Applicant tracking systems (ATS) have revolutionised recruitment in the last few years. Online Recruitment Magazine has compiled an overview of the technology, looking its past and present roles and what the future may bring. We talked to some of the players in the market; David Morgan of Jobmate.biz, Nick Bird of Ceridian Centrefile, Mark Kieve from the Internet Corporation, Rebecca Herson from Redmatch and Craig Johnston from Intronet for their views and insight.
David Morgan introduces the concept of applicant tracking systems (ATS) and why employers should use them:
"You will already have applicant tracking in your organisation if only at the most basic level of paper notes in a folder. As the general recruitment process is quite well defined it has lent itself well to being moved to the virtual world. Any aspect of recruitment that is not part of the computerised process will lead to a significant slow down of the whole process as data becomes difficult to track."
Nick Bird agrees that there have been problems with recruitment paperwork in the past: "Recruitment can sometimes end up being buried under so much paper and emails that you can barely keep pace. That is because it has proved hard to automate with traditional client server technology due to the large number of external stakeholders involved." Mark Kieve explains how using system based applicant tracking works: "It's all about streamlining. Everything from vacancy posting to candidate management to skills-matching is accessible from one central source." David Morgan gives another example: "Applicant tracking systems are essentially process management and reporting tools. Putting this process on to your recruiter and line manager's desktops will provide a quick method of sharing recruiting information and providing a good audit trail to help you spot any weaknesses or bottlenecks in your recruiting operation."
He goes on to explain the key features of an applicant tracking system:
A database. This is where you store the data and CV's of your applicants, as well as any other correspondence that you send or email to the candidate. It needs to be big enough for your needs now and it needs to be able to grow with you. It also needs to have good searching functionality so that you can find data quickly and easily. Keyword functionality is no longer acceptable for searching CV's - look for intelligent search agents.
A filtering/narrowing function. This will allow you to manage the selection of those to be advanced to the next stage of the process. It needs to be configurable so that it can be set up to mirror your current process, rather than you changing to accommodate the software,
A calendaring function. This will allow you to schedule phone calls and appointments with your candidates.
A contact management function that allows you to manage your relationships with applicants and potential candidates.
Reporting. It is always useful to show the boss what you have been up to! Good reporting will also provide an audit trail if you have any issues with discrimination in the hiring process.
Easy integration with other company software such as the payroll system, Outlook and your word processing program is a 'nice to have' feature."
As technology has developed over the years, these applicant tracking systems have gained more and more functionality. Craig Johnston from Intronet says their ATS has evolved considerably from the original created in the late 90's and now offers an end-to-end hiring process; sourcing, recruiting, on boarding, redeployment and is moving towards addressing the entire lifecycle of the employee. "It is no longer just a matter of filling a vacancy, it is about planning and predicting that vacancy, identifying the right candidate/talent pool and managing that talent throughout their time with the organisation." As he points out, we are now in the era of the paperless office and he tells us a fundamental change in recruitment is the introduction of more and more sophisticated Applicant Tracking Systems which are accessed through the web. He foresees that "In the not too distant future these solutions will become commonplace throughout the industry. A complete ATS will contain the vital ingredients of self-service vacancy requests, job description templates, vacancy tracking, interview scheduling, automatic scanning and storage of paper based applications, SMS messaging, email responses and rejection letter templates."
The latest versions of applicant tracking are part of holistic recruitment management packages that make handling information an even simpler process, but also have other benefits, as Nick Bird explains: "These technologies, such as 'Talent Acquisition Management' use the new web-based technologies to integrate the whole process with portals not only for hiring managers but also for applicants and even for agents working for the business. That means big savings in time for the recruiter and costs.Taking just one example, accepting online applications not only means cutting out administration but also allowing the applications to be pre-screened and targets the effort on good candidates rather than dealing with people unqualified for the job. The data submitted is also collected in a searchable database that can be mined in the future for free. That means big cost savings and more time for the recruitment team to spend on thinking strategically." In fact, says Mark Kieve "The benefits to employers are fundamental – you reduce the time it takes to hire and the money it takes to recruit. In many cases you're looking at saving up to 40%." He also emphasises: "There are plenty of savings that aren't immediately obvious. For example, being confident that you're complying with data protection regulations. The basic online application also protects small businesses, proving candidates have been dealt with fairly. Industrial tribunals can be costly things…"He has also found that using holistic recruitment management increases credibility: "That's certainly been the experience of a number of our clients, who believe their e-recruitment site is upping their profile. And of course this leads to attracting better candidates too."
Our experts see keeping staff increasingly important in the future. "Not only do companies need to attract the right staff, they also need to keep them. Gaining competitive advantage in acquiring talent is likely to become more focused on meeting changing expectations of applicants, for example taking into account issues such as work life balance and flexible benefits" says Nick Bird. Craig Johnston agrees: "In an attempt to secure better staff retention and lower recruitment costs companies will have to look to redeployment as a way of keep employees focused, stimulated and loyal. Resourcing solutions can manage internal redeployment by helping to identify a talent pool of existing staff while giving employees more control of their own career progress within the company. Supplying staff members with comprehensive vacancy searches, e-mailed notification when suitable vacancies arise and progress tracking facilities will excite employees and reduce retention problems."
