Top 5 Recruitment Software Statistics

Discover the proven research-based benefits of using a modern recruitment software!

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Are you using a recruitment software?

Using a recruitment software has many benefits. Some of the most commonly cited are the following:

  • Increased efficiency
  • Time saving
  • Cost saving
  • Improved reporting
  • Higher quality of hire
  • Reduced IT department’s  involvement
  • Reduced marketing department’s involvement.

In short, a recruitment software should help you find the best hires, in the shortest amount of time, for the least amount of money. It will also enable you to own the whole recruiting process, without depending on your marketing and IT department.

It sounds perfect, right? But is it really like that in practice? Let’s take a look at the data and find out!

Recruitment software statistics you need to know

Here is a list of the top 5 proven, research-based recruitment software statistics you need to know:

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Statistic #1: A majority of companies use an applicant tracking system (ATS)

A research Capterra conducted has shown that:

  • 75% of recruiters use a recruiting or applicant tracking software.

Statistic #2: Almost all best-in class companies use a recruitment software

According to finding from Jobscan’s research:

  • Over 98% of fortune 500 companies use a recruitment software

Statistic #3: Using a recruitment software has positive impact on hiring

According to Capterra’s research:

  • 94% of recruiters and hiring professionals say their using a recruitment software has positively impacted their hiring process.

Statistic #4: Recruitment software improves time to hire

GettApp’s research has found that:

  • 86% of recruiting professionals say that using a recruitment software has helped them hire faster.

Statistic #5: Recruitment software improves the quality of hire

GettApp’s research findings show that:

  • 78% of recruiters say that using an ATS has improved the quality of candidates they hire.

Looking for a better recruitment software?

A great recruitment software will help you achieve your recruitment goals and turn your everyday problems into opportunities. If your current recruitment software isn’t doing its job, you should think about finding the one that will.

In our guide “How to Evaluate and Choose the Best Recruiting Tool” you’ll learn exactly how to compare, evaluate and choose the best recruiting tool that will perfectly fit your hiring needs and your budget.

How HR Technology Can Help You Overcome Biggest Recruiting Challenges

How HR Technology Can Help You Overcome Biggest Recruiting Challenges

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Every HR professional and recruiter comes up against certain obstacles when they are trying to hire new employees. Learn how HR technology can help you overcome your biggest recruiting challenges and take your recruiting strategy to a whole new level!

What are your biggest recruiting challenges?

Are you struggling to find qualified candidates? Do you have problems attracting passive job seekers? Wouldn’t it be great if you could reduce your time-to-hire? Are you trying to find an easy way to measure the ROI and effectiveness of your recruitment strategy?

If you are nodding your head yes right now, don’t worry – you are not alone.

Mentioned obstacles are the biggest recruiting challenges every HR professional and recruiter comes up against when they are trying to hire new employees.

Luckily, in the modern world of HR, there are vast technological solutions created with an intention to tackle these problems.

Read on and learn how to leverage HR technology to solve your biggest recruiting challenges!

Recruiting challenge #1: Finding qualified candidates

According to Glassdoor research, talent shortage is the No. 1 hiring challenge today. A shocking 48% of employers say they are having difficulty finding qualified candidates to fill their open positions!

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This lack of qualified candidates has completely changed the way we recruit. Compared to just a few years ago, candidates now have far more power during the job search. You don’t pick talent anymore. Talent picks you.
Consequently, finding and hiring the ideal job candidates has become the most pressing modern recruitment issue.

How can HR technology help you overcome this recruiting challenge?

Modern HR technology offers many different solutions for finding qualified candidates.

First, there are software programs with the possibility of posting your open job positions on multiple free and paid job boards with just one click. Posting your job opening on multiple job boards will widen your reach and increase your chance of finding the right candidate.

You can also reach more candidates with social recruiting tools. With HR technology you can create a specialized Facebook job tab and post and promote your job there, too.

Another great solution for finding qualified candidates is offered by Employee Referrals Tools. These tools offer the possibility of creating and automating employee referral programs.

Employee referral program is a system of utilizing and rewarding your existing employees for recommending high quality candidates for your company’s open positions from their existing professional and personal networks.

Finally, there are web sourcing tools which can help you proactively look for candidates. Web sourcing utilizes web search and scans millions of online profiles to retrieve candidates’ details including email addresses, resumes and more.

