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Recruiting Agency Software Buyers Guide
Table of Contents
Introduction
Recruitment agency software makes it easier for recruitment agencies, companies, and candidates across Canada to interact with each other. In general, recruitment software solutions help recruitment agencies to manage the recruitment process from start to finish. Recruitment software solutions can be used by companies of all sizes and industries to improve the quality of their employee recruitment process and help organizations attract and employ the best talent.
Some of the core features to be expected within recruitment agency software include a centralized, searchable database that contains all the data relating to a candidate and the role they are applying for. Also, expect to see an integrated communications module that can track conversations between recruiters and companies or candidates, as well as the ability to automatically import information such as appointments and reminders from third-party applications such as email clients. In addition, recruitment software also features the ability to automate some parts of the recruitment process.
Using artificial intelligence to identify candidates whose skill set best matches the job opening makes it easier for recruiters to review multiple applications and shortlist the best candidates. Recruitment software solutions can automatically suggest the best candidates for a specific job based on information gathered from various data sources such as the applicant's CV, social media profiles and a general web search.
Unlike sales, marketing, or customer support software, recruitment software does not have a specific focus area and can be used in several applications and industries. Aside from this, recruitment software solutions can be broadly separated into two categories, namely on-premises solutions that require software to be installed onto the client's servers and workstations and Software-as-a-Service (SaaS) solutions that are cloud-based and can usually be accessed using a variety of browsers and devices.
There are several considerations that a business should keep in mind when selecting a recruitment software solution. These can include the size of the organization, the number of employees and their technical skills, and the compatibility between recruitment software and other business systems. To be included in the recruitment agency software category, solutions will usually:
- Allow data from different sources to be compiled and stored in a centralized database that can be accessed by various stakeholders
- Assist recruiters with the creation of a candidate shortlist based on the specific skill set that a candidate has and the requirements of the position being applied for
- Be able to integrate with other business systems such as ERP, CRM, and email systems
- Provide the ability to personalize the software to reflect the company's corporate identity
- Allow data to be stored in a centralized database so that it can be easily accessed by all stakeholders
What is Recruitment Agency Software?
Recruitment agency software is used by recruitment agencies across Canada to automate candidate searching, qualifications, and hiring. By automating many of the tasks that are related to candidate processing, the entire recruitment process is streamlined—from start to finish. Recruitment agency applications make it easier for recruitment agencies—and their end clients— to find the right person for a particular job by using artificial intelligence to match candidate skills with the skills that a specific role requires.
Modern businesses rely more on tech to improve every aspect of business operations, and staffing is no exception. By using technology to perform some of the tasks related to the recruiting process, such as CV verification, skills assessment, and shortlisting, recruitment agencies can get more done in less time. Furthermore, recruitment agency software serves as a central database for gathering information on candidates and distributing that information to the people who require access to it.
Changes in the recruitment landscape, such as pandemics and work from home, have significantly increased the number of people actively applying for job openings. Furthermore, this has increased the workload of recruitment agencies, and as a result, many agencies are looking for software to reduce their workload. Moreover, using software and artificial intelligence to complement the human input in the recruitment process increases the overall accuracy and success. In addition, recruitment agency software also helps to reduce the risk of losing data and can even help to eliminate problems such as bias during the employment process.
What are the benefits of recruitment agency software?
The benefits of recruitment agency software for Canadian businesses are numerous and wide-ranging, making it easier for recruitment agencies to find and place the correct candidates. The main principle that underpins most recruitment software solutions is centralizing the entire recruitment process into one application. Some of the more specific advantages of using a recruitment software solution within a business setting include: Centralization of applicant information: Centralizing data related to candidates, openings and collaboration between recruiters and companies makes it easier to manage the recruitment process effectively. Centralized data also significantly reduces the chances of communication problems or lost data. In addition, a centralized database makes it possible for various contributors to access accurate and current data easily.
- AI-powered search functionality: Searching through large volumes of applicant data can be done quickly and accurately using an artificial intelligence-powered search engine. By using advanced AI functionality to search through data, recruiters can automate several tasks and get more use from databases by being able to specify search parameters more finely. AI-powered search engines can also search through third-party sources such as social media and the internet without using a separate application.
- Cross-system integration: Integrating recruitment agency software with other business systems is an essential benefit most recruitment software solutions offer. The integration enables various systems to automatically exchange and update data and minimizes the need for human involvement. In addition, cross-system integration reduces the likelihood of data errors and allows systems to work from one centralized database. Integration also makes it possible for more tasks to be automated. For example, email accounts can be linked with recruitment software to enable the automatic logging of communication between recruiters and candidates. In addition, calendars can also be linked to the system to ensure that appointments are automatically added to the calendars of applicable participants.
