Hiring the right employees is crucial to the success of any business. However, traditional hiring methods can be tedious, with recruiters sitting through hundreds of resumes for hours for a single vacancy. Not to mention, hiring for one job usually takes an average of 27 days to complete.
In a competitive job market, the process of hiring applicants needs to be efficient. A 2019 report by Entelo says that 75% of recruiters agree that technology will play a big role in the recruitment process, with many more believing that automating sourcing would make them more productive.
Laborious manual recruitment without reliable data and accurate evaluation can place the organization at risk of hiring unfit candidates, increasing the likelihood of employee turnover. With the right human resource technologies however, employers can attract better talent from the start.
Automating the hiring process streamlines methodologies and narrows down the selection to the most qualified applicants. This not only saves the recruiter a good amount of time; it also helps them make informed hiring decisions, creating better business impact.
Here’s how automating the process of hiring is good for business.
Better Hire Quality
Ideally, employers have the data to know which candidates to hire at first glance. This data essentially informs the company’s hiring decisions, improving employee retention. However, 42% of recruiters do not have the data that can make this possible.
Using recruiting software improves the quality of hires and benefits both employers and prospective employees. Applicant tracking systems gather, store, and track the progress of applications in a database, so that employers can easily access the candidate’s profile and application status.
Applicant tracking systems also optimize job searches and can automatically match candidates against job requirements and employer preferences. Only the most qualified applications reach the hiring manager, saving time.
Moreover, a hiring database allows recruiters to keep a pipeline of talent for future reference.
Even recruiters have biases which can affect a company’s hiring decision. Automated recruitment software eliminates these biases by matching qualified candidates to employers regardless of gender, ethnicity, and educational background, objectively providing opportunities to a wider pool of talent.
The continuous rise of social media also brought many recruitment processes online. Posting job listings through LinkedIn or Facebook allows companies to reach an array of prospective employees, improving diversity and simplifying the process of applying.
Social recruitment leads to increased online visibility, strengthening employer branding. A sneak peak of the workplace culture within the job ad can be very helpful in drawing in candidates.
Moreover, placing job listings online comes at no cost, which is a win for small businesses who are looking for a diverse pool of candidates.
One job opening usually receives hundreds of applications, which recruiters need to manually screen. However, only 2% of those resumes would make it to the interview. Automating the hiring process cuts down administrative tasks, allowing recruiters to focus on engaging more with clients.
In addition, applicant tracking systems create job listings and send follow-up emails, further saving recruiters a great deal of time.
Moreover, an online database with a pipeline of all applications eliminates the need for sourcing in the future, which frees up recruiters from repetitive tasks. In addition, it cuts down on potentially expensive sourcing costs.
Faster Hiring Time
A 2018 Recruiter Nation Survey by Jobvite says that 75% of candidates change their minds about an offer. With top employees off the job market within 10 days, recruiters just can’t afford to miss an opportunity to hire.
Pre-assessment and hiring software both remedy this through automation.
Pre-assessment employment platforms help recruiters assess candidates’ requirements by ranking resumes based on the relevancy of the applicants’ technical skills, personality, cognitive ability, and situational behavior.
Automated hiring software can also be highly collaborative, which means that members of the human resource team can exchange notes and make a collective hiring decision.
Chatbots and virtual hiring assistants have also become common pre-screening tools that can easily respond to inquiries in real time.
Streamlined Interview Process
Hiring managers meet with different applicants at a time, while applicants are inclined to reschedule interviews due unavailability. Automating interview scheduling saves time and avoids mistakes or conflicts that may arise from a manual scheduling.
Using online platforms for interviews is also more convenient for both employers and prospective employees. A survey shows that almost half of 507 companies use video interviews to shorten the application time frame and to accommodate remote applicants.
Less Financial Risk
Bad hiring decisions also increase the risk of employee turnover, which can cost a company $17,000 per employee. Turnovers can also be repetitive, but a workflow system can help employers store data from employees’ exit interviews, leading to more informed hiring decisions in the future.
Keeping a pipeline of qualified candidates in a database, which hiring software can do, reduces financial costs that come with sourcing and hiring. Metrics and analytics also play key roles in providing insight into potential candidates and predicting a return on investment.
Onboarding can be a repetitive manual routine. Automating the onboarding process for new employees allows them to jumpstart their work, as they receive welcome kits, orientation programs, relevant technologies, and training handouts through automated workflows.
Creating online videos for training also saves recruiters time from repeating themselves with every orientation. Moreover, email or digital copies of training packets are easier for new hires to access and review, making it a great way for employees to receive information in full detail.
About 44% of tenured employees say that they would copy confidential information from their former employers. This could put the company at risk but automating the hiring process can help employers immediately access keycards and reset passwords.
Companies also won’t have a problem with compliance laws when they use a recruitment software, as service providers regularly update their systems.
This makes the company amenable to legal changes and compliant to existing laws, like General Data Protection Regulation, which is also a win for employees and prospective talent.
Stronger Employer Branding
Companies are now looking for employees to hire instead of the other way around. For top candidates, selecting a company is like browsing through a catalogue. With the array of selection across different fields, employers need to stand out from the crowd.
Using recruitment software brings recruiters close to top candidates through its selection of applicants. An increased social media page boosts visibility and allows recruiters to cater to niche-specific audiences.
The Automated Solution to Recruitment
Sifting through hundreds of resumes for one vacancy can be time-consuming. Automating the process of recruitment can save the human resource team a lot of time and narrow down the search to only the most relevant candidates while maintaining an objective view of their capabilities.
Too much paperwork can be disastrous for any business if done wrong due to human error. Automating the hiring process can additionally prevent the risks of financial losses and other potential damages.
Recruitment automation also speeds up the hiring process while avoiding mistakes, increasing productivity while delivering results.
In addition, streamlining recruitment allows recruiters to see which process may need improvement and how to best take action, serving the company better in the long run.