HR Technology has finally come of age and it is changing at a faster rate than ever. Cloud-based HR software are growing in number and more new companies than are developing AI-based tools to change the entire talent management landscape. Also, bigger multinationals like IBM, Salesforce, Google and Facebook are entering the space, which indicates that HR Technology is not a fringe phenomenon but is a mainstream trend.
HR analytics allows HR professionals to monitor and analyze process and people performance, and identify the bottlenecks. With HR departments creating huge piles of data every single day, HR Analytics can be highly empowering, provided there is a clear process in place to implement it in the organization. Here we discuss few easy ways of implementing HR Analytics.
Business leaders now expect HR departments to provide strategic inputs to steer the organization towards the path of better growth and development. HR teams, in turn, are hoping analytics will provide them the necessary clarity and direction and considering the benefits that HR analytics has, the hopes are not unfounded. However, many organizations are yet to realize the complete potential of HR analytics owing to its messy adoption. Here we tell you about the steps to improve HR analytics implementation in your organization:
- Define the HR analytics process for successful HR analytics adoption
- Plan a HR analytics framework to easily implement HR analytics
- Experiment with different HR Analytics tools while implementing HR Analytics
- Hire skilled professionals for better HR analytics Implementation
Define the HR analytics process for successful HR analytics adoption
One of the basic requirements for applying HR analytics successfully in your organization is to research and define a process that is relevant to the goals of your business. You must look at the direction where the business wants itself to pivot and the KPIs that should be measured to reach that objective. Based on this conclusion you must define a HR analytics process that creates strategic value for the organization. The defined HR analytics process should not only be able to analyze the past performance but also be capable of predicting the efficiency and efficacy of HR activities and their impact on overall organizational performance.
Plan a HR analytics framework to easily implement HR analytics
Once you have a clear definition of the HR analytics process it’s easy to create a HR analytics framework that would drive the implementation. One of the commonly known frameworks used in HR analytics is the LAMP framework. LAMP stands for Logic, analytics, measures and process. These are vital components of a measurement system that drives strategic change in the organization. HR analytics often provides organizations with insights that supersede the ability of existing processes to use them properly. With LAMP framework in place, HRs have the opportunity to enhance their decision making and act as driver in strategic change.
Experiment with different HR Analytics tools while implementing HR Analytics
Today, HR analytics is a mature market with more and more tools available for all kinds of users. These tools combine data mining and analysis, visual statistics, artificial intelligence and machine learning to provide watertight control over the data generated and extract its maximum value. These tools feature user-friendly intuitive interface that is easy to explore by an HR professional with minimum technical assistance. It is useful to become acquainted with a couple of such HR analytics tools before settling for the best combination that works for your organization’s HR process.
Hire skilled professionals for better HR analytics Implementation
Analytics is certainly not everyone’s cup of tea. There are numbers everywhere and huge loads of data always ready to be explored and analyzed. Lack of analytical skills is one of the major hurdles that organizations face while implementing HR analytics, however, HRs are not be blamed for this gap. Most of the time HRs were not trained well for technical roles, which is changing with the increasing dominance of data in every field. Nevertheless, for successful HR analytics adoption there are some prerequisite skills that HR professionals must have:
- Strong logical and analytical acumen
- Good IT skills
- A solid understanding of HR processes and metrics
- Curious and inquisitive minds to chase factual answers
To make better use of HR data, organizations must meet the above described criterion and continuously invest to improve their technical capabilities. HR analytics is all about building a narrative out of data and a specialized HR analytics tool will serve this very purpose.
The advent of technology and changing demographics are forcing significant differences in the way organizations hired and managed their talent in the past. CHROs, recruiters and every HR practitioner must adapt to these changes and bring a new order to talent management. They must give due importance to the changing times and keep an eye on the best practices to implement them in their organizations. This is the only way to build an HR policy that is disruptive and meets the demand of the future. Let us examine what has changed and will change for the HR in the coming future. Here are the disruptive HR practices for 2018.
- Man-Machine Collaboration is a disruption in HR
- HR emerging as a value based role is a disruptive innovation in HR
- Continuous performance assessment in HR is a disruptive HR practice
- People Analytics Tools are HR technology disruptions for 2018
Man-Machine Collaboration is a disruption in HR
Harvard Business Review predicts that as much as 80% of the employee turnover is due to bad hiring decision. In the same context, another report by Business Insider reveals gut hiring has 50% failure rate. The writing on the wall is clear. Relying on human gut for making hiring decisions instead of analytics data can prove expensive to an organization. It is no longer man versus machines and those who still believe in this are missing the bigger picture. In fact, the future is about man with machines and how machines can enable better decision making.
Humans are prone to unconscious bias, boredom, exhaustion and many other behavioral tendencies which may alter the final decision. On the other hand, machines have no such pre-conceived notion, can do the same task tirelessly and with greater accuracy. Using machine learning algorithms can help make better assessments as they employ a strictly scientific approach based on previous trends and data. To ensure a successful outcome, recruiters should leverage the power of these algorithms to narrow down on their choices and use human intelligence to make the final decision. Since the existing HR practices are neither scientific nor based on evidence, we are bound to see a growth in man machine collaboration in the future. Growing competition for top class talent is going to make sure that HR professionals resort to integrated approach, where Artificial Intelligence and Big Data are as important as human gut. Machine will help automate repetitive tasks of HR and give them bandwidth to invest time in strategic decision making.
