SaaS will be the most cost-efficient way of using software in 2023. It allows you to skip acquisition costs and installation fees, which puts you ahead of budget. So, you have optimal efficiency with low investment, but can a cloud-based SaaS solution improve your recruitment? Provided that you’re using the right software, it sure can.
In general, there are three major types of SaaS recruitment tools. These are:
- ATS (applicant tracking systems)
- Recruiting CRM (candidate relationship management)
- HRIS (human resources information system)
To create the best recruitment system, you should probably use all three.
With all of this in mind and without further ado, here’s how cloud-based SaaS solutions can innovate your recruitment or even wholly revolutionize it.
First, we’ll address two clear advantages of recruitment SaaS (in general). Then, we’ll individually address the advantages of these three types of recruitment tools.
Great for hiring remote workers
You’re not limited to the local talent pool when hiring. This means that everyone online who hears about your offer is a potential applicant. Traditionally, you would have a few applicants, and it wouldn’t be that hard for your HR to filter who to hire. However, with so many options, it’s hard to pick the best one.
This is the so-called paradox of choice, where you’re less likely to make up your mind when faced with more options. The fear of making the wrong choice can be so overpowering that it impedes the performance of human recruiters.
Remote workers and freelancers are less likely to stick around. About 43% of executives agreed that remote employees are less “wired in” to the company culture. In other words, you’ll probably have to repeat the hiring process sometime soon. In other words, the amount of time and money you can save will grow exponentially (with each new recruitment cycle).
Lastly, since you are dealing with so many applications so many times, you need to make the process as data-based as possible. This way, the process will be automated but also fair and unbiased.
Saving time
Another significant advantage of recruitment tools is that you don’t have to waste time on things like:
- Screening
- Sourcing
- Shortlisting
This means that the platform can “handle” the first few rounds for you, leaving a few suitable candidates to be interviewed by your employees. Not only is this reducing the overall time of the process, but it’s also reducing the number of working hours your staff wastes.
A centralized strategic HR technology asset can help create a list of suitable candidates even before you start hiring. In other words, you can be more proactive regarding your future hiring projects. Now, most ATS systems have built-in AI functionality. Therefore, they can sort thousands of applications in a matter of seconds.
The number of tasks that you can automate this way is quite astounding. For instance, the SaaS recruitment tool can post your job ads instead of just screening applicants. This can make a massive difference, provided how many freelance, gig, and job platforms there are. Aside from saving a recruiter’s time, this also gets you going a lot sooner, thus increasing the application generation rate.
What is the ATS ROI compared to cost?
The first thing that everyone asks is how much Applicant Tracking Systems cost. The problem with this question is that it fixates on the investment cost and completely ignores something more critical, like the ROI. To understand this, you must first understand how ATS directly saves money in the recruitment process.
Without ATS, recruiters need to perform tasks manually. We are talking about tasks like:
- Candidate screening
- Interview scheduling
- Posting job ads
To figure out how much you’re saving this way, you would have to count the number of hours these tasks take and multiply them by the hourly wage of your recruiters. Professional recruiters are not cheap, and when handled internally, you will not entrust the task to entry-level employees. In other words, we’re talking about a person or a team with a hefty hourly wage.
Other than this, it’s worth mentioning that non-compliance can be costly. By handling this automatically, you’re saving a small fortune. Also, remember that you have a legal responsibility toward candidates’ data (in most countries).
We’ve talked about advertising on multiple platforms. Not all platforms are made equal, and, in some places, the investment won’t be worth your time. ATS is less likely to waste money. When you set up your ad spending, the ATS will ensure you get the most value out of every penny.
How to properly use CRM?
Just because someone has applied to a position doesn’t mean they’ll take it (even if offered). Your CRM’s job is to help turn passive talent into engaged applicants. Let’s be realistic; promising candidates have many options. It would be safe to assume that they are applying left and right. The interview with your recruiters is probably not the only one they’ll have that week.
With the help of CRM, you’ll automatically manage communication, create custom invite lists, and engage candidates on channels where they are the most active. For instance, as many as 50% of candidates prefer text messages. While emails are still the No.1 form of job opportunity outreach, you must also take other channels seriously.
Personalized messages can awaken passive talent. Some potential candidates may not be actively looking for job opportunities. With the right message, you can get them engaged either way.
Finally, segmenting talent pools is even more challenging regarding hard-to-fill roles, like in the IT industry. Using CRM, you can set a system of filters and notifications and automate this task.
What are the benefits of HRIS for recruitment and onboarding?
Sometimes, even though you’re hiring for a specific position, you need to leave room for future growth. Sure, some of your prospective employees won’t be there for long. Nonetheless, there are some who, from the very start, have the markings of future leaders and experts. By helping you out with this succession planning, HRIS can help you get the most out of this recruitment process.
HRIS also helps you develop new employee onboarding ideas. Now, while onboarding happens after recruitment, the truth is that you won’t always know if someone is the right fit. By figuring this out during the early onboarding stages, you’ll have a better idea of whether you’ll have to look for someone else in the nearest future. This way, early evaluation can help you out with these projections.
Remember that every new employee you bring in is an additional responsibility for your administration. By improving your overall HR administration, HRIS will make this less of a headache.
Because it is a cloud-based system, you can use HRIS even when not at the office. In other words, just because someone’s not at the office doesn’t mean they can’t actively participate in the process. The same goes for all the platform types mentioned above.
Cloud-based SaaS will completely revolutionize your recruitment
Recruitment is a process that usually involves a whole team of people. Having a cloud-based platform makes collaboration simpler.
A specialized, AI-based platform can automate the whole process. This way, you’ll save both time and money. This is more than necessary in the remote-work-driven era of the business world.
By combining ATS, recruitment CRM, and HRIS, you can make an iron-clad back-to-back recruitment system for your company.
