Cost Effective Applicant Tracking System (ATS) for Recruiters

Cost Effective Applicant Tracking System (ATS) for Recruiters

 

What is ATS?

An Applicant Tracking System (ATS) is a core component for recruitment process. It eases the recruitment process by automating the hiring process—from receiving online applications and reviewing resumes, to interviewing candidates and on-boarding new hires. It is believed that approximately 50 percent of all mid-sized companies were using some form of ATS in 2010, and that number is growing as more companies adopt HR technology.

More Buyers Used Manual Methods in 2013

Statistics show that most buyers in 2014 (61 percent) were still using manual methods, such as email and spreadsheets, when managing their candidate database. However, the percentage of buyers relying on manual methods decreased slightly from 2013, when 67 percent of buyers reported using ATS.

What Type of Buyer Are You?

There are two distinct buyer types of applicant tracking software: recruiting agencies and corporate recruiters.

Recruiting agencies should look for ATS that are candidate-centric. Since a recruiting agency’s full-time job is to source candidates for different clients, being able to compile and search a large database of passive and active candidates is key in order to be able to find the top candidates quickly and easily.

On the other hand, corporate recruiters may well value an applicant tracking system that can integrate with their core human resource information system (HRIS), if they currently use one.

Although these two types of buyers have different needs, it is important to note that the needs of recruiting agencies and corporate recruiters overlap considerably, and the core functionality of most ATS will cover the basic needs of both.

Market Trends to Understand

Web-based software is increasingly used for ATS systems. Almost all ATSs are now Web-based, which streamlines the recruiting process for the recruiter, current employees and applicants. With a Web-based ATS, it is easy to extend access to the system to anyone in the organization who is involved in the hiring process.

Social recruiting is on the rise. The best ATS are now developing social-driven referral programs—allowing current employees to directly refer candidates—as well as tools to monitor which networks are delivering the most candidates.

Recruiters are going mobile. Recruiters are quick to try new technologies that make their jobs easier. The prevalence of mobile and video technology as recruiting tools is growing.

Top Requested ATS Software Feature, 2014

1. Job board/careers page posting
2. Searchable database
3. Reporting
4. Candidate tracking
5. Note-taking
6. Resume parsing
7. Social media posting
8. Email integration/automation
9. Compliance tracking
10. Software integration
11. Online application integration
12. Pre-screening assessments
13. Interview scheduling
14. Mass emailing
15. Applicant ranking
16. Referral tracking

Top Reasons for ATS Software Purchase

1. Efficiency of recruitment process
2. To increase Company growth
3. Current recruitment systems missing features
4. Consolidate systems
5. Current recruitment system is cumbersome
6. Modernize the recruitment process
7. Current recruitment system is expensive

 

Benefits of Using an ATS

The recruitment process can be arduous for both employers and candidates, but with a functionally robust ATS, companies can save time. From sourcing candidates to tracking current applicants and ultimately hiring the ideal candidate, an ATS will reduce the time and expense of hiring new employees for both HR departments as well as recruiting and staffing agencies.

The real-world results of using an ATS are compelling. For instance, the hiring cycle in a Company dropped from 115 days to 37 days when the company implemented the prominent ATS solution. The time saved reduced the cost per hire, which could be as high as $10,847, to as low as $3,300.

In another instance, a Software Company implemented ATS resulting in an overall cost-per-hire decrease of 71 percent.

Bottom Line:

The market for applicant tracking systems is mature. But while many vendors have mastered the basics of tracking communication with candidates through the hiring cycle, as well as the ability to store and search that data, buyers are seeking more: they want the latest and greatest innovations in this space.

In 2014, more buyers are seeking a new ATS to replace an existing solution. This is a change from 2013, when significantly more buyers were seeking software to replace the manual methods they had in place. Social recruitment is growing quickly, and the ability to post on job boards and social networks is a feature that an increasing number of buyers require in their new ATS purchase.