Recruiting Software Costs Less Than Bad Hires
It's not quite like wading through the muck of a raw construction site after heavy rain or wrestling with alligators in a swamp, but talent acquisition is still a hard, dirty job. Trying to peer into the soul of an applicant or head-hunter prospect is tiring at best. Having to perform the same subtle poking and prodding for potentially hundreds of candidates for a critical position is enough to drive even the most level-headed human-resources director a little bonkers. Multiplying that scenario by dozens or hundreds of hiring decisions can lead all too easily to institutional indifference and sloppy procedures that miss warning signs of trouble ahead.
Bad Hires Cost Money
Recruitment is a serious cost centre for the great majority of commercial enterprises. Staff members who review the typical flood of applications must be paid, and interviewing the inevitable dozens of final candidates is an expensive headache. Headhunters typically charge hefty fees for superficially suitable prospects who might or might not be able to hack it in the long run. Typical hiring software often fails to offer more than the most rudimentary functions such as tracking availability, collecting curricula vitae and updating contacts.
In the United States alone, commercial organizations are estimated by experts to expend $105 billion each year on cleaning up the messes created by bad hiring decisions. An unusually incompetent or dishonest employee might inflict damage in excess of $200,000, nor will holding back on filling essential positions save much money. Leaving a critical position unfilled effectively robs the company of profits that might have otherwise been rung up with a productive employee in place. An empty seat can drain upwards of $7,000 a day from the bottom line, which means potentially seeing $210,000 a month in potential revenues disappear while the human resources department fusses over picking the right candidate.
It gets worse. Not only are human-resources staffers under the gun as they fish for qualified hires, they must pass judgement on the performance competencies of disparate prospects, navigate the tricky politics of succession plans, and fulfil long-standing organizational objectives while keeping an eye on the urgency of core functions that might otherwise slowly grind to a halt. Not surprisingly, perfect hiring decisions are as rare as friendly Tasmanian devils.
Smart Recruiting Software
Traditional job postings at old-line career services and other classic candidate-sourcing methods are remarkably inefficient and time-consuming, and the limited information available from such resources severely restrict the effectiveness of evaluation procedures. Recruitment processes have long cried out for drastic improvement, and recruitment software has slowly evolved over the years as computerised functionality has infiltrated every corner of society.
Still, until fairly recently, recruiting software has lagged behind increasingly complex and powerful software packages for managing accounting, business process flow, inventory control, and other core functions. Fierce competition in a global business environment demands squeezing out the last shred of inefficiency in core functions, and talent optimization is no exception. Existing in-house talent can no longer be underused or ignored in crafting a strategy for engaging the formal and informal referral networks that most effectively fill the prospect pipeline for talent acquisition.
Advanced Applicant Tracking Systems
Rather than thrash about with a motley collection of mismatched and oftentimes unsuitable tools, a more intelligent approach invites an integrated application tracking system that automates form circulation, manages communication streams between company stakeholders, acknowledges referrals from current employees, updates applicant status, and imports career profiles from external services such as Monster, Career Builder, LinkedIn, and others.
An especially efficient approach integrates social media recruiting tools to exploit the potential for quickly snatching up high-value recruits before industry competitors catch on to their availability. Indeed, almost half of all organizations that plunge into social media channels for hiring opportunities see immediate, measurable increases in candidate quality, and nearly a third filled their empty seats faster.
Professional Commercial Support
More than a few human-resources managers have found it expedient to rely on sophisticated recruitment software packages to manage their talent-management strategies and to onboard new recruits as smoothly as possible with a minimum of additional training. Companies such as Cornerstone OnDemand have carved out successful niches as providers of professional software for reliably managing talent portfolios. The era of scraping by with a primitive spreadsheet and a few Word documents has passed away, assuming that this crude approach ever did work well.