(Also Read: Need for HR Digitization)
HR emerging as a value based role is a disruptive innovation in HR
The annual C-Suite Challenge survey asks CEOs across the globe to identify significant business challenges in front of them. This could be a little surprising to know, but the most critical concern of CEOs in 2018 is the ability or inability to attract and retain talent. What does this mean for HRs? They have got a great responsibility on their heads. This also reflects the growing importance of HR, from an activity based role (hiring, training, payroll) to a value based role, where we focus on the value these activities create for the business. This challenge is an opportunity in disguise for human resource professionals to rise above their current role. This is a chance to evolve and become a strategic business partner. To do so, the HR needs to think as a business – identify the customers, define value proposition, measure results and build a data-backed business case while asking for investments/budget allocations. This is not all. HR’s strength is its human element and as a people’s manager, HRs need the human touch to induce loyalty, employee engagement and a genuine work culture.
(Also Read: How to Improve Your Human Resources Department?)
Continuous performance assessment in HR is a disruptive HR practice
There has been significant buzz around performance management in the last few years. A survey of 300 HR leaders revealed 21% have already moved away from rating system in their performance management. Changing needs of work environment have necessitated this reaction from companies to ensure better talent development, less costly performance management and improved retention rates.
Organizations don’t need to do away with ratings altogether but this trend shows clearly that continuous performance assessment is very much possible and can have a transforming effect on your organization. According to Josh Bersin’s Deloitte HR Tech Disruptions report, more than 70% of companies are reinventing the performance management process in their organization. The new process includes having a regular employee-manager interaction, employee activity tracking, productive feedback and learning opportunities.
These changes in process are being acknowledged by HCM vendors who are shaping up their products to address the new concerns, although we are still far away from a complete solution to implement continuous performance management.
People Analytics Tools are HR technology disruptions for 2018
The last few years have seen an enormous flux of people analytics in HR processes. Organizations now resort to analytics and reporting tools to study their employee behaviour and improve metrics such as retention rate. Some tools have embedded intelligence to predict the factors that trigger high performance outcomes from employees. There are other analytics tools with embedded recommendation engine that tells which employees should take which training in order to optimize them for maximum performance.
Recent advancements in software and technology that can make sense of large datasets and the explosion of data itself have made sure that organizations can now fully utilize the maximum potential of people analytics. HRs already have access to huge data piles about their employees such as their demographics, academic credentials, compensation and performance data. With people analytics coming to the fore, HR can effectively and strategically leverage this data and act on it.
(Also Read: Importance of HR Analytics)
HR is going digital and the recruiters are taking full advantage of the technology at hand for maximizing their productivity and effectiveness. The existing breed of recruitment technology is advanced enough to take on any challenge and hurdle arising in your hiring process. However, since every HR technology vendor out there claims to have the best recruitment software, you should be aware of different aspects that will help you in choosing the right recruitment software for your needs.
However, before we even go deeper into making selection of recruitment software, let’s look at its functioning, benefits and features.
How Recruitment Software Works?
Ideal recruitment software should be a one stop sourcing and hiring solution. It should be the one place and the only place that recruiters should have to go to either post a job, view the applications received for a job, find the best matching profiles for the job without having to go through each profile, schedule the candidate’s interview and come up with a subsequent offer. While it might seem too good to be true, there are recruitment software in the market, which currently not only offer the above explained functionalities but are backed by latest machine algorithms, artificial intelligence and a cloud based database. Such recruitment software use semantic search and Natural language processing to match the recruiter query with the resume content and return the best match for an open vacancy.
There are mainly six components to an enterprise level recruiting software:
- A Centralized job posting platform that is integrated with company careers website, different social media platforms like LinkedIn and other job boards so that the recruiter doesn’t have to post the same job separately.
- Talent Sourcing: A Cloud based CV Database which is used for sourcing CVs from candidates, vendors and from various social media channels like LinkedIn.
- Resume Parser: A CV Parser that analyses the CVs, identifies the various elements, extracts the data and classifies it in different sections such as Skills, Location, Experience, Salary and others.
- Applicant Management: A resume screener that quickly goes through thousands of CV and returns the best match for any required skill and experience
- Analytics: A reporting and analytics module that maintains the record of various recruiter activities and other statistics related to candidates, and hiring
- Post-Hire Management: Candidate onboarding, performance management and employee retention is handled by this module
Recruitment Software Benefits
There is not an iota of doubt in the immense advantages that recruitment software brings to the table. Here are the top 5 benefits that you can expect:
- Benefits of recruitment software in recruitment efficiency
- Benefits of recruitment management software in quality of hire
- Advantages of recruitment software in employer branding
- Recruiting software benefit in talent acquisition
Benefits of recruitment software in recruitment efficiency
Any technology, however small, invariably ends up improving the productivity and efficiency of the process where it is applied. Recruitment software, through automation, increases recruiting efficiency.
Benefits of recruitment management software in quality of hire
Companies using recruiting software are able to improve the quality of talent they hire. This is because, like humans, machines does not discriminate, is not biased, and does not suffer from any fatigue, hence performs no errors. Besides, the recruitment software generates data which can be analyzed intelligently to support the decision making power of recruiters.
Advantages of recruitment software in employer branding
We have always maintained that technology is one of the most important enabler of brand value as an employer. Top talent doesn’t remain available for hiring forever. If you want to attract the best talent towards your company you will need the help of technology to make your brand appear enticing enough. Recruiting software can help you do that by improving the candidate experience (through short response time and automatic mail notifications on selection or rejection, and simplifying the application process).
