Business

4 Ways Workforce Data Can Streamline Your Company’s Hiring Process

All companies have different ways of hiring new talent. Others go the traditional route by posting job vacancies in newspapers, television, or agencies, while others use social media and online portals.

Both methods of hiring talent have their advantages and disadvantages:

The most prominent advantage of both ways is that the company will have more candidates to choose from based on the applied number.
The disadvantage of the traditional method is the regional limitation of the job posting. Companies might find a suitable candidate for the job, but they don’t live in the company’s location.
The disadvantage of the modern method is they might receive a suitable candidate, but the company’s priority is the local candidates. Another disadvantage is that the company may not offer a relocation allowance for the right candidate.

Companies use an Applicant Tracking System (ATS) to streamline hiring. But, will it be enough? What about workforce data? Although these companies are adopting the system, it’s still a challenge to find the right candidate for the job.

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What Is ATS?

ATS is designed to help recruiters screen the most qualified candidates through automation. Since companies receive a lot of applications from various candidates, ATS aims to reduce the time recruiters will have to do if done manually.

There are advantages to using ATS:

Companies using ATS will see improvements in time and cost since what would take weeks is accomplished in a couple of days.
ATS can be configured to adopt the latest industry benchmark and incorporate critical metrics to find the right candidate for the job.
ATS can enhance communication by providing feedback right away to candidates instead of leaving them hanging during the application process.

While there are advantages to using the ATS, it has its disadvantages as well:

ATS may misinterpret data due to a non-standard way of writing the resume.
ATS may have a hard time reading resumes in PDF format.
Candidates will try to impress recruiters and hiring managers by incorporating various graphics in their resumes. But, if the company is using ATS, there’s a high chance a candidate will be rejected.

ATS And Workforce Data

Despite the disadvantages of using ATS, 98.8% of Fortune 500 companies use an ATS system to streamline their hiring process since they attract a lot of applications from different candidates.

Although using an ATS can help hire better candidates, recruiters and managers might not see the bigger picture of their workforce’s needs. They may have the necessary skills for the job, but they’re not the suitable candidates the team needs.

Incorporating the use of workforce analytics and data can help recruiters and managers make informed decisions instead of relying on the ‘gut feeling.’ Workforce data is important because:

1. Data Is Factual

Workforce data comes from many sources, including employee feedback and performance review.

2. Human Resources Can Use The Data

The Human Resources (HR) team can also use the data to determine trends, see opportunities for employee development programs, risk management, and improve business goals.

HR can also use the data to fill new roles in the company. For example, the company is expanding a new department to do a specific task. HR can use the workforce data to see which employees they can pull from other departments.

3. Address Talent Shortages

HR can gain insights into why there are talent shortages and higher turnover. They can see what’s working and what’s not working for the company, thus being able to help the company in decision making.

Streamlining The Hiring Process

A study from Harvard Business Review shows that 80% of a company’s turnover attributes to bad hiring decisions, and 45% was due to a lack of process. 40-70% of American employees search for another job, while the business sector spends $72 billion annually on the recruitment process.

Streamlining the hiring process through workforce data and ATS is beneficial. Workforce data can determine the reason for high turnover and set retention goals. Other reasons for streamlining include:

1. Addressing The Workforce’s Needs

Recruiters gain more insights into what the company needs aside from the initial job qualifications they indicated when posting the job.

2. Improve The Quality Of Candidates

ATS can use workforce data to find and select better candidates for the job. Recruiters and managers can make informed decisions based on the workforce’s needs.

3. Increase Diversity

If a company promotes diversity, it can use workforce data to open opportunities to different sectors.

4. Improve Recruitment Performance

Companies will see improvement in their recruitment goals as important stakeholders are involved in decision-making.

Wrapping Up

ATS can only do so much in streamlining the hiring process. What might work in other industries might not work in another company. By streamlining the recruitment process using workforce data, companies reduce errors in hiring suitable candidates.