Hiring constitutes to more than 15% of all human resource-related expenses and optimizing the recruiting process has never been more critical. Talent intelligence (TI) is the secret to making better hiring decisions, both now and in the future. But what exactly is talent intelligence? And why should you contemplate it for your business?
Talent intelligence refers to the process of providing hiring and talent acquisition professionals with a wealth of data insights to make better-informed recruitment and HR decisions. An artificial intelligence (AI)-powered recruiting tool can help deliver immediate and measurable benefits in recruiting ROI. In fact, one report found that more than 90% of recruiters, including talent teams and chief human resource officers, felt that TI was transforming their recruiting work by delivering better results in less time.
Key reasons to consider talent intelligence
Finding the right talent for open roles is one the recruiter’s main challenges. According to a study by CareerBuilder, 22% of organizations say they have made a bad hire due to insufficient talent intelligence. Not only can this impact productivity, but it can be expensive. It’s estimated that a wrong hire can cost between $7,000 – $10,000 for an entry to mid-level position and upwards of $40,000 for a manager.
Through the use of AI-powered recruiting tools (also known as TI tools), global organizations can acclimate themselves to new recruitment technologies. Benefiting from the power of AI and machine learning (ML), automated business processes and the ability to visibly connect data points to get actionable insights, recruiters are able to evaluate data on a granular level for a faster and more accurate hiring decision.
Organizations can leverage AI-powered recruiting tools for assessing the team members effectively and further help them analyze the key areas wherein each of them can work upon. With this, organizations can clearly know who can really add some value to the organization’s revenue.
Because organizations are better positioned to hire at a faster speed, they can stay ahead of the competition and recruit the best available talent.
For these reasons, it is no surprise that there has been a significant upsurge in the adoption of TI tools in the past few years.
Businesses benefit from talent intelligence solutions
Companies implementing TI recruiting systems can achieve an immediate ROI by reducing the time it takes to find and hire talent. Not only can recruiters save a lot of time otherwise spent on job boards and similar platforms, but it enables them to focus on other functions that may utilize their skills better.
Here are some of the long-term benefits organizations achieve when assimilating TI tools into their recruiting process:
- Better Candidate Quality– Talent intelligence leverages multidimensional talent models that help organizations find candidates with the right skill sets to fit specific roles. This helps in closing positions faster, shortens the onboarding time and results in higher recruitment performance.
- Better Candidate Quality– Talent intelligence leverages multidimensional talent models that help organizations find candidates with the right skill sets to fit specific roles. This helps in closing positions faster, shortens the onboarding time and results in higher recruitment performance.
- Reduced Candidate Turnover and Greater Productivity– According to a report, 80% of employee turnover is due to poor hiring decisions. Most organizations experience an annual churn rate of up to 40%. Organizations can quickly identify the perfect matches and top-performing candidates to fill internal job openings by utilizing internal resource mobility. As per a study by Northern Illinois University, organizations with low turnover rate bring in 4 times higher profits on average. Using TI tools, organizations can figure out potential candidates for churn risks and take measures to upskill and promote their most promising talent. This helps create a more secure, productive, and engaged workforce; significantly reducing resource turnover rates.
- Efficient Internal Mobility– Most organizations find it difficult to evaluate existing talent for new roles, resulting in missed opportunities for internal mobility. Organizations implementing TI can quickly identify the hidden internal talent and determine who is most eligible for promotion, upskilling and reskilling.
- Improved Candidate Experience– Up to 63% of recruits will reject a company’s job offer if they have a bad candidate experience and the remaining are less likely to recommend the company to a peer. When recruiters evaluate their interview process with TI-generated, in-depth candidate insights in hand, they accelerate the hiring process and significantly improve the candidate experience, company reputation, and overall employee morale.
- Better Team Alignment– Crafting job descriptions and evaluating candidates can be a time-intensive and frustrating process for recruiters and hiring managers. To minimize excessive back-and-forth, TI solutions can help streamline communication between hiring managers and recruiters so they can align on the most fitting candidate profiles in minutes.
- Improved Diversity–
Diversity inclusion is essential for organizations to bring more innovation to their business. Still, 40% of them struggle to bring sufficient diversity and inclusion within different teams and domains. The major issue is that they are unable to find diverse talent for multiple roles and responsibilities. TI helps drive diversity programs by eliminating all unconscious bias from the early stages of the search and screening process. It can also significantly increase the volume of diverse talent included in the talent pool by evaluating candidates more holistically.
Employees are the most critical part of an organization. Therefore, it is even more important that organizations secure the right talent for each open position. With ever more complex talent needs and so many new technologies in demand, leveraging TI can help recruitment teams tackle recruitment pressure, make more data-backed decisions and free up staff time for more strategic work. If you are facing any challenge hiring for open positions in your organization, please reach out to us at – marketing@staging.agreeya.com