The original post appeared on Recruiting Trends by Jill Gengler. This blog has been reposted with permission from Recruiting Trends.
You may, or may not know that the adoption of an Applicant Tracking System (ATS) provides the means to alleviate unnecessary expenses currently embedded within the hiring process. An ATS can also greatly streamline the hiring process, multiply the efforts of a small recruitment staff, and give valuable performance feedback to managers.
Yet, with the many favorable reasons for adopting an ATS, there remain many companies which have not yet taken this step. Several reasons are offered for why they have not yet adopted an ATS, with the leading 3 reasons as follows:
- An ATS is expensive: While this was once a very valid reason for many small and medium-sized businesses this is no longer the case today. ATS vendors have realized that one size does not fit all and have thus developed several versions (or tiers) of service in their ATS to address the unique needs of smaller organizations, as well as provide a growth path as these companies scale their operations.
- Integration costs: This also was true in the past, however ATS vendors have worked together to create and support industry standards like HR-XML, permitting software systems and packages to exchange information more easily, thus reducing integration costs.
- Hiring needs are cyclical; ATS costs don’t coincide with business needs: Fortunately, a number of ATS vendors have enhanced their product/service offering so that they can offer their services on a basis other than an annual subscription. There are now a number of vendors who can fill your business needs on per-use basis, thus giving you the freedom to use the ATS when you need it, without worrying about subscription costs when you don’t.
With the variety of service levels, payment options and quality of Applicant Tracking Systems available, you too could take advantage of the benefits of recruiting via an ATS.
- »Job applicants today use job portal sites such as Monster.com and CareerBuilder.com heavily in their job searches. Having an ATS that interoperates with job portals helps to put your organization in a better position, when competing for top talent.
- »Cost per hire drops immediately and significantly. According to http://www.workforce.com, the pre-ATS total cost-to-hire for trained employees averages just over $10,000. The post-deployment average cost can drop by as much as 60%! Even in good times, savings like that are sure to make even the most difficult CFO happy.
- »Not only are cost savings significant, but so are the time savings. On average, most ATS users shave two weeks off the process – thereby making recruitment and on-boarding much more efficient.
- »Many of the new ATS’s are web-based or Software as a Service (SaaS) applications which are easy-to-use and do not require any software installation or internal IT support. Web-based ATS’s can also scale with a company as it grows, adding more capacity and features proportionate the needs of a changing organization.
- »HR professionals love the streamlined process. The workflow of the hiring process is modeled by the ATS and can schedule tasks, auto-generate email and postal mail, as well as pop-up reminders when tasks are due. These features allow HR professionals to focus on value-adding activities they alone can perform, rather than the mundane time-killing tasks before the ATS.
Explore and discover what an ATS can do for your organization. Typical ATS core features include:
- Corporate Career Center
- Proprietary Resume Databank
- Job Requisition and Posting
- Integrated Add-On Modules (Integrity Testing, Background Screening)
- Affirmative Action Compliant
- Automated Recruiting
- Effective tools for On-boarding New Hires
- Track and Report for Superior Performance
- Reach Passive Candidates
- Streamline the Hiring Process
Organizations that adopt an ATS are reporting cost savings of 60%, time savings of 66%, and a noticeable improvement in the quality of candidates entering the system, which in and of itself may justify the decision to implement an ATS.
With over 80 ATS on the market, selecting the right one for your company may seem like a monumental task. However, resources like CareerBuilder regularly publish profiles and advice on ATS options.
As the economy stabilizes and we prepare for the coming upturn in the economy, smart companies are now laying the foundation today for their hiring plans tomorrow.
Look into it!
The original post appeared on Recruiting Trends by Jill Gengler.