Keeping track of applicants for your organization is one of the most important aspects of managing a business, and the best way to do this is to use an Applicant Tracking System. An ATS will help you monitor certain analytics such as how long it takes, on average, to fill a vacant position and how often you’re hiring new employees throughout the year, thereby helping your business run smoother and more efficiently. Additionally, an ATS can help you understand the reasons certain candidates are rejected and keep records of all applications that come through your Human Resources office. This data is vital when it comes to making informed business decisions. Not convinced? Read on to see why you should be using at Applicant Tracking System for all your hiring needs.
1. Tracking Average Days-to-Hire
Having a good idea of how long it takes to hire new employees can be very helpful for your company. An ATS will 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manager’s schedule is too busy to fit in interviews, or maybe your method of receiving applications is unorganized or outdated.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. Monitor 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. However, having an ATS system will give you these numbers at a glance whenever you log into the system.
Once you have this data at your fingertips, you can use it to refine your retention plan. While it is definitely ideal to have the percentage be pretty low, the exact number is going to vary from industry to industry. A fast food restaurant is going to 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.
3. Review Rejection Reasons
Another great feature that an ATS offers is a dashboard that displays your reasons for rejecting candidates. Without the right software, this might be difficult to upkeep, but the data is useful if possible to obtain. The system will provide a selection of categories to filter your rejected applicants into, such as Under Qualified, Insufficient Experience, etc. Looking for trends in this data can help you clarify in job descriptions what the requirements are for the position, and hopefully limit the number of unnecessary applications you sift through.
4. Improve Time-To-Hire
Using an ATS allows hiring managers to easily vet potential candidates so that they don’t have to waste valuable time sifting through numerous applications. Most systems offer intuitive email correspondence so you can move candidates through the hiring process with ease while making sure all applicants are kept in the loop about where they stand. What’s more, the system creates a pool of qualified candidates, so the next time you have to hire a new employee, you can review past applicants without having to start from scratch every time.
Ultimately, the most effective reason for applicant tracking is doing simply that: tracking your applications and job postings. Using an Applicant Tracking System can help you keep your records organized and easy to navigate, ensuring a smoother hiring process.
Want to see Dominion’s Applicant Tracking System in action? Request a demo today!