Finding good employees is always a challenge, whether the economy is good or bad. Thus it is good business practice to identify the sources of hire, job boards, referrals, etc., that provide the most hired candidates. But if that is all you look at, are you getting the full picture?
A typical applicant tracking system (ATS) usually provides standard reports that show which sources a company’s hired candidates came from. Suppose after running such a report one sees that 75% of the company hires come from job boards, such as Monster or CareerBuilder. Is that enough evidence to mandate increasing hiring from that source? Of course not, because there is no information on how that employee did once on board.
There are many more questions that need answering to determine if a new hire becomes a productive employee, such as:
- What is the tenure of these employees?
- What is the hiring manager’s satisfaction after 6 months?
- How are these hires performing in their jobs?
- Are these hires developing to become your future leaders?
According to a survey in ERE Media, one third of employees leave their employer in less than 6 months. That is one of many reasons why companies must look at data across their application ecosphere to find the most revealing people data. Having the ability to pull data from a myriad of sources is the only way to get the full employee picture, as each address only part of the answer.
- Applicant Tracking System: Volume of hires
- HRIS: Tenure and personal data
- Performance Management: Performance and hiring manager satisfaction
- Learning Management: Training and certifications
- Succession Planning: Employee’s future with the organization
Once all of these data elements are brought together onto one platform, the total picture might become very different. It may be that most employee hires are from a specific job board, but they may be the lowest performers, or those with the poorest manager satisfaction ratings. On the flip side, it might be that employees coming on board from other sources, though fewer in number, go on to be the highest performers and future leaders of the company.
What much of this comes down to is the answer to a simple question: Is the goal simply trying to put butts in seats? Remember that the typical external recruiter is not held to account if a candidate leaves after six months. So the right guidance from employers can drastically impact future turnover.
If an organization is looking to attract the “A” players, with the goal of getting to the next level, there are other dimensions to consider. But one thing is sure, understanding and pursuing the best source of hire is one of the pillars that will make a company grow and be successful! So, what is truly the best source of hire? It’s impossible to know the right answer to this question without the ability to see all of the people data together and in context.
Human Resources likely has all the data needed to answer the question somewhere. However, it needs the right tool and platform for a holistic view of “Hire Source” analytics. Such a solution will not only provide hire source metrics, but trended results over candidate’s employee life cycle. Then the company will know not only what source gets the most people in the door, but whose candidates perform the best once inside.