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Why HR Must Take Ownership of Data To Survive

Posted by Kate Smedley on 8 Aug 2017

The jobs market remains buoyant, emphasising the need to increase efficiency in hiring processes and improve retention levels but without taking responsibility for its data, achieving these goals will remain elusive and threaten HR's survival.

The Recruitment and Employment Confederation’s (REC) latest Report on Jobs revealed that permanent placements rose at their highest rate in over two years in July while the availability of temporary and permanent candidates dropped again. An increase was also reported in salaries for all new hires.  

This news comes as the CIPD reports that analytics and AI were named as two of the top three most disruptive issues facing HR during a panel debate at the University of Bath. The contingent workforce was the third. ‘Ownership of data’ was highlighted as a specific issue as the nature of the jobs market and the working environment are both relentlessly disrupted by technology. CIPD Chief Executive Peter Cheese also observed a ‘complacency’ surrounding technology.

Taking ownership of data

Without taking ownership of data it is impossible  to understand what is happening in your hiring process or improve falling retention levels among new hires. This is a particular problem in the UK as nearly half of all employers are failing to address the impact automation and AI will have on their business.

In order to avoid a complacent attitude towards recruitment data, adopt the following three steps:-

Align your recruitment planning with business objectives : Talent acquisition strategies should be aligned with the overall objectives of the business but nearly a third of hiring teams don’t have a strategic workforce plan according to a Korn Ferry report. Collaboration is essential to implement effective talent planning and must be supported by technology.

Use applicant tracking software : The first step towards effective use of data is the implementation of a modern recruitment management system yet nearly half of employers don’t use applicant tracking software in their recruitment strategy. Without it, gaining an accurate understanding of what is preventing your business from hiring talent is impossible. Vital recruitment metrics enable HR to evaluate and improve hiring success yet too many hiring teams lack this vital knowledge.  Evidence based decision making is critical to creating a talent acquisition strategy that works.

Acknowledge the mobile job search : Only just over a quarter (28%) of companies use mobile technology in recruitment yet the rise of mobile job search is one of the most prominent tech trends affecting talent acquisition. By integrating a mobile responsive hiring process your ability to hold on to the qualified candidates in your recruitment funnel will improve – it is a straightforward step available through your recruitment software.

Improving the effectiveness of HR

Additional issues complicate HR’s ability to take ownership of its data.  The effectiveness – or otherwise - of HR functions also affect this area. 

A new survey from ViewsHub found that HR departments in technology companies were rated as the least effective and notably below the industry average. Professional service companies and retail also recorded low rankings which were based on three key criteria, namely, the ability to get things done, their technical ability in their jobs and their responsiveness to other teams. HR functions in the travel and food sectors ranked highest in the survey. 

Again, a move towards data driven recruitment can improve the perception of HR across an organisation:-

Become more agile : An article in the Harvard Business Review, suggests that a lack of agility is holding back HR's ability to adapt to disruptions. It proposes that HR should operate in ways that respond to ongoing changes in culture and working style – which includes developing a tech-centric culture. This is evident in tired recruitment processes that bear no resemblance to the job search habits of today’s candidates and are based on assumptions that the labour market still favours employers. An agile HR function increases efficiency in hiring and ultimately productivity. Relinquishing your reliance on manual recruitment processes will enable that and improve the ‘effectiveness ranking’ of HR departments which are struggling to respond to the needs of their business. 

Use data to understand the jobs that make a difference : McKinsey suggests that 5% of jobs create 95% of the impact within an organisation. Those exact jobs are different for every company. HR analytics will help your business to identify your roles which fall into the 5% category and focus on sourcing the talent for those positions  - and improve the effectiveness of HR. Taking ownership of data and avoiding complacency around technology is key to this. 

Take ownership of your data. Invest in world class recruitment software used by some of the world’s leading organisations to manage their entire talent recruitment systems. Contact Advorto today.

You might also like to read:-

The Job Search Habits Affecting Your Talent Acquisition Success

Breaking The Cycle Of Bad Hiring Decisions

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Topics: Rants

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