Keeping track of applicants for your company is vital, particularly if you deal heavily in seasonal hiring. Understanding how long it typically takes to fill a vacant position and how often you’re hiring new employees throughout the year can help you run your business smoothly and efficiently. Additionally, it is important to monitor the reasons certain candidates are rejected, and keep records of all applications that come through your Human Resources office. Consider these three reasons why an Applicant Tracking System (ATS) can be beneficial for your company:
1) Monitor Average Days to Hire
Having a good idea of how long it takes to hire a new employee can be very helpful for your company. An ATS can keep track of the average time that elapses from posting date to hire date over the last 12 months for each job opening. This will give you a good idea about how much time to prepare for each position you need to fill, thus helping with time management and scheduling issues. Furthermore, if you notice that it’s taking months to fill positions within your company, consider what areas of the application process you can polish in order to speed things up. Perhaps your hiring manager’s schedule is too busy to fit in interviews, or maybe your method of receiving applications is unorganized or outdated. The shorter this window of time is, the smoother your transition between employees will be.
2) Track Turnover Rate
Calculating your company’s turnover rate is a relatively simple task: take the average number of employees who have left in the last twelve months and divide that by the average number of active employees during the same period. While it is definitely ideal to have the yielding percentage be pretty low, the exact number is going to vary from industry to industry. A fast food restaurant is going hire seasonal employees and students, so their turnover rate will be a lot higher than that of a small accounting firm compiled of mostly employees with specialized skills. Rather than comparing your turnover rate to other industries, or even your competitors, your best use will be comparing your own numbers from year to year. If it seems to grow over time, think about how you can incentivize your employees to stick around longer. Using an ATS will automatically track this information for you, so you can get those important analytics at a glance.
3) Record Rejection Reasons
Another good applicant tracking practice is monitoring reasons for rejecting candidates. Without the right software, this might be difficult to upkeep, but the data is useful when it’s possible to obtain. Create a selection of categories to filter your rejected applicants into, such as Under Qualified, Insufficient Experience, etc. Once you have a fair amount of data compiled, you can look for trends in this data in order to help maximize the efficiency of your job descriptions. Once you clarify what the requirements are for each position, you will limit the number of unnecessary applications you sift through.
Ultimately, the most effective reason for applicant tracking is doing simply that: tracking your applications and job postings. Using an Applicant Tracking software can help you keep your records organized and easy to navigate, ensuring a smoother hiring process for all seasons.
Check out Dominion’s Applicant Tracking System to learn about how our software does everything listed above and more!