When recruiting technology investments are approached as an opportunity, rather than a requirement, the chances are higher of achieving measurable results, reducing risk and driving significant returns.
As finance leaders consider the talent investments that stand to generate the best returns, smarter HR recruitment software may rise to the top of the list. After all, nearly half of HR leaders can't find qualified talent for at least one job vacancy, according to CareerBuilder, and 58 percent report unfilled vacancies for 12 weeks or more. In 2017, The Hill reported that 13 states were at all-time lows for unemployment, based on analysis of historical reports from the U.S. Bureau of Labor Statistics.
It's wise to consider every possible solution for survival and success in such a tightly wound labor market. Many HR leaders are convinced that the right answer is technology, according to recent research outlined in HR Dive. While 95 percent of the HR professionals surveyed said that access to predictive analytics for recruitment would aid hiring, only a third currently have access to it.
But is there really value in HR recruitment software? Does research really support its role in recruiting during record talent shortages? Finance leaders should take every angle into account: risk mitigation, research and potential returns.
How Technology Can Reduce Exposure to Risks
There's significant opportunity cost associated with job vacancies. In some cases, for example with information security specialist jobs, unfilled positions could also increase risk exposure to cybercrime, which the Harvard Business Review positions as a $445 billion industry.
Centralizing and upgrading HR recruiting software can decrease costly job vacancies through maximizing reach. Recruiters can access passive candidates through social media or source global talent. It may also reduce risk exposure by:
- Simplifying compliance with the Office of Federal Contract Compliance Programs and the Equal Employment Opportunity Commission, as well as Form I-9 and E-Verify
- Lowering liability with integrated access to background screenings
- Reducing the chance of poor or biased hiring decisions with assessment tools
It's also smart to consider whether your current recruitment processes and tools put your candidates' personal data at risk of violating the GDPR, as fines can be up to 4 percent of an organization's worldwide annual revenues.
Research on Emerging Recruitment Best Practices
Unpacking research on the most effective organizations whose recruitment strategies are thriving despite talent struggles reveals that they're committed to adopting new ways of doing things. For example:
- Recruiters who proactively source candidates make three times as many offers, with 4 percent better acceptance, according to PageUp.
- Best-in-class companies are 45 percent more likely to source candidates through social media, reports Aberdeen.
- People analytics for recruitment and HCM is linked to 82 percent higher three-year profitability measures, according to Deloitte.
HR recruitment software may support the adoption of these emerging best practices by offering the opportunity to automate processes, effectively embedding new methods of talent-sourcing and people analytics into recruitment.
Technology can also introduce critical efficiency and consistency into the candidate experience, streamlining the time to hire. In the case of one major global brand, according to HireVue, a notoriously poor candidate experience resulted in $5 million annual revenue losses.
The Returns of HR Recruiting Software Investment
Research on the total economic impact of comprehensive workforce management solutions reveals three-year returns on investment of 195 percent, according to Forrester. A centralized technology for recruiting, HR and expert guidance can also reduce the average cost per hire by $9,000.
Investing in better technologies can yield returns that reverberate beyond job vacancy rates. Reward could be achieved through more accurate decision-making, less risk exposure and better data visibility throughout the candidate and employee life cycle.
How to Maximize the Rewards of Recruitment Technology
Organizations may not achieve the right results if they approach their need for HR recruitment software as a technology requirement. Simply investing in candidate analytics won't address the need to comply with new regulatory requirements, and technology alone is also unlikely to fix a broken process.
When recruiting technology investments are approached as an opportunity to adopt new best practices and refresh processes, however, the chances are higher of achieving measurable results, reducing risk and driving significant returns.