In any organization, the human resource team is responsible for the end-to-end hiring process. This includes identifying vacancies, formulating job descriptions, finding a good source for locating candidates, scouting and shortlisting the candidates, scheduling interviews, conducting background verifications, drafting offer letters, and completing the joining formalities. As per LinkedIn data, only 30% of companies can fill a vacant position within 30 days. The other 70% take anywhere between 1 and 4 months. According to research, 86% of the recruiting professionals feel that using an effective Applicant Tracking System (ATS) speeds up the hiring process.
Streamlining hiring with ATS
An ATS helps with data analytics, compliance assistance, integration, and sourcing of personnel form social networking sites, referral tracking, interview scheduling, and rolling out of offers. An ATS may or may not bring down your hiring cost but will certainly speed up the process. It provides a platform for attracting passive candidates.
Today’s job market is facing talent scarcity, and companies are constantly scouting for the right employees to help them achieve their business objectives. The access to talent is becoming critical with the emergence of the gig economy. It is very important to have a strategy that will help overcome this problem. Initially, talent was the commodity, but now the tools used to obtain them are becoming commodities. Today, ATS is the most innovative tool that can help you acquire competitive candidates.
Given the paucity of talent, the applicants are in a position to call the shots. While on average, the hiring process takes about 30–90 days, candidates are often unwilling to wait for a much. If they happen to get a good counteroffer from another firm before you roll out your offer, they’ll happily take that up. This is used as a market strategy to sell ATS as a commodity — and ATSs are emerging as a technology and process-optimizing tool. The market is expected to reach $2.34 billion by 2026.
Evolution of ATSs
ATS development is revolutionizing the hiring landscape, partly owing to increasing demand. To survive in this competitive market, new features like Artificial Intelligence and machine learning are added continuously to provide a complete solution. When a team decides to integrate the ATS into their recruitment process, their selection is largely based on the pricing and features.
How much would an ATS cost you?
An ATS for a medium- or small-sized companies could cost about $350 per month with a one-time installation cost. There are multiple pricing models available in the market.
- Pay Per Recruiter: There is a one-time installation charge for the software. The vendor will charge based on the number of employees who will have administrative access to the software. The pricing of this model is $60 to $100 per recruiter per month and is mainly used by recruiters.
- Pay Per Job Opening: This model charges per applicant or position and can range anywhere from $5 to $20 per applicant/position. This model allows an unlimited number of users to access this software.
- Pay Per Employee: Under this model, the vendors charge based on the number of employees working in the organization. The cost ranges from $4 to $7 per employee for small and mid-sized firms and about $1 per employee for large organizations.
- Pay Per Module: This price model provides unified HR solutions. They have their Human Resource Management Software (HRMS) suite. Under this model, the client can pay for the full suite or individual modules.
The company also needs to consider the additional cost of add-on features, implementation, and training.
Automation is the future
As Bill Gates said, “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency”. Therefore, before selecting an ATS, a company needs to do thorough market research. They must determine whether an ATS will bring down their hiring cost and if yes, what would be their direct savings. While keeping in mind their return on investment, they must consider the intangible factors. ATS has raised the hiring standards, elevated the retention ratios, increased productivity, and enhanced brand appearance.