Recruiting software benefit in talent acquisition
With a recruitment software not only do you improve your day to day recruiting quality, but also have time for creating and executing a well-crafted talent acquisition strategy to improve your business leadership. The future of your company relies on how able are the shoulders that carry its weight. As a recruiter, or talent acquisition specialist it’s your primary responsibility to find such future leaders.
Recruitment Software Features
In order to extract maximum value out of your purchase of recruitment software, you should know what all features are important for you.
Here are some vital features that your recruitment software should have:
- Intelligent search and matching algorithm is a key feature of recruitment software
- Requisition & Interview management are main characteristics of recruitment software
- CV import from multiple sources is a key recruitment management system feature
- Recruitment solution should be Cloud based
- Job distribution should be a recruitment management system feature
- Key recruiting software feature is API integration
- Main component of recruitment software is Reporting & Analytics
- Recruitment management system should have Collaboration feature
- Key feature of recruitment software is Customization
- Main characteristic of recruitment software is Customer support
Intelligent search and matching algorithm is a key feature of recruitment software
A new age recruitment software should take the help of artificial intelligence and machine learning to devise algorithm that identify the best match from the database of CVs for a role.
(Also Read: Benefits of using Semantic Search in Recruiting)
Requisition & Interview management are main characteristics of recruitment software
The recruitment software should have a robust and extensive requisition management module that takes care of requirement creation at various levels and for different groups/departments. With an interview management module at place recruiters can schedule interviews, provide feedback, approve or reject a candidate and place an offer.
CV import from multiple sources is a key recruitment management system feature
In order to execute talent sourcing efficiently recruiter’s personalized CV database is essential. For the same, the recruitment software should provide options to upload CVs, import from social media channels like LinkedIn, bulk uploading, and importing in excel formats.
Recruitment solution should be Cloud based
Gone is the time of legacy Applicant Tracking Systems that took ages to deploy and required multiple resources for maintenance and updates. Now cloud based recruitment software have taken their place and how!
Job distribution should be a recruitment management system feature
A recruiter should be able to post his job on multiple job posting platforms and channels through a centralized interface in the recruitment software. The whole point of having a one stop recruiting solution is that the HR doesn’t have to waste time and efforts in posting same jobs on different channels separately.
Key recruiting software feature is API integration
Main component of recruitment software is Reporting & Analytics
How will you measure the success or failure of your recruiting campaign? How will you justify the Return on Investment of deploying the recruitment solution? How can you determine the productivity of your recruitment team? You need an extensive reporting and analytics section for all of these that can provide you with all the data you will ever need.
Recruitment management system should have Collaboration feature
Very rarely does a recruiter work solo. In most organizations, there are teams that handle recruitment of various departments like IT, Finance, Marketing, and these teams work together with Hiring managers, and department heads or managers. Your recruitment software should enable a seamless collaboration through timely communication with all stakeholders.
Key feature of recruitment software is Customization
What if you want a new feature added to the solution which is important specifically for your company? Does the vendor support personalization? Will the vendor be willing to customize or tweak a certain feature to suit your organizational goals and requirement?
Main characteristic of recruitment software is Customer support
Onboarding and customer support is like a sail in a wind boat which guides the boat into the wind or against the wind keeping it on the right course. Make sure to buy a solution that has the support of a well-trained and robust customer support.
(Also Read: How to Get Most Out of Recruitment Software?)
A recruiter’s role has evolved over the years. Earlier they were only responsible for filling up vacancies arising out of a new role or requirement, or an employee moving out. In the current context, a recruiter has a bigger role to play. Organizations now understand that their biggest asset is their workforce, which explains why there is an increasing emphasis on finding and attracting the best talent. This growing competition for talent is also a result of rising candidate awareness. High performance employees understand they are a valuable asset and therefore do comprehensive benefit analysis before committing to a particular organization.
Job search is no longer a once in a two year affair. In this smartphone age, jobseekers are constantly checking out new, better opportunities on the go or even while at work. Thus, your role as a recruiter, hiring manager or talent acquisition specialist has grown manifold. From filling up vacant positions to finding and hiring top talent, to retaining them, it’s a tough task at hand. Helping you out in your daily pursuit are the latest HRMS, comprehensive recruitment software, talent management systems and applicant tracking systems.
Collectively expressed as HR Technology, these tools have opened up new possibilities for recruiters that either remained hidden till now, or were ignored for lack of the requisite data and resources. The infusion of HR Technology has given way to data-driven recruiting and HR analytics. These methods work on data acquired through HR technology tools like Applicant Tracking Systems and Recruitment Management Systems. Learn more about HR analytics here:
- What is HR Analytics?
- Benefits of HR Analytics
- Challenges of HR Analytics
- How to Use HR Analytics?
- Disadvantages of HR Analytics
What is HR Analytics?
Analytics is based on data. HR analytics is the science of gathering, organizing and analyzing the data related to HR functions like recruitment, talent management, employee engagement, performance and retention to ensure better decision making in all these areas. By using various types of HR software and technology, HR departments are creating a large amount of data every day. However, the objective of HR analytics is to actually make sense of this data and turn it into a valuable insight.
Benefits of HR Analytics
Application of HR analytics results in a number of strategic and operational advantages to HR.
