When you’re hiring, you want someone with the whole package: qualifying experience, strong skill set, great cultural fit. Unfortunately, finding top talent is no walk in the park. According to a Manpower Group survey, 69% of employers have difficulties filling open positions. How can businesses update their recruiting tools to make sure the right person lands in the right job– fast? Talent acquisition software can make all the difference when it comes to finding the best fit for your business.
Here, we’ll show you how this emerging technology can streamline your hiring process, helping you to assemble a great team and save money.
- What is Talent Acquisition Software?
- How Can Software Help You Save?
- Tips for Calculating the ROI of TA Software
- Does Free Recruitment Software Really Work?
- Investing in Talent Acquisition Software
Talent acquisition software provides a suite of tools to simplify recruiting, automate the hiring process, and support every step of the candidate journey.
It can help hiring managers reach top talent with a customizable hiring platform. Features such as an applicant tracking system keep the pipeline uncluttered. E-signatures get contracts signed quickly, and document sharing ensures employees always have access to important information. Talent acquisition software empowers employers every step of the way to make smarter hiring decisions.
The right software won’t just make things easier for employers; it will also improve the application process for prospective employees. 60% of job seekers report having a negative candidate experience, one which will dissuade them (and their network) from applying to other open positions in the future. Don’t leave candidates hanging! Automation makes it easier for managers to give potential hires the respect they deserve.
Investing in a talent acquisition platform can seem like a big step, but the savings in time and money probably make it worth your while. Here are some examples of how software will help you at every turn, from sourcing to interviewing to onboarding.
Sourcing & Selecting Top Candidates
- Reduced time-to-hire: With a customizable career page and integration with LinkedIn and Indeed, talent acquisition software will get the word out to qualified candidates. This reduces the loss-of-productivity costs of an unfilled position.
- Reduced administrative time: With an applicant tracking system to keep all their ducks in a row, hiring managers will have more time to focus on other things.
- Improved Candidate Experience: Woo potential hires with the efficiency and professionalism of the business. Bonus: software can keep strong candidates on file for future positions.
Onboarding New Hires
- Reduced administration costs: New hires come with a lot of administrative work. Talent acquisition software will centralize data about your employees. Not to mention electronic signature capabilities, which will get new employees under contract in no time.
- Reduction of costs associated with training: Digitally share the employee handbook and other important information with a document manager. Giving employees all the information they need off the bat will get them up to speed and help them to get to work.
- Reduced turnover: That’s right! Good talent acquisition software is the key to talent retention. With improved hiring and onboarding processes, your business is more likely to hire a candidate who is a good fit. This means employees will be more likely to stick around, reducing training and hiring costs associated with turnover.
- Improved Productivity: Employee engagement is tantamount to productivity! With an employee portal, employees will be able to check up on payroll, make vacation requests, and more. This means less time spent worrying about bureaucracy and more time getting things done.
By now, it is probably clear that talent acquisition software will save your business money. But you may be wondering exactly how much money. Here’s how to tally up your savings in three easy steps.
Decide on metrics.
When streamlining your company’s hiring process, how will you measure success? Many organizations might focus on reducing time-to-fill, the time it takes to fill a position. Others might consider the cost-of-hire, or how many manhours it takes to recruit, onboard, and train a new hire. Still others may determine success through reduced attrition.
Think about your business’s pain points. Where do you stand to see the greatest improvements in your hiring process?
How Will You Measure Success?
Next, consider the costs associated with the old way of doing things. Perhaps positions at your business typically remain unfilled for four weeks. That is four weeks of lost productivity. One fast formula to determine how much money you lose every day that you have an unfilled position is as follows:
(Annual Profits / # of Employees) / 220 Work Days per Year
This formula does not account for lost expertise, hours lost by other staff when they compensate for being short-staffed or the hours spent by HR in the hiring process.
According to research, unfilled positions may be costing companies thousands of dollars a day.
How much do you save?
Let’s imagine that talent acquisition software costs the company, for example, $50/month. The open position is costing your business $500/day in lost productivity alone. If it takes four weeks for the position to be filled, that is 20 working days.
$500 x 20 = $10,000
First, subtract the money saved from not paying the worker’s salary. They typically make $20/hour and would have worked 8 hours a day for 20 days.
$10,000 – (20 x 8 x 20) = $6,800
We have a net loss of $6,800. If talent acquisition software cuts the time-to-hire from four weeks to two, the net loss is only $3,400. That means $3,400 saved!
$500 x 10 = $5,000
$5,000 – (20 x 8 x 10) = $3,400
Finally, to calculate the ROI, we subtract the cost of investment ($50) from the profit ($3,400), divide by the cost of investment and multiply by 100.
(($3,400 – 50) / 50) x 100 = $6700
That’s an ROI of 6700% percent! Not bad at all.
Before you consider integrations with Workable and Greenhouse, you might be wondering if there is a free recruitment software that will get the job done just as well. The truth is that a lot of free services end up having hidden costs and fees. If they don’t, you have to wonder how they are making a profit– by selling your data?
In short, when it comes to talent acquisition software, it is better to make the investment. Find a company that offers a free trial so that you can make sure it is right for you.
Like it or not, using AI for talent acquisition is the way of the future. Talent acquisition software is here to lighten the burden and improve the employee and employer experience. And this is just the beginning!
Factorial’s applicant tracking system is just one part of its capabilities. A full Human Resources Management Software (HRMS), it can simplify and streamline not just your hiring practices, but all of your company’s administrative needs. We make it easy to find the right person for the job.
Written by Valerie Slaughter