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The power of data in employee recruitment and retention

Talent Assessment | 6 Min Read

The power of data in employee recruitment and retention


Data-driven hiring strategies use valuable information repositories to optimize the recruitment process. This approach eliminates guesswork and unstructured processes because data is the guiding principle for achieving desired organizational hiring objectives. Companies use this data to analyze talent and match highly qualified candidates with the right job skills. New HR technologies, such as applicant tracking systems (ATS), predictive analytics software, assessments, and artificial intelligence (AI) tools, further enable recruiters to make better hiring decisions.


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However, still, many companies are facing employee hiring and retention challenges. It is usually due to a combination of factors, such as economic uncertainties and employees looking for better benefits and development opportunities in their current job roles. To overcome these hiring challenges, human resource (HR) managers need to utilize data-driven recruitment practices to fill open positions without compromising quality.

Data-driven recruitment lays an emphasis on making objective hiring decisions based on the data available. The hiring process goes beyond the usual resume screening and interviewing. Furthermore, it utilizes a range of metrics to track the success of the hiring process and use the insights gained to make the process more streamlined.

The rising importance of data in recruitment can be gauged from the Gem’s 2022 Recruiting Trends report.

According to it, 73% of talent leaders believe data is crucial for staying competitive in today’s fast-changing world. Leveraging data to improve employer branding, onboarding, and employee retention helps hiring managers to upgrade their recruitment strategy.


What are the advantages of data-driven recruitment

The benefits of a data-driven recruitment approach depend on the level of effort and skill invested in this initiative. If a recruiter remains open-minded to an objective approach, then the company may benefit from overhauling the traditional techniques.



1. Data over intuition

Making hiring decisions becomes a challenge for many recruiters when choosing one similarly skilled candidate over the other. Data-driven recruitment provides a solution by uncovering variables that may have been initially overlooked.

For instance, it highlights candidates’ work history, experience, transferable skills, and education, showcasing their suitability index for the job. This kind of data science provides a comprehensive perspective for each hire, enabling recruiters to make objective hiring decisions.

2. Enhance the quality of hire

Analyzing data to gain a comprehensive understanding of skills that potential employees should have help improve the quality of hires. Questions like who they are, where did they complete their education, and what are the common qualities they share allow for examining variables that are consistent with the company’s top employees. Using these metrics helps companies focus on specific candidate qualities in their future hiring decisions.

3. Reduce hiring costs

Focusing on the variables that lead to eligible hires allows companies to decrease their cost of hiring. Hiring managers can identify platforms that consume additional time and money but offer insignificant results and eliminate these programs, resulting in significant cost savings.

4. Improve candidates’ experience

Data helps improve hiring processes to enhance candidates’ experience with the company. Important research points allow for eliminating challenges that could prevent candidates from completing the application process. As a result, it improves and refines candidates’ experience and employer brand.

5. Optimize vacancy and hiring forecasts

Utilizing the available recruitment data makes it easier to identify patterns and trends, yielding deep analytics and insights. This improves forecasting potential vacancies, hiring needs, and associated labor costs.

For example, hiring managers can track the annual employee turnover rate and determine common times of the year when employees are more likely to leave. HRs can also use recruitment data to create a pool of candidates who are readily available to fill the vacant position.

This data can be essential in preparing a recruitment plan and communicating headcount requirements to the hiring team.


Revolutionizing talent acquisition with data

Having access to insightful data from the company’s hiring process can facilitate a business’s growth. It helps understand employees’ requirements and the necessary skills required for hiring advancement.

For example, recruitment analytics offers predictive data for real-time information and the hiring process acceleration. It also identifies top-performing talent within the organization, allowing knowledgeable decisions about career development and progression. An organization can find its most valuable employees and plan for their career development.

Mercer | Mettl’s Leadership Development Test assesses leadership qualities in your potential employees. This includes performance, leading by example, progressing business goals, and promoting innovation. Other tools like pre-employment assessments evaluate candidates’ personality traits, behavior, cognitive ability, domain skills, and communications skills during recruitment. Hiring managers can later evaluate data-driven reports by Mercer | Mettl to gauge efficiency.


How a company should measure recruitment data

Businesses need to identify the relevant key performance indicators (KPIs) to utilize data correctly. The following are the types of recruitment data, ranging from different channels to time and cost metrics.

  • Speed-based metrics: time to hire, acceptance, approval, and onboarding
  • Quality-based metrics: acceptance rate, source of hire, applications per job, candidates per hire, and employee retention rates
  • Cost-based metrics: cost per hire, applications per channel, talent pool growth, and advertisement performance

Organizations should focus on determining which KPIs are pertinent to their high-level goals. If they aim to reduce costs, then they should concentrate on cost-based metrics and optimize their hiring strategy accordingly. If they want to improve the quality of their applicants, then they should analyze metrics around the hiring funnel, engagement, and employee retention.

By analyzing these metrics, high-quality hiring standards can be maintained while expediting the recruitment process. HR tech platforms can be leveraged for relevant data collection and analysis to develop a solution that streamlines the process. This improves employer branding and reputation and attracts qualified applicants.




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Today’s job market is constantly evolving, presenting a myriad of opportunities for hiring optimization. The data companies collect through surveys, assessments, and other hiring technology is the key to hiring success. This is because data-driven recruitment improves cost, candidate experience, quality of candidates, and the entire hiring process.

Utilize Mercer | Mettl’s assessments to hire and retain top talent in your organizations. These assessments offer real-time reports on candidate experiences and challenges during the exam. Explore more about our assessments and proctoring platform on our website.



How do organizations use data for employee retention and recruitment?

In what ways can data make technical recruitment more efficient?

Originally published March 20 2023, Updated March 20 2023

Written by

Vaishali has been working as a content creator at Mercer | Mettl since 2022. Her deep understanding and hands-on experience in curating content for education and B2B companies help her find innovative solutions for key business content requirements. She uses her expertise, creative writing style, and industry knowledge to improve brand communications.

About This Topic

Talent acquisition is all about strategizing for sourcing, hiring, and retaining the talent an organization needs. This blog offers more insights on the topic.

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