Recruiting challenge #2: Attracting passive job seekers

According to LinkedIn research, 73% of the global workforce is made up of passive job seekers, who are your best job candidates.

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Passive job seekers are the candidates that aren’t actively looking for a job, mostly because they are already employed. That means they won’t be visiting job boards and browsing your career site.

However, if you approach these passive candidates in a right way, they would be willing to accept the better job offer. Remember, a better offer doesn’t necessarily mean more money. It can be flexible working time, education, opportunities to grow, benefits, cool projects, and many other.

That’s great, you may think, but how can I reach them and convince them to apply to my open positions? This is where HR technology comes in.

How can HR technology help you overcome this recruiting challenge?

Recruitment Marketing Software offers a solution for attracting passive candidates. Recruitment Marketing Software can help you to attract passive candidates and build relationships with them.

First, you need to grab their attention by showcasing your employer brand, company culture and employee value proposition.

That is how you’ll draw them in and make them eager to join your talent pool. Then you can use different tactics of candidate relationship management to engage and nurture them until they are ready to be turned into your job applicants.

Recruiting challenge #3: Reducing time-to-hire

Time-to-hire is one of the most important recruitment metrics. Reducing time-to-hire is crucial for two main reasons: hiring the best candidates and saving money.

Let’s examine both of them.

First we will explain how is time-to-hire connected with the possibility of hiring the best candidates.

Well, according to research, top candidates stay available on the market for 10 days only. That means you have to speed up your hiring process, otherwise some other, faster company will snatch your top candidates right under your nose.

Second, reducing time-to-hire means reducing cost-per-hire too. Needing less human hours to fill a position makes your hiring strategy more productive and cost efficient.

How can HR technology help you overcome this recruiting challenge?

While already mentioned sourcing and Recruitment Marketing tools help you find candidates faster, there are also specialized recruiting tools that can help you significantly reduce the time of your selections process.

These HR technology tools designed to streamline recruiting operations and fasten selection process are called Applicant Tracking System.

With Applicant Tracking System you can automate, simplify and fasten many recruiting tasks.

These tools make previously time consuming tasks like resume parsing, disqualifications of non-qualified applicants, interview scheduling and sending personalized recruiting emails to your candidates fast and easy.

Applicant Tracking System also saves your precious time by building talent pools, which can be used to find perfect candidates for your future roles and job openings.

Imagine how much time you could save if every time you had a job opening, you had a pool of talent from which you can just pick the best candidates!

In addition, as the graph below shows, Employee Referral Programs are a great way for reducing time-to-hire.

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Recruiting challenge #4: Improving the quality-of-hire

Speedy finding and hiring a qualified candidate doesn’t mean a thing if it isn’t finding and hiring your ideal job candidate. Ideal job candidates are the ones that will stick around and perform their best.

You need to find candidates who will fit in perfectly in your team and be able to thrive in your company culture, otherwise you will end up disappointed with their poor performance, early leave or termination.

That’s why it is important to hire the best talent by finding the perfect fit for your company.

How can HR technology help you overcome this recruiting challenge?

Research shows that 78% of recruiters who use an HR technology have improved the quality of candidates they hire.

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One of the most effective ways to improve your quality-of-hire is to utilize employee referral programs. Why is that?

Your current employees have a hands-on experience with your company culture, mission and vision. That means they can easily recommend candidates who make the best cultural fit for your company.

With HR technology, you can set up structured and automated employee referral programs, which will significantly improve your quality-of-hire.

Recruiting challenge #5: Measuring the effectiveness of recruitment strategy

More than ever before, modern HR professionals and recruiters are faced with a growing demand to demonstrate a clear link between their hiring practices and outcomes.

Management requires hard data and exact numbers, so evaluating and measuring the effectiveness of recruitment strategy has become one of the pressing pain points of modern HR professionals.

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They are aware of how the most important hiring metrics can significantly improve decision-making, optimize recruiting effectiveness and maximize the value of HR investments in recruiting process.

However, most of these HR professionals and recruiters struggle with HR analysis and data driven recruiting question and dilemmas. Which recruiting metrics are the most important for my company? How to implement, track and measure them? How to analyse and compare them?

