Melon Foundation showing that job success depends on a combination of technical knowledge and soft skills. They realized that soft skills were valuable factors to consider.

Smart algorithm do the workload

softfactors’ selection tools use an algorithm to compare the job requirements to each candidate’s profile. Candidates interested in a job complete an interactive online application. All candidates are screened on overall fit, traditional variables, and soft factor elements drawn from interactive exercises. The result is a scientifically rigorous list of pre-selected candidates – both suitable and unsuitable – based on a combination of competencies and foundational and technical skillsets.

Saving 20 hours interview time per position

With the front-end sourcing and candidate screening steps handled by softfactors, Nord Stream 2’s HR team was able to concentrate on in-person interviews and collaborative assessment discussions with the hiring managers. It brought down the interview/hiring ratio to 1:4. The number of interviews for hiring managers was reduced by over 50% because of the pre-match of suitable candidates to jobs.

Download the full study here
Nord Stream 2 AG – Facts and Figures
Time Frame for Recruiting 9 months
Online Applications through Softfactors ATS (very specialized jobs) 2’500 applications automatically screened
Algorithm assessed as suitable 450
Hired (filled) positions 45
Hiring/Interview Ratio 1:4,3 (normally 1:10)
Time saving for hiring managers and HR (2 people in interview) 810 hours

About Softfactors AG

Softfactors AG is an HR Tech Startup based in Zurich Switzerland. The recruiting solution measures and compares both resumes and soft skills. It looks at qualifications, work experience, social skills and personality of applicants and compares these with the requirements of the job opening, using a set of competencies and pre-defined job profiles.

www.softfactors.com


If you want to share this article the reference to Reto Rüegger and The HR Tech Weekly® is obligatory.

Breaching The Big Data Barrier : Moving HR Towards Analytics

big-data

Investment in big data has risen in 2016. That’s according to tech consultants Gartner which reveals that 48% of companies invested in big data this year, an increase of 3% compared to 2015. Planned investment in the next two years is predicted to fall, however. The issue, according to Gartner, is not so much the data but how it is used. 85% of companies who invest in big data remain in the pilot stage as projects fail to progress beyond the initial commitment.

That is certainly the case for the UK which is ranked 14th in the world for digital adoption. As candidate availability falls and the digital skills shortage spirals towards a critical point, big data is HR’s path to navigating through the complex issues affecting the workforce. Breaching HR’s innate big data barrier to move towards analytics requires a clear strategy. Here’s how to achieve that:

Evaluate your current position : Understanding the maturity of your current recruitment process will provide a base from which to evaluate progress. Deloitte’s Global Human Capital Trends Survey 2016 found that one third (32%) of businesses felt ‘ready or somewhat ready’ for analytics while 8% believed they were ‘fully ready’ to develop a predictive model. Know your starting point.

Aim for quick wins : PwC’s 2016 Data and Analytics Survey reports that UK executives want more data driven decisions but are held back by their organisations and culture. Demonstrating the benefits with some quick wins will help to overcome internal resistance to big data. Aim to provide insight and solutions into ‘roadblocks’ within your hiring process. For example, a lengthy application process deters candidates from completing application forms, while recruitment analytics identifies the source of your best applicants. Begin with HR technology covering key hiring metric which extracts information from live data within your Excel spreadsheets. Getting the right data is the key, whether ‘big’ or ‘small’.

Collecting data : Most companies have a wealth of data available. Collecting, analysing and understanding that data is the biggest challenge. For example, most hiring teams have access to a wealth of information available from sources such as social media, in-house surveys and LinkedIn. That data provides a starting point and may include:

  • Performance management reviews.
  • Personal data, including medical history and employee attendance levels.
  • The hiring sources of your most successful people..
  • Employee participation in surveys and candidate referral schemes.

Utilising analytics : Big data helps to shape your understanding of the online habits of your talent pool, through tracking their digital footprints. It assists evaluation and targeting of job posts and facilitates engagement with people who possess the skills critical to your business. That information helps to create focused candidate personas in order to target future recruitment at relevant talent pools. Analytics evaluates the demographic profile of potential hires, coupled with their educational background, career history and typical salary. Advanced analytics can predict talented employees who may be a ‘flight risk’. When high risk people are identified, HR can adopt a more effective and aggressive retention strategy, focusing on areas such as career development, in-house training and flexible working.

Minimising bias : Data helps to reduce ‘confirmation bias’, broadly defined as a pre-existing belief we may hold which we look for evidence to support. In hiring, this may present itself in repeatedly recruiting applicants from the same social or education backgrounds. The Social Mobility Commission’s newly released State Of The Nation Report 2016 reveals the extent of the problem in the UK, noting that only 4% of doctors, 6% of barristers and 11% of journalists are from working-class backgrounds. Confirmation bias leads HR to eliminate talent from interview selection. Hiring algorithms in big data help to prevent that. As a prime example, Google’s re:Work platform operates on the principle of ‘unbiasing’, which it states begins with ‘education, accountability, measurement and more’.