- Increased need for data and analytics tool in HR to make better HR decisions
- Better Quality of Hire is one of the HR data analytics benefits
- A vital benefit of HR metrics and analytics is Employee Retention
- Transformation of HR as a strategic partner is one of the benefits of Workforce analytics
- Business analytics in HR can help predict the hiring needs of an organization
Increased need for data and analytics tool in HR to make better HR decisions
An important role of HR analytics is to provide access to critical data and insights about the workforce which can be then analysed for making better decisions. Not only does it improve the HR performance but also provides a better understanding of what motivates employees to work productively, and how do the organizational culture affects employee performance.
(Also Read: How to Improve Your Human Resources Department?)
Better Quality of Hire is one of the HR data analytics benefits
Running machine learning algorithms on jobseeker’s data allows companies to identify the best matching talent for a vacant position, thus improving the quality of hire.
A vital benefit of HR metrics and analytics is Employee Retention
Similarly, using employee data, recruiters can recognize a pattern of high performing employees and accordingly modify their employee hiring and retention strategy. HR analytics helps identify the departments suffering from the maximum attrition and the reasons causing it. It can also help HR in identifying the activities which have the maximum impact on employee engagement and thus allow organizations to invest in such activities.
Transformation of HR as a strategic partner is one of the benefits of Workforce analytics
The application of HR analytics can provide a unique vantage point to HR department to validate its importance and its role as a strategic partner in a business’ performance. HR professionals can provide business leaders with verifiable data to back their talent hiring, retention and engagement policies.
(Also Read: How to Improve Talent Acquisition?)
Business analytics in HR can help predict the hiring needs of an organization
HR analytics can help predict the changes that may be in the organization’s future. Using HR analytics, one can predict the skills and positions which are needed to improve business performance.
With the manifestation of HR technology on a never before scale, we can assume there will be more focus areas adding to this list where HR analytics can play a role in ensuring better HR performance and improving business performance an a whole.
(Also Read: Big Data in HR: Why it’s here and What it means)
Challenges of HR Analytics
It is true that the various HR tools being used today churn out huge amount of data every day, but without the clarity of how that data can be useful for a particular decision making process, it is difficult to tap into the true power of HR analytics. Although there are many local challenges that a company might face while implementing a HR analytics strategy, the major challenges that HR analytics face globally boil down to:
- Multiple sources of data: With different HR tools catering to different functions of HR, there are too many sources of data working in isolation. Whether it is your HR information system, Applicant tracking system, learning management system or an employee referral software, every tool creates its own data and integrating it with the other sources is a major challenge. You could be surprised to know that data scientists spend 85% of their time just collecting and cleaning data, i.e separating the useful data from noise. Also, you cannot use the data from one source in isolation while making a strategic business decisions. Thus a major challenge is to integrate these silo systems and make them communicate with each other.
- Lack of Skills and Training: While it’s true that data scientists are at the forefront of this data & analytics revolution, Hiring managers and even CHROs have a preconceived notion that HR departments have little to no role to play in analyzing the data. Considering the technicalities involved, they hesitate to learn and implement these tools, supported by a mindset which is fearful of the learning curve. The HR managers would rather rely on their human intellect and understanding than going through training for a HR analytic tool. They often fall back on a faulty argument that machine intelligence will take out human from human resources, which is not at all true.
How to Use HR analytics?
Despite these challenges, organizations are committed towards utilizing the benefits of HR analytics and use it in the following ways:
- Long term planning and strategic decision making: Most top performing businesses use data not to make windfall gains but to forecast and plan for future. Using data to analyze the ROI of various programs and initiatives helps make better decisions for company’s future.
- Using automated tools: Using automation tools and automated processes not only reduce data errors due to human factors but also give time for more important strategic tasks. Evolving to these tools is one of the easy ways to utilize the real power of HR analytics.
- Building an analytics savvy HR team: It is good to have data but without a team which feels comfortable with data, one is still stuck with age old methods. Therefore, building a HR Tech savvy team of human resource professional, either by training or reskilling or new hiring, is going to be mandatory in future. Top performing organizations are already working towards enabling digital transformation in their human resources department.
Disadvantages of HR Analytics
While the advantages of HR Analytics are immense, there are also a couple of disadvantages to using it in the current scenario. Since HRs deal with huge amount of sensitive and confidential data, security and privacy are two main concerns. Any HR analytics system which handles this data must be designed to prevent any unauthorized access. There have to be multiple levels of access and the system must be constantly monitored for any data theft. Maintaining such a system will obviously lead to greater costs and that’s the second main disadvantage to implementing HR analytics. High acquisition and maintenance costs mostly act as a deterrent, especially for smaller companies to implement such a system. Also, operating a sophisticated HR analytics tool requires special expertise and that results in additional training costs, or the costs of hiring an IT expert to handle this system.
However, since HR analytics is still in development stage, HR are still awakening to its immense potential, there will soon be a time when using these tools will become far easier and cost effective.
While we can keep browsing through articles scattered all over the web that speak about the impact Artificial Intelligence is creating in HR, there are only few who delve into the practical problems being solved by use of Artificial Intelligence. Time has come when instead of talking about theory of the AI and its high-level impact, we look at its real world applications in context of the HR industry and the ways in which the recruitment can take full benefit of the resulting disruption. As a forward thinking, technologically inclined product vendor, we have listed some of the players which are doing outstanding work in this field. There are others also, but these have impressed us the most.