How can HR technology help you overcome this recruiting challenge?

Modern HR technology such as Applicants Tracking Systems and Recruitment Marketing Platforms can automatically implement, track and calculate the most important hiring and recruiting metrics like time-to-hire, cost-per-hire, source of applicants, hire to applicant ratio etc.

Moreover, these HR tools can create customized, detailed reports on most important recruiting metrics which will make it easy for you to analyze every step of your recruiting process.

With data backed insights provided by HR technology in a form of easy to read reports, you can quickly notice which parts of your hiring strategy work well, and which ones have room for improvement. That way you can make better and more informed decisions and improve your recruiting process and productivity.

Other recruiting challenges and HR technology solutions

Above mentioned recruiting challenges are the most common among modern recruiters and HR professionals.

However, if you are faced with some other specific recruiting challenge, take a look at The ultimate list of best HR software. It will help you comprehend all the different aspects and solutions HR technology can provide so you can identify the one that best suits your needs.

HR Buzzwords or Actual Recruiting Strategies?

Buzzwords or a real thing?

HR and Talent Acquisition (TA) industries have been going through some major changes in the past few years. Following the new trends, people have come up with new terms, HR technology, expressions, as well as new TA strategies.

Some experts believe that these new terms are just buzzwords, while others believe that they have become inevitable strategies of every successful recruiting and hiring strategy.

Here is my list of some of the newly introduced HR expressions.

1. Recruitment Marketing

Recruitment Marketing is an expression used to describe methods used for communicating organization’s Employer Brand and Employee Value Proposition to attract high-quality job candidates to apply for their open positions.

Recruitment Marketing strategies are described as methods with the main goal of improving Candidate Experience and encouraging Candidate Engagement.

Many companies that follow latest trends in the world of HR technology, use features offered by Recruitment Marketing tools to better communicate their Employer Brand and Employee Value Proposition.

2. Inbound Recruiting

Inbound Recruiting is a method of creating targeted and branded content with the purpose of increasing your firm’s popularity and strengthening your Employer Brand.

Inbound Recruiting follows the famous Inbound Marketing strategy; technique for drawing customers to products and services via recruiting content marketing, social media marketing and search engine optimization.

The number one goal of every Inbound Recruiting strategy is to engage qualified candidates and convert them into job applicants to expand talent pools.

3. Candidate Relationship Management

Candidate relationship management (CRM) is a method for managing and improving relationships with current and potential future job candidates. Many companies use CRM technology to automate and ease communication process with the job seekers, encourage their engagement and improve candidate experience.

For example, some Recruitment Marketing tools offer solutions for creating engaging email campaigns to provide highly relevant, educative and interesting content in order to build stronger relationships and expand their talent pools with highly-qualified job candidates.

4. Employer Branding

Employer Branding involves all the activities and tactics used to communicate Employer Brand and Employee Value Proposition to passive and active job seekers.

In today’s “War for Talent” Employer Branding strategies are considered very important when it comes to solving one of the biggest recruiting challenges – attracting high-quality applicants.

LinkedIn’s research has shown that more than 75% of job seekers research about firm’s reputation before they apply for an open position. Companies that have weak employer brands not only have problems in attracting candidates, but also in retaining employees.

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5. Data-Driven Recruiting and HR Analytics

Data-Driven Recruiting or HR Analytics are two expressions used to demonstrate new recruiting methods in which HR Professionals make hiring decisions based on data gathered through HR technology such as Applicants Tracking Systems and Recruitment Marketing Platforms.

Data-driven recruiting has proven to improve some of the most important hiring metrics such as time to hire, cost to hire and quality of hire.

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Question:

If you had data available that proves that referred candidates take shortest to hire, fastest to on-board, require least money and stay longest with your company, would you still waste your money on job boards and job promotions or would you improve your Employee Referral Program?

If you are wondering which HR metrics should you be tracking, here is our checklist of most important HR metrics with tips for improvement.

So are these just buzzwords or actual recruiting trends?

Employee Data and GDPR. What You Need to Know | Featured Image

Employee Data and GDPR. What You Need to Know

Employee Data and GDPR. What You Need to Know | Main Image

Every organisation that processes personal data must comply with the new GDPR rules that take effect in May 2018. There are no exemptions based on a size or sector, no staggered dates for compliance and, based on the current performance of the body responsible for policing data protection legislation, a rock-solid guarantee that the new regulations will be enforced and, where companies fall short, fines imposed.

Those with HR and people responsibilities are, without a doubt, at the front line of GDPR compliance. They work with personal data all the time: in fact, their jobs could be said to rely on it.

As custodians of employee information, they’ll be the ones who will need to audit existing processes; validate their own security and that of third parties that they share HR information with such as HR software and payroll providers; take on at least some of the responsibility for compliance training and monitoring and equip themselves to report any data breaches involving employee data, as well as respond to ‘subject access requests’ from employees.

Where should you start?

For many HR teams getting to grips with GDPR is understandably daunting. Not least, because so much has been written about the higher standard of consent for processing personal data that the legislation requires – and the cost of getting it wrong.

At first glance, asking employees for consent seems reasonable. You may already let employees know why you ask them for personal information and what you use it for.

However, when it comes to collecting and processing employee data in the context of GDPR, a reading of the regulations indicates that the focus on consent is misleading and could, in fact, be damaging.

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Under GDPR, consent is defining as meaning “freely given, specific, informed and unambiguous indication of the data subject’s wishes by which he or she, by a statement or by a clear affirmative action, signifies agreement to the processing of personal data relating to him or her.”

In an employment context, relying on consent is problematic for three main reasons:

  1. It’s administratively complex. Since consent needs to be ‘specific’ and shown by a ‘clear affirmative action’. A catch all clause in an employment contract, or on the login screen to your HR software won’t cover it.
  2. It’s unlikely to be un-enforceable in law. In an employment relationship, demonstrating free consent is almost impossible since the relationship is not one between equals. By refusing consent, an employee may feel that they put their relationship with their employer in jeopardy.
  3. By asking an employee to give their consent to processing information, you may inadvertently give them stronger rights to have their details deleted. What would be the business implications if, for example, an employee demanded that you delete data about their absences (sickness or otherwise), performance, skills, perhaps even their address. It may seem unlikely, but it’s possible.

Legitimate business interest

Instead, HR should rely as far as possible on legitimate business interest. This should cover the data that is required to ensure the employer fulfil their contractual obligations to their employees. For example, to pay them, award paid time off, manage grievance or health and safety issues etc. It will also extend to issues relating to the effective running of the business, such as monitoring absences, performance reviews or skills audits (with a caveat in relation to automated decision making – which is also covered by GDPR).

Legitimate interest cannot be applied in all cases. For example, processing employee information related to wellness initiatives, while laudable, is likely to require consent, as is sharing personal data with third parties so they can market their services to your employees – however attractive the offer.

An essential first step for HR, therefore, is to audit and document employee information: what you gather and why, where you store it, how you ensure it is accurate and up to date and who you share it with. This forms the foundation for the other activities that HR – or someone else in the organisation – will need to address for GDPR compliance.

The ICO (Information Commissioner’s Office) has put together a handy 12-point plan for anyone with day to day responsibility for data protection, much of which is relevant to HR.

Beyond the data audit, top priorities for HR are likely to include: updates to privacy notices, review of current consent approaches, awareness and training activities, internal and partner data security reviews, processes for reporting data breaches and a cost-effective response to subject requests for information.

For HR teams making do with spreadsheets and paper-based files, GDPR may also provide the impetus to modernise personnel record keeping. In a side note to the legislation, the regulator recommends making use of employee self- service HR software, so that employees can both see, and where appropriate correct, the data their employer holds on them.

Consolidating HR information in a single, secure HR software system has other benefits for GDPR compliance. It’s generally easier to demonstrate that you have appropriate security in place if personnel records are held behind a secure login than in spreadsheets or office filing cabinets and approval workflows and audit capabilities make tracing and tracking infinitely easier than trawling through historic emails.

Although GDPR will not be in force until May 2018, the new regulations will have significant implications for the way that companies manage their HR data. HR need to start to prepare now.

Please note: this article is based on our understanding of the requirements of GDPR and should not be relied upon as legal advice or to determine how GDPR might apply to you and your organisation.  You should refer to the legislation and, if in doubt, work with a legally qualified professional to discuss GDPR, how it applies specifically to your organisation, and how best to ensure compliance.


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