An impressive 75% of recruiters and other HR specialists use an applicant tracking system (ATS), and with good reason. An ATS adds immense value to your hiring funnel - from helping you find and contact candidates, auto-screening applicants for the most valid talent, to tracking your hiring progress. Naturally, using an ATS saves an immense amount of time.
It's no wonder that more recruiters are using an ATS than ever before, and that your company may be at a point where you’re seriously considering this investment.
But let’s not be hasty. With a growing selection of ATS solutions on the market, and a significant financial and time commitment in implementing any one of these, selecting the correct ATS for your company is an important consideration.
We recently had the opportunity to speak with Rahul Bansal, CEO of TribalVision, about his applicant tracking system buying journey. It was incredibly valuable to hear about this process, considering the needs of his team, and the sheer number of options on the market today. Here's what we learned.
"My name is Rahul Bansal – I'm the CEO of TribalVision, which is a full-service integrated digital marketing agency that serves the lower-middle market companies between ten to about $400 million in revenue."
It's no secret that, in the marketing and advertising industry, job-hopping and turnover is a real problem. With a turnover rate of around 29 percent, a good ATS is crucial for agencies like TribalVision – but for a while, the company went without.
"I acquired tribal vision in July 2020," Bansal explained. "The company had been in existence for about 10 years at that point in time, and they had no ATS system in place. They were using an integration with Gmail called Streak, which is a CRM platform. I found it very cumbersome and heavy and difficult to navigate. Essentially, I wasn't seeing candidates that come in easily, there was no workflow process to seamlessly work through administrative tasks."
It isn't uncