Top 5 Benefits of a Data-Driven Recruitment Strategy

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Data-driven recruiting uses tangible statistics and facts to aid recruiters in hiring decisions. The hiring decisions make a vital part of recruitment processes for any organisation. The companies which follow a data-driven recruitment strategy, make the hiring process cost-effective, easier and more efficient.

With the traditional recruitment approach, which has mainly been based on guesswork, nearly 75% of all hires turned out to be a bad hire.

However, now there are a lot of ways in which data-driven approach for hiring could benefit the entire process. Let’s take a look at some of the key benefits below:

Focuses on finding best match candidate based on available data

Recruiting the right match for an open job position depends on multiple factors. You need to analyse the skill set of the candidate, their experience, their educational backgrounds, etc.

Apart from the above data, data-driven hiring approach help you work on the data like candidates’ scores, the degrees, and relevant exposure. How they perform on the screening tests, assist a lot in determining how well they match the required position.

Furthermore, there are various tools available that help you compare and analyse the salary offered by you as compared to the market rate. You need to offer competitive salaries to ensure that the candidates stay with the organisation for a longer period.

Improve the overall quality of the hire

Data-driven recruitment helps you track the new candidate’s proficiency throughout the employee life cycle. You can analyse the various aspects to modify your hiring process for better results quickly. Some of the points to consider are:

1) Qualified applicants per requisition show the impact of your sourcing methods and bringing good employees on-board

2) How many employees are resigning or leaving the organization within three months of joining?

3) How is the new hire performing based on the lead source?

Once you have the data, then you can figure out the effectiveness of your hiring process and can tweak your recruitment strategy.

Decisions based on intangible data points rather than instinct

Decisions based on gut feeling and intuition may not always be the best and most appropriate. There may be instances where the recruiters depend on a candidate’s personality and overall impact; however, first impressions do not guarantee a good performer.

Thus it is essential to take decisions based on a strong resume and recruitment software or tools that enable correct data and statistics, allowing the recruiters to make insightful decisions.

Decreases time to hire and cost per hire

Data-driven recruitment strategies make hiring easy and accurate. The substantial cut in time and research needed eventually decreases the cost invested in hiring each candidate.

Further, online application and pre-screening candidates based on the details submitted by them and data available on the various tools can help you cut costs and time. Through this, you can easily rate the different hires and also eliminate the ones which do not fit in the requirements.

This also helps you cut the time spent on scheduling interviews, screening, and communication.

Budgets derived based on market data

It is always a complicated task to forecast the amount of money the organizations may need to spend on recruitment of new employees. Data-driven recruiting technique aid you in predicting this using

1) Turnover rate

2) Movements within departments

These points help you understand the pattern of the hires and how successfully the recruitment process you currently adopt is working.

With the data available, you can estimate the hiring time. The overall hire time and cost of recruitment are significant. The project completion and progress ultimately depend on the new person coming on board and staying for the assumed duration. Recruiters can estimate the costs and forecast budgets based on the data available. The historical data, market trends and current situations help the recruiters make better decisions.


Most organizations are now adopting data-driven recruitment strategies over traditional recruiting to create faster, better, and more prudent hiring plans. Workforce intelligence helps combine HR analytics with workforce planning to develop a format that allows improving the business impact of the recruiting processes.

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