In recruitment you spend thousands of dollars in financial and physical resources to make a hire, but where is all the data you acquired to make the decision?
- Is it left in the draw?
- Forgotten in a sharepoint folder?
- On you old computer-drive?
- Or maybe at the external recruiter’s office?
Being in the business of recruitment for several years now, I’ve realized that many companies spend thousands of dollars on acquiring data and information about previous work experience, personality characteristics, motivation etc., helping them making the decision on a hire. However, once the decision is made, they never use that data again.
The feedback loop
Not systematically using the initial data that led to hiring a candidate in light of future performance data (e.g. half a year into the employment) is a fundamental mistake.
“The noblest pleasure is the joy of understanding” – Leonardo Da Vinci.
A feedback loop from signal to performance has to be established, otherwise the process of learning and understanding why we made particular a hire does not occur.
As humans, our brains are wired to associate experiences with signals; i.e. we put our hands on fire, we get burned, and we learn that fire hurts.
However, in hiring where results are separated in time from the signal(s) that led to the hire in the first place, our intuition is not solely sufficient.
Don’t worry, you are not behind – but it is about time to start
Bill James, the factory watchman turned baseball historian and statistician, once observed, “There will always be people who are ahead of the curve, and people who are behind the curve. But knowledge moves the curve.”
Looking back on hires I have made, I can in most situations say: “Yes” to all the above questions. Frankly, there has not been much out there to help us systematically correlate the signal with future performance (…..)
But now you can change that – and it doesn’t have to be a BIG project. You just have to make the decision on getting started by acquiring structured data provided in the recruitment process.
Over the past decade, big data analytics has been revolutionizing the way many companies do business:
- Chief marketing officers track detailed shopping patterns and preferences to predict and inform consumer behavior.
- Chief financial officers use real-time, forward-looking, integrated analytics to better understand different business lines.
- And now, chief human-resources officers are starting to deploy predictive talent models that can more effectively—and more rapidly—identify, recruit, develop, and retain the right people.
Mapping HR data helps you identify current pain points in wrong hires – and it can help you prioritize future investments in recruitment tools to make the right hires.
Want to know how you can become the best recruiter?
It is about predicting the successful employees, and that is what we are specializing in at Praice. It is of course free to hear how – just reach out to Andreas D. Christiansen and if you are interested. [email protected].