Applicant Tracking System Business Case Executive Summary As
Applicant Tracking System Business Case
Executive Summary As our company grows it is increasingly important to streamline processes while supporting the organization with the best talent. Currently, [The Company’s] recruiting processes are labor intensive, manual, and unstructured. Statistically, inefficiencies like these increase recruitment costs and decrease overall company profitability. In order to improve on recruitment efficiency, this presentation proposes the use of an Applicant Tracking System (ATS) to: • Increase Recruitment Productivity • Standardize Recruitment Processes • Improve Recruitment and Hiring Compliance • Facilitate Access to a Larger, More Qualified Candidate Pool In the pages that follow, a careful analysis of the problem and proposed solution are covered including quantitative and qualitative return on investment from financial, technical, operational, and strategic perspectives. Based on the many quantitative and qualitative benefits associated with the use of recruitment technology, it is recommended that [The Company] implement an Applicant Tracking System and supporting technology for job distribution. 2
Business Problem (Delete any that do not apply) FINANCIAL • Extended Time-to-Fill − Prolonged Absence of Revenue-Generating Staff Member − Temporary Staffing Costs − Overtime for Workers “Filling in the Gap” − Overtaxed Staff Resulting in Decreased Morale OPERATIONAL • Time-Consuming, Manual, Disparate Processes − Resume Review and Screening − Applicant and Recruiter Workflow − Manual Tracking (Candidate Flow, EEO, OFCCP, Etc. ) STRATEGIC • Insufficient Number of High-Quality Applicants • Good Candidates May be Overlooked • Quality Candidates May Not be Able to Find Our Job Listings Amid Competitors’ Noise TECHNICAL • Inability to Generate Reports − Measure Productivity − Identify Areas for Improvement − Monitor ROI of Recruitment Dollars Spent 3
Proposal & Objectives (Delete any that do not apply) Proposal: Implement the following recruitment technology(ies) • Applicant Tracking System (ATS) • Automated Job Board Posting • Social Media Recruitment Software Objectives • Realize Financial, Strategic, Technical, and Operational ROI − Improve Recruitment Productivity − Reduce Time and Cost-to-Fill − Expand Improve Quality of Applicant Pool − Achieve and/or Maintain Compliance (EEO, OFCCP, Etc. ) 4
ATS Can Change Problems to Opportunities (Delete any that do not apply) Financial Operational • Reducing Time-to-Fill Improves Employee • Studies Show Standardization of Recruitment • Competitive Advantage 2 • EEOC Recommends Recruitment Standardization Revenue 1 Morale, Customer Satisfaction, and Processes Result in 25% Reduction in Time-to-Fill and 30% Reduction in Cost-to-Fill 3 to Reduce the Risk of Discrimination in Hiring 4 Strategic Technical • 85% of Job Seekers Rely on Career • According to SHRM, Effectively Managing Portals 5 • Career Portals and Facebook are the Two Most Important Places for Talent and Employers to Meet 6 • 73% of Companies Successfully Hired Using Social Media 7 1. http: //www. careerbuilder. com/jobposter/smallbusiness/article. aspx? articleid=ATL_0093 COSTOFUNFILLEDPOSITIONS 2. http: //www. ropella. com/pdfs/Ropella-Cost_of_Vacant_Postions. pdf 3. http: //www. emeraldinsight. com/journals. htm? articleid=1876817 4. http: //www. eeoc. gov/policy/docs/national-origin. html 5. http: //www. blogging 4 jobs. com/hr/blogging 4 jobs-exclusive-85 -of-job-seekers-rely-on-career-sites/ Workforce Productivity with Reporting can Increase Shareholder Value by 10 – 20%8 • Organizations Using Workforce Analytics have 8% Higher Sales Growth, 24% Higher Net operating Income Growth, and 58% Higher Sales Per Employee 9 6. http: //www. potentialpark. com/wp-content/uploads/2013/02/OTa. C-2013 -Global. Results-Release. pdf 7. http: //visual. ly/social-media-and-effect-recruitment 8. http: //www. shrm. org/Research/Articles/Pages/ROI_20 Series__20 Benchmarki ng_20 For_20 Continuous_20 Improvement. aspx 9. http: //www. ilr. cornell. edu/cahrs/research/upload/Round-2 -Moon-and-Li. pdf 5
ATS Return on Investment Summary (Delete any that do not apply) • Increased Productivity • Elimination of Manual Processes • Time to Focus on Projects that Improve Profitability (e. g. Retention) • • • Financial • • Technical Single Database with Unlimited Data Storage Easy Integrations Web-based Solution Requires No Internal IT Upgrades & Training Included at No Additional Cost Improved Compliance Access to Larger Candidate Pool & Higher-Quality Hires Improved Candidate Experience Increased Employment Brand Recognition Strategic Operational • • Standardized Processes Process Automation Advanced Reporting for Continuous Improvement 6
ATS Financial ROI: Quantitative ü Increased Productivity ü Improved Compliance ü Web-Based Solution Requires No Internal IT Support 7
Technical ROI: Qualitative (Delete any that do not apply) Single Database & Unlimited Data Storage Easy Integration with other HR Systems ü All Candidates’ Information in a Single Location ü Eliminates Redundant Data Entry ü Accessible by Recruiting Staff in All Locations ü Facilitates Information Sharing ü Web-based Solution = No Onsite Servers ü Always have the Latest Technology ü Maximum Security ü Included at No Additional Cost Minimal / No IT Requirements Upgrades and Training 8