Here are the five practical applications of AI in hiring that make us understand the importance of artificial intelligence in hr:
Mya Chatbot aka Artificially Intelligent Recruiter
Formerly known as Firstjob, Mya systems have developed a recruiter chatbot, named, Mya. The bot uses artificial intelligence to communicate and interact with jobseekers. Mya was launched in July 2016 and it works on different levels such as sourcing CVs, screening them for the job and scheduling the interview. The application assistant relies on Natural Language Understanding to find meaningful information from the candidate’s response to a query and accordingly responds to it.
Mya also delivers regular updates automatically to the applicant about the status of his job application. The best part about Mya is that it can easily integrate with your existing ATS and career sites. The cloud based bot uses different mediums like Facebook messenger, Skype, SMS and Email to communicate with the applicant from within the ATS. Over the course of its existence, the chatbot has interacted with more than 2 million candidates growing its knowledge base intelligently with every interaction. The automation made possible by Mya enables recruiters to free up a large part of their bandwidth for doing actual HR tasks.
(Also Read: Chatbots In Recruitment: How Do They Help?)
Relink is a Copenhagen based startup that sells APIs for screening and matching candidates. These APIs use machine learning to identify different patterns in CVs and accordingly match them to a particular job. Having the experience of reading through more than 20 million CVs, Relink is one of the first players to provide a machine learning based platform for CV-Job matching.
The smart API can be integrated with the existing recruiting software to boost its search and matching capabilities. They have named the API as Marlowe which uses Artificial Intelligence to provide smart recommendations, do smart research and offer insights based on industry trends and skills. The purpose is to make it easier for the recruiters to find the right match, and save crucial time in the process by application of machine learning and big data.
(Also Read: Benefits of using Semantic Search in Recruiting)
If you are looking for an AI based tool that reduces bias in recruiting, HiringSolved has you covered. Its experimental tool RAI uses hundreds of data points to identify diverse candidates to help you reach the diversity goals. The tool uses a proprietary statistical model that was developed in house that allows users to boost search relevance through the platform’s ethnic and gender diversity models. The other function of RAI is similar to that of Mya, which is interacting with candidates just like any other human assistant.
RAI uses the same Natural Language Processing that Mya uses to understand the conversations and come up with a suitable response. The developers promote its context awareness as one of the big differentiators amongst its competitors. Other than RAI, Hiringsolved has developed an AI powered advanced “talent matching and search” technology called Talentfeed. Talentfeed analyzes billions of data points across the social web to come up with a pool of talent along with data of their skills, experience and more. The same technology can power your ATS, CRM and HRIS to enable AI based recruitment in your organization.
Do you need to improve your job listings? Textio will help you do precisely that and through Artificial Intelligence. It is an augmented writing platform which provides HR all the help they require for constructing effective high impact job postings. Powered by machine learning and Natural Language Processing, Textio smartly analyzes millions of job postings and recruiting outcomes to recognize the patterns that result in some posts getting greater success than others in terms of applies. The startup aims to solve diversity and talent sourcing problems by helping the recruiters write their best job post ever.
(Also Read: How to Improve Talent Sourcing in Your Organization?)
If video interviewing is one of your main recruiting activities then it’s worth taking a look at Hirevue, a recruiting startup based out of Jordan. The startup applies AI algorithms in the most innovative ways to select candidates through video interviews by analyzing their raw audio, facial expressions and many other data points. The Hirevue Video Intelligence platform aims to speed up the recruitment process by reducing reliance on CV and combining video interviews with predictive, reliable I-O science and artificial intelligence.
(Also Read: The Role of Artificial Intelligence in Recruitment)
If we are to go by what experts are predicting for the recruitment industry in 2018, improving employer brand is going to be one of the topmost tasks. This essentially means that as a recruiter you will have to, in addition to other activities, work hard on enhancing candidate experience. In this age of constant competition, you as a business can only grow when you have top talent working for you and it doesn’t take an expert to decipher that to attract the best, you need to provide them an experience they deserve. Technology can go a long way in helping you achieve this goal.
Here are 4 simple ways to use technology to create a good candidate experience in recruitment:
- Using technology to communicate is one of the best ways to improve candidate experience
- Using technology to improve employer branding is one of the candidate experience best practices
- Using technology to improve recruitment process is a great tip for improving candidate experience
- Using technology to reduce hiring timelines is a good idea to improve candidate experience
Using technology to communicate is one of the best ways to improve candidate experience
A research by Software Advice reveals that out of the many grievances that applicants had, communication or lack of communication was a major reason for a poor candidate experience. Over one third of the respondents to the survey said that they would prefer more communication in the entire hiring process.
Sometimes we can’t even blame the recruiters for this communication gap as there are so many stakeholders involved and considering hiring is such a time consuming process, it is actually quite a task to maintain track of 100s of candidates who have applied to a particular role. In a scenario where at any point in time there are at least 10 or more openings in a SME, we can only imagine the kind of efforts that are required for maintaining a lag free communication.
If you are interested in a particular candidate and you do not convey the results within the due time, he might find employment elsewhere. This is where technology comes into the picture. Recruitment software will allow you to generate automated emails that can be scheduled to be triggered on particular events such as success or failure to pass a particular stage of hiring. You can personalize these emails with your logo and company colors to reinforce the brand.
