According to Career Builder, a bad hire can cost a company $15,000 on average, and nearly three-quarters of employers have mis-hired. So, what’s clear about hiring is that it can be expensive if done wrong. There’s also the challenge of finding the perfect candidate for a vacancy, which can take months, and if you make the wrong hire you can expect to waste a lot of time.
What if there were a way to hire the best candidate attract talent that will work best with your team?
Enter predictive hiring.
What is predictive hiring and predictive analytics in recruitment?
If you’ve not heard of predictive hiring, it consists of using statistics, information, and data to decide the ideal moment to make a hire. It also includes using data to make better hires for your organization.
Predictive hiring and predictive analytics in recruitment enables recruiters to make educated predictions related to a candidate’s potential performance. Instead of using hunches and relying on what you suspect a candidate is capable of, predictive hiring is the best way to estimate what a candidate will achieve if employed with your company. Achieving this is possible by using analytics to understand the data.
How does predictive hiring work?
To capitalise on predictive hiring, here’s how it works.
What you’ll first need to do is gather performance data on your candidates and existing employees. This might be achieved by issuing assessments, asking your candidates to complete the tests, and then collecting the data. Some assessments might include cognitive or intelligence assessments, which are a reliable and valid predictor of job success. You might also administer a hard skills test to get data on their job-related skills.
Once you’ve gathered the data, you will then need to use it. This will involve using analytics to investigate your existing employees’ data and then using it to estimate how your candidates are likely to fit in with your organization.
This process also involves using predictive algorithms as part of the hiring process. This is where software can help to narrow down a candidate list. It helps you predict how well a candidate will fit into your organization,
How is predictive hiring changing recruitment?
The face of recruitment is being changed by predictive hiring. Companies that use predictive analytics in recruitment will have moved from making hiring decisions based on extensive resume screening to a more reliable approach for recruitment.
Companies are no longer spending hours sifting through candidate data. They are basing their decisions on facts and real data that is relevant. For this reason, the hiring process is often much faster than before.
Benefits of using predictive hiring
Which leads us nicely onto our next point – what are the benefits of using predictive hiring? In a nutshell, there a few key advantages.
Predictive hiring helps you hire top talent
Without a doubt, predictive hiring is ideal for hiring top talent that are the best fit for your company. We mentioned that predictive recruitment involves using predictive algorithms as part of the hiring process. These algorithms will predict who is most likely to be productive within your team.
Predictive hiring therefore increases the chances that you will make the right hire at the right time for your company.
It reduces your time to hire significantly
If your goal is to cut down your time to hire, you will need predictive hiring. It does this by homing in on the specific points that contribute to an employee’s productivity. This will ensure you keep time to hire low and avoid accruing higher recruitment costs.
It ensures you don’t mis-hire
With the help of predictive hiring, you will avoid hiring a candidate based purely on a subjective viewpoint of that candidate. Even though you might not realise it, a hiring decision can be based on biases, but bias can be removed with the right data – which is where predictive hiring can help.
Issues of using predictive hiring
But, keep an eye out for some of these issues if you want to use predictive hiring in your recruitment process:
- Some recruiters find predictive data analytics difficult to use in the recruitment process. 83% of 924 companies surveyed have low people-analytics capabilities. These companies will inevitably find it challenging to leverage the benefits of predictive hiring and might even require additional training for this
- There’s also a potential issue with using algorithms and machine intelligence to predict a potential employee’s performance – it lacks a human perspective that could help to inform the hiring process more. For this reason, interviews are also important during recruitment
Make the most of predictive hiring to hire exceptional talent
Predictive hiring is the next step for organizations around the globe. It is making a huge difference to how HR personnel are making hiring decisions. Faster. Less biased. More efficient. Predictive hiring is just what you will need if you are searching for the best employees.