Strategic ROI: Qualitative (Delete any that do not apply) Compliance Larger Candidate Pool ü Automated EEOC Tracking ü Social Media Job Distribution ü Automated OFCCP Tracking ü Employee Referral Programs ü Standardized Application Process ü Social Media Job Advertising ü Branded Career Portal ü Apply with Social Media Profile Better Candidate Experience ü Branded, SEO Career Microsites ü Branded Career Portal Employment Brand Awareness 9
Operational ROI: Qualitative (Delete any that do not apply) tio n ü Standardized Application Process rd da ü Monitor Productivity ü Continuous Process Improvement ü Measure ROI of Recruitment Dollars Adv Rep anced orti ng ü Automated Screening Process Automation St an ü Standardized Documentation iza ü Standardized Recruiter Workflow ü Automated Candidate Ranking ü Automated Approvals Process 10
ATS Risk Assessment (Delete any that do not apply) Type Financial Strategic Risk Mitigation Purchasing an Applicant Tracking System During the initial selection phase, we will evaluate the value and quality of each vendors product offering. Considerations will that provides little/no tangible value to the include: free maintenance and software upgrades, extended hours for technical support, dedicated account management, recruiting team (Buyer’s remorse) free and unlimited data storage, and software configurability. Business developments result in dramatic growth before ROI is realized (outgrow software too quickly) To mitigate this risk it is imperative that our company select a highly scalable Applicant Tracking System. A highly scalable Applicant Tracking System will be able to quickly add new users and provide additional career portals. Additionally, a scalable Applicant Tracking System will not charge higher rates for data storage increases, increases in the number of jobs posted to the career portal, and will not require additional databases/modules to support our growth. Existing processes do not 'fit' into software While the recruitment team recognizes and accepts that some of our existing processes may benefit from change, other capabilities processes must be maintained because of our unique business needs. Accordingly, it is imperative to select an Applicant Tracking System that is highly configurable while supporting best practice strategies. Operational Recruitment staff resistant to required process changes While a single point of contact must be selected to lead the Applicant Tracking System selection and implementation project, others on the recruitment team will be included in the requirements setting and selection process. Team inclusion will garner support and commitment as well as help to mitigate the risk of buyers remorse. Insufficient human resource experience As part of the selection phase we will consider the vendor's implementation experience and presence/absence of a with implementations and recruitment best consultative implementation approach as part of the value of the vendor's product offering. The goal is to identify an practices Applicant Tracking System vendor that can provide best-practice guidance for a streamlined implementation. Technical Existing hardware cannot support new software requirements Selecting a web-based Applicant Tracking System will reduce/eliminate hardware concerns and expenses. Failure to identify all feature and functionality requirements While a single point of contact must be selected to lead the Applicant Tracking System selection and implementation project, others on the recruitment team will be included in the requirements setting and selection process. Team inclusion will garner support and commitment as well as help to mitigate the risk of failing to identify requirements. 11
Conclusion (Delete any that do not apply) Implementing an Applicant Tracking System and associated job distribution will provide the company many benefits. These are: Recruitment Technology Benefits Significant Return on Investment in All Areas of the Company Significantly Higher Productivity Faster Time-to-Fill Improved Compliance Standardized, Automated Process Better Candidate Experience Higher Quality Candidates • From a technical perspective the barriers to entry are low as web-based software will eliminate the costs associated with internal IT and training/software updates are included at no additional cost by some vendors. • Based on these findings, it is recommended that [The Company] move forward with implementing an Applicant Tracking System as soon as possible. 12
Additional Opportunities Worthy of Investigation Talent CRM Software Career Microsites Onboarding Software I-9 and E-Verify Compliance Tool Talent CRM Software provides an easy way to engage and nurture candidates who may not yet be ready to apply for a job, but are interested in the company’s employment brand. Search engine optimized Career Microsites help to reduce reliance on third-party job board postings and other recruitment marketing techniques while increasing traffic to the company’s career portal Onboarding software automates the candidate’s transition to productive new hire by reducing paperwork, and manage tasks more efficiently. This leads to improved HR productivity and employee engagement. I-9 and E-Verify Software provides automated and paperless preparation, signing, management, compliance auditing, and storage of Form I-9 s, as well as automatic EVerify submission. 13
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