Why should Cornish employers embrace applicant tracking systems?

Alastair CartwrightJanuary 2010

A bit about me• 11 years recruitment and online experience

• Part of senior management team that launched a Guardian Media Group recruitment website into the market in 2000 – Workthing.com

• Founded Enhance Media in 2001 – UK’s first online recruitment communications agency

• NORAS – largest piece of research into online recruitment in UK

• Developed online recruitment strategies of leading organisations

• Clients included PwC, T-Mobile, AXA Sunlife, Cap Gemini

• Sold Enhance Media in 2008, now working as a consultant/NED to a number of organisations

₋ Including Compass Group, integrating SAP ERP into organisation

₋ Advising Cornwall Council on ATS strategy

₋ Cornwall College ATS integration

Agenda

1. Why online?

2. Why an Applicant Tracking System (ATS)?

3. What’s involved

Why online?

1Internet use is massive

Jul- Dec 2008 Jun - Jan 2009

34.7m36.4m

Number of internet users in the UK

71%

UK Pop

73%

UK Pop 44%

Online

Pop

49%

Online

Pop

Internet users going online

more than once a dayNumber of people online

Jul- Dec 2008 Jun - Jan 2009

15.3m

17.8m

44%

online

pop

49%

online

pop

Majority of broadband services are now above 2 MB

19%

6%

34%

24%

7%

47%

70%

92%

0% 20% 40% 60% 80% 100%

2007

2008

2009

< 2MB

2 MB

>2 MB

Re-Based: All Internet users aged 15+

who know their broadband connection

speed

Source: BMRB Internet Monitor May 2007; May 2008; May 2009

56% of home broadband users have used wireless broadband

at home in the last month (May 2009)

Base: All Internet users aged 15+

Broadband coverage in Cornwall

“Broadband coverage in Cornwall and the Isles of Scilly is now 99% and actnow are working to address coverage in the very few remaining areas.”

Households with internet access by region2007 2008 2009

London 69 73 80

East of England 67 70 77

South East 65 74 75

South West 69 67 72

East Midlands 59 61 67

West Midlands 56 61 67

North West 56 56 67

North East 52 54 66

Yorks & Humber 52 62 64

Source: Office for National Statistics Aug 2009

2Internet use will become more

mainstream for everyone

Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

Access the Internet on your TV

Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

3Looking for a job online is a

mainstream activity

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Internet users Online job seekers

13m looking for jobs online…

UK internet users and online job seekers (BMRB)

Average salaries £19K - £98K

£0.00

£20,000.00

£40,000.00

£60,000.00

£80,000.00

£100,000.00

£120,000.00

Source: NORAS 2009

Online Job seekers in Cornwall

• Number of online jobseekers who submitted PL or TR postcodes in NORAS 2009...

102,200

4Online jobseekers are as

diverse as the UK population

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

NORAS 2009 2001 census

Online job seekers (NORAS) vs UK population (2001 census)

Online job seekers are ethnically diverse

UK Population – Census 2001

48.00%

52.00%Male

Female

46.00%

54.00% Male

Female

Online jobseekers – NORAS 2009

More women go online to look for jobs

Source: PricewaterhouseCoopers / Internet Advertising Bureau, The Advertising Association / WARC: WARC estimate for directories.

Online jobseekers represented by all ages

0%

5%

10%

15%

20%

25%

30%

35%

16 - 24 25 - 34 35 - 44 45 - 54 55 - 64

UK Population

Online jobseekers

Why ATS?

In a nutshell...

• It saves time

– Less admin

– Improved processes

– Improved communication

• It saves money

– Advertising costs

– Agency costs

– Time to hire costs

• Improves the profile of an organisation

• It saves paper

What are the benefits...?

• An easy resource for prospective candidates to apply online for jobs (or find more about working for your organisation)

• An easy way to add and approve vacancies, sift candidates and arrange interviews

• Easy advertising of vacancies on employer’s intranet and website

• An easy way to track recruitment progress and get management and diversity information

• An easy way for employer to grow, manage and communicate with a ‘talent pool’ of potential recruits

What are the benefits...?

• Proven reliability, service availability and excellent security with no impact on the existing IT infrastructure

• Ease of use and implementation from a well proven solution with capped and controlled costs.

• A system that can map the preferred recruitment process of an employer

• Access to proven technology that is future proof and can be customised for all employers’ requirements

What are the benefits...?

• Cost of agencies is reduced by 50% - 75%

• Reduced cost of administration (minimise use of paper, printing & postal) by 50+% in year 1

• Reduces your advertising spend, usually by around 35% -50% in year 1 and 25-30% year 2

• Reduces the hiring cycle time by an estimated 25% - 30% (typically 60 days before implementing e-recruitment to 40 days after) so minimising inefficiency through unfilled vacancies

Manage candidates + hiring managers

• Use bulk text/emails/letters to communicate

• Forward candidates to hiring managers as branded PDFs

• Allow candidates to ‘top-up’ their information as they go along – e.g. referees for candidates who get to the relevant stage, or

• Integration with assessment providers, including offering extended assessment time to those candidates with disabilities

Manage candidates + hiring managers

• Undertake bulk competency screening & telephone interviewing

• Spot duplicate candidates across different vacancies, campaigns and business areas– avoid embarrassment, and mitigate agency disputes

• Post application candidate messages – allowing candidates to see their current status without having to call you

• Allow candidates to self-select telephone interviews / assessment centres

• Capture (telephone) interview and assessment centre feedback for reporting purposes

How other organisations have benefited...

Kent County Council

• reduced advertising expenditure by £1.35 million

• reduced time to hire to 44 days (LG average: 86 days)

• hire over 95% of 1,500 new recruits annually, online

• enabled Kent PCT’s & Districts to publish their jobs to a regional portal

• integrated with contact management centre, so council agents can handle phone or written enquiries, with details automatically added to the HR department’s records.

Birbeck College

• Capacity of the HR team has doubled

• Saved enough paper to gift wrap 27 x 4 bedroom houses

• Cost per hire down 43% (inclusive of the cost of the implementation)

• Jobs authorised faster and more efficiently

Yell.com

“At Yell we have all but eliminated agency hires for our volume recruitment and our focus is now on eliminating job board spend which is our next biggest cost...we are already closing in on the tipping point whereby we get more candidates from searching job board databases than we do form ad responses.”

Andrew GrovesHead of National Resourcing at Yell Group PLC

• Cost per hire reduced by 88%, delivering an annual saving of £2.64m

• Reduction of 70% in the number of candidates put through costly assessment centres

• £60,000 saving in press advertising• Reduced staff workload and improved candidate experience

• Cost-per-hire came in at £577, beating a target of £950• New approach with a more credible interview process• Inductions completed in less time, and time to performance in the new role improved

• Overall recruitment costs reduced by 37% and less reliance on temporary staff• Talent managers helped to retain members of staff who were thinking of leaving

• Recruitment cost savings of nearly £4.9m• 225 apprentices employed with 70% achievement rate• 1,000 staff working towards job-related qualifications.

What’s involved?

What’s involved?

Some key points:

1. No impact on the existing IT infrastructure

2. 3 month installation process

3. ROI in less than 12 months

4. I can help facilitate the whole process and ensure you get the best system for the most cost effective price.

5. Also ensure that the system is smoothly integrated into the organisation

Next steps

1. Recommend organising some live demonstrations of best (and most cost effective) systems in the market

2. Organise some telephone conversations with organisations who have already been through the process and are enjoying the benefits of effective ATS

3. Get costs and timescales in writing

Thank you –Any questions

Alastair Cartwrightalastair.cartwright@gmail.com

07866 682790