Can BI provide data that proves Recruiting Strategy ROI ??

Business Intelligence (often referred simply as “BI”) encompasses all of the computer applications, tools, and systems that provide data used in the strategic planning process of any company or corporation. These tools gather and store data used in company decision making. Business intelligence areas can focus on customer profiling, customer support, market research, market segmentation, product profitability, statistical analysis, inventory and distribution analysis just to name a few (Webopedia, 2010.) Can business intelligence provide the data necessary to truly prove the return-on-investment (ROI) on recruiting strategies and workforce management efforts?


The purpose of ERP implementations was to give business decision makers one place – one application – to organize data and manage a business… but companies need information and data that is created outside the organization as well as what is generated by the ERP applications. Sales and marketing departments depend on analytical data that comes from paid resources, social media, and free internet communities. Recruiters and internal staffing professionals work similar paid resources and free sources as well. Paid resources like employment websites and resume spiders generate resumes and candidate leads – but do not provide information on the number of candidates that abandon the resume submittal process, or the opinion of people who viewed the job description. Social media sites like LinkedIn and Google provide analytical data, but these are often not imported into an applicant tracking system (ATS) or reviewed when making decision on recruiting strategies. Most HR and recruiting decision makers only ask for data regarding recruiting strategy when it comes to renewing a website contract or making budget decision. True data analysis and data integration is lacking in ATS and related CRM applications specific to recruiting and staffing strategies. Employers find it difficult to find true data that justifies recruiters being on FaceBook or LinkedIn groups during business hours.

The only Key Performance Indicator (KPI) associated with recruiting strategy has always been the number of job requirements filled through the company’s recruiting efforts. These job requirement “fills” (or placements) are considered the most important – if not the only purpose of recruiting. With social media and networking becoming a significant part of doing business these days, it is important to align and measure hiring deliverables with established business goals. Recruiting efforts should also be aligned with sales and marketing strategies the company is planning for new product release, conventions, and coverage in industry related media. Business intelligence applications can track staffing KPIs, create hiring metrics and reporting tools, and can be used to develop executive dashboards that provide decision makers with adhoc and real-time information on hiring goals and how successful recruiting strategies can affect other business aspects, deadlines, release dates, and sales quotas.

Business intelligence provides business decision makers with organized data and metrics accuracy that can be used to create business goals and realistic business targets. Business intelligence is not about “what data you need – but what decisions you need to make.” A recruiting being aware of business intelligence requires more attention to data accuracy (including data entry in ATS); making sense of the data collected; and getting decision makers’ approval on possible opportunities and recruiting venues that otherwise might not have been recognized without having that BI data. Business intelligence can provide opportunities for cost saving, time savings, provide a competitive advantage, as well as possibly justify a specific recruiting strategy and prove a tangible and concrete ROI.



References:

Business Intelligence. 2010. Webopedia. Viewed via: http://www.webopedia.com/TERM/B/Business_Intelligence.html

Baruffaldi, A., Vesset, D., Pizano, G., et al., LinkedIn Business Intelligence Group. “BI evolution in the next 2-3 years” online discussion. Viewed on December 23, 2010 via http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&discussionID=29182661&gid=23006&commentID=28342172&trk=view_disc Read More!