Top 5 Reasons Companies Should Focus on Talent Intelligence
Some research found that 22% of global organizations say that they made a bad hire due to a lack of talent intelligence information.
A few bad hires here and there are inevitable, but using talent intelligence can help decrease the number of bad hires you have. But what is talent intelligence, and why should companies care about it?
In the future, talent intelligence will be one of the biggest recruiting trends, so make sure you keep reading to prepare your company and utilize all of its benefits.
What Is Talent Intelligence?
Talent intelligence is the process of analyzing and collecting data regarding your current and past candidates. You’ll also collect talent from the workforce of your competition. Once you have the data, you can analyze it for talent patterns to gain insights into your employees and potential candidates.
This recruiting solution is essential for businesses in any industry, and it can help your business perform better as well.
Talent intelligence is becoming popular because rather than focusing on the number of employees a business might have, employees are now considering talent the most valuable asset. Talent intelligence creates a process for companies to analyze and collect information about the data to ensure that the company culture has a wide range of talents and skills to improve the performance of the business.
Some of the most common data points that companies will use to track the talent include things like:
- Social media
- Past employment
- Performance reviews
- Portfolio of work
Talent intelligence also focuses on skills and talents when interviewing new candidates rather than specific qualifications.
However, talent intelligence isn’t just about gathering data. It’s also essential to improve your recruitment process. You can use artificial intelligence (AI) here to source candidates based on specific skills that you need, but you need talent intelligence to get that information.
For example, suppose you want to use Recruiter.com’s AI sourcing platform to hire a marketing coordinator. In that case, you might focus on skills like multitasking, social media awareness, or industry-specific skills with certain companies. You could use your talent intelligence to gain all that information and then plug that information into the AI tool and get a list of candidates who have the skills you’re looking for.
When you can do this and automate the sourcing process, your recruiters are free to focus on connecting with candidates and building a good connection.
1. Reduces Cost Per Hire
While automating part of the recruiting process is undoubtedly beneficial, a faster process will also reduce your talent acquisition costs. This metric is essential for any recruiting team, and according to some data, the average cost per hire has increased by $300 to $4,425.
In fact, Recruiter.com expects that companies will spend an extra $50 billion on hiring in 2022:
“In 2018, with 150 million employees in the US economy, the average employee turnover rate was 22%. This resulted in 5.8 million people being hired monthly at an average cost of $4,129 per hire for a total monthly hiring cost of $24 billion. This percentage was increasing in 2019 as people were leaving jobs more frequently.
“However, this number will be even higher according to the macro changes in the economy discussed earlier. An increase in turnover to 28% or greater would mean that over 33 million people are hired each year.
“With the 2019 average cost per hire at $4,425, that means the US will see a $50 billion increase in hiring costs in 2022.”
These unexpected hiring costs might be too much for businesses to handle, but you can mitigate some of that costs with a talent strategy. Instead of spending a lot of time searching for candidates who may not even be a great match, talent intelligence will use data to help you find the best candidates who have a higher chance of being a successful hire.
You’ll also be able to keep your organization current, use it to build a growth plan, and keep your employees engaged. With more talent data and insight, you’re also more likely to know what struggles your employees are dealing with and how to address them.
2. Analyze Competition
Your competition isn’t just competing for customers; they’re also fighting for top talent. Talent intelligence will help you gain more talent insights into your market, and more knowledge is always better.
You can decide which factor is the main thing that employees in your industry focus on. Are they focused on growth? Do they want more flexibility? It could be something as simple as commuting.
You can use talent intelligence to analyze why your employees are leaving, both in your company and your competition. This way, you can know how to attract the best talent and get a competitive advantage.
3. More Diversity
You can also focus on hiring diverse workforces when you have more data. Recruiters need to be able to source a diverse workforce, but it can be difficult when unconscious biases sneak into the recruiting process.
No matter how much training there is, recruiters are still subject to those biases. When you use talent intelligence, recruiters can mitigate the bias and have just another shield to protect them. For example, it’ll remove recruiters from an early screening stage, when recruiters are most susceptible to biases and unconscious oversights.
A talent intelligence platform also uses a lot of data that focuses on finding candidates based on their skills. This can rule out biases when a recruiter favors someone who went to a specific college.
Xuan Smith, CTO of Recruiter.com and in charge of the AI platform confirmed that their tool uses this strategy to avoid confirmation biases. “This software identifies people based on their work history, on how long they were at their job, and what their company does. However, we don’t consider education in our algorithm because we don’t find it to be a huge predictor of success.”
Using talent intelligence will also help you reach compliance levels because of the ability to make fair talent decisions. Using data will ensure that candidates are all treated the same and evaluated based on their talents, not qualifications.
4. Predict Trends
While everyone can predict what the next year will look like, no one could have expected the job market to change due to the COVID-19 pandemic. No one could have predicted remote work either, but when you use talent intelligence to analyze data, you may have more time to predict trends in the talent marketplace.
When you’re able to predict trends, you can be ahead of the curve to find and keep the best talent.
5. Improve Retention
According to one survey, 61% of companies struggled to keep talent, and many companies see that trend continue into 2022. However, talent intelligence can give employers the keys to keeping their employees from joining the Great Resignation.
They can use data to figure out what’s important to employees to adjust their policies to keep people at the company. Many companies don’t understand the connection between a human resources team and an organization, and not understanding that relationship can lead to employee disengagement. And when employees are disengaged, they may not be willing to stay at the company.
Start Focusing on Talent Intelligence Today
Using technology and data like talent intelligence is vital to finding and keeping the best talent. It’ll be helpful when you’re using talent intelligence tools to curate a talent pool, and as the job market becomes increasingly competitive, it’ll give you a head start.
Do you feel like talent intelligence still isn’t enough? You may need some expert recruiting help, where Recruiter.com comes in.
We have niche job communities, an extensive network of specialized recruiters, and a powerful AI platform that can help you find and connect with talent.
If you’re interested in these recruiting solutions, contact us today!
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