ATS ROI – Understanding The Financial Benefits Of Automated Recruitment

ats roi financial benefits automated recruitment

A good ATS (applicant tracking system) will save recruiters time they would otherwise spend on administrative tasks. That hour per day translates into tens of thousands of dollars in annual revenue. An ATS software solution can save in-house recruiting teams and staffing companies money by automating the first sift of resumes and applications. 

Increased Efficiency

Using an ATS SaaS program that goes beyond basic data tracking to offer deeper insights will save you money on recruitment costs. For example, if you know that candidates from a particular source don’t turn out to be hired, you can eliminate that ad spend.

Recruiters can also save time and effort by automatically screening and parsing resumes, allowing them to identify the most qualified applicants quickly. They can then focus on interviewing and assessing candidates. A good recruiting ATS can also help you reduce the time it takes to hire, which is important because a vacant position can cost a company money. This is especially true if the new hire needs to be trained and can’t begin producing revenue for a long time.

Reduced Costs

An ATS provides recruiters with a centralized system to manage candidate communication and scheduling interviews. That reduces the need for recruiters to spend time using multiple digital tools for sourcing, emailing and other recruitment tasks. An ATS can also help recruiters identify unnecessary costs by providing clear data on candidate engagement and source of hire. For example, if many candidates apply through one specific advert, an ATS can help them save money by eliminating ad spending on that channel. However, this only applies if an ATS can provide effective insights from its data. You should always ensure that the ATS you choose goes beyond basic data tracking and provides a detailed analysis of key recruitment aspects.

Increased Efficiency

A well-designed ATS will save time on manual tasks compared to spreadsheets and filing cabinets. In addition, the data insight an ATS provides can help you identify unnecessary costs. A high-quality ATS will also allow recruiters to separate qualified applicants from unqualified ones quickly. This improves the quality of hire and lowers the cost of acquiring new talent. In addition, an ATS can track all candidates and their status in one place. This allows recruiters to access and review all candidate records and documentation easily. This saves valuable time and resources. It also reduces the chance of a potential hiring mistake caused by miscommunication. 

Better Analytics

When assessing the ROI of an applicant tracking system, one of the first questions many CEOs ask is: “How much will this cost us?” With a full-featured ATS that includes CRM tools, recruiters can save on the costs of hiring external recruitment agencies. Additionally, a robust ATS with intelligent automation can significantly reduce the time it takes to move candidates from applicants into actionable hires. A bad hire can cost your company thousands of dollars in lost salary, training costs, wasted management oversight, etc. By reducing the number of bad hires, an ATS can pay for itself in less than a year. This is why tracking and documenting your hiring process costs before and after ATS implementation is so important.

Increased Recruitment Efficiency

Recruiting grunt work is time-consuming and can often be a drain on the recruitment team. Automating these tasks can free up valuable team members’ time so that they can focus on sourcing and engaging candidates.

For example, ATS tools can parse resumes and automatically store the information in a candidate profile, eliminating manual data entry by recruiters. Recruiters can also automatically schedule interviews and conduct skills tests with candidates to expedite the process. A shorter time-to-hire results in a faster ramp-up for new hires, which helps improve company productivity.

Moreover, hiring fewer bad hires can drastically reduce the overall cost of turnover, which is an intangible but significant cost for any business. This, in turn, lowers your average cost-per-hire and general recruiting expenses. It is important to survey key organizational stakeholders to identify the specific recruitment challenges you want your ATS to help address.