With 2015 budget planning well underway, you’re probably in the midst of defining allocation requests and preparing to defend each line item to senior management. If applicant tracking software isn’t already one of the line items in your budget, you may want to revisit it in light of your overall company and HR strategy.
If you need to convince the people who hold the purse strings why an applicant tracking system is a “must have” item for 2015, consider these five reasons:
The HR strategy supports the overall corporate strategy. It may not be explicitly stated in the corporate goals, but your business’s overall strategy requires having the right people in the right roles. In fact, hiring the wrong people can cost you between $40,000 and $200,000. Applicant tracking software automates the low value, routine aspects of hiring, which frees HR professionals to find the best person for the job.
A more efficient hiring process decreases costs. A manual hiring process can really rack up the costs, including weekly job board postings and time spent hand-sifting through hundreds of resumes to find the right candidates. On top of that, by the time those candidates are identified and shared with hiring managers for review in the manual cycle, the best prospects may have found other jobs, forcing the hiring cycle (not to mention the expenses) to start all over again. An applicant tracking system not only sends postings to the right job boards with a single click, it automates finding the right candidates in the resumes that come in so you can contact them before they are snapped up by someone else.
The right hire is brought on board faster to help the company meet its goals. With a recent Brandon Hall Group survey finding 61 percent of respondents have a 4-week or longer hiring cycle, and 20 percent have an 8-week or longer cycle (plus the on-boarding process to get the new hire up-to-speed), it can take months for a new hire to add value to the company. Applicant tracking software automates many of the processes that take up time, like finding the right candidates and interview scheduling, to decrease the time to hire and, ultimately, the time to productivity for a new employee.
HR professionals and hiring managers can focus on high-value tasks. While HR takes the lead in finding and bringing in candidates, hiring managers are highly involved during the process to ensure the best person is hired for the job. The time spent in a manual process creating job postings, reviewing resumes and scheduling interviews can be passed on to applicant tracking system, freeing up both HR professionals and hiring managers to focus on the value-add aspects of running a business.
Metrics prove the value of applicant tracking software to the business. If senior management is uncertain about approving the monthly cost of a subscription-based applicant tracking system, metrics to prove the value can help convince them. The best applicant tracking systems include analytics that calculate key metrics like time to hire and the impact of HR’s work on the organization as a whole. Promise to share this information and revisit with the next budget cycle, and you’re bound to find the applicant tracking system is approved for 2015 and beyond with few concerns.
Applicant tracking software can help your business meet its 2015 goals and strategy more efficiently than a manual hiring process, and that can positively impact the bottom line that feeds next year’s budget.
Choose the right applicant tracking software for your business using this helpful eBook.