RESEARCH SPOTLIGHT. How PREDICTIVE ANALYTICS Can Improve Your Recruiting Outcomes

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1 RESEARCH SPOTLIGHT How PREDICTIVE ANALYTICS September 2017

2 Table of CONTENTS TABLE OF CONTENTS Why Not Use Predictive Analytics for Talent Acquisition? 3 Defining Predictive and Prescriptive Analytics 4 Three Top Priorities 5 Importance vs. Effectiveness in Using Predictive Analytics 6 The Need for Predictive/Prescriptive Analytics 7 Predictive Analytics Deliver Great & Diverse Hires 8 Predictive Analytics Positively Impact Quality of Hire 9 WCN s Predictive Recruiting Scoring Algorithm Combined with Filtering Tools Zero in on the Right Candidates Faster 10 About WCN 11 About Brandon Hall Group 13 Sources of all data in this report are: 2017 Brandon Hall Group State of Talent Acquisition Study (n=210), 2017 Brandon Hall Group Recruitment Marketing Study (n=273), 2017 Brandon Hall Group Workforce Management Measurement and Analytics Study (n=247), 2016 Talent Acquisition Technology Study (n=314) Brandon Hall Group. Licensed for Distribution by WCN. 2

3 How PREDICTIVE ANALYTICS Why Not Use Predictive Analytics for Talent Acquisition? 2017 Brandon Hall Group. Licensed for Distribution by WCN. 3

4 WHAT ARE PREDICTIVE ANALYTICS? An area of statistics that deals with extracting information from data and using it to predict trends. Examples for talent acquisition: Likely time-to-fill Probability of accepting interview Probability of accepting offer Likely tenure at organization WHAT ARE PRESCRIPTIVE ANALYTICS? Provides suggested decision options based on predictive analytics results. Examples for talent acquisition: Best job sites for promoting positions Prioritization of candidates How PREDICTIVE ANALYTICS Become a data-driven organization by using predictive analytics. 54% of organizations are already making data-based decisions. Defining Predictive and Prescriptive Analytics 2017 Brandon Hall Group. Licensed for Distribution by WCN. 4

5 Predictive analytics are one of the three top talent acquisition technology priorities for organizations. It garnered more responses than recruitment marketing functionality (30%), mobile enablement (29%), and candidate relationship management functionality (27%). THREE Top Priorities How PREDICTIVE ANALYTICS Onboarding Social tools Predictive analytics 45% 39% 36% Source: Brandon Hall Group 2016 State of Talent Acquisition Survey Three Top Priorities 2017 Brandon Hall Group. Licensed for Distribution by WCN. 5

6 While organizations realize that predictive analytics are important to sourcing, effectiveness lags. There are several possible reasons for this situation. Their technology may not adequately support analytics, or they may still be learning how to make appropriate use of the data. IMPORTANCE VS. EFFECTIVENESS in Using Predictive Analytics 50% 50% How PREDICTIVE ANALYTICS 40% 30% 20% 21% 10% 0% Critical or Very Important Very Effective or Effective Source: Brandon Hall Group 2017 State of Talent Acquisition Survey Importance vs. Effectiveness in Using Predictive Analytics 2017 Brandon Hall Group. Licensed for Distribution by WCN. 6

7 How PREDICTIVE ANALYTICS Organizations use predictive and prescriptive analytics for recruiting because it enables decision-making to be: Data-driven Consistent Free of inherent biases Based on probabilities/scores, such as schools attended, grades, prior employers, and more Faster and more efficient Need for PREDICTIVE/PRESCRIPTIVE Analytics Already have and need Don t have, but need Total Organizations 25% 42% Small Organizations 1 to 999 employees 17% 33% Mid-Size Organizations 1,000 to 5,000 employees 33% 48% Enterprise Organizations 5,000+ employees 30% 52% 0% 20% 40% 60% 80% 100% The Need Source: for Predictive/Prescriptive Brandon Hall Group 2017 Recruitment Marketing Analytics Survey 2017 Brandon Hall Group. Licensed for Distribution by WCN. 7

8 How PREDICTIVE ANALYTICS Predictive Analytics Deliver Great & Diverse Hires 2017 Brandon Hall Group. Licensed for Distribution by WCN. 8

9 How PREDICTIVE ANALYTICS Organizations that effectively use predictive analytics for sourcing are more likely to recruit and hire high-quality talent than those organizations that still struggle to use analytics. Predictive Analytics POSITIVELY Impact Quality of Hire Percentage of Organizations Citing High-Quality Hires 60% 50% 40% 30% 20% 55% 38% 10% 0% Effective Use of Predictive Analytics for Sourcing Ineffective Use of Predictive Analytics for Sourcing Source: Brandon Hall Group 2017 State of Talent Acquisition Survey Predictive Analytics Positively Impact Quality of Hire 2017 Brandon Hall Group. Licensed for Distribution by WCN. 9

10 MODERN ANALYTICS TECHNOLOGY WCN S Predictive Recruiting Scoring Algorithm Combined with Filtering Tools Zero in on the Right Candidates Faster The type of analytics technology can have a big impact on results. For example, WCN s Predictive Recruiting Scoring Algorithm uses data on a candidate s education, work experience, achievements, and test results to generate probabilities that the candidate will interview with the company and accept a job offer. The WCN Decision Intelligence Algorithm Scores, Ranks and Explains 2017 Brandon Hall Group. Licensed for Distribution by WCN. 10

