Recruiting Software

What is Recruiting Software?

Recruiting software offers a central system for managing employees' and candidates’ basic information, operating as a relationship management software for human resources professionals. Supporting tracking and management of the entire hiring process, it’s one of the core applications of human resources management software (HRMS), often integrating seamlessly with other HRMS functions like payroll, talent management, and compensation management.

The main feature of recruiting software is applicant tracking, which makes it easy to track requisitions currently in the hiring workflow, managing recruits’ profiles and application/interview status. However, recruitment management software includes additional functionality making it far more versatile than basic applicant tracking software. Features include:

• Task management. Recruitment management software should support the user in prioritizing searches, scheduling interviews and job fairs, and organizing major recruitment tasks.
• Candidate matching. Many times, the right employee is someone within the organization. This feature tracks the status of open positions and matches it to potential candidates from current employees as well as applicants’ resumes on file for the best possible match.
• Online integration. As well as connecting to major job boards, recruitment management software should allow candidates and current employees to interact through social media sites like Twitter, Facebook, and Google+, to share job openings and recruit new candidates. It’ll also allow for an online candidate interface to allow candidates to track their application status.
• Advanced reporting and analysis. Advanced reporting features let you view hiring data, quickly assess candidates, identify which sources generate the most qualified candidates, and much more.

What Type of Buyer Are You?

Out in the market, the term “recruiting software” is often used interchangeably with some of the other terms we’ve used in this buyer’s guide, so we should really clarify the different kinds of software options out there, so you can be sure you’re using the right thing. Buyers are typically looking for one of the following:

• Applicant tracking. Smaller businesses that are expanding – but don’t necessarily need all the bells and whistles associated with a complete recruitment management program – will want something that just has the basic applicant tracking functions like status tracking, candidate matching, and candidate profiles.
• Recruitment management. At the next level up are the series of programs discussed in this guide, which include task management, employee/candidate CRM, advanced reporting and analysis, and more. These programs are ideal for recruiting managers at medium-sized and large businesses that don’t have, need, or want a complete HRMS.
• HRMS. Human resources management software includes a whole host of additional features for HR managers, including payroll, employee evaluations, workforce management, and much more. This solution is ideal for companies looking to streamline all their HR processes.
• Enterprise resource planning (ERP) replacement. Many buyers invested in an ERP package years ago, but their company has grown and the ERP is outdated. Time and budget constraints may prevent a complete ERP overhaul, but an update to the HR processes will serve them well. These buyers should check with their ERP vendor for software to replace their current HR processes.

The Recruiting Vendor Landscape

Market Trends You Should Understand

As you evaluate HR software, it is important that you understand the current trends in this industry:

• Online applications. Does anyone still use paper resumes and cover letters? Hardly. But many people do still use email to manage all their hiring, which can be an absolute nightmare. As recruiting management software becomes more affordable, hiring managers can more easily implement systems to help them manage all the details of the hiring process. This means online applications that are easy to track and organize.
• Software as a Service. Sometimes called cloud computing, this refers to the software delivery model whereby the application is accessed through a web browser and hosted by the software vendor. As a growing business model there are more and more cost-effective, feature-rich SaaS recruiting management software vendors, including several identified above.
• Consolidation and expansion. Mergers and acquisitions will always be something to take into account, but in a recovering economy, new vendors with new ideas for features and improved functionality are constantly entering the market.

Benefits & Potential Issues

The benefits of recruiting software are considerable:

• Improved efficiency. The software makes it easy for managers to track open positions and required actions, reducing the administrative burden and increasing the speed of the hiring process.
• Reduced costs associated with recruiting. The software saves on printing costs, and the reporting and analysis capabilities help ensure you’re not spending money on recruiting options that don’t produce qualified candidates.
• Better communication with potential and new hires. The people you’re interviewing are about to be a part of your company. If you can make their application and interview process completely seamless, it improves the chances that your top choice will select your company, rather than other offers he or she may have.

Important Conversations

Some interesting things are happening in recruiting software recently. We’ve highlighted a few that we think you should be aware of:

• Recruiters Adopting Consumer Tech.< Recruiters have always been quick to try new technologies to make their jobs easier, and this is especially true today. The prevalence of mobile and video technology as recruiting tools is growing, and the best recruiting software vendors are developing applications with this in mind. Video interview platforms, recruiting apps for smartphones and tablet PCs, mobile versions of online job portals--all are emerging rapidly in the recruitment software market.
• Social Recruiting. Social media has quickly evolved in the recruiting industry--from sourcing tool to recruitment strategy. An organization’s presence and connections online can be leveraged to attract talent, drive more candidate referrals, and fill jobs faster. Employers regularly review a candidate’s activity on social media platforms when screening for cultural fit. When reviewing online recruiting software, consider what level of social media integration your recruiters need to find top talent.
• The Candidate Experience. With the emergence of social media and mobile technology, candidates have come to expect more from the application and interview process. They want a higher level of “touch,” and they want more transparency from their prospective employers. There are certain things which can’t be completely automated (i.e. only a recruiter can build and maintain a relationship with a candidate). However, a recruitment management system can make it easier to deliver a positive experience for candidates and hiring professionals. To that end, vendors are developing applications to track and monitor key indicators of candidate experience, and are incorporating more best practices into their standard workflows.

Have an opinion on this guide? Email the authors. We appreciate the feedback.