How to Make Better Talent Decisions with AI-Driven Predictive Analytics

Used across various industries, predictive analytics allow companies to make informed decisions for better results. Organizations that effectively use predictive analytics in recruitment are more likely to hire high-caliber applicants compared to the ones that don’t use analytics.

Predictive Analytics in Recruitment

When it comes to sourcing and recruiting, recruiters must attain a deep understanding of talent. Traditional hiring, however, is more of a guessing game – whether it is about finding the perfect fit or evaluating skills. While there are a number of ways to assess candidates, in the end talent acquisition teams are mostly found hiring with a hope the new hire will perform well. Sadly, this may cost them enormously in the long run.

If their decision turns out to be a wrong one – the employee doesn’t last longer than a few weeks – a great deal of time and money goes down the drain. In addition to that, the team might have to take up the additional responsibilities the new employee was supposed to assume. Thus, they might also suffer from a loss of productivity.

Thankfully, talent acquisition tech has come to save the day. HR teams can now tap into the power of predictive analytics to improve outcomes in hiring and make smart talent decisions.

So what exactly is predictive analytics?

As the name suggests, predictive analytics seeks to make use of statistics and modeling to predict future performance based on historical and current data.

How AI and Predictive Analytics Help Predict Top Talent

Let’s see how AI and Predictive Analytics can enable you to make the right talent decisions:

• Improve Quality of Hire

Employees are your company’s most important asset. It is therefore important to have a recruitment strategy in place that incorporates talent acquisition analytics. Data driven decision making will allow you to bring the right people on board, ensuring your organization succeeds.

AI-powered predictive analytics has the potential to make a huge impact on the quality of hire, which is why it is among the fastest growing segments in recruitment tech today. In a 2018 survey, 69 percent of talent acquisition professionals acknowledged that AI has enabled them to hire higher-quality candidates.

AI-driven predictive analytics in recruitment has the capability to standardize the matching between candidates’ knowledge, experience, and skills and the requirements of the job using data. Hence, it can determine what a successful employee in a specific position will look like, and find candidates with similar skills and experience. This would ultimately improve the quality of hires and significantly reduce the turnover rate.

• Tackle Talent Scarcity by Strategically Expanding the Talent Pool

A great number of recruiters have been selecting candidates from a very limited talent pool. According to a study, this makes for serious skill shortage. Plus, a hiring manger spends nearly 1/3 of their work week (about 13 hours) sourcing candidates for a single role. So there is only a limited amount of resumes they can sift through.

Interestingly, passive candidates make 70% of the global workforce. And if talent acquisition managers undermine the potential of this talent pool, they can impair recruiting effectiveness. In the past, reaching passive candidates involved a lot of resume database searching, cold-calling, outreach, and dead ends.

However, with AI’s and predictive analytics powerful ability to rapidly sift through millions of data points, recruiters can efficiently identify passive high-caliber candidates. Using AI-powered predictive analytics, talent acquisition professionals can also tap into a larger talent pool to source candidates.

Most often employers ignore the former employees and applicants, oblivious to the fact that they are missing out on a large pool of lucrative talent. AI and predictive analytics in recruitment can help recruiters uncover candidates already present in the company’s existing resume that could be perfect matches for an open role.

• Reduce Hiring Bias

The traditional hiring process is rife with bias. 44% of applicants claim to have experienced discrimination in the recruitment process. This could be worrisome considering the fact that diverse companies tend to perform better financially than their less diverse counterparts.

A common factor that stymies diversity in the hiring process is the strong focus on candidate referrals. Hiring managers tend to rely on employee referrals and perceive them as a critical source of talent. However, they don’t realize the exorbitant price they would have to pay for it.

Essentially, it comes out in the form of affinity bias. In other words, employees are more like to refer candidates who share similar beliefs and backgrounds. This ultimately reduces the diversity of the workforce. AI, along with predictive analytics in talent acquisition, eliminate basic bias that engenders from social categorizations humans unwittingly establish throughout their lives.

Hiring professionals can use recruitment analytics to disregard an applicant’s gender, age, socioeconomic background and race when assessing profiles. This will ensure a fair screening of candidates and will build a diverse workforce. And do you know the upshot of using predictive analytics in recruitment?

• Enable Audience Targeting

Talent teams are always hunting for the purple squirrels. Fortunately, with the incorporation of AI and predictive analytics in recruitment process, it has become much easier. AI-driven predictive analytics can boost your strategic sourcing initiatives by supplying you with real-time information.

You can use them to display targeted ads to the right candidate audience. On the flip side, failing to review the origin of that candidate connection can prevent you from reaching the best candidates. Recruiters may be provided with information such as how many candidates fall off in the process and at which point, which job sites perform the best, so on and so forth.

Thus, employers can make data-driven decisions and run more targeted ads that yield better results. The stronger the data set, the better you will be able to focus on the highest-yield channels that will produce big candidate results. Unluckily, most hiring teams rarely leverage recruitment technology. Rather, they make educated guesses on things like how, when and where to put the word out about their job vacancies.

This is where HR analytics come to the rescue. With AI-powered predictive analytics in recruitment, employers can unearth a candidate goldmine as well as find exceptional future employees without having to do the guesswork.

Wrapping Up

Although predictive analytics can help hiring managers spot the best applicants, it is important for companies to first gauge the effectiveness of a predictive analytics tool against their own unique business needs. That being said, similar to any other tool, predictive analytics can only deliver a solution if one knows about the issue that needs to be resolved.