11 ABOUT WCN WCN IS A HIGHLY RATED, INTELLIGENT TALENT ACQUISITION SUITE. We have decades of award-winning recruitment software expertise and an obsession with driving real change in organizations. Our products accelerate and improve the entire process of finding, attracting, engaging, assessing and hiring the best talent. Products: RECRUIT - Manage and track candidates effectively with our multi awardwinning Application Tracking System ENGAGE - Amplify your recruitment marketing and deepen candidate relationships EVENT - Plan and manage recruiting events with ease INTERVIEW - Manage interviews in the cloud to significantly simplify and accelerate the process MOBILITY - Focus on internal mobility and redeployment of staff INTERN Manage your internship program-- placements to performance management to surveys and beyond INTELLIGENCE - Exploit the power of machine learning to zero in on the right candidates faster Solutions: WCN Campus, WCN Volume, WCN Diversity, WCN Veteran, WCN Finance, WCN Apprentice Brandon Hall Group. Licensed for Distribution by WCN. 11

12 ABOUT WCN Introducing WCN's INTELLIGENCE: With more than 20 years of experience managing data in the recruiting space, there is no other talent acquisition suite that can score candidates with this level of historical information. Our Predictive Recruiting Scoring algorithm combined with filtering tools zero in on the right candidates faster Reduce unconscious bias and enhance diversity with our machine-learning based algorithm Recruit with limitless capacity to screen and process candidates and reduce administrative tasks Mine your existing talent pool to uncover candidates who might have gone unnoticed in a manual or non-intelligent process Gain insight and reasoning into which candidate characteristics score strongest INTELLIGENCE is part of the award-winning, WCN Intelligent Talent Acquisition Suite. To learn more please visit wcnsolutions.com Brandon Hall Group. Licensed for Distribution by WCN. 12

13 About Brandon Hall Group MODERN ANALYTICS TECHNOLOGY Helps Top-Performing Organizations Make Decisions Brandon Hall Group is a HCM research and advisory services firm that provides insights around key performance areas, including Learning and Development, Talent Management, Leadership Development, Talent Acquisition, and HR/Workforce Management. With more than 10,000 clients globally and 20 years of delivering world-class research and advisory services, Brandon Hall Group is focused on developing research that drives performance in emerging and large organizations, and provides strategic insights for executives and practitioners responsible for growth and business results. Authors and Contributors Daria Friedman (daria.friedman@brandonhall.com) wrote this report. She is the Principal Analyst oversee-ing the talent acquisition practice for Brandon Hall Group. Previously, Daria led the research practice for Bernard Hodes Group, a recruitment solutions agency, and Findly, a talent acquisition software service provider. Melissa Benavides (melissa.benavides@brandonhall.com) is the Creative and Events Manager at Brandon Hall Group and created the graphics and layout for this report. About Brandon Hall Group 2017 Brandon Hall Group. Licensed for Distribution by WCN. 13

14 About Brandon Hall Group Subscribe To Our Interactive Data-Benchmarking Tool: DataNow All the data from our studies is available by subscription to DataNow. DataNow is Brandon Hall Group s interactive data-benchmarking tool. Organizations use it to make data-based decisions, find leading practices, benchmark, and more. You can also filter the data by company size, revenues, and industry segments to give you a fully customized view. Learn more about DataNow. Our Services GET HELP TO DRIVE RESULTS FOR YOUR TALENT In today s volatile and global business climate, managing talent for high-performance plays an increasingly crucial role in an organization s growth and future success. Effective talent management is a top priority in organizations everywhere because, while organizations recognize the need to obtain and retain people with the very best skills, they continue to struggle to implement effective strategies to do so. HR and Learning professionals need to be able to successfully define organizational talents needs and skills, identify talent strengths and career goals, and align organizational needs to individual needs. Rethink your strategy, validate your assumptions, transform your business, and optimize your time with the use of reliable data, tools, and guidance. PLAN ATTRACT DEVELOP PERFORM RETAIN OPTIMIZE GET HELP WITH YOUR HR SERVICES MANAGEMENT & DELIVERY As described in the employee lifecycle, processes are linked to employee transactional processes (e.g., compensation, benefits, compliance, contingent workforce management, etc.) via workforce planning and analytics. Policies/Process/Procedure Payroll Expense Management Benefits & Compensation Contingent Workforce Management Compliance Time & Labor Management 2017 Brandon Hall Group. Licensed for Distribution by WCN. 14

15 About Brandon Hall Group Our Services (Continued) GET CONSULTING HELP WITH... Strategy and Planning Governance & Business Alignment Executive Management Team Development Measurement & Analytics Program Design & Deployment Technology Selection, Management & Integration Organizational Structure Measurement & Analytics Change Management Budgeting & Forecasting Membership Offers Tailored Support At the core of our offerings is a Membership Program that combines research, benchmarking and unlimited access to data and analysts. The Membership Program offers insights and best practices to enable executives and practitioners to make the right decisions about people, processes, and systems, coalesced with analyst advisory services which aim to put the research into action in a way that is practical and efficient. Membership also provides you direct access to our seasoned team of thought leaders dedicated to your success, backed by a rich member community, and proactive support from our client services team. RESEARCH ACCESS & EVENTS Reports Case Studies, Frameworks & Tools DataNow & TotalTech Webinars and Research Spotlights Annual HCM Conference ADVISORY SUPPORT Ask the Expert 1 on 1 Consultations Research Briefings Benchmarking CLIENT SUCCESS PLAN Your Priorities Executive Sponsor Client Associate Monthly Meetings CLICK HERE TO LEARN MORE 2017 Brandon Hall Group. Licensed for Distribution by WCN. 15