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Hiring the right talent for your organization is imperative by any metric; growth, efficiency, innovation and morale, to name a few. Without the right team behind you, you will only get so far. So with this in mind, when you’re looking to hire for a new position and you’re faced with a large pool of seemingly great applications, how do you pick the right one?

Instead of going through hundreds of resumes and manually screening them one-by-one, here’s one smart move you can make to attract and hire the right people: performance review analytics.

What are Performance Review Analytics?

Let’s put hiring to one side for a second. To start with, performance review analytics is the systematic analysis of data collected from existing employee performance reviews to gain insights and make better decisions about workforce management. This data includes:

Quantitative metrics

These are measurable data points that reflect employee performance, such as attendance records, productivity rates, project completion rates, sales figures, and customer satisfaction scores.

Qualitative metrics

These are non-numerical indicators used to evaluate an employee’s performance and behavioral attributes. These indicators include communication skills, teamwork and collaboration, problem-solving skills, flexibility, and adaptability.

Employee self-evaluation

Self-evaluation provides valuable insights into an employee’s perception of their own strengths, weaknesses, and areas for improvement. Self-evaluation allows employees to engage in self-reflection, take ownership of their performance, and think critically about their own professional development.

How Can You Utilize Performance Review Analytics to Improve Hiring Decisions?

Leveraging performance review analytics empowers organizations to make more informed, data-driven hiring decisions that lead to better business outcomes. Here’s how.

Identifying Key Performance Indicators (KPIs)

Performance review analytics help identify the characteristics and competencies of top performing employees within an organization. By analyzing the key attributes of successful performers, recruiters can create detailed profiles to use as benchmarks that a top-ranking candidate should reach. This ensures that candidates who demonstrate desirable traits and capabilities are prioritized during the hiring process.

Creating Job Descriptions

The insights generated through performance review analytics can be used to craft job descriptions that reflect the skills of currently successful employees. This helps to set clear expectations and attract candidates who are more likely to excel in the role.

To give a simple example, a sales organization may find, through performance analytics, that successful salespeople who excel in closing deals tend to possess strong negotiation skills, relationship-building abilities, and a deep understanding of the market and customer needs. Being equipped with these insights, a recruiter can tailor the job description for a new sales position to put emphasis on those specific qualities, leading to better hiring decisions.

Establishing Structured Interview Processes

The insights gained from performance reviews allow companies to develop a set of behavioral and situational interview questions that are aligned with the actual requirements of the role. This approach reduces bias and allows for a more accurate side-by-side comparison of candidates.

Hone Your Talent Acquisition Strategy

By analyzing performance reviews data, companies can determine which hiring strategies are effective and ineffective. For example, if high-performing employees often come from referrals, this insight suggests that the company should invest more resources in employee referral programs.

Furthermore, performance review analytics can help companies anticipate future hiring needs. By examining performance trends over time and correlating them with business growth projections, companies can forecast when and in what areas they will likely need to expand their workforce. This enables organizations to plan recruitment efforts strategically and have the right talent in place to support future business objectives.

A real-world example of a company that leverages data-driven hiring is Google. The tech giant’s approach to HR, known as “people operations,” utilizes data analytics to pinpoint the notable characteristics of exceptional employees. This has contributed to Google’s renowned ability to build a world-class team and attract top talent in their industry.

Consumer goods company Procter & Gamble has also implemented analytics to assess candidates for particular roles, focusing on interests and work-related attitudes, and measuring their compatibility with P&G competencies. This has resulted in reduced employee turnover and a marked improvement in job satisfaction.


The challenges of finding the right talent have shone a spotlight on performance review analytics and its importance. By analyzing the performance data of existing employees, the key characteristics, skills, and experiences that lead to success in different roles can be identified. These valuable insights can then be used to create better targeted job descriptions, filter candidates more effectively, and, ultimately, make better hiring choices.


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