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25+ Stats About Data Driven Recruiting From the Greenhouse OPEN Conference

Last week we attended the Greenhouse 2019 OPEN conference, where 1,000 Greenhouse clients and talent acquisition professionals spent two days talking strategy, tactics, and the rapidly changing landscape of the talent acquisition ecosystem.

We were particularly interested in the topics and themes focused on data-driven recruiting to learn how some of the best companies in the world think about using data to make their recruiting process more efficient, predictable, and successful. We took copious notes during the sessions, and below are some of the takeaways from the event.

Industry Benchmarks

Katie Josephson from Thrive Capital hosted a session to share talent metrics from a recent benchmark report across their portfolio of high growth startups, which are distributed evenly across Seed through Series D+, and a wide range of industries like B2C, FinTech, Enterprise SaaS, Healthcare, etc. Following are some key stats:

Company Culture & Heath

Top Level Recruiting Metrics

The key to measuring against the benchmarks is having a well-defined internal scorecard that becomes more robust as the business grows, and also the right processes to capture accurate data.

Applying Data to Your Recruiting Process

Shane Noe from Box and Nick Reylan from Squarespace walked through their respective approaches to creating a data-driven recruiting process. They agreed there are three key things to focus on as a base for becoming a data-driven recruiting organization:

  1. Data is only as good as it is accurate. For example, time-in-stage -- make sure the team updates on time and it doesn’t get muddied with other factors.
  2. Data is only valuable if people have access to it. If Recruiting isn’t sharing data, it feels like a black hole to the rest of the company. Make sure your hiring team (executives, hiring managers, sourcers, coordinators) has access to the data in consumable and understandable formats.
  3. Data is only half the story. It really just signals where to focus your optimization efforts.

For both Shane and Nick, it starts with a recruiter capacity model. Shane walked through his approach, which includes the following:

Once a recruiting capacity forecast is established, leverage data to optimize the steps in the current recruiting process. Some key points:

Where Does AI Fit in the Recruiting Process?

Moving from planning to tactics, various panelists shared that while they believe Artificial Intelligence can be valuable to their recruiting process, it was tough to decipher what is real versus smoke-and-mirrors. A point that came across clearly was that out of the ten things a recruiter has to do all day, the one thing AI does better than humans is source candidates.

A point of reference was made to examples of how AI has benefited other tasks where individual selections are made from thousands or millions of choices. In the consumer world, you can see this in action with Netflix movie recommendations and Spotify’s Discover Weekly Playlists. When using these services, the user saves tremendous amounts of time reviewing a personalized set of movie and music choices instead of having to guess what to search. The AI models ultimately find highly relevant media the user wouldn’t otherwise discover.

The same approach applies to sourcing. Instead of requiring a recruiter to think of all relevant keywords and searching candidates one by one, AI models can take job requirements and analyze millions of data points to return candidates. Just like Spotify Discover Weekly, it will return highly relevant candidates the recruiter wouldn’t otherwise find.

We regularly see AI having the following impact with Upsider clients:

To learn more, check out the Impact of Artificial Intelligence on Recruiting Whitepaper, where we break down the components of an AI-driven sourcing model and the steps to getting started.

Email: the Recruiting Workhorse

Despite many calls for the death of email, it still chugs along as the most effective communication channel for both consumers and businesses. eCommerce sites drive up to 40% of their revenue through email. The average person checks their email 15 times per day, or every 37 minutes.

Key high-level stats about email and recruiting:

When creating personalization, there are three levels to consider. Just remember, each level of personalization increases the positive reply rate. It’s important to analyze time versus conversion for each level. More junior roles lend themselves to less personalization, but if you’re trying to recruit a data scientist out of a pool of only 50 people, 1:1 is the way to go. Three levels:

  1. Bulk Messaging: using the same content for all candidates.
  2. Bulk Personalized: creating tailored content for a targeted segment. For example, engineers coming from financial service backgrounds would receive content relevant to their specific industry and how it relates to the open role. (The Upsider AI targeting engine makes this segmentation very easy to execute.)  
  3. Individualized Messages: Taking time to write 1:1 messages for each candidate. It will drive the highest conversion rate, but will also requires the biggest time commitment.

Another great capability of email is the ability to test various components of the campaign to improve overall performance. Key testing areas include:

We see the combination of AI candidate sourcing and email testing as a huge opportunity to improve the efficiency and success of the sourcing process. This is why we built the Upsider platform to have AI sourcing and email testing/sending fully integrated. The data from each step drives the performance of the other step, and a fully integrated solution will deliver the best results.

It’s an Exciting Time in Talent Acquisition

The Greenhouse team put on another excellent event, and we were excited to see data-driven recruiting as one of the key themes throughout the client sessions. We’re only in the first inning, and as a company that’s focused on helping Talent Acquisition teams leverage data and AI to execute more successfully, we look forward to working with organizations to help them achieve their recruiting goals.

To learn more about Upsider, check out our product overview or sign up for a demo.