Mak Kieve sees the impact on one sector of the workforce in particular: "But it's the effect on HR people that's most dramatic. You're putting them in the driving seat. They're able to manage relationships with line managers and suppliers better, they have all the facts they need in one place. So they're more motivated, more efficient, and can use the time saved to focus on key issues such as retention." Rebecca Herson agrees about redeployment of staff and the advantages for recruiters: "Another important benefit is enabling greater access to passive candidates by identifying qualified candidates in the database and inviting them to apply; this can include a company's own employees, enabling a company to promote from within. Ironically, many human resource solutions that are designed to make the recruiting process more efficient actually add to the recruiter's work, since they require keyword searches that pull up thousands of irrelevant candidates. A truly beneficial solution not only tracks candidates through the recruitment process (e.g. circulating resumes within the organization, interview feedback, tests and assessments, etc.) but also pre-qualifies candidates. So each morning, when the recruiter opens up the application, he or she knows exactly who to contact first based on the required job skills for the current openings."
David Morgan is sure that automating recruitment will be cost effective: "Moving your recruiting process from paper to a computer system will benefit any sized business," but he adds that "Measuring the effective contribution of any software to your business is always difficult and in recruitment it is especially difficult as there will rarely be effective metrics in place against which to judge improvements. However, the speed of communication using online job boards and email responses to candidates will usually lead to a significant decrease in time-to-hire, with proportionate savings in the lost productivity caused by empty positions." Rebecca Herson says the "efficient handling of candidates in the system results not only in quicker hires, but often better hires since the top candidates can be contacted immediately, before the competition even notices them under their pile of irrelevant resumes." She says Redmatch offers two versions of Redmatch Recruiter, one that is cost effective for small businesses or businesses that hire only a few candidates a year, and another for larger businesses or businesses that hire extensively.
Craig Johnston points out that embracing these new online systems may well "result in the continued cull in recruitment positions with many roles becoming obsolete. Departments will become smaller yet more specialist. Measurement of cost effectiveness should be easier now with improved technology. The advanced data reporting facilities now available will assist with more accurate measurement of the return of investment of recruitment campaigns. It is vital that Data Analysts are able to access reports to gauge the campaign's effectiveness. The most innovative systems will provide reporting options covering all aspects of management information, ranging from management reports designed for batch delivery to a real-time data mart which can provide online data mining at all levels."
So, for any businesses thinking of getting started, how long does it take to get the software set up and operational? Our respondents say anything from an hour to three months, depending on the system. Rebecca Herson says: "Within an hour a new client can be set up with their own branded corporate career site and back end management tools." David Morgan echoes this: "A simple ASP system can be up and running in less than an hour. More complex applications with customisations and integration to your other IT systems can take weeks or months to implement. It is important that you have a really user-friendly interface for line managers to use as they will only access it infrequently when they are actually hiring. Typically, you should budget about eight-twelve weeks for selection of a system and about three-six weeks for a company-wide deployment. If training for anyone other than the administrator takes longer than a day then my rule-of-thumb is that it is too complex. Mark Kieve's estimate is similar: "In our experience, around six to eight weeks. Our emphasis is on delivering a service rather than simply providing the technology, so the whole process is carefully project-managed and mindful of everyone's deadlines."
There are other considerations prospective buyers should bear in mind when choosing their system, for example clients can sign up per campaign or for long term contracts. Rebecca Herson tells us that Redmatch Recruiter contracts are on a monthly basis, and clients can cancel at any time. Mark Kieve says: "We're happy to work with clients on a one-off campaign and often do so, especially for graduates." David Morgan gives some sound advice: "There are as many pricing models as there are rival applications. A few are priced on a campaign basis but they tend to be tied to specific job boards and may present difficulties in adding candidates from other sources. Choose one that meets your needs. Try to 'futureproof' your choice by building the pricing of any future payments into the contract. Remember that the lifespan of most software packages is now about three years so do not get tied in for any longer than that."
Applicant tracking has expanded almost beyond recognition in recent years, what do our correspondents think will be the impact of this evolution? "Already the days of putting an ad onto a board and getting hundreds of responses is a thing of the past. As the labour market becomes more difficult, with increasing numbers retiring, the need will be to woo applicants and develop passive and semi-active candidates. This will make the contact management aspect of applicant tracking software more important and make recruiting increasingly a 'customer relationship management' activity. With more sophisticated packages expect to see facilities for applicants to track their own applications through your process," says David Morgan. Mark Kieve sees applicants voting with their feet: "Jobseekers expect to apply online at a time that suits them. If you don't offer that facility, you'll be seen as old-fashioned – it's fundamental to the candidate experience."
Craig Johnston also sees the wider impact of this technological revolution: "The predicted continued growth of technology will see increased globalisation throughout the business creating a need for a resourcing system capable of functioning on an international scale. Recruitment technologists must be furnished with a system that is compatible worldwide, has the ability to cope with country specifics such as cultural, legal and language requirements and be supported by multi lingual staff."
All our contributors are unanimous that the future is not just about finding the best candidates, but retaining them, and the way to do it will be using applicant tracking systems.
About onrec:
Onrec.com is the accompanying website to Online Recruitment Magazine which takes an in depth look into the Internet recruitment and the industry suppliers and is printed and published once a month. This website aims to help recruiters and jobseekers find resources available to them on the internet.
Published: Monday, June 6, 2005
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