Using technology to improve employer branding is one of the candidate experience best practices
Creating a strong employer brand is essential if you want to communicate to prospective employees that your company is a desirable place to work. Giving insight into your work culture and ethics to jobseekers is actually helping them make a decision regarding their suitability for a role in your company. This assistance will create a positive candidate experience and help you grow your reputation as a recruiter. While the basic purpose of an applicant tracking system is to organize and track resumes, the software can be customized to increase brand awareness.
A recruiter can promote a more pleasant applicant experience by merely providing clear details of the benefits that come with the job and what’s it like to work for your business. Most ATS come with the capability to create and integrate the company career site. You can use this section to communicate company brand to candidates through “What’s it like to work here” videos and other details regarding the company’s vision and values. Most applicant tracking software vendors will assist you with personalizing the hiring process through use of company’s logo and company colors. This ensures uniformity and conveys a seamless application process, right from filling the application form to responding for interviews.
(Also Read: 5 Must Haves for a Company Careers Website)
Using technology to improve recruitment process is a great tip for improving candidate experience
The same research by Software Advice cites unclear application instruction as the top cause for negative candidate experience. For example if the job application instruction does not clearly indicate the eligibility for the role, it can create a lot of heartburn for the applicants. Using technology, recruiters can address this very basic hiring mistake. Applicant tracking systems allow recruiters to create and store templates of all the past job requisitions within the system, which can be used time and again without the need to create a requisition from scratch every time a new vacancy arises. This not only reduces the error rate but also reduces the workload for recruiters.
Plus, a candidate applying for the role through recruitment solution can complete the entire process without much effort by filling in the required fields and uploading the CV instantly. Once a jobseeker clicks on the Apply button, they can instantly fill the application form and upload their resume instantaneously. Not only does it reduce the work on a candidate’s part as he won’t have to manually email their CV but also improves recruiter’s productivity.
Using technology to reduce hiring timelines is a good idea to improve candidate experience
21% of the surveyed candidates said that improvement in hiring timelines can greatly impact the overall hiring process. There are no prizes in guessing the usefulness of applicant tracking software in improving speed of hiring. With every aspect of the hiring process automated and system controlled, there is a huge improvement in the time lost between getting approvals of the stakeholders involved which ultimately tells on the hiring speed. Plus, quick communication as we have already discussed, further reduces the total time taken to fill an open vacancy. This is just a classic win-win situation for all the parties involved, from candidate, who gets a better experience to the recruiter who improves his productivity and contributes positively to business bottom-line.
(Also Read: How to reduce hiring cycle time)
2018 is going to be a watershed year for HR and recruitment in particular. With most organizations already switching to cloud based HCM and HRMS, advanced and cutting edge technologies like Artificial Intelligence and Big Data Analytics will make a definitive impact on how regular business in HR is conducted. Multiple research papers and expert opinions all point towards a growing significant role technology will play in talent hiring and management.
Let’s watch out for these HR trends in 2018:
- Creating a positive candidate experience is one of the Top HR Trends for 2018
- Bridging the workforce diversity gap is a Human Resources Trend for 2018
- Working towards improving workforce productivity is an Emerging HR Trend for 2018
- Using big data analytics in human resources is a New HR Trend 2018
- Enhancing employee engagement is one of the Key HR Trends 2018
Creating a positive candidate experience is one of the Top HR Trends for 2018
The competition for talent is on the highest right now. If you want to hire the best, you need to provide the best possible candidate experience. While one way to attract top talent is to work on your employment brand, most are still unaware that without providing good candidate experience, you can easily ruin the employer brand also. Vague application instructions, broken communication, delayed response and incorrect job description are just few of the things that create a bad rep and perception in the candidate’s mind. A survey by Software Advice reveals that candidate’s topmost demand is to have a clear communication about certain aspects of hiring such as the timeline of the job vacancy, notification if the position is filled, timely replies after screening and interview and notification if not selected.
Bridging the workforce diversity gap is a Human Resources Trend for 2018
Recruiters are also human and thus suffer from behavioral prejudices. They have their personal bias deep rooted somewhere owing to a personal experience or surrounding environment. The new year is a perfect excuse to kick out these prejudices and resort to just and bias-free recruitment so as to create a more inclusive and diverse workplace. A diverse workforce brings rich experiences to the table, enhances productivity and increases the bottom-line. While you can add to the case of a diverse workforce largely by eliminating bias at different stages of hiring, there is more to creating a healthy diverse manpower which is inclusive of all strata of society, age and gender.
What can you do exactly? Fixing the job descriptions would be a good place to start. Most recruiters do not know and don’t even imagine that seemingly innocuous words they use to describe a particular position can influence the decision of certain candidates applying to that job. For example, words like “Ninja” are mostly associated with masculinity and female candidates or for that matter, an experienced “baby boomer” will definitely give it a second thought before applying to such a role. Improving your candidate screening standards will also help eliminate a great deal of bias.
Enrolling in a training program that helps you identify the unconscious patterns that promote bias will also help. Whether the prejudice is based on race, ethnicity, age, gender or some other criteria, it pays to review your choices at every stage. The new age recruitment solutions use smart AI and big data to match CVs as per their eligibility and quality and as long as the code is free of any inherent bias, can guarantee a fair match for a particular role. Using such recruitment software will also help bridge the diversity gap in workforce.