Don’t over-invest : Big data must work for your business. Scalable HR technology enables your business to expand as employers analyse and interpret the data available. Recruitment software without integrated analytics that provide live and instant data will hinder, not help your hiring process. It should also be mobile friendly and equipped with social collaboration tools.

Ensure ethical use of data : Confidentiality and privacy must be a priority for employers collecting data on candidates which includes personal information. The UK government has accepted a recommendation to create a council of data science ethics to address concerns over the misuse of big data. Establish ground rules for the use of talent analytics within your business to ensure compliance. Choose technology that complies with the Data Protection Act and offers a full audit trail.

Treat big data as your ally

Big data is here to stay. The Economist Intelligence Unit reports that, while cyber-security and web/mobile development are the highest ranked competencies today, big data will replace them by 2018.

Big data is HR’s ally. Utilised effectively it augments recruitment and selection decisions by providing objective data that highlights disruptive elements in the hiring process. No data is perfect but it provides an indication of activity and progress in your talent management strategy. Create a story and positive message around your technology to empower HR. It isn’t about statistics. It’s about enabling your business to create stronger talent pools, and a more robust hiring process.

HR must develop familiarity with and insight into data to communicate its benefits confidently and ensure that it aligns with performance objectives. Adopting a predictive talent model is your goal but breaching that big data barrier is the first step.

Advorto‘s recruitment software provides workflow and structure across the entire hiring process, offering a dynamic database of candidates and analytics. Used by some of the world’s leading organisations, it provides a straightforward first step into HR analytics and big data.


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Soft Skills Analytics: Five Measures of Impact

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There are several ways that organisations can and should measure the impact of hiring for soft skills. After all, you want to know if it’s working, where it’s working and what the benefits are to the organisation.

Improved speed of hire, candidate selection, quality of hire and retention are all benefits that can be achieved by hiring for soft skills and all of these benefits are measurable. Indeed, at softfactors, a Swiss HR Tech company, we already measure some of these benefits and will soon be measuring all of them.

Faster speed of hire

Let’s start with speed of hire. This is as it sounds: we measure how long it takes to get a new hire on board once the recruitment process has started, from start to finish. It’s very easy to measure and the results should be significant. Many of the companies that use our screening tools have reported halving the recruitment time from three months down to one and a half months. In one instance, we hired a communications specialist for a company in just four weeks, from posting the job advert to issuing the job offer to the candidate. Being able to speed up the time to hire is particularly important for business critical, strategic and senior roles.

Identify better candidates

Improved candidate selection is another major benefit and what this refers to is the ability to identify strong candidates and screen out unsuitable candidates early on. Our soft skills analytics give hirers a really good, detailed understanding of the aptitudes, personality traits and motivational drivers of candidates. This enables hirers to weed out those who might otherwise have made it through to interview and only select a handful of really strong candidates.

By only inviting promising candidates to interview, hirers enjoy significant time savings. Consider how long it takes to set up and prepare for interviews, conduct the interviews, assess candidates afterwards and then feed back the information. If a hirer is only doing that three times, instead of five or ten or 15 times, that’s a substantial efficiency saving in terms of time and resources.

A better candidate experience

It also makes for a better candidate experience. Interviews require candidates to invest time and energy as well, so better to only select those for interview who stand a good chance of securing the position.

We can also provide hirers with data on where the good candidates are coming from – is it LinkedIn? Facebook? Monster? Organisations can use this information to target their recruitment efforts more effectively.

Improved quality of hire

Proving an improved quality of hire is perhaps the hardest benefit to measure. However, conversations with line managers and anecdotal evidence can be useful here, plus other measurables, such as time to competency, how well a candidate performs in a role and how long they stay.

Increased employee retention

Retention is something that we plan to measure soon. If there’s a good candidate-job-manager-organisation fit, then we would expect candidates to stay longer within a job and to progress up through the organisation.

Screening that leads to better retention rates is certainly something that a lot, if not all, companies would be interested in. As one senior investment banker quoted in the Financial Times article said, soft skills tests that can accurately predict the likelihood of candidate staying and succeeding in a role “would be terrific”.

This last benefit takes a bit longer to measure, because the tracking takes place over a longer period of time. But it can all be done and can show hirers the several clear benefits of testing for soft skills.

 

So, in conclusion, there are several ways that organisations can and should measure the impact of hiring for soft skills. In fact, it would be very unwise not to do so with the current available technologies.


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