Applicant Tracking v.s. Recruiting Services: Which is better for your business?
There are plenty of fish in the sea – no we’re not giving dating advice, we’re talking about talent acquisition. In the U.S. alone, there are millions of unemployed individuals and many more who are employed but looking for (or willing to take) a new job. Of course, you don’t want just any fish, you want to find a talented person who fits the exact needs that you have.
Recently, we wrote about the importance of hiring and recruiting to retain the best employees. In the post, we briefly mentioned applicant tracking systems to help you sift through the candidates to find the right one. We realize this might be a little bit of a gray area in the recruiting process and you may still be asking yourself “How do I get applicants in the first place?”
Recruiting Services: The Pros and Cons
Recruiting services are one option for talent acquisition. They typically come in the form of agencies who find candidates for you. Both large and small businesses use recruiting agencies, but there are pros and cons to going the recruiting agency route.
Pros of Recruiting Services
- Saves your HR staff time – Recruiting agencies do the searching and filtering of candidates for you, meaning your HR staff spends less time sifting through applicants and conducts fewer interviews.
- Dedicated to finding you the right candidate – When you use a recruiting service, you specify the exact qualifications you are looking for in a candidate and a trusted agency will only return candidates who fit those specifications.
- Specialized recruiters – Every field and industry is different and recruiting agencies exist for every industry. Utilizing a recruiting service that specializes in your industry ensures they know how to vet candidates to find you the right ones. For positions that are highly technical or specialized, recruiting services may save your HR staff time by finding the right candidates in the first place.
Cons of Recruiting Services
- The costs – When you use a recruiting service you pay them for the candidate you hire. The exact costs depend on the agency and the payment route. Some options and the average associated cost include:
- Retained – 10% of annual salary to start recruiting then 10 to 15% after hire
- Contingency – 15 to 25% of the annual salary
- Temp – 20 to 50% of the hourly wage, and then if you decide to hire the individual as a full employee you’ll also have to pay a buyout
- Recruiting services are not experts on your company – No one knows your company better than you (and your HR staff), and understanding your company’s culture and environment is crucial to finding and retaining the best talent.
- Indirect access to applicants – Using a recruiting service takes you out of the driver’s seat. Even though you’re still giving the directions, recruiting services choose which candidates you see.
Is an Applicant Tracking System Better for Your Business?
Our Applicant Tracking System is an alternative to recruiting services that saves you time and money while keeping your recruiting process completely within your control. The Applicant Tracking System allows you to source, track, and evaluate talent while providing a positive, consistent applicant experience.
Through the system, your HR staff can post job openings that candidates can easily search and apply for online. Then your staff can screen and accept applications and track applicants throughout the pre-hire process.
Benefits of Applicant Tracking and the Talent Acquisition Module:
- Integrates with your careers website and gives you access to thousands of job boards so you can proactively source candidates.
- Saves time by asking pre-screening questions and allowing your HR staff to perform comprehensive keyword searches within the job applications in order to screen applicants.
- Applicant information is stored in an easily accessible system that can be viewed by all staff involved in hiring.
- All applications are saved, so when a future position opens up your HR staff can go back through the applicants to determine if any have qualifications that fit the new role.
- Find out more advantages of applicant tracking
This streamlined and consistent process continues even after you make a job offer. Our unified system means that the Talent Acquisition module transitions seamlessly into HR – hiring and onboarding.
We’ve only begun to scratch the surface of Applicant Tracking and Talent Acquisition. You can find more details in our Talent Acquisition solutions brochure. If you still have questions about Applicant Tracking and whether it is right for your business, let us know – we’d be happy to answer your questions and find the best talent acquisition solution for you!