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Over a third of the American workforce consists of freelancers, temporary workers, moonlighters and independent contractors. That number will only rise in this increasingly fluid economy. But hiring these contractors is time-consuming and inefficient. On average, companies are spending 60% of their time during the hiring process doing manual tasks — sending the same emails, setting up interviews, and playing phone tag. The cost to hire has also increased to a whopping $4,000 per hire on average.
“Think of every time you’ve been hired for a job and all the steps you went through involved after you submitted your application,” explains Peter Cappelli in the Harvard Business Review. “Every one of those can now be done by computers.”
To address the demands of this fast-paced hiring market, managers need automation. People often think the word “automation” means a loss of control or a loss of quality. But automation is also a term used to describe efficiency. Your car may have an automatic transmission, letting your car decide what gear to be in. While some people miss that control, there’s no arguing it’s way more efficient for your gas mileage. With automation, you can still find the right candidate — you just find them more efficiently.
Similarly, automated solutions still allow hiring managers to choose the candidates they want to hire, the timelines, the interviews, and the steps in the process — but with a fraction of the manual labor of conventional methods.
Read the 7 tips to improving your hiring process to make the most out of the candidate application process and ensure better hires faster.
No-shows are a sign that a business may not be doing enough to attract and cultivate the best talent.
According to data of over 500,000 hourly applicants, roughly fifty percent of scheduled interviews are no-shows — a huge drain on an employer’s time and effort. Worse, no-shows leave a diluted applicant pool since the best candidates are the first ones hired, and whoever is left may not be as qualified.
Solution: Personalization and timeliness
Applicants report that personalized contact reduces attrition. But communication with applicants is often a time-consuming process. Usually, a great deal of this time is spent with a hiring manager sorting through Excel sheets tracking numerous applicants, their stages in the process, and whether or not they’ve been sent the appropriate email.
Studies show it takes on average eight instances of contact — through text or email — to hire an applicant.
To reduce this hassle, hiring managers need to use the power of automation. An automated solution would send out communications when certain conditions are met — a candidate is passed onto the next stage, is rejected, or has been offered an interview, for example. These communications can utilize templates that are made to look personal so the applicant feels like they’re talking to a real human. A one-size-fits-all email blast simply does not work — and rather than attract them, this tactic might actually repel them from further considering the job opportunity.
Solution: Harness the Power of Automated Communication
Harnessing the power of automated communication, via template emails and pre-formatted SMS messages, can lower no-show rates from 50% to 15%. Instead of hours drafting emails and sorting through Excel documents, communication with an applicant should only take a few clicks.
Another major pain point for any hiring manager is scheduling interviews. A typical scenario involves a hiring manager asking team mates and the applicant for their available dates and times. Wrangling multiple individuals to meet for one interview is not only a logistical nightmare, but could also cause uncertainty (and confusion) among candidates who could be applying to several jobs simultaneously.
Practical time savers such as automatic scheduling integrations and automated replies can alleviate communication woes among the hiring manager, juggling numerous applications, and the candidate, potentially speaking with several companies. Phone tag is now a thing of the past.
Not Just Insight, But Vision
Businesses often build their own hiring software because they don’t want to lose any control over the hiring process. But these self-created systems are usually clunky, inflexible, and often require just as much time to manage as the actual hiring process. Even worse, as the company grows, the software usually is rendered obsolete or restrictive as a company’s hiring needs change — maybe they require a second interview now, or a proficiency test, or a background check. Parts of the process may be silo’ed in one section of the software while data on applicants may be someplace else. In short: it’s a mess.
What hiring managers need is instead a flexible and transparent platform that allows them to create positions, manage, edit, and customize every stage of the process. This all starts with data.
Hiring managers should not only be able to see the applicants in the various stages they’ve created, but the communications that have been sent as well. A hiring manager should be able to see the status of an applicant in seconds.
Old in-house software often requires managers to create an applicant’s file themselves. Then they’d have to gather the different interview notes from their team members and often manually enter the data. But an automated profile solution would automatically create an applicant profile and then populate it with data through LinkedIn integration. With the proper centralized interface, a hiring manager can see all of their team’s comments on an applicant with a single click.
But this is only the beginning. The power of data and automation can give hiring managers insight into their process that they’ve never had before. They can see the raw numbers of how many people have been hired, rejected, how many people have passed certain stages, and where the bottlenecks are with the hiring process. A data-driven, automated approach, can even determine how much it’s costing the company to hire any applicant.
As the economy continues to rely more and more on contract workers, temps, and freelancers, businesses that can adapt to the demands of these kind of employees (and their hiring process) will be the ones that succeed. For too long, the hiring process has been full of bottlenecks and manual tasks that distracts and detracts from what the central goal: hiring the best team possible.
Businesses will also look to solutions that offer flexibility while streamlining the hiring process. By leveraging the power of automation, hiring managers will find they have more free time and a team full of better qualified people.
Finding the right talent is an uphill climb, and businesses that can shift into the right gear will succeed. Those that fail to take advantage of automated solutions will find themselves stuck in neutral.
Fountain works with your existing HR software to automate and optimize manual tasks like scheduling interviews, running background checks, and more.
Request a personalized demo today to find out why we are the recruitment platform of choice for companies, like Safeway, Deliveroo and UberEats.