30th October 2022

Big Data in Recruitment Sector

Shantanu Banerjee, PhDCRO
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It is common knowledge that getting a suitable job is a difficult task. On the contrary, recruiting the right candidate for a specific job opening is equally challenging for any striving company. Often recruiting tasks are complex, costly, and demanding. There is also competition among companies to recruit and retain highly qualified and experienced employees.

Big Data studies can rescue a company from the complex recruitment hurdles. The impact of large-scale data analysis in the recruiting process is undeniable irrespective of industry and business. In this article, we concentrate on the role of big data analytics in the ever-evolving recruitment processes.

Big Data Improves the Quality of Recruits

A bad hire is not only a misuse of the company resources, but a bad employee can also spoil a company’s work culture. It is necessary not to mention the loss of resources in useless recruitment processes. Nevertheless, how to reduce errors in recruitments? Big data analytics can help reduce errors in intelligently selecting new hires. Big data studies can help a company go for evidence-based recruitment decisions.

HR professionals and recruiters can select the ideal candidates easily using vast datasets analysis of online databases and publicly available candidates’ information. Identifying the suitable candidates with matching requirements becomes a job of sorting based on key performance metrics of the complete set of candidates. Big data also makes it possible to find more applicants per opening and more effective lead sources.

A Larger Pool of Candidates

In the rarest situation, the recruiting manager instantly finds the right candidate to hire. However, in a normal scenario, the recruitment manager requires interviewing more candidates. The most unpleasant problem is not getting enough pool of candidates to interview.

Big data can address this problem by using analytics instruments. Vast datasets can reach a larger pool of candidates for interviews and selection. A bigger pool of talents can help better interpret and optimise the hiring process by addressing skills gaps and future hiring requirements. Data streams can help have a line-up of candidates ready to interview, thereby making the hiring process faster.

Enhancing Development and Retention Initiatives

Recruitment of the right candidate does not end the process to a full stop. The recruitment process goes deep inside the employment and up to training and retention. These follow-up programs should be successful. Otherwise, the whole selection process may end up a waste of time and money.

Large-scale data can contribute to employee training and retention. The HR department can evaluate the effectiveness of a training and development program. These studies can also search for ways to improve and simplify the training methods. Studying these data analytics can help craft better employee retention strategies, resulting in increased job satisfaction among the employees.

Optimisation of Hiring

Over-hiring and under-hiring can result in losses in a business. The former creates additional costs incurring direct monetary losses, while the latter can affect/lower productivity causing indirect losses. The recruiters and HR managers can avoid such unfavourable situations by adopting data-driven hiring plans. These plans can continually be updated based on the needs of the company.

The data processing may also consider the forecasts based on the analysis of various recruitment factors like attrition, lateral movement, promotions, and quality of hire. Big data may also help remove bias in recruitments.

Lowering the Cost of Recruitment

Large-scale Data Analytics provide the hiring departments with a complete view of overall performance versus budget. Data examination can immensely help streamline recruitment spending by utilising the complete picture of the recruitment processes. These studies help the hiring managers determine which lead sources have produced the best quality hires, which job ad campaigns have resulted in more applications, and which platforms have attracted which types of candidates.

The top-level managers can utilise all of this information and make data-backed decisions on where to invest money, be it on mentorships or advertising. Finally, big data studies result in cost savings.


These five points discussed are just the very few among the many other aspects of a complex recruitment process that big data studies can improve.

The hiring managers can improve the candidate experience, recruiting capacity, and speed of hire by utilising analytics-driven facts and figures, thereby intensifying the employer’s brand image.

The essential factors that remain are finding the data, classifying it with data scrutiny, and deriving relevant insights from the examined data.

More data is not always better if not analysed and inferred correctly. Companies should not go for vanity metrics which are redundant in recruitment processes. The recruiters have to invest in learning data science and extensive datasets processing. The knowledge of data science and analytics would help adopt the appropriate analytics tools.

There is much opportunity to go for data-driven recruiting, and it would help optimise the whole recruitment process and save considerable time and cost.

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