Comparing Talent Data Sources: What Measurements Matter?

Not All Data Is Created Equal 

The decisions an organization makes are only as good as the data used to inform them. As discussed in the previous blog in this series, talent data has evolved and encompasses a range of sources, measures, and types. Not all types of data have equal value, so how do you know that you are using the right data for critical decisions that affect business outcomes?  

Understanding what an interview offers compared to an assessment center, or a resume compared to a personality test, can help define and improve the effectiveness of talent acquisition (TA) and talent management (TM) strategies. Reviewing scientific research, we compared common types of talent data to see how they stack up across four key attributes: value to business, predictive power, time to capture, and potential bias. Here are the top performers for those attributes.

Value to Business

Talent data can go out of date very quickly and can often only provide a point-in-time view of the candidate or employee. When making decisions, it is worth considering if the data collected can provide value over extended periods of time and be used for ongoing development and management of talent.

Most Value to Business: Personality Tests

Assessments generally provide greater business value due to the more rigorous and scientific approach to measurement. Our research showed personality tests were the most valuable to businesses as they can be applied across many different TA and TM use cases while exhibiting relatively longer shelf life over time. By applying different lenses, the same data can be reused over an extended period of time to check how the workforce is placed to cope with strategic initiatives, identify high-potentials and development initiatives that may arise as the business adapts to market and industry trends.

Predictive Power

Talent data that is used to measure skills and capabilities in particular should be based on research and proven methodologies that have shown to predict outcomes accurately and reliably. When it comes to making decisions, knowing that the data you are basing decisions on measures what it says it measures can provide the confidence in your hiring, development, or mobility needs.

Data Source with highest predictive power: Skills Assessments, Structured Interviews

Skills-based hiring and skills-based talent management have grown in popularity over recent years, and it’s easy to see why with skills assessment ranking highest in predictive power. The right skills assessments can provide a comprehensive understanding of behaviors and fit for open roles across departments, unlocking greater insight into your workforce and enabling you to maximize employee value.

Interviews are still an important part of an HR team’s assessment process; whereas unstructured interviews can be poor predictors and offer little value to the business, structured interviews are amongst the most effective ways to evaluate a candidate or employee. Whether in-person, live video, or on-demand, equipping interviewers with job-specific, validated questions and scoring guides tailored to the skills and criteria critical for each role promotes consistent, transparent evaluations and fairer hiring decisions.

Time to Capture

HR teams are under immense pressure to deliver on a wide-range of tasks, so the time it takes to capture useful data is a priority. However, as our investigation shows, those data sources that are quickest to get data from are more likely to offer less value to the business and be more open to bias.

Data Source that is quickest to capture: Resumes / References and Self-Identified Skills

Data sources such as resumes, references and self-identified skills are quick for an organization to collect as they rely on the candidate or employee to self-assess their own skills, but these can vary wildly in consistency, making fair comparison near impossible as people often under-estimate or over-estimate their abilities--already prompting some organizations to kill off the resume.

However, they can still play a role in talent acquisition by providing an initial snapshot of achievements, qualifications, and experience, together with useful biodata such as contact details, but they should only be used to support, rather than be relied upon for decision-making.

Potential Bias

It is critical that organizations are aware if any of their decision-making is based on data that is heavily biased and work to reduce this bias as much as possible. This is not only for legal and ethical reasons, but also to improve and encourage a wide range of backgrounds and experiences in the workforce which is essential to drive better business performance, improve innovation, and foster great teamwork.

Data Source that is least susceptible to potential bias: Personality Tests

Personality assessments scored the lowest in our research into potential bias, making them a powerful tool to fairly and objectively identify the talent that is best suited to a role. Workplace personality tests are designed to measure work-relevant traits and behaviors that are less connected to culture and demographic characteristics. By measuring each candidate in the same manner, using scientifically driven methodologies, organizations can determine which candidates are best suited to given job profiles, likely future performance, motivations, and potential to ensure decisions are made purely on role-fit. 

Download our infographic and discover how nine common sources of talent data stack up across all four key attributes.