- Improved success rates: Higher success rates can be achieved through recruitment software solutions because the software offers advanced insights into activities such as candidate placements, revenue generation, meeting of targets, and the progress of candidates through the recruitment process. Information is power, and recruitment software can be an effective source of information companies can use to improve their overall performance. Advanced AI-powered technology also enables the software to make suggestions regarding the best candidates for a specific job, which can translate into higher success rates.
- Enhanced personalization: Personalizing the recruitment experience makes it easier for candidates and recruiters to perform their tasks. Recruitment software solutions can often integrate directly with a company's website and job openings, and applications can be managed from within the system instead of via a third-party solution. In addition, personalized recruitment software makes it possible for companies to brand the software with their logo and corporate identity and integrate features that might be specific to the needs of the particular company.
What are the features of recruitment agency software?
The features of recruitment agency software tend to consist of core and common features, which are seen in most offerings, along with a range of other features that can vary significantly from one application to the next. Here are some of the most common features of recruitment agency software:
- Candidate sourcing: Automatically source candidates from a wide range of sources and with a diverse range of backgrounds. Sources can include social networks like LinkedIn, job boards, Facebook and company websites. Candidate sourcing can usually be fully automated, and candidates can be sourced based on specific criteria. Once sourced, candidates are usually added to a central database from which information can be easily accessed when needed.
- Automated recommendations: Avoid needing to manually find the best candidates by using artificial intelligence to scan through different candidates. By using AI, recruitment agency applications can automatically create a list of the most recommended candidates for a specific role, making the shortlisting process much quicker.
- Applicant progress tracking: Track the progress of applicants automatically with tools powered by artificial intelligence. This feature usually includes the ability to plot candidate progress through the recruitment pipeline, and many recruitment applications can interact with other platforms such as CRM and ERP systems. In addition, AI-powered search enables recruiters to search through candidate profiles in depth.
- Communication management: Track leads and manages communication with candidates and clients by integrating email into recruitment software. Integrating email allows the software to automatically keep track of conversations and automatically assign them to specific candidates or clients. Conversations can be accessed easily later through the recruitment app, avoiding the need to search through data in multiple applications. In addition, automatic email capturing reduces the likelihood of missed messages and miscommunication between recruiters and clients or candidates.
- Website integration: Integrate recruitment software with a website to enable the automatic capturing of candidate information. Connecting the recruitment application with a website's career page makes it possible to easily post new openings and capture applications for processing. Direct integration eliminates the need to transfer data between applications and makes it easier and quicker to match appropriate candidates with job openings.
- Enriched information gathering: Go beyond simple and basic CVs by automatically enhancing candidate CVs with data obtained from the internet. Recruitment software can often append data from social media sources such as LinkedIn and Facebook to candidate applications. In addition, some systems can also add information obtained from other sources, such as Google, to enrich candidate applications and give recruiters more information to work with during the hiring process.
- Collaboration tools: Invite other stakeholders such as clients, employees and third parties to access recruitment software so that information can be shared easily and quickly. In addition, some recruitment applications offer the ability to share calendars and schedule e-meetings directly from the app. This provides one centralized data management point so that users can always access relevant and verified data, thus avoiding confusion and conflicting calendars.
- Reporting functionality: Tracking data and measuring KPIs makes it easier for recruiters to reach their targets. Recruiting software enables users to set their goals and measure their progress towards achieving the goals that they set via a built-in goal tracking system. Various key performance indicators can be monitored, including placements, revenues and applicant success rates.
What should be considered when purchasing recruitment agency software?
Before purchasing recruitment agency software, buyers need to consider several factors. Although there are several recruitment software solutions on the market, some may be better suited to either small or medium enterprises while others are perfect for large corporations. In addition, recruitment software is available in two different variants, namely traditional offerings that require local installation and Software-as-a-Service (SaaS) options. Each of these versions has its unique pros and cons. Furthermore, buyers must carefully consider which version is appropriate for their needs. The answer to this question will mainly depend on the specific strategic and operational needs of the business. Some additional details to consider before purchasing a recruitment software solution are outlined in more detail below:
- What are the key features of the recruitment application? Since recruitment software usually comes with key and optional features, it is essential to consider if the key features meet the business's needs. Although many software solutions offer users access to optional features designed to complement the core features, it is critical to strike a balance between features and cost. The main goal here should be to find a solution that offers features that match the organization's needs as closely as possible.
- What are the objectives of the recruitment software? Outlining the key objectives that an organization aims to achieve by purchasing a recruitment software solution is an important consideration. Once the organization has a clear understanding of the objectives it wants to achieve with the addition of a recruitment software solution, it is possible to match the functions and features that a specific solution offers with the needs that the organization has. Giving thought to the objectives that a specific recruitment solution should achieve makes it much more likely that the organization will choose the right solution from the start and reduces the risk of needing to incur additional costs later down the road.
