Did you know that your business uses a predictive hiring system?
You may be thinking, “I don't even know what predictive hiring is…" ‘
After all, that's why you're here!
In this guide, we'll guide you through what a predictive hire interview is and how it can benefit your company. Most likely, you'll realize your business already has this system in place. The only difference now is that you'll understand how to use it to your advantage.
Let's dive into predictive hiring and how it can save you from wasting time and resources on bad hires.
What Is Predictive Hiring?
Predictive hiring is a system that uses the characteristics of a candidate to anticipate the desired future outcomes of that candidate in their given role at a company.
Let's break this definition down.
A system is a process put in place to streamline a given task. You likely already have a hiring system where you vet candidates at multiple points in the recruitment process, from the resume review to the interview. But how are you using an individual's characteristics to predict how they'll contribute to your company? Is it a systematized approach?
The characteristics of a potential employee include anything we know before actually hiring them. HR teams use this information as the building blocks for predictions made about candidates.
Some common characteristics include:
- Work experience
- College attended/GPA
- Certifications and awards
- Interpersonal skills
- Communication ability
The process of guessing these characteristics and how they might translate to worker performance happens through vetting resumes or cover letters. Some companies will also contact references or check out the applicants' social media profiles. Using this data, the hiring manager predicts who will be the top candidate.
This systematic approach is predictive hiring. It's the process of anticipating how likely a candidate is to succeed in a given role.
But, how accurate are these predictions? Can you make an educated guess about the best person for a job based on a resume, references, and social media? To answer those questions, you want to consider this approach's advantages.
How to Use Predictive Hiring Strategies to Your Advantage
There are many reasons to utilize predictive hiring strategies in your hiring. Here are the top ones:
1. Improve Talent Acquisition
Hiring managers read through dozens of resumes before deciding on candidates worth interviewing. However, there is a significant problem with this process.
How do you confirm the skills outlined in the resume are real? You can call references, but even then, the applicant decides what references to include in their resume. Hiring managers may fall victim to deceptive resume padding and believing information that's not real. And why wouldn't they believe it?
Out of 30% of people who exaggerate on their resumes, most never get caught. It means wasted time for employers when they realize the candidate doesn't possess the claimed skills.
Another issue with relying solely on resumes to hire is that they create bias. We're all subject to unrecognized biases, whether we like to admit it. Here is the information you'll typically see on a resume:
- The city applicant lives in
- University attended/GPA
- Previous work experience
Often, this is enough information for hiring teams to decide whether they want to consider the candidate or not. But, how does any of this information offer an accurate prediction of how successful the applicant will be? It doesn't.
Eliminating bias is where recruiting technology comes in handy. Recruiting technology utilizing data and analytics will improve hiring outcomes by recommending top-level candidates without compromising the process due to human bias. While traditional hiring practices based on intuition and gut feelings can work, predictive analytics uses data and statistics to identify the best candidates for a role.
2. Hire Quality Candidates Faster
Screening hundreds of resumes quickly is difficult. Hiring managers typically have to manage multiple job openings simultaneously; therefore, getting through all submitted applications will take days, sometimes even weeks.
Then, after they go through each resume, they'll find that only a tiny pool of candidates meet the basic job requirements.
This time savings is one of the many positive aspects of predictive hiring. All applicants will undergo the same pre-employment assessments. It offers an unbiased way to eliminate candidates that aren't right for the job.
3. Reduce Staff Turnover
How often have you hired an employee you thought would be a great fit only to find that this wasn't the case? Predictive hiring offers a way to differentiate qualified individuals and those just looking for a job.
You'll notice improved employee turnover rates once you fine-tune your predictive hire interviewing process. By using predictive hiring, you'll hire employees that will fit well in their new position and your team.
Well-matched placement leads to happier employees who are more productive and see themselves staying with your company long-term. Considering the average cost to replace an employee is 33% of their annual salary, it’s worth spending some time reducing turnover.
Many times, the cause behind an employee leaving is preventable. Predictive hire interviews help reduce staff turnover by hiring the right person for a role the first time around. It means bringing in employees that are a good fit and will enjoy working alongside your team.
4. Establish What Works and Doesn't Work
Many companies utilize job boards, outsourced recruiters, and third-party firms to help attract top talent. However, this often leads to a never-ending list of applicants, many of whom won't possess the basic required skills. Not to mention, all of these avenues cost companies money.
Predictive methods help pinpoint exactly who your top candidates are and which avenue they used to find your open position. With this information in mind, you'll be able to focus your efforts on what works and what doesn't. It will save you time and money and help your HR team streamline their efforts in finding the best fit for the job.
How to Succeed in Predictive Hiring
Now that we've covered a few ways predictive hire interviews can improve recruitment efforts, let's go over how to succeed in predictive hiring.
1. Understand Predictive Analytics
For starters, your organization needs to understand how to work with predictive analytics.
Make sure your hiring manager or HR team is comfortable and aware of recruitment technology. They'll need to learn how to use statistics, data, and techniques to determine an employee's future performance.
If your current team is not familiar with predictive analytics, you'll have to train them or find an external company/ individual who can help.
2. Maintain Consistency
As crucial as understanding predictive analytics, you need to have a consistent algorithm that delivers reliable, accurate results. When it comes to data input, you want to keep the following in mind:
- Data needs to be valid. Utilize scientifically validated assessments to gather information.
- Use collected data as support. Don't use it to make the final hiring decision.
- Fine-tune your algorithm. Keep a close eye on new hires to see how they're doing. Adjust the system whenever necessary.
- Protect vulnerable groups. Monitor ratios of employment. These include men/women, age, and other characteristics that can create imbalances in the workplace.
3. Invest in the Right Hiring Solution
There are many predictive hiring solutions you can use. Still, like any other service, hire solutions don't always offer the same results. As you browse around, there are a few things you want to keep in mind to make an educated decision:
- How does the service gather data? Does it come from assessments, social media, references, etc.?
- Do they offer software training? If so, how will they train current employees? In-person or online? How long will the training process take?
- How easy will it be for the software to adjust as company hiring needs change?
Always take the time to research the hiring solution you're considering. Ask several questions and check out online reviews and testimonials. The pre-purchase research ensures you work with a reputable company that will offer high-quality recruitment services.
4. Use Predictive Hiring as a Guide
Once you have your predictive hiring system in place, take full advantage, but remember that this is a tool. It's not an ultimate solution, and it won't replace hiring managers.
Predictive hiring strategies streamline hiring efforts, but they don't always tell the whole story. You'll still need a complete system to get to know your top-level candidates.
The final hiring decision will need to come from the HR team, recruiter, or hiring manager. This technology is simply offering data-driven information to make an informed decision.
Predictive Hire Interviews: Are They Right for Your Business?
Every business uses predictive hiring to an extent. The difference is that some understand how to use it to maximum advantage, while others don't know they're utilizing it at all.
Using predictive hire interviews can help you source top-level talent fast and reduce staff turnover rates. In the process, you'll be able to pinpoint what works and doesn't work in your hiring system. It improves recruitment efforts while saving time and money.
Remember that predictive hire interviews are a resource, not a replacement for hiring managers who can decide who to hire.
Ready to continue to scale your business by hiring top talent? Get in touch with ScoutLogic to learn more. We handle all the time-consuming background and education verification checks so that you can dedicate more time and resources to what matters most: finding the best fit for the job.