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When you ask any CEO which people-related subject retains them up at night time, the reply will doubtless be turnover. Current tendencies apart, turnover has all the time been one of the crucial costly challenges dealing with any enterprise. In 2019 (pre-pandemic and pre-Nice Resignation), a Gallup research referred to as it a “fixable drawback” that “will price U.S. companies $1 trillion.” Staff are all the time going to be crucial asset a enterprise has, however efficient retention methods usually really feel barely out of attain. Finally, most retention methods are stuffed with feel-good concepts that fizzle when measured in opposition to success knowledge.
There are not any good options to repair worker turnover. And in the event you consider some researchers, like these over at Emsi, demographic adjustments are resulting in what might change into a long-term employee scarcity. What’s an organization to do when confronted with challenges like these? One suggestion: Utilizing an Applicant Monitoring System (ATS) to enhance position alignment amongst candidates.
What’s an Applicant Monitoring System?
Applicant Monitoring Programs, typically known as ATS, are automated software program techniques that monitor and handle candidates by way of the whole thing of the hiring course of. Many ATS alleviate a few of the guide work wanted to filter certified candidates:
When candidates apply for a task, they’re concurrently importing data into the system (resume, cowl letter, instructional background, experiences, and so on.).
The system, which has preset standards, seems to be for role-specific key phrases within the utility.
Based mostly on the key phrases, the ATS scores the incoming functions on how carefully they match the standards.
Some CEOs would possibly cringe on the concept of implementing yet one more tech instrument. Particularly in the event you’re at a small or mid-sized firm, you might really feel like your tech toolkit is beginning to change into unwieldy. Nonetheless, when weighed in opposition to the price of hiring the fallacious folks, an ATS is value exploring.
The technical features of an ATS performance, which we coated above, are crucial to how an ATS will help you supply prime hires. There are three distinct advantages to ATS we will zero in on which will utterly change the sport to your strategy to hiring.
1. ATS reduces bias within the choice course of
Bias is a sticky subject for corporations. On the one hand, hiring somebody who will match into the tradition of your organization is mostly essential. However corporations have constantly gotten “tradition match” fallacious. As Lauren Rivera, Professor of Administration & Organizations at Kellogg Faculty of Administration at Northwestern College defined, culture-fit hiring far too usually entails hiring managers to select candidates based mostly on their very own private pursuits, background and connections with the applicant. This results in a perpetuation of “sameness” within the group and is a refined, but insidious, type of discrimination.
Conversely, ATS techniques make the most of a non-human strategy to establish the highest candidates for every place. These prime hires are filtered on how carefully they align with the job standards you have created. This enables candidates to make it by way of the candidate choice course of with out the chance of getting rejected attributable to hiring supervisor biases — at the least previous to the interview stage.
Sooner or later, you’ll have to interview potential candidates. As soon as prime potential hires are within the interview part, the chance of bias, whether or not acutely aware or unconscious, will rear its ugly head. There are methods you possibly can take to scale back bias even additional at this level, together with utilizing structured interviewing, which requires hiring managers to make use of the identical set of questions (and follow-up questions) for every interview. Nevertheless, utilizing an ATS will reduce the impression and make it simpler to implement anti-bias requirements within the interview course of.
2. Prime candidates know the way these techniques work — and can prioritize your key phrases
Prime candidates are “prime candidates” for a motive. They arrive with the talents and traits which are most fascinating to your firm. And fairly doubtless, they arrive with both prior work expertise or are artistic self-starters who know find out how to self-activate to get the job finished. Consequently, which means your prime candidates are additionally going to be savvy and have finished their analysis. They’re going to know what you are in search of and can align their job utility, resume and canopy letter to align as carefully as doable with what you have written in your job description.
That is, after all, a double-edged sword. It might imply you may have candidates rising to the highest of your ATS scores who’ve finished a little bit of embellishment on their functions. That is not an issue in the event you’re correctly vetting the highest candidates by researching their work histories, contacting references and holding a number of rounds of interviews.
Moreover, you might need to make the most of a abilities take a look at of some type. Abilities checks are an effective way to make sure that the highest candidates working their manner by way of the system even have the talents to again up what they’ve placed on their resumes. Even higher, they seem to be a regularly-cited technique for decreasing bias within the hiring course of.
3. ATS frees up hiring managers’ time, permitting them to spend extra time vetting best-fit candidates
Ask any hiring supervisor or HR skilled accountable for hiring, and so they’ll let you know that filtering by way of candidates is likely one of the most time-consuming actions they interact in. Recruitment alone can require lengthy hours sifting by way of functions and profiles, hoping to search out the right candidate. It is why the common time-to-hire might be so long as 49 days, relying in your trade. If your organization would not have essentially the most environment friendly course of to filter the most effective candidates to the highest, you might find yourself shedding these candidates to different corporations the place your prime decisions have additionally utilized.
ATS will dramatically scale back how a lot time your hiring managers spend going by way of functions. This quickens the hiring course of, reduces the time-to-hire for open positions and will get you to prime candidates a lot quicker (and ideally, earlier than they get a suggestion from a competitor).
So, you must contemplate ATS vital hiring instrument. ATS is only one of many instruments accessible to create a extra environment friendly hiring course of. Effectivity is essential for locating the most effective expertise in a good job market just like the one now we have at this time. Implementation is normally easy, and given ATS will help assist many different enterprise methods, together with DEI, it is a instrument each firm ought to contemplate using.