Talent acquisition (TA) and recruiting teams usually fall under the broader umbrella of human resources (HR) or people departments. While they share some similarities with back-office HR systems, their needs and functionalities can be quite different. HRIS (Human Resource Information Systems) typically handle essential HR functions such as payroll, benefits administration, and performance management. On the other hand, front-office systems like ATS (Applicant Tracking Systems) are designed to manage high volumes of job applicants and streamline the hiring process.
Combining talent acquisition with HRIS recruitment modules might seem like a smart move for efficiency, but it can come with several hidden costs that could impact your company’s ability to hire top talent effectively. Here’s an in-depth look at the potential drawbacks:
1. Poor Candidate Experience
One of the most significant issues with HRIS recruitment modules is the negative impact on the candidate experience. Problems include:
- Multiple Logins:
Candidates often need to create separate logins for each company using the same HRIS, leading to frustration and a fragmented experience. - Password Management:
Managing multiple passwords can be challenging, even with password management tools, especially when dealing with subdomains. - Resume Parsing Issues:
Poor resume/CV parsing means candidates may need to re-enter information already provided in their resume/CV, adding unnecessary steps to the application process. - Incomplete Options:
Drop-down menus in the application process may not include all relevant options, forcing candidates to select incorrect information. - Lengthy Applications:
Applications can take 15 minutes or more to complete, whereas they should ideally take less than five minutes.
These issues often result in:
- Lower Application Volumes: A cumbersome application process can deter potential candidates from applying.
- Ineffective Advertising: Companies may need to spend more on advertising to attract a sufficient number of qualified candidates, as fewer applicants will come through the HRIS recruitment module.
- Negative Impact on Employer Brand: Candidates who have a negative experience may develop a poor perception of the company, affecting its reputation and ability to attract top talent.
According to ERE’s 2024 Candidate Experience Benchmark Research, “Candidate frustration is higher than ever,” and candidates who report resentment are less likely to apply again, refer others, or engage with the brand in any capacity.
2. Increased Recruitment Spending
Bundling HRIS modules might offer an initial sense of cost savings, but these savings can quickly be offset by increased recruitment expenses:
- Higher Advertising Costs:
Due to the poor candidate experience, companies may need to invest more in advertising to attract a larger pool of qualified candidates. For example, if two similar jobs are advertised, the one with a 15-minute application process is likely to attract fewer applications, leading to higher advertising spend or the need to keep the position open longer. - Additional Systems:
To mitigate the poor candidate experience, some companies may purchase additional “overlay” solutions. These systems, which use AI and automation to streamline the application process and improve communication, can add significant costs to the recruitment process.
For instance, a discounted HRIS recruitment module might become more expensive if another system is required to achieve the same functionality as a best-of-breed ATS, which already includes features like native interview scheduling and candidate texting.
3. Decreased Recruitment Team Efficiency and Satisfaction
HRIS recruitment modules can also negatively impact the efficiency and satisfaction of recruitment teams:
- Reduced Efficiency:
Recruitment teams may face challenges with clunky and difficult-to-use systems, which can hinder their ability to manage multiple requisitions effectively. Streamlined systems that automate key steps in the hiring process enable recruiters to focus more on building relationships with hiring managers and candidates, leading to improved quality of hires and reduced turnover. - Lower Satisfaction:
A complex and inefficient system can decrease recruiter satisfaction. According to industry reports, 70% of employees feel they lack the technology needed to support their daily work. Streamlined, easy-to-use systems improve recruiter efficiency and allow them to handle more requisitions. For example, one SmartRecruiters customer found that their recruiters could handle 26% more requisitions compared to their previous system.
Ease of use also drives adoption. Hiring teams are more likely to embrace a user-friendly system. SmartRecruiters, for example, has been implemented with minimal training across global hiring teams and is available in 41 languages, accommodating most local hiring needs. JYSK, a global retailer, reduced their time-to-fill from 56 days to 20 days thanks to the ease of use and automation provided by SmartRecruiters.
4. High Implementation and Maintenance Costs
Implementing an ATS can come with various associated costs, including:
- Configuration Costs:
Customizing an ATS to meet specialized recruitment needs can be complex and costly. Systems like SmartRecruiters that adapt to hiring teams’ needs rather than requiring adjustments to fit system requirements can be more efficient and cost-effective. - Implementation Time:
Shorter implementation times can save money, as software license fees often start with implementation rather than after it is complete. An ATS that can be implemented three months faster than another speeds up ROI and avoids paying for two systems simultaneously. - Integration Costs:
Integrating third-party solutions, such as sourcing tools, assessments, and background checks, can be expensive. ATS solutions like SmartRecruiters that do not charge activation or maintenance fees for these integrations can save organizations substantial amounts of money.
5. Stagnant Innovation
While HRIS systems are crucial for back-office processes, they may lack the agility needed for front-office functions like recruitment. Vendors focusing solely on talent acquisition invest 100% of their development time into solving recruitment problems. These TA-focused vendors continually innovate and support their products based on customer feedback.
Here’s how HRIS recruitment modules can hinder your company’s talent acquisition efforts:
- Slow Changes:
Updates and changes to HRIS systems may take weeks or months to deploy, while best-of-breed ATS platforms can make adjustments within minutes. - Limited Integrations:
Fewer pre-built integrations with third-party solutions can limit your ability to quickly adopt new tools. A best-of-breed ATS offers hundreds of pre-integrated global partners, allowing companies to swiftly implement relevant, innovative solutions.
For example, Deloitte Netherlands saw significant benefits after implementing SmartRecruiters, including automation and the elimination of over 200 manual data entry points. This allowed them to manage a 65% increase in hiring volume. “We wouldn’t have been ready for this much change a year ago,” said the head of talent acquisition.
Preparing for Change
Implementing a new system or switching from an HRIS recruitment module takes time and involves many stakeholders. If you’re considering an ATS switch, our blog “What to Do if You’re Locked In With an HCM Recruiting Module” can help you build a compelling business case. When you’re ready to explore a best-of-breed solution, sign up for a demo to see how it can benefit your organization.