With its ability to recognize historical patterns in data, predictive analysis can offer recruiters with valuable insights on likely future occurrences. While it is no crystal ball, predictive analytics help decision makers zero in on the trends, guiding them to modify their actions for better results.

Play Our Award-Winning Game Demo

Looking to take your candidate experience to the next-level? Play the free demo of our new recruitment game.

Contactless Hiring: The New Normal in Talent Acquisition

The war for talent in 2020 was expected to be more competitive than ever, with many industries and sectors forecasting a year of ambitious hiring and tremendous growth. There never was a propitious time for recruiters to prepare themselves for the increasing role of technology and automation, and especially AI, in making hiring faster and efficient.

While COVID-19 has changed the face of everything including hiring, technology has come yet again to save the day.

Despite the dark economic clouds, many companies are still hiring and gearing up for growth while working from home. If this is the new normal, businesses cannot afford to pause their hiring operations.

A great number of companies are finding ways to move forward and catch up with their competitors. Many employers are wondering if they can make hiring contactless without affecting the quality of their hires? The answer is yes!

Let’s see what contactless hiring looks likes and what talent acquisition managers need to do in this new normal:

• Attract candidates via social media and maintain a positive experience

To many employers, managing their candidate experience may not seem like a top priority at this time when a great number of companies have slowed down or frozen their hiring altogether.

However, how you treat candidates now will profoundly impact your employer brand down the road — and it definitely could make it more difficult to attract candidates when you decide to resume hiring later.

According to a LinkedIn survey, about 46% of hiring professionals said the pandemic has negatively affected the candidate experience at their company. Whether you are putting your recruitment on ice or crafting a totally remote candidate experience, it’s important to keep candidates updated in such a rapidly changing situation.

So, they know what to expect with the new socially distant contactless hiring and on-boarding process. Keep them in the loop using social media campaigns so you have candidates in your talent pipeline.

• Test candidates on multiple facets using gamified assessments

Recruiters can adopt a contactless hiring model in this era and recruit candidates virtually using AI-powered gamified assessments. A well-designed gamified assessment platform can equip recruiters with the data they need to hire top-tier talent as well as provide a fun experience to the job seekers — all while maintaining social distance.

Here’s what an ideal gamified assessment may be a combination of:

  • Aptitude Assessments – to gauge one’s innate aptitudes and abilities.
  • Psychometric Assessments – to assess attitude, values, behavioral preferences and the kind of the work environment a candidate prefers to work in.
  • Situational Competency Based Assessments – to evaluate how a candidate responds to situations encountered in the workplace.
  • Cognitive Ability Games – to measures a person’s cognitive traits, including focus, judgment, decision-making ability, memory and problem-solving skills.

Gamified assessment is a magic mirror that invariably helps talent acquisition mangers spot the most talented candidates. It also improves the odds that the unfit individuals are screened out before the interview stage. Not only does this improve hiring outcomes, it also saves an interviewer’s valuable time — something that recruiters will undoubtedly appreciate!

• Replace in-person interviews with video interviews

The global pandemic ushered in an era of contactless hiring and transformed in-person interviews to virtual ones. Interviews have long been a vital part of the hiring process.

They are, in fact, often the point where a decision on the best candidate truly takes shape and where candidates realize whether a company really clicks for them.

Research from Brandon Hall Group reveals that 90% of employers consider interviewing critical to success. Video interviewing allows hiring teams to use digital technology to pick out the most talented candidates and prevent bad hires.

While most companies use video conferencing tools, large enterprises use purpose-built technologies to improve recruiter efficiency, gain hiring speed and engage candidates faster.

Regardless of the video interviewing tool you use, it’s important to encourage your recruiters to be as empathetic as possible. Your candidate may not be familiar to the videoconferencing platform and may thus be flustered.

A switch to video interviewing will not only help your company continue to fill up important roles, it will also work as a test of long-term viability of remote interviewing for your organization.

• Make a virtual job offer

With a new and improved contactless hiring process in place, you have discovered the ideal candidate. Well, it’s time to make the offer to the lucky person and organize welcome drinks. If only it was that easy!

Finding the perfect candidate is a wonderful feeling, but the candidate needs to actually accept your offer as well. Earlier, this used to be a manual and tedious process involving repeated visits to the office and getting the candidate to sign the document after haggling over it.

Now, finalizing a hire is much easier with a contactless recruiting model, which can be operated by leveraging technology. Thus, making an offer, issuing a contract, and responding to queries with a breeze. And all this can be done from home!

• Effectively onboard a new hire from home

While onboarding is an exciting event for a new hire, it is a crucial one for your company. The successful integration of the hire into the team will boost productivity and retention. So, convert your onboarding program into virtual experiences to hire effectively amid these uncertain times.

Stepping in the Right Direction with Contactless Hiring

As the coronavirus impacts the way we work, recruiters and talent acquisition managers also adapt to today’s rapidly changing environment on the fly. Hiring teams are quickly leveraging new-age tools to find, interview, evaluate and hire candidates in the virtual world. At the same time, they are recognizing the benefits of virtual recruiting for both the teams and the applicants while ensuring the health and safety of all.

Technology-driven virtual hiring tools are playing an integral role in minimizing business disruption in this age of contactless hiring. Not only are they accelerating the hiring process but also improving the candidate experience.

Organizations that embrace the new normal in talent acquisition will stay ahead of the curve and alleviate the impact of the outbreak, keeping their companies running smoothly now, and over the long term when COVID-19 subsides.