75% of executives do not have a high level of trust their data, meaning that they are often wary to fully implement data-driven decision-making processes. When it comes to recruitment, the potential consequences of this are significant as it could lead to firms missing out on crucial talent at a time when they need to be as efficient and productive as possible.

Recessionary pressures are being felt throughout the economy. Now more than ever businesses need to make sure they are doing everything they can to improve their hiring and retention processes for their top talent. Increasingly, this means fully leveraging the wealth of labour market data available and incorporating it into an efficient and coherent strategy to ensure that they have the right people, at the right rates, in the right positions to navigate the uncertain times ahead.

Accurate data can’t be overlooked
As much as it may seem obvious, one of the biggest pitfalls that executives face when it comes to data is inaccuracy. The costs of bad data can cause significant problems, with an estimated 10-30% of a company’s revenue being spent on quality issues such as incomplete, duplicate or unstructured data. The technology that is used to collect data can often be hampered, with accuracy being dependent on how much oversight and data regulation is conducted by humans. Clearly, the value of the data that is collected cannot be overlooked. Companies should look to establish the right data management set-up to quality assess the figures that come into the business to ensure accuracy.

Ensure data is updated regularly
In today’s market, inflation, pay rates and talent supply and demand are changing rapidly. Organisations often overlook the timeline of the data that has been collected or purchased, which means what they are referencing may unknowingly be outdated. Information that was collected six months ago will not look the same as information that was collected today. While using out-of-date information may seem like a minor mistake, it can have big consequences. In order to fully harness the power of data, businesses must look to enlist experts to regularly audit their current data flow and ensure it is using up to date, real-time market data to give them the best possible insights into market conditions at that time.

Overcome potential bias
In order to fulfil business outcomes, businesses need to reflect and identify any possible sources of bias, whilst seeking ways to minimise them. Depending on what data a company is looking for or using, certain markets may be excluded, or if the information is bought from third party vendors, it may be skewed.

54% of technology leaders have said that they are concerned about AI data bias when it comes to retention and hiring of talent. They are wary that data may be biased towards certain skills that the company is looking for, therefore unintentionally casting out certain groups such as those without degrees. In the workplace, a diversity of skills is needed which is why companies should reassess their way of managing the data that they collect.

Furthermore, executives need to look at expanding the amount and variety of data they collect and the number of places they source it from to provide a clearer, more accurate view of market conditions which can aid them in their decision-making processes without the worry of bias.

Remember the relevance
By the time data is needed, it needs to still be relevant. A trend that a business may have collected data for previously could no longer be important, which is why executives need to look at their company and decide whether new technology solutions could help them have actionable figures on hand. Instead of collecting data in the hopes of being able to use it at some point, businesses need to be proactive in turning their information into insight and using it to improve the employee and customer experience. This ensures that what they have collected is relevant, especially when looking at talent retention and hiring as companies need to be on top of HR objectives.

With all the pitfalls that executives can encounter, it is easy to see why some lose their faith in data and forget about the power that it can deliver for a business. Whilst employers are still reeling from the effects of the staffing shortages and high economic inactivity, they must not forget that they hold the key to successful business outcomes if they are willing to use their data more effectively. Executives must ensure the quality and relevance of their data, extract insights that are actionable, and make every effort to remove potential biases, ultimately making data work for their people and their organisation.