Working towards improving workforce productivity is an Emerging HR Trend for 2018
The modern workforce is mobile and tech-savvy which means they are increasingly dependent on their mobile smart devices to accomplish a task. Eventually e-mails are going to give way to real-time conversation based tools such as Slack, Workplace by Facebook and others. Intelligent chatbots are also a move in the same direction. These workplace tools are more like social networking channels where employees can post status, use a display picture, create groups and start a conversation without leaving the mobile ecosystem. Not only this creates better collaboration within teams and across different functional departments which eventually has a positive impact on productivity but it also results in a more connected and healthy work culture. In future, we can expect HR technology companies to come up with either an option to integrate these tools with their HRMS or with their own versions of instant messaging and collaboration tools so as to create a more cohesive experience.
(Also Read: Benefits of Using Bots for Recruiting)
Using big data analytics in human resources is a New HR Trend 2018
The time of Big Data in HR has finally arrived. While experts will argue about the use of the term Big Data in context of Human Capital Management, the truth that no one is doubtful about is the usefulness of data for HR professionals. From devising methods of boosting employee retention to creating better performance metrics for workforce, big data offers a range of opportunities for improvement. This is in addition to the predictive abilities that have been developed only with the help of data analysis of your most successful employees. Leveraging performance data to predict future success of your employees will essentially help you make better hiring decisions.
(Also Read: Role of Big Data Analytics in HR)
Enhancing employee engagement is one of the Key HR Trends 2018
Improving employee experience is going to be a big agenda for HRs in the coming year. The first step in this direction is HR technology vendors making their existing tools easier to use for employees. HR tech tools vendors have to put in firm thought towards improving the user experience, making the interface and functionality more intuitive and effortless. With HR tool vendors doing their bit, recruiters and hiring managers have to find ways to drive better employee engagement without creating too much noise. The challenge will be to come up with drivers that matter most and how to create the maximum impact.
(Also Read: Employee engagement ideas that work)
Artificial Intelligence (AI) is talk of the tech-town. Some hotshot CEOs are busy sparring over the positive and negative impacts of AI, and others are simply in awe of the immense impact that AI can have on the humankind and the life’s existence as we know it right now. While everyone debates over the good or adverse effects AI will have in future, one cannot deny its usefulness in the current times. Recruitment is one industry which can take solace in the fact that AI has to offer nothing but benefits only for improving various aspects of it.
Any technology which claims to be disruptive ought to impact a plethora of industries and not just those which are traditionally tech reliant or have a close relationship with it. This holds true for Big Data, Cloud and now, Artificial Intelligence. AI is being adopted widely as executives across the spectrum are planning to actively implement it in their organizations. A global survey of 203 executives reveals 75% of them will deploy AI actively in the next three years while 3% say this is already happening. In such circumstances, it is only natural for the recruitment industry to lap up AI with both hands and experience its benefits first hand.
Benefits of Artificial Intelligence in Recruitment
- Artificial intelligence based recruitment drives efficiency
- Recruitment through artificial intelligence increases candidate pool
- AI in recruitment improves gender diversity at workplace
- Using AI tools for recruitment helps improve candidate experience
Artificial intelligence based recruitment drives efficiency
Application of AI implies using machine learning’s pattern recognition methodology. By tracking all the input and output data after some time of repeated use, AI algorithms are capable of finding the most efficient methods of accomplishing tasks and that’s what it makes a much needed tool for recruitment. The data driven approach of artificial intelligence addresses recruitment weaknesses such as manual error due to fatigue or biased judgment, thereby, driving efficiency.
As per Deloitte’s 2017 Global Human Capital Trends survey findings, 81% of respondents put talent acquisition as the second most important challenge. Using technological advances like AI, one can incorporate smart algorithms that transform the process and allow recruiters to hire better talent without wasting much time and resources. Some recruitment management software come embedded with AI algorithms to automate HR processes like matching CVs, searching candidate information across the web, processing it and creating a complete profile. The HR can later analyze the profile and combine it with the CV to come up with candidates that are best suited for the open vacancy.
(Also Read: Hiring Trends In 2018 That You Can’t Ignore)
Recruitment through artificial intelligence increases candidate pool
There is no doubt that a machine-assisted search will reach to a greater pool of candidates than a human recruiter’s manual search. But AI takes this reach a step further. Artificial intelligence algorithm analyses the social media profiles and posts of candidates to help come up with a greater pool which might be suitable for the role. This doesn’t increase the work of the recruiter, as AI only selects those which are the nearest fit. In fact, it gives the HR a bigger set of options from which he can choose the best.
AI in recruitment improves gender diversity at workplace
Gender bias is one of the worst kept secrets of the corporate world. Technology, in addition to its primary role of ameliorating efficiency and boosting productivity is also working towards rooting out this major handicap. As per the author of The Future Workplace Experience: 10 Rules for Managing Disruption in Recruiting and Engaging Employees, the major cause of lack of diversity is the unconscious bias that recruiter practice unknowingly. AI as a third party tool can be of great importance in identifying such practices by recognizing patterns of bias. By identifying patterns of communication on sensitive data points such as gender and age, AI/machine learning can help close the blind spots. The market already has such tools. Glassbreakers, has a software that helps companies identify their diversity gaps. Textio is another company which has an AI-driven word processing tool that uses machine learning to help businesses analyze job posting for bias.
Using AI tools for recruitment helps improve candidate experience
The time from applying to a job to getting a call for an interview and then getting the feedback of the interview is of great anxiety and stress for the jobseeker. Those who get selected finally might forget the agony of the long wait in their euphoria, but those who are not able to make it in the end and still have to go through the excruciating pain of waiting will take a highly negative perception of the company and the business in their minds, which will travel to others through word of mouth. It is important for businesses to create a positive brand image in the mind of jobseekers in order to attract the best talent.