- What is the pricing model of the recruitment solution? In general, recruitment solutions are available in two variants, and pricing is an essential consideration for most businesses. Costs can be separated into upfront and monthly costs, and some solutions offer lower monthly costs with higher upfront costs, while the opposite is true for other solutions. For example, a cloud-based solution will come with low or no upfront costs but will have a monthly subscription fee. On the other hand, an on-premise solution usually tends to have low monthly costs but requires a significant up-front investment. Ultimately, the choice of pricing model comes down to the needs and financial resources of the individual business in question. Small and medium-sized businesses are usually better served by cloud-based solutions, while larger corporate organizations might consider opting for on-premise solutions.
- Can the recruitment solution help the business achieve its goals? Before investing in a particular recruitment solution, a business should be clear on the goals it wishes to achieve with the introduction of a recruitment solution. Only once the goals have been established will the business be able to monitor whether or not the software solution is a good fit. When establishing these goals, the business needs to take factors such as specific challenges that the business might face, integration with existing systems and ease of use into consideration. By understanding these needs, businesses are more likely to invest smartly and in the right software solution.
- Does the software solution offer mobile access? More and more businesses are adopting mobile models that encourage employees to work remotely. Furthermore, this is an important consideration when choosing a recruitment software solution. To facilitate this, it is essential to ensure that the chosen software solution is compatible with mobile devices and that multiple browsers and operating systems are supported. Since it is generally not easy to add remote access to an existing system at a later date, this consideration is particularly important.
- Is the application suitable for the size of the business? Different sizes of businesses have different needs and different financial resources. As such, a recruitment solution must be appropriate for the size of the business to make financial sense and perform effectively. In addition, technical expertise and staff needs should also be considered. For example, a large organization might have a well-staffed in-house IT department that can manage different business systems, while a smaller organization might be better off outsourcing this function to a cloud-based service provider.
- How does the system store data? Data storage is essential to consider for every modern business, and careful consideration should be given to how data is stored. This is particularly important because data is often subject to strict privacy protection rules, and data leaks can cause many serious problems. Data can either be stored on-site or in the cloud. If an on-site option is chosen, the data security and responsibility for backing information up rests on the company's shoulders. In contrast, when the data storage is outsourced, the responsibility for data protection falls to the software solution provider. In either case, the business needs to ensure that all the necessary legal requirements are met.
- Is it compatible with other systems? Most modern businesses rely on multiple systems to perform their daily activities, and it is critical that these systems can interact with each other. Before choosing a specific recruitment solution, businesses should ensure that the system can integrate seamlessly with other already existing systems. In doing so, additional costs and frustrations can be avoided.
What are the most relevant recruitment agency software trends?
Recruitment agency software trends—alongside technology and industry trends—will also need to be factored into any decision-making process at the time of purchase. The most relevant trends within the field of recruitment are:
- Increased social media presence: Social media has an ever-increasingly important role in almost every aspect of business, and recruitment is no exception. A large number of candidates make use of platforms like LinkedIn and Facebook to search for job opportunities. In addition, many candidates use these platforms to create their digital CVs, which is why recruitment software solutions must be able to integrate with social media platforms easily and effectively.
- Rise in the use of artificial intelligence: Artificial intelligence is one of the most important technology trends of the century. AI is being used in almost every aspect of modern business, and the technology is particularly helpful in staff recruitment spaces. AI can reduce human bias during the employment process and reduce the workload of recruiters by automating several tasks. When choosing a recruitment solution, it is essential to opt for a solution that offers AI-powered task automation.
- Increase in work from home roles: An ever-increasing number of employees are looking to take advantage of modern technology to enable them to work from home, often more productively, according to a Capterra study. This is essential to keep in mind when shopping for a recruitment software solution because the work-from-home movement is only set to increase in the future. Employees are often required to access company resources and systems while travelling or working from outside the office. Furthermore, having a software solution that supports this in place goes a long way toward ensuring that the company can keep up with this trend.
Sources
The features highlighted were identified based on their relevance and the percentage of products in Capterra's directory that offer them. The following sources were used for this document:
- Recruitment Agency Software - Capterra (Date accessed: Friday, July 1, 2022)
- Manatal (Date accessed: Friday, July 1, 2022)
- 8 Tips on improving diversity and inclusion in recruitment (Date accessed: Wednesday, June 21, 2023)
- Productivity when working from home: 7 insights from Canadian employees (Date accessed: Wednesday, June 21, 2023)