We have finally made it to part four – the final blog in the series of the industry trends to look out for this year. Here we count down to number one. In our previous blogs we have looked and discussed the following trends:
Trend No. 12 — Anonymous resume screening and blind interviewing
Trend No. 11 — A significant shift toward selling, and away from finding talent
Trend No. 10 — Video becomes prominent in all recruiting messaging
Trend No. 9 — Improve the selling capability of your job descriptions
Trend No. 8 — A focus on recruiting innovators
Trend No. 7 — Take a forward-looking approach to recruiting
Trend No. 6 – Calculate costs resulting from a bad candidate experience
Trend No. 5 – All communications must be deliverable on the mobile platform
Trend No. 4 –Increase speed of hire in order to increase new hire quality
So let’s begin…
Trend No. 3 — Use quality of hire data to identify “what works” and to help quantify your business impacts
You can achieve this by measuring the new hires performance and put them into groups. This will help you to distinguish what factors work best and accurately determine which of the selection criteria that you’re using can predict on-the-job success. In turn by doing so will help you determine which sources produce great hires. By knowing the best and the worst-performing new hires you can modify your recruiting process accordingly. By quantifying the percentage that new hires perform more than the average, you can quantify the business impact of recruiting.
Best practices that allow you to take advantage of quality of hire data
- Work with the CFO staff to add credibility to your data.
- Using your new found analytical data identify the sources, selection criteria, recruiters etc. that have the highest predictive value in identifying new hires who will perform better than others.
- Measure the percentage of improvement in output of your new hires who work in already quantified jobs like sales, customer service etc. This will help you to put a monitory value against them.
- Calculate the percentage of your hires that are low performance and use this to estimate the cost of one.
- Calculate the loss to the business for each high-quality “missed hire” who applied, but that you never landed.
Trend No. 2 – Referrals will become 50% of all hiring
The top companies are now getting 50% of new hirers from employee referrals so there is no time like the present to put the time and effort into your referral scheme. Referral schemes routinely produce the highest quality hires, the highest volume hires, hires with the highest retention rate, and if done in the right way, referrals can be among the fastest and cheapest ways to get talent through the door. The schemes do require your time to manage and to maintain them.
Best practices that will improve the effectiveness of your referral program
- Rather than focusing on the money, motivate your employees to put the company first and “hire for the team.”
- Teach your employees on how to make good connections and find referrals with your help and support to identify the right people.
- You must be quick at responding to referral inquiries in order to maintain interest in the scheme.
- Give constructive feedback to your employees on their referrals so they know what to look for.
- The best single way to improve referral quality is to ensure your employees know about the skills of the individual and that your company’s business is clearly explained so that an interview acceptance is guaranteed.
And finally for trend number one…
Trend No. 1 — Shifting to data-based decision-making in recruiting
Data is easy to collect, yet difficult to manage. Data-based decision-making improves decision quality and speed, it has already been adapted by every other business function, except HR. Dr John Sullivan explains that “I estimate that compared to the normal intuitive decision, data-based decisions can be at least 25 percent better. Google is leading the way by declaring that “All people decisions are based on data & analytics.” And “We want to bring the same level of rigor to people-decisions that we do to engineering decisions.”
Best practices of a data-based decision model
- Data will help you to distinguish which sources produce high quality applicants and hires.
- Data will reveal which types of interviews and interview questions can help identify the future top performers.
- Data can also show your new hire failure rate (which can average 46 percent).
- Data can reveal which recruiters and hiring managers routinely work with the high performers.
- Data will reveal which single factor has the highest impact on hiring success (i.e. the relationship with the hiring manager).
Final Thoughts on the 12 recruitment trends for 2016…
It’s easy to read about the latest trends, but many will fail to implement them into their day to day practices. This in turn will give your competitors the edge if they are actively pursuing new trends and adopting these into their recruitment processes. There’s no time like the present to assess your current data and get started with making the year 2016 better than ever.