HR managers have a significant role to play in ensuring that organizations attract and retain the right talent. As the first people that applicants encounter in the interview process, they must make sure that they are representing the culture and values of the organization in a positive manner. Getting it right during every interaction is essential because a negative candidate experience at any point in the interview process can deter an applicant from continuing or convince them to decline an employment offer. These are also experiences that people share with friends and family, which can convince an even larger group of people not to consider jobs at an organization.
Along with reputational challenges, organizations are also facing challenges in retaining employees. The propensity for younger employees to hop from one job to another in search of better opportunities has ballooned into a "Great Resignation" as workers voluntarily leave their jobs in record numbers. While the reasons for their departures vary, the most common reasons given by professionals are more flexibility, higher pay, or a desire for a more meaningful job. This phenomenon that began in 2021 has continued at pace in 2022 and shows no signs of slowing down. In fact, a PwC study notes that one in five workers are likely to switch employers this year.
Employers in certain industries may also find it tougher to stand out from competitors and attract the most qualified professionals. In the tech sector, for example, long-term talent shortages are exacerbating hiring challenges. Research from ManpowerGroup indicates that three in four employers worldwide are having difficulty finding the talent they need. Additionally, the workforce solutions provider's North American President noted that "As U.S. employers face the highest skills shortages in over a decade, the relationship between employer and employee is shifting." This shift is working in employees' favor creating a buyers market of sorts in the recruitment space as organizations work harder to fill vacancies and retain workers.
What these facts mean for employers is that it is more important than ever to be flexible in response to the needs of prospective employees, invest in training current staff, and think outside the box about current and future resource needs. The longer this imbalance between companies and employees persists, the more an organization may struggle to innovate and grow.
The good news is that HR managers are aided by the rapid emergence of new recruitment solutions that are allowing them to support a broader talent acquisition strategy and be more focused on their hiring efforts. Recruitment solutions like an Applicant Tracking System also help HR teams to streamline activities - like parsing through large numbers of applicants across multiple channels and managing job listings across channels - and shorten the overall hiring process. Recruitment technology also enables HR professionals to shift their focus to managing the candidate experience to ensure that applicants do not drop out of the interview process. Before getting deeper into how an Applicant Tracking System can aid HR teams in their hiring activities and improve their outcomes, it is first essential to establish what this tool is.
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What is an Applicant Tracking System?
While organizations and HR departments use many solutions to manage their operations, the tool that is most ubiquitous is some form of the Applicant Tracking System. Early methods of tracking applicants to an organization were done with spreadsheets. However, cloud-based software solutions have been introduced that cater directly to the needs of HR professionals. Today's solutions consolidate job postings from career pages, job portals, and social networks into a single database so that HR professionals can quickly identify the right candidates for a vacant job and manage listings effectively. Regardless of the number of candidates, an Applicant Tracking System uses AI technology to identify the most qualified professionals in minutes instead of over the course of days or weeks.
The most comprehensive solutions also combine applicant information from multiple sources - such as their resume and social networks - into candidate profiles. This is accomplished seamlessly in the cloud, and the information is updated automatically. These features ensure that HR professionals are always capable of working simultaneously with 24/7 access to the latest information.
Teams can also customize the hiring pipeline to automate the steps in the process. Communications with candidates and notifications can be sent in batches to reduce administrative time for HR professionals. This ensures that applicants have consistent experiences and that no one is overlooked in the interview process. HR teams can also track relevant stats about their hiring activities and identify potential problems that could be driving up turnover rates.
A common criticism of earlier generations of Applicant Tracking Systems is that the reliance on parsing resumes by keyword or over-simplistic criteria increases the chances that recruiters are missing out on qualified candidates. In some instances, these tools have also reinforced humans' innate biases and continued discriminatory hiring practices. These seemingly minor oversights can have far-reaching implications in the workforce. Researchers from Accenture and Harvard Business School concluded that hidden workers - professionals seeking employment who are working part-time jobs or have been unemployed for a long period of time, either intentionally or unintentionally - are being restrained by a few key barriers:
- An increasing training gap;
- Inflexible uses of automated recruiting systems;
- Failure to elevate the business case for these workers beyond corporate citizenship initiatives.
Overcoming inflexible recruiting systems that facilitate biases will require a shift in mindset to more inclusive hiring practices. This means that HR teams should strive to rewrite job descriptions to encourage rather than deter applicants and focus job listings on the skills that candidates will need to succeed in a role. Just because technology is being used in the process does not mean that the human element should be completely removed from talent acquisition. It is not only better for employee retention and company reputation, but it is also the right thing to do in the long run.
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Why it's important for organizations to get hiring "right"
For HR organizations, hiring the right person to fill a vacancy the first time is essential for a variety of reasons. While the reasons may seem counterintuitive, it is important to delve into why the right hire at the right time can be hugely beneficial to organizations.
- Cost-effectiveness - The hiring process for an individual hire can be very costly depending on the type of role and the level of experience you are seeking from candidates. Additionally, expenses such as a recruitment team, posting on job portals, maintaining a career website, and background checks can quickly add up. Indeed puts, the total costs of hiring at anywhere between $4,000 and $20,000. Inefficient hiring practices can also extend the time-to-hire from when a job vacancy is posted. Just imagine replicating these costs across multiple jobs or if there is high employee turnover.
- Improved employee engagement, productivity, and retention - Companies that apply a well-thought-out strategy to their hiring activities tend to end up with employees who are happier, more engaged in their role, and more committed to staying for a longer period of time. Researchers from the University of Oxford, Erasmus University of Rotterdam, and the Massachusetts Institute of Technology (MIT) found that happy employees are 13% more productive. While this may not seem like a lot, any advantage will make all the difference in the current economic environment. These employee sentiments help organizations maintain competitiveness and also contribute to the bottom line.
- Increased customer satisfaction, innovation, and revenue - More engaged and productive employees are generally more committed to the overall success of an organization - especially if they are clear about their role in helping the business grow. Many studies have come to the conclusion that happy employees make for satisfied customers, and that seems logical. Just think of a recent customer service interaction you may have had with a bubbly, helpful representative. Didn't that make you want to make another purchase with that company, even if your interaction was to fix an issue?
How HR Professionals Can Use Applicant Tracking Systems to Their Advantage
Business leaders know that buying a technology solution on its own will not turn around any company's operations. It has to be paired with a solid, long-term strategy that is aligned with the business objectives of the organization. Modern Applicant Tracking Systems are a powerful support tool for ensuring that HR departments have inclusive hiring practices that drive broader talent management plans. Making hires to support the long-term health of the organization, as opposed to hiring to simply fill vacancies, also helps HR leaders demonstrate their value to others in the C-suite.
An Applicant Tracking System can also free up HR teams to focus on making candidate experiences positive. It empowers recruitment professionals to take more control over the interview process and the candidate experience. With the Applicant Tracking System automating the steps of the interview process, HR professionals can devote their time to cultivating relationships with applicants and paying attention to their individual experiences.. It also shortens the overall process, which helps to prevent candidates from dropping out in favor of another opportunity. In job functions like engineering that can take up to 49 days to fill a job vacancy, shortening the process can make a huge difference.
This is extremely important because it can mean the difference between a successful new hire and a declined offer. Negative experiences can also have an impact on an organization's reputation as candidates may share their encounters with family and friends. According to the Talent Board, the higher the candidates' resentment, the less likely they are to apply with the company again or refer others.
Another common issue that HR professionals historically faced was outdated databases. As online hiring and recruitment have gained popularity, maintaining a large network of talent and keeping information up-to-date is harder than ever. With a cloud-based Applicant Tracking System, HR teams can be certain that they are always accessing the latest profile information. As previous applicants change their LinkedIn profile information - for example - the new details are automatically included in the HR database. These features of modern Applicant Tracking Systems support HR teams from the interview stage through onboarding.
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Boost your HR activities with Manatal
Applicant Tracking Systems are a powerful tool for HR professionals seeking to gain the upper hand in their talent acquisition activities. Although most organizations are using some form of an applicant tracking solution, HR departments can stand out through the manner in which they utilize the solution - i.e., in support of long-term talent acquisition and retention strategy. With Manatal's easy-to-use, AI-powered Applicant Tracking System, HR teams gain a solution that streamlines and simplifies all of their hiring activities, from recruitment to onboarding.
Begin a 14-day free trial with Manatal today to take your HR team's talent acquisition activities to the next level.
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