With the world generating about 2.5 quintillion bytes of data every day, Tech Jury highlights that 97.2% of US companies are likely to invest in big data and artificial intelligence (AI). In fact, Maryville University goes on to estimate that the U.S. business data analytics market will be valued at more than $95 billion by the end of this year, presenting the extremely high value of vital business insights. In particular, analytics is expected to impact HR operations in the fields of banking, manufacturing, and professional services this year. With that in mind, here is an overview of how data analytics is affecting the recruitment process:
Benefits of big data
Boost employer branding
One of the things that can make a huge difference in your attempts to attract clients and keep employees happy is employer branding. A study cited by Forbes highlights that 84% of employees would consider leaving their current job to move to an employer with an impeccable reputation. Data analysis can help companies assess how their brand image blends with reality and how appealing it might be from the perspective of outsiders and applicants.
Source the right candidates
Finding the right candidates – people that have the right skills and talent for a job – is hard. Fortunately, a post on Entrepreneur outlines that through automation and big data, employers are be able to learn about what good candidates look like based on the data they have of past hiring decisions. When combined with AI, employers can also look at the data from across the industry and build a profile that will sift through resumes, screen candidates based on warning signs and create a system that will rank a shortlist of qualified candidates for each job opening.
Understand the best recruitment methods and platforms
Most businesses use a combination of hiring channels such as LinkedIn, internet job boards and placements in newspapers and magazines. An article by Tech Funnel states that with data analytics, businesses can gain insights about what platforms are effective in hiring the highest-quality candidates. This, in turn, effectively helps in making sure that every dollar and bit of energy expended by HR is spent wisely and efficiently.
Improve employee recruitment experience
Regardless of whether candidates become employees or not, it is important that they have a good hiring experience. A post by Inside Big Data emphasizes that a good hiring experience will help new hires feel more invested in your organization and aid in building a positive business reputation overall. Data analytics will help you get to know your candidates more personally, which will make meetings, interviews and conversations easier.
Challenges to big data
Despite its numerous benefits and steady increase in adoption and application, many companies are still reluctant to incorporate big data and data analytics into their business. An article by ZDNet underscores that the main reasons why companies are hesitant about big data are budget and security concerns, as well as a lack of in-house talent to maintain and implement the functions of data centers and automation.
Data privacy and security
Data privacy and security issues stem from the fact that most of the uses of big data revolve around personal information. As analyses zoom in on individuals even more, companies will have to become more careful in the way they access data to avoid legal issues that can pose major challenges for the company.
Although there are many educational institutions that offer online and offline courses on technologies such as AI and data analytics, the number of graduates is still not enough to address the growing demand for qualified personnel fully-equipped with the analytical and technical know-how to make the most of the data.
Building a big data analysis platform involves a wide array of things such as significant design, coding, documentation work and testing. All of these will accrue costs proportional to its size. This reality makes it difficult for small to medium businesses to invest in big data analysis.
As highlighted in our post ‘Artificial Intelligence: Keeping the Human in HR‘, the human resources department handles a large number of duties that are essential to keeping teams and companies functioning well. Fortunately, with the help of AI and big data, much of HR’s routine, mundane and tedious tasks will be made easier. Hence, allowing them to dedicate more time to more meaningful tasks.
Contributed by Alicia Kyle
For the exclusive use of hrmc.com