It’s difficult to dispute the value derived from investing in business process and automation solutions. It’s proven to increase efficiencies, save time and money, and eliminate errors, among many other benefits, for companies across industries and of varying sizes.
Indeed, the enterprise automation and AI market is booming and is expected to reach $10 billion in 2018, up from $7.7 billion in 2017; by 2021, it’s projected to surpass $15.4 billion.
Surprisingly, many companies are still relying on outdated processes and systems – or are failing to capitalize on all that automation has to offer. For instance, more than a third (35 percent) of staffing firms don’t automate during the prospecting, client engagement, or account management stages; and about 40 percent don’t automate candidate selection, screening, or nurturing at all, according to the 2018 North American Staffing & Recruiting Trends Report.
The fear, of course, particularly in the recruitment sector, is that automation and AI will replace the human touch – and jobs. But, this isn’t necessarily the case. Adopting and utilizing automation in the staffing industry can be just as beneficial for the recruiter as it is for the candidates. Here are a few benefits of automated recruiting:
- Automated Recruiting Saves Time
Time savings is perhaps one of the most obvious benefits of implementing business automation solutions, regardless of the industry. For the recruitment sector, however, automation is particularly beneficial, since the average recruiter spends anywhere from 40 to 60 percent of their workday searching for new candidates. Through automating the sourcing and initial screening process, recruiters can better spend that time engaging with candidates, interviewing applicants and other tasks that require that human touch.
- Automated Recruiting Increases Retention
While we’d never advocate eliminating human intelligence completely, automated recruiting software can help recruiters better understand candidates, predicting which ones will be most successful in a role with the use of predictive analytics. In fact, a 2015 study by the National Bureau of Economic Research suggests that algorithms make better hiring decisions than humans. The study analyzed 300,000 hires across 15 companies, finding that retention rates increased 15 percent when the algorithm made the decision, as opposed to hiring managers.
Since replacing a single employee is said to cost companies an average of six to nine months’ salary, companies that implement automated recruiting to help in their decision making can ultimately save money.
- Automated Recruiting Enhances Candidate Experience
Without an efficient and seamless recruitment process in place, recruiters are at risk of losing some of the best, most qualified candidates. Implementing an automated recruitment solution can help recruiters better engage and nurture potential hires, ensuring an overall pleasant candidate experience. From easy applications to updating applicants on their status in a timely manner, automated recruiting introduces improved capabilities that reduce time to hire and guarantee candidate satisfaction.
Business automation is not going away anytime soon. While it’s tempting to assume that automated solutions in the staffing industry will eliminate the need for humans entirely, recruitment leaders would be wise to recognize that automated recruiting can actually enhance human decision making, not eliminate it altogether. The numbers suggest this thinking is catching on: according to the North American Staffing & Recruiting Trends Report, “automating and accelerating recruiting and placement processes rose higher this year both on the list of priorities and business challenges.” Human intelligence combined with powerful automated recruiting solutions is the way forward, helping recruiters save time and money, and provide improved engagement with qualified candidates.
To understand how your company can improve its data automation, contact Treehouse Technology Group for a free 30-minute consultation.