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Four ways data can influence hiring decisions

24.10.23 – The days of making ultimate hiring decisions based on intuition and emotion are over. When companies harness the power of data, they can instead base their decisions on hard facts and statistics. Whether you're looking to diversify your workforce, expand your team, or even relocate a business function, data-driven recruitment can help you make more informed decisions. Jonas Hirsekorn, Senior Consultant in Hamburg, presents four ways you can use data to make better hiring decisions.  

1. Improve the quality of hires 

"Every recruiter knows this challenge: they have to decide between two suitable, qualified applicants, both of them would be excellent for the job in question. In such situations, it is common to be guided by (unconscious) prejudices or emotions. But if you want to make more objective and informed decisions, data can help you", says Jonas Hirsekorn. For example, you can find out applicants' personality traits in detail by using psychometric tests and make the final hiring decision on this basis. Aptitude tests also provide a structured way to objectively assess a candidate's skills and abilities and can help minimise subjective influences in the decision-making process. 

2. Reduce recruitment costs 

Making hiring decisions based on data-driven insights can increase the number and quality of applications you receive. You can make better use of your budget and increase your productivity and efficiency in the recruitment process if you know where to find the right talent and through which recruitment channels you can reach them. These insights may indicate, for example, that a platform where you spend a lot of time and money on advertising may not be the best way to reach the candidates you are looking for. If you can back up such decisions with data, it is much easier to cut inefficient platforms altogether and allocate your budget to more efficient resources.  

3. Optimise remuneration and benefits 

Once you know which platform you're using to reach the right talent pool, you need to make sure your compensation and benefits are attractive enough to attract that talent. Accurate labour market data will help you create a competitive compensation and benefits package.  
To help you benchmark their salaries, Robert Walters' Market Intelligence team offers customised salary benchmarking reports. For example, an HR manager requested a salary benchmarking report to compare their own salaries with those of their direct competitors. Our data analysts provided the HR manager with information based on both internally placed positions across all disciplines and supplemented with insights from external data sources. Such detailed salary benchmarking can help you minimise employee turnover and position yourself as an attractive employer.  

4. Tap into new markets  

By using recruitment intelligence, companies can also gain strategic insights that can be used to optimise more than just compensation and benefits. Real-world use cases show how these insights have led to decisions, sometimes about where to locate a new business function. Take the example of a large energy company. The company wanted to set up a shared service center, but still needed to decide on the exact location. To compare different options, the company needed insights into the candidate market. Our Market Intelligence team mapped the talent pools for their key skills: Human Resources and Payroll. They produced a report on supply, demand, competitors, salaries, contractor, and available active candidates, providing the energy company with all the data they needed to make an informed decision. Since then, our Market Intelligence team has been involved every time the company has wanted to open a new location, showing how important data is in these complex decisions.  

Integrating data into your hiring decisions  

The key to successful data-driven hiring decisions is choosing the right metrics and collecting and presenting the data efficiently. Our Market Intelligence team can do this for you. We'll provide you with a report tailored to your recruitment challenges, giving you the data you need to make informed decisions. Wondering how our data-driven approach can support your recruitment strategy? Request a sample report today or take a look at our salary survey.

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Find out more by contacting one of our specialist recruitment consultants

Jonas Hirsekorn

Senior Manager Finance & Accounting | Hamburg
Phone: +49 40 377 07 3974

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