AI can help reduce the processing time and improve candidate experience by keeping them connected and engaged during this waiting period. This is where chatbots come into play. Mya is one very popular example. It is chatbot software that helps streamlines the entire recruiting process and claims to reduce the hiring time “by 75% by automating screening, sourcing and scheduling.” For a jobseeker, this is a bigger relief as his application can be reviewed within minutes for eligibility and he won’t have to wait for two weeks to hear from the recruiter for feedback. There are other AI-powered chatbots like JobBot, Yodas and Jobo that are either focused on improving candidate experience or optimizing recruitment processes.
Challenges of Artificial Intelligence in Recruitment
While the hunt is on to use AI powered tools in various ways to revolutionize recruitment as we know it currently, there are still some unsolved challenges that need to be addressed before handing out the judgment. Since these tools are also being created by humans, one has to be sure that they are free from any sort of inherent bias in their code or are not susceptible to human bias. In addition, as recruiters decide to rely more and more on AI, there will be some displacement in jobs, as in where jobs will be lost out to bots and other AI tools. However, AI won’t be able to replace human’s sensitivity, emotions and judgment of a character anytime soon, and therefore, recruiters have little to worry about. They will always remain an indispensable part of the hiring process.
HR circles are abuzz with the benefits and performance of cloud based HR software system. But merely talking about the latest HR tech will not do your organization any benefit. Until the management decides to invest capital in HR tech software and processes, all the conversation about HR tech is just paying lip service. However, it’s not easy to convince the CHROs, the CFOs and the CEOs to set aside dedicated financial resources for HR Tech. Read on to know how you can make a business case for the same.
Every time the financial leaders of the company decide about budget allocation, the HR department is hard pressed to make a compelling case for its demands. Most of the organizations are still embedded with legacy, premise based solutions for HCM and while benefits of replacing this system are pretty clear, the return on investment is not as well defined and can dissuade the CFO from giving a go ahead to any significant investment in new HR technology tools and solutions. The onus is now on you to provide relevant data and context so as to make a convincing business case for HR tech investment.
Here are some tips for building a business case for HR Technology:
- Show HR Tech benefits to convince your boss
- Justify HR Technology costs with ROI to convince management
- Show case studies to make a business case for HR Technology
Show HR Tech benefits to convince your boss
To create a buy-in among the executives who will sign on the purchase orders, you need to prove that the new solution will benefit the company as a whole. Everyone knows the key advantages of advanced HR software, but how those benefits will translate into overall business success needs to be presented in clear and data-backed visual format. This will only happen after you do due diligence, spend days performing comprehensive market research and vendor comparisons. Once you have the required data to support your claims, you can clearly show the improvement it brings in terms of quality, quantity, productivity and transparency in every HR process. From thereon, the task is to connect the dots for the decision makers to show the fulfillment of a common or multiple business objectives.
An example could be how using advanced analytics solutions can help increase the employee retention rates and improve efficiency. Now CEOs are always concerned about the availability of high skilled talent. If you are able to alleviate this concern through your solution, at least you will have one of the top leaders on your side.
(Also Read: The Importance of HR Analytics in an Organization)
In addition to the CEO; CFO, CTO and CHRO are perhaps the only other people on the panel who have an overarching view of the entire organization’s performance and vision. Your proposal should be able to create a common ground for all the executives where each has a clear idea of how the new solution will help accomplishing the shared business goals. (Also Read: Need for HR Digitization)
Justify HR Technology costs with ROI to convince management
CFOs are more concerned with the ROI aspect of the investment than anything else. Ideally, you should be able to explain how the technology will be able to recover its costs in due course of time.
To come up with the ROI, you will have to evaluate the following three aspects:
Calculating ROI of an HR Tech investment is a combination of the direct and indirect savings caused by the solution. The direct or quantifiable part of it relates to minimization of payroll errors, precise attendance record maintenance and reduction in time to process different operations. It is easy to put a monetary value against time as you can measure the number of hours saved in doing a task with the automation tools. The resources thus freed can be reallocated to spend more time on other areas of HR.
Indirect savings or unquantifiable ROI refers to other key attributes of the solution that empower the recruiter with the ability to identify best hiring sources and key performers of the organization. Greater employee retention if made possible through identifiable patterns in employee data analysis is also a saving which can increase bottom-line in the long run.
(Also Read: HR activities to improve employee engagement)
Show case studies to make a business case for HR Technology
When leaders are skeptical about your proposal, it is wise to come up with some case studies that provide credibility to the assertions you make. The HR solution providers might have something to show off which can come handy or make a case study of your own by studying the competition and proving how they are doing better than you. Case studies, if done right, are exceptionally powerful at expounding the product and its benefits and how it has solved problems in the past. They will help provide a value to your proposal.
NAUKRI RMS ADVANTAGE
ABOUT NAUKRI RMS
“Naukri RMS is the Enterprise Cloud Business division of Naukri.com. Since its inception, Naukri RMS has developed a bouquet of customized recruitment solutions addressing needs of different market segments. Naukri RMS intends to evolve recruitment into more productive and efficient process through automation of the entire recruiter workflow, right from requisition to offer. It aims to become India’s largest one stop recruitment platform. “