Predictions are a part of every company strategy, predictions for the quarter, year, and the long-term future as well. While sales and revenue predictions have been happening for decades, even the recruitment sector is relying more on predictive hire.
The skill of recruiting has undergone massive changes with the advent of technology. Until then, recruitment relied on the instincts of the interviewer. The main criteria for judging a good fit was parsing through the experience section in the resume. With a high level of human involvement, the possibility of an erroneous judgment was also high. This is slowly changing with predictive analysis in recruitment.
It is no longer necessary to rely entirely on human judgment since technology has made things easier. As recruiting gets challenging, predictive hire has come to the rescue of both companies and hiring executives. The guessing game has now given way to more reliance on data-based decisions.
The two main drivers of predictive analysis in recruitment are Artificial Intelligence (AI) and Machine Learning (ML). With AI and ML companies can transform their recruiting strategies that are not just based on gut feeling but backed by data. This is crucial because, currently, only 21 percent of HR leaders think their companies are effective at using data to dictate business calls.
Why is Predictive Analytics Important?
Getting the best candidate is every recruiter’s goal. However, very often, they end up overlooking good candidates in their pursuit of ensuring they choose from a large talent pool. In the process, recruiters end up spending time on candidates who aren’t suitable for the role and lose out good talent.
This is where predictive analytics comes into the picture. JoinEight’s predictive tools help companies make better hiring decisions through our people-powered network. Not only does this allow recruiters access to talents actively hunting for new opportunities, but it can even help identify passive candidates and lure them with the right targeted messaging.
Instead of depending on human-led decisions, predictive hire uses technology to identify patterns from historical data and extract the benefits for companies.
If you are still wondering what is in it for you, here are three compelling reasons why predictive analytics in hiring is necessary for your company.
Reduced Talent Sourcing Costs
Skyrocketing talent sourcing costs is one of the many reasons why companies are unable to optimize their recruitment strategies. The end-to-end recruiting process includes scanning for candidates, finding the good ones, interviewing them, and repeating the cycle if some of them drop out of the process. Scouting for good talent from a large talent pool is not only time consuming but also heavy on the balance sheet.
If companies want to make the best use of their recruiting resources, predictive hire is what they should place their bets on. Using AI and ML, companies can keep an eye out for candidates who are likely to switch jobs in the future. JoinEight’s technology helps companies to keep their recruitment funnel flowing with a constant stream of best-fit candidates. Rather than start from scratch for every vacancy to fill, companies can undertake predictive analysis in recruitment.
For companies, this has more than one benefit. It provides them with a constantly flowing funnel, best-matching candidates, reduced recruiting time, and lower costs.
Talent Pool Accessibility
One of the biggest challenges that recruiters face is to sift through tons of resumes. Often, whenever recruiters need to source candidates, they turn to job portals or list a vacancy. However, here are some LinkedIn statistics that will make you rethink the way you approach recruitment:
- 70% of the workforce is passive
- The top way to discover a job is through a referral
- 10X talent pool through employees’ networks
Even though recruiters may be going through hundreds of resumes, a lot of them aren’t actively seeking a job. However, the very same passive candidates can hold your next hire. The only way recruiters can tap into these in by using the power of predictive hire using people-powered recruiting. JoinEight’s unique people-powered recruitment tool extracts the power of people’s connections that is then filtered using advanced AI and ML to providers recruiters with a steady flow of top-matching candidates at any point in time.
Remove Hiring Bias
One of the first things companies realize when they rely on the power of prediction is the improved efficiency of their hiring decisions. By optimizing talent acquisition, predictive analytics can bring down several biases that are present in the current hiring system.
Resume-based hiring is bound to see biases creep in. These can range from confirmation bias, affinity bias, beauty bias, intuition, judgment bias, etc. Using predictive tools can help eliminate some of these by harnessing the power of advanced AI and ML.
According to a study by the Boston Consultancy Group, diverse leadership can not only lead to better innovation but also improve a company’s bottom line. Since biases are inherent in each of us, predictive hire can help overcome these challenges and put companies on the fast track to success.
By implementing predictive analytics in recruitment, recruiters can fast forward their hiring process, cut down time spent on unnecessary activities while also getting connected to the best candidates suitable for the role and the company. Industry-leading companies have already made predictive analysis in recruitment the norm. Companies that take to this offering have witnessed improved recruitment processes and have even been able to bring out the best in their employees.