4 Reasons Your Startup Needs a Better Job Applicant Tracking System
Matthew Ogston is the founder and CEO of JobPage.com. a hassle-free social recruiting and applicant tracking system for hiring managers and recruiters. Connect with Matthew and JobPage on Twitter and Facebook .
Building your own startup means you can get great people involved in your business from the beginning. These individuals help you get your business off the ground and set a precedent for the way you plan to manage your business in the future. In order for your startup to be successful, you have to start off with the right people. So, where and how do you find quality people to help get you up and running?
According to another Mashable article. the top three ways to find great talent are by attending networking events, working within your personal network, and making your company a great target. Other means to seek out the best of the best? Utilize social networking to make sure that your job gets under the noses of the right candidates on job boards and career networks.
However, you must keep in mind finding candidates is only half the battle. The other half starts with the screening process. I’m sure you can relate to the archaic process of manually sifting through hundreds of resumes, trying to decide which candidates have the qualifications to go to the next step in the interview process and which candidates don’t. Think of all of those hours spent trying to fill each open position!
As you may know, there’s a much easier, more efficient way to get through all those resumes, but you may have only thought it was reserved for big companies. The solution? An applicant tracking system. Applicant tracking software has been around for some time now, but was utilized mostly by larger companies in the beginning.
Well. not anymore. According to research by Bersin Associates. the market for talent acquisition systems (including applicant tracking) is going through a revolution, which resulted in an 11% increase in growth of the industry in 2010 alone. With an expected 12% increase for 2012, there are now more opportunities for smaller organizations and startups to find an applicant tracking system that works for them.
Still not convinced? Here are four great reasons why your startup should start using an applicant tracking system (ATS) right from the beginning.
1. It is Intelligent Enough to Help Find Candidates
As Bersin Associates noted:
“As in the other HR software markets we study, the applicant tracking systems market is being transformed. Today’s ATS is really an ‘integration platform,’ which not only is used to track incoming resumes, but also connect to sourcing tools and services, assessment tools and services, video interviewing platforms, background checking, job boards, and recruitment outsourcing companies. All these business areas are like planets in the solar system of Talent Acquisition, and to some degree the talent acquisition system is the sun.”
Applicant tracking software is quickly evolving — some ATS platforms pro-actively go out and hunt for the candidates for your positions. Getting your business on this track now will ensure that you find great people in the future. Get started by researching some of the many online providers. Many will offer such features as:
Automated job postings (to social networks and job boards)
Application screening, scoring and ranking
Centralized dashboard of positions and applicants
Automatic communication and tracking
EEOC compliance and tracking
Integrated background checks and personality assessments
2. Screening and Filtering Tools Make the Process Much Easier
ATS services do all the sifting and sorting work for you, so you can avoid the feeling of resume overload. You set up your application for potential candidates to fill out and the software will scan and separate them using a grading system that identifies the top candidates.
How does screening work? By using the data available on social networks and pulling all of the information available on a candidate, an ATS can build up a sort of virtual CV that gives a more accurate and in-depth view of the prospective employees.
3. It Saves You Time and Money
If you are the one doing the initial recruiting, then you really don’t have the time to sit and look through every resume. With what you have learned here so far, it is clear that ATS really takes much of the reading and sorting out of your hands. You can then focus less time and funds on recruiting and more on getting your business up and running.
Let’s take a look at some real cost numbers that Grad Staff came up with for the cost of hiring:
Recruitment Staffing – According to the National Association of Colleges and Employers (NACE), the average cost to make an entry-level hire over the past few years has ranged from $5,700 to $8,900 including college recruiting salaries, expense reimbursement, travel, relocation, etc.
Training – Training costs vary widely by organization. Our research shows that average annual training costs per employee range from $1,000 to $1,500. We would expect that training costs for entry-level employees would be somewhat higher than the overall average.
Also, you can use the cost per hire calculator at HR World. which breaks down each part of the cost for you by:
Internal Recruiter Costs
As you can see, the time spent will really come from the internal recruiting effort through selecting resumes to look at, making calls to set up interviews, interviews, reference and background checking, etc. Much of the initial screening time (and, in turn, cost) can be eliminated with an ATS.
4. You Will Have a Resource Database Built Up Over Time
When you need to fill a current position, or even a new opening, you’ll have easy access to quality resumes in your database collected through your ATS. Every company looks for ways to decrease costs and increase productivity, right?
Now that you have a better idea of how applicant tracking systems work, do you think you’ll utilize this type of software in your startup? Why or why not?
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Every week we post a list of social media and web job opportunities. While we publish a huge range of job listings, we’ve selected some of the top social media job opportunities from the past two weeks to get you started. Happy hunting!