In theory, we know the importance of using data to make better strategic decisions. But of around 500 Swedish companies that were asked if their culture supports data-driven decision-making, only 15% stated that it does. This according to the 2019 research in the e-book The Data-Driven Mindset”.
I am a team member and founder of an HR tech start-up that makes it possible for companies to in an easy way work data-driven with the candidate experience, and measures the impact of projects/changes that are made.
Creating a positive candidate experience takes time and data that brings insights
Every day we work with helping our customers to go from collecting data to using data to gain insights and take actions. Many of our HR teams have never before worked data-driven with the candidate experience. They see the value of data but need guidance on how to get the whole team/organization on board to work with data-driven HR.
In companies with hundreds of people working with recruitment, it is, of course, a journey to implement new key metrics, new routines, and strategies that are built with insights through data. I hope that the 9 steps in this article can inspire you to work with creating a data-driven culture.
9 Steps To Get Data Insights to Make Strategic Decisions Within HR
- Show the Benefits of Becoming Data-Driven
- Create a Team Focused on Change
- Shape a Clear Vision and Strategy
- Communicate Your Vision and Goal
- Create Common Routines
- Use the Power of Example
- Always Give the Right Data to the Right People
- Share Lessons Learned
- Institutionalize Change
1. Show the Benefits of Becoming Data-Driven
The first and maybe most important step is to demonstrate how the company can use data for greater insights, and show how data can help you and your team to tackle issues by using data. By identifying the current situation it is also possible to show the impact of changes made in the future. This phase can be driven by leaders committed to finding ways to tackle issues with the help of data.
A great example is the Virgin media case, where they through digging into their own data found out that their bad candidate experience cost them 5 million annually. By finding out how many of the rejected candidates that were also their customers, Virgin media could track down that 6% of all canceled subscriptions came from unhappy candidates.
2. Create a Team Focused on Change
To create a team that focuses on the change you need to drive change by getting leaders committed to the vision and strategy needed to become a data-driven organization. A bigger organization can need leaders from each team/department that can realize the greatest benefits of a data-driven HR strategy.
A common challenge we see within HR and recruitment companies/teams that start to work data-driven is lack of experience and understanding of how to work data-driven. A great way to create a change team can be to invite leaders that are used to working data-driven, from marketing, sales or other parts of the organization that successfully work with data to make better decisions and implement new strategies.
3. Shape a Clear Vision and a Strategy
The “why?” is the heartbeat needed to bring life to a data-driven organization. Do not forget to shape a vision and a strategy that is clean and easy to understand and strive to reach.
When we are working with our customers the main focus is to help the organization to find a common goal to work towards. Present a straightforward strategy, this will create credibility and get more people involved in, and with an understanding of why data is important.
4. Communicate Your Vision and Goal
Yes, you can send an email stating the vision and the goal, but you need to talk about it and make sure that everybody within the organization knows why the changes are being made and why a data-driven HR team will be a stronger team.
What is the impact on the team? what are the benefits? If you all understand and believe in the vision, it will be easier to motivate change and get everyone involved.
5. Create Common Routines
Data is only as great as the process needed to collect it. You need to ensure that the right processes are in place so that the data can be collected and used to measure performance, projects and the impact of changes made.
Employers need to be able to question if a change really is needed and feel secure that the data is showing real insights. This phase is important to implement as fast as possible to get the correct data and ensure that all team members trust the data presented.
6. Use the Power of Example
Start small and then go bigger. In the beginning, it is important to be able to show and recognize the effort that leads to a successful project, in a way that does not need too much investment in time or money.
A short term project, with an easy execution that involves a few people can be a great way to show how to work with data to create positive changes and build better strategies.
7. Always Give the Right Data to the Right People
An important part of making team members and leaders data-driven and inspired to work towards common goals is to always present relevant data.
If a person feels that they are responsible for the results and directly can have an impact on results by making changes — they will see the benefits of new insights and the benefits of change.
8. Share Lessons Learned
Use lessons learned in your earlier small projects to inspire the implementation of longer-term projects that focus on long term goals.
Invest in teams that fully can focus on implementing data-driven strategies and follow-through. It is important that all team members understand the value of data and can be guided when needed.
9. Institutionalize Change
By following the above steps and embracing the fact that a data-driven organization and culture takes time to build up, you can hopefully start to see data as a natural part of decision making in the near future. You need to be able to correct errors and find the best way for your teams to adapt to change.
Leaders that show the way and a CDO chief data officer that is responsible for following the vision through, can enable a data-driven strategy and focus on taking the right steps needed to reach goals. The last step occurs when the hole team can sustain the changes and has implemented data follow-up and strategic decisions based on big data.
Data-Driven Insights and Key Metrics within Recruitment and HR
In the world of HR and recruitment, common key metrics that companies follow up on are the number of candidates applying, the number of interviews conducted and “time to hire”. With the below data, it is possible for companies to measure the performance that has a direct impact on their key metrics. This data gives companies a newfound control over how they are perceived and the possibility to take action on strengthening their employer brand.
Experience data from 171 502 candidates that have responded to candidate experience feedback forms during 2018/19.
1 in 4 (23%) of all candidates that have been through a recruitment process answers “no” to the question: Would you apply for a job here again?
1 in 20 (4,9%) of all candidates experience technical issues when submitting their application.
1 in 3 (33,23%) of all candidates that do not pass selections have not received any feedback.
The CNPS (Candidate Net Promoter Score) drops from an average +57 score after an interview to an average score of -15 after rejection.
How accurate is Trustcruit data? The average response rate during 2018/19 is 40,06 %. All feedback forms are sent automatically within minutes after registration of the candidate status in our customers ATS (we sent out feedback forms after application, after the first interview, and after rejection).
In this way, we know that candidates are not handpicked nor have been asked questions in different ways or different time periods. The feedback forms consist of standard questions that are asked to all candidates.
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