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Take a minute to think about the most valuable resources you have in your company? It would be easy to say the products or services. But, who handles these? The answer is the human resources for employees. Indeed, you should bump them up to the number one position when answering that question.
But, employees can only be a valuable resource if you have the right ones on board. Many small businesses will admit to facing hiring challenges. Most people would rather work for established companies, which offer better remuneration and work benefits.
There is also the perception of job security when working with bigger companies. Such limitations can severely impact the quality of applicants small businesses get.
Recruiting software has helped small business owners overcome some of their hiring challenges. Let’s look at why you should consider using such in your company.
1. All-Inclusive Solutions
The right recruiting software gives you access to all-inclusive solutions. These include identifying qualified candidates, reaching out to them and recruiting them.
But, the truth is small businesses may not have the resources to invest in such technologies. The alternative lies in recruitment process outsourcing (RPO). It involves transferring the recruitment processes to third-party service providers.
Pierpoint’s flexible RPO solutions can help find the right people for hard-to-fill openings. These are typically in sectors like sciences, technology, manufacturing and healthcare.
The experts use the latest recruiting technology to manage various hiring tasks. Such outsourced recruitment platforms work well for organizations with minimal to no recruiting infrastructure.
Outsourcing talent acquisition gives access to systems, processes and people to take care of hiring needs. As an entrepreneur, you don’t have to worry about conducting competitor analysis.
Outsourced companies also take jobs like calibrating candidate profiles, checking references, and skills assessments.
As a business owner, you can concentrate on your core task, which is building the business. All while the recruiting experts find the right people to fill in the positions.
2. Applicant-Tracking with Recruiting Software
Not everyone who answers the job position has the right qualifications. The person you are looking for could be out there in the market. Some may not even be looking for jobs, as is the case with passive candidates. Yet it is not possible to track applicants using manual processes.
Recruiting software with applicant tracking capabilities can make the work so much easier. Such systems allow for the creation of a database of applicants. Various categorizations or sorting will make it easy to find the right candidate.
The HR team no longer needs to post jobs and sort through thousands of applications. The systems narrow down the most qualified candidates based on job openings.
3. Higher Efficiency with Recruiting Software
Think about the typical steps that go into hiring. A job position opens up. There is consultation amongst management, specifically HR and finance.
HR then advertises the job and waits for candidate feedback. Once the applicants respond, HR must sift through each application to narrow down the best candidate.
Then comes the interviews, re-interviews, job offer meetings, and onboarding. On average, expect to spend about a week to 60 days. However, the more complex the position, the longer it will take.
Recruitment software can significantly reduce the amount of time that goes into recruiting. The tools can cover a wide search area online to find the best candidates. They can also help with the creation of good job postings. They use preset qualification criteria to narrow down the list.
HR then gets access to a select few who may be a good fit for the position. Do you know how much a bad hire can cost your company? The US Department of Labor put it at 30% of the new staff member’s first-year earnings.
In all honesty, this may be a conservative figure. Consider the loss of productivity and all the expenses that go into recruiting, onboarding and training. And, don’t forget to factor in the time supervisors spend overseeing poor performers. Avoid the chances of such costly mistakes with recruiting software.
4. Zero Bias and Greater Diversity with Recruiting Software
There are some things about bias we must acknowledge. The first is everyone has a level of discrimination. The second is that sometimes it is unconscious. Imagine that HR who, due to upbringing, does not like a particular religion, race or tribe.
It doesn’t matter if the candidate has the right qualifications, making him a good fit for the job. The likelihood of success at getting the spot is minimal. How about that HR who believes that the woman’s role should remain within the household and not corporate corridors?
Such biases affect the diversity and inclusivity that modern companies strive for. The best way to eliminate bias is to remove the human element when sourcing candidates.
AI Recruiting software uses algorithms based on qualifications and experience to get the right people. Factors like sex, gender, religious or political affiliation do not come into play. The company must ensure that it feeds the software with the correct information.
The tools depend on good quality data to develop suitable algorithms. Tainted data can make the Ai software develop algorithms that perpetuate the bias. One of the industry giants had to learn a tough lesson about AI recruiting.
The case goes back to 2018, when Amazon had to scrap an AI recruiting tool. It came to light that the software, quite interestingly, did not like women. The system would not apply gender neutrality in technical or software development jobs.
Now, here is where it gets more curious. Despite changes to the program, the company was still not sure that the machine would not devise ways to bring in bias. It sounds like a far-fetched movie, doesn’t it?
AI recruiting tools have so many benefits to small businesses. The company can use the software to reach qualified individuals. HR will save time and money by automating some of the processes.
Correct data can help remove bias. That means the company can achieve the goal of ensuring a diverse and inclusive workplace.
There is a solution for small companies that cannot afford to invest in technology. Recruitment process outsourcing (RPO) lets the experts take over the hard job of finding suitable candidates.
RPOs are also a fantastic way to save on costs. You only use their services when the need arises. That way, the small businesses can operate with a very lean HR department.
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