Talent data intelligence is the use of data and analytics to inform talent acquisition decisions. This can include everything from sourcing candidates to making hiring decisions. The concept allows talent acquisition leaders to make data-driven decisions about hiring, which can lead to improved hiring outcomes. By leveraging data and analytics, talent acquisition leaders can better understand their hiring process, identify areas for improvement, and make informed decisions about which candidates to hire.
It’s all about data and analytics
But — what is it exactly? At its core, talent data intelligence is about using data and analytics to improve a number of different phases and elements of the talent acquisition process. Talent intelligence can be used to identify the best channels for sourcing candidates, for example. Through a thorough analysis of past hires, TA leaders can identify which channels have been most successful in attracting qualified candidates. It then gives you an option to double-down on that channel.
It’s important to see talent intelligence as something which be used throughout the entire employee lifecycle.
Whenever a candidate becomes a serious candidate, companies can use talent intelligence to assess candidates more effectively. Through an analysis of candidate skills, experience, qualifications — as well as predictive analytics, it creates the best available opportunity for the recruiting team or hiring manager to identify candidates who will most likely be successful in the specific role. It’s important to see talent intelligence as something which be used throughout the entire employee lifecycle. For retention purposes, analyse just why people leave your organisation. If you’re able to identify factors that contribute to high turnover rates — you can take subsequent steps to address them.
One of the biggest trends
Renowned recruiting and technology expert Kevin Wheeler dubbed it one of the branche’s biggest trends. “Talent intelligence refers to the process where companies use AI to collect and analyse data regarding the talent and skills they need now and in the future”, Wheeler said. “It helps you keep a hold of where the talent we need is working, what specific skills they have and what might entice them to work for you?”
“Talent intelligence refers to the process where companies use AI to collect and analyse data regarding the talent and skills they need now and in the future.”
That’s the type of information recruiters need, according to Wheeler. In a nutshell, talent intelligence is compiled out of target group, recruitment and labour market data — all external sources. In contrast to the internal data, such as Hotjar, Google Analytics and internal ATS data, that is currently the go-to data among recruiters. Talent intelligence solutions include features to focus on recruiting, talent management, or both. AI interactions allow businesses, HR personnel, and recruiters alike to further define the solution based on their business’ needs.
Half of Europe relies on data analytics for TA decisions
In Europe, talent acquisition leaders are already starting to embrace talent data intelligence — but perhaps not at the scale that you would expect. According to a survey conducted by HR and payroll service provider SD Worx, approximately six out of ten companies today use HR and people analytics to gain insights into areas such as staff shortages, absenteeism or employee turnover. Within the continent, organisations from Austria (66%), Sweden (66%) and Germany (65%) currently lead the way.
“The figures confirm a positive trend in which companies are open to using the full potential of HR and people analytics.”
The majority of European companies (56%) believe in the added value of HR and people analytics. Companies in the Netherlands lead the way in that mindset (67%), followed by companies from Ireland and Spain (66%), and Italy and the United Kingdom (61%). “The figures confirm a positive trend in which companies are open to using the full potential of HR and people analytics”, said Jurgen De Jonghe, Data Portfolio Manager at SD Worx. “However, some companies remain cautious, which is a shame.”
How to take advantage of talent intelligence?
To take advantage of the benefits of talent data intelligence, talent acquisition leaders in Europe should focus on the following:
1. Invest in the right tools
To effectively leverage data and analytics, talent acquisition leaders need access to the right tools. This may include applicant tracking systems (ATS), candidate relationship management tools, and predictive analytics software.
2. Integrate external labour market data
The pool of recruitment-related data can be tough to navigate — but there are several companies excelling at providing clear-cut, external labour market data on a vast number of countries, such as Textkernel and Intelligence Group. Whether that’s recruitment feasibility for a specific target group in any European company — or broader data about push — and pull factors for a country as a whole. Integrating external labour market data can go a long way towards knowing who your target group is, where to find them and just how hard you’ll have to work to find them.
3. Build a data-driven culture
To truly embrace talent intelligence, companies need to build a culture that values data-driven decision-making. That sounds wonderfully easy — but it starts with training and encouraging employees to use data to inform their decisions. Backing decisions up with data eliminates any option of taling solely about gut decisions.
4. Collaborate with other departments
Talent acquisition is just one piece of the puzzle. When it comes to building a successful business, you need to work together. To truly leverage talent data intelligence, talent acquisition leaders need to collaborate with HR, finance, and operations, to identify areas where data can be used to improve business outcomes.
