What is Talent Market Analytics?
The incorporation of intelligent software in all business activities has made them the supporting wheel of entities across the world. One such field which has adopted Business Intelligence and Analytics tools as the basis of its operation is the Talent Market. As a result, Talent Market Analytics is the tool that collects external data on labor supply and demand. Based on this data the framework such as salary benchmarks, retention rate, cultural expectations, etc is defined for the candidates. The data used for the purpose can be a job posting on career sites, skill data, National and regular salary surveys, etc.
Use Cases for Talent Market Analytics
Talent Market Analytics certainly has far-reaching impacts on how the world sees the human capital as. Besides this, it can be seen as impacting the basic managerial activities of the organization. Hence, the scope of Talent Market Analytics is stretched to all levels of the organization.
|Business Planning||These analytics play important role in letting employers make the right choice for the high–quality talent that matches their organizational culture. Using the talent intelligence the employer supports organizational diversity, change, emerging top talent, the branding process, and office location to ensure it all goes well with the organizational initiatives.|
|Workforce Planning||The Talent Market Analytics can be of great use for mapping skill trends, and the potential of the talent pool, examining opportunities, reducing cost & time to hire, determining the geographical suitability, and understanding the gaps in the talent market while figuring out the solution to them.|
|Talent Acquisition||Acquiring desired and right talent isn’t a smooth sail anymore in the growing competition. As a result, this analytical tool helps to headhunt targets, meet their expectation, and build an environment of credibility with the internal stakeholders.|
Examples of Talent Market Analytics
The Talent Market Analytics has vast use cases with make it the talk of the analytics town. It is potent to solve the basic yet highly crucial problems of the organizations relating to talent acquisition and retention.
According to LinkedIn’s 2020 Talent Trends Report, Discovery Limited implemented Talent Market Analytics in its operations in the year 2017 for lowering the attrition rate of 16000 people. On the other hand, South African-based Global Financial Services Company got the “Human Capital Dashboard” built to record the analysis of complete organizational structure that focused on individual’s headcount, recruitment, retention, engagement, demographics, diversity, compensation, and inclusion.
Metrics used for Talent Market Analytics
There are several criteria for determining the performance of the Talent Acquisition team and understanding employee satisfaction. Some of the key metrics used for Talent Market and Acquisition Analytics are as follows:
|Turnover Rate||This metric focuses on tracking the rate of leavers as turnover gives the idea of the company’s weaknesses at multiple levels. It is calculated as Number of Separations/ Average Number of Employees * 100.|
|Retention Rate||It focuses on the employees who are retained and terminated by the employer due to one or the other reason. It is calculated as the Number of Employees at the end of the period / Total Number of Employees. This metric is also useful in determining the performance of the manager and their relationship with the employees.|
|Workforce Distribution||The demographic distribution of the workforce i.e. in terms of age, gender, and other factors. The distribution calculation proves important for equity, diversity, and inclusion of the DE&I project. This metric also provides a strategic and financial advantage to the companies and supports their business planning.|
|Career Path Ratio||The metric measures the mobility and effectiveness of the internal mobility program. This includes the movement of employees into lateral or higher levels or designations in the company. It is determined by summing up the total promotions and transfers of the individuals.|
|Skill Gap||The growing skill gap in the organization for a long time can bring adverse effects. Thus, the skill gap shall be timely addressed and required measures shall be taken to ensure that the right fit is deployed in the organizational culture.|
|Yield Ratio||This ratio measures the hiring efficiency of the organization by calculating the number of candidates who are qualified to hire. However, this is measured in several phases which include Applicant to Interview, Interview to the Job offer, and Job Offer to Hire Yield Ratio. As a result, it defines the hiring productivity of the organization.|
The business KPIs relating to Talent Market Analytics allows businesses to delve deeper into understanding what the real-world scenario of the Talent Market looks like. The Talent Market software is a big gain to make the small change happen towards achieving a positive work culture in the organization by providing remarkable data sources and delivering maximum potential.