A business’s output is often as good as its caliber of employees. Hence, the staff recruitment process is a critical human resource (HR) function that should be done using proper strategies and tools. Moreover, informed HR recruitment decisions directly impact your company’s performance.
Rapid technological advances continuously change how organizations conduct business, including how they hire their workers. Technology adoption in recruitment has seen the growth of data-based consultancies like Horsefly Analytics and others. These companies provide businesses with artificial intelligence or AI-based labor market data and solutions that enable targeted workforce decisions.
Labor market data is compiled from various sources such as staffing agencies, government labor bureaus, online job postings, and online profiles. It enables businesses to make informed staffing decisions, especially during critical executive staff appointments of chief executive officers (CEOs), specialist staff, and regional heads. Labor market data offers priceless insights to start-ups or growing businesses that need to make high-level staff appointments.
As the world increasingly becomes a global labor market and remote work becomes more popular, labor market analytics can help businesses make better hiring decisions from any geographical location. With accurate data about compensation, gender, diversity, and job titles, your HR can recruit the most suitable candidate from a pool.
That said, this article discusses how labor market data can influence your company’s recruitment process.
1. COMPETITIVE RENUMERATION PACKAGES
Your business needs competitive salaries to attract and retain the right skill. However, knowing the perfect compensation package in a different geographical market, you’re interested in expanding into can be challenging. Labor market data provides various sets of information, including salary and benefits ranges for varying levels of skills. In addition, cost of living data from different regions allows you to make any necessary adjustments to your compensation schemes, saving you money.
Changes in the labor market could push your current compensation scheme to a lower market position, setting you up for high staff turnover. Labor market data also enables adequate compensation for existing employees.
2. SPECIALIZED AND NICHE POSITIONS
Recruiting specialists and niche positions in a global market can be challenging and complicated. Labor market data can help you make more informed and objective decisions that identify qualified staff for niche positions. Recruitment analytics can also help when your organization requires highly skilled executives to drive the business during seasons of change, growth, and transitions. Moreover, labor market data provides insights into different candidates’ backgrounds and the qualities that set them apart for such positions.
3. WRITING JOB TITLES AND DESCRIPTIONS
The same job role may have different job titles in other geographical locations. In the same breath, unless clearly explained, the same job description in a job advert may be interpreted differently in various locations. Labor market data allows you to speak the language of your market data, increasing your probability of getting the right candidate. This also reduces the time your business might spend in the job market due to poorly understood job postings.
4. IDENTIFY THE RIGHT MARKETS TO SOURCE SPECIFIC POSITIONS
The growth of freelancing and remote working makes it possible to have a workforce from all corners of the globe. However, in the virtual labor market, it’s common to find different geographical zones specializing in certain job areas. Labor market data makes it possible to quickly identify the right geographical markets to recruit for certain positions. It also provides information about the skillsets available in different regions and information you can use to start a new business line that utilizes those skills.
5. WORKFORCE DIVERSITY AND INCLUSIVITY
Teams with diverse backgrounds can positively impact your company’s productivity due to the variety of skills and talents added to the business matrix. In addition, your brand’s perception improves when it’s associated with providing equal opportunities to people irrespective of their diverse backgrounds. Labor market analytics provide details that contribute to better workplace diversity by providing information like age, gender, and even religious gaps in specific job roles, enabling diverse appointments.
With technological growth and changes in the global economy, HR can benefit from digital recruitment tools, especially when seeking high-level hires in diverse geographical regions. Labor market data leads to selecting suitable job candidates by providing crucial evidence during recruitment. Using labor market data reduces the incidences of returning to the job market a few months after making an appointment and realizing it wasn’t a good fit.
Digital recruitment tools are the future of recruitment. You can readily find reliable labor market data from technological platforms that enable HR success. It’s advisable to seek labor market data from agencies that only provide timely and accurate data that facilitate strategic HR decisions, including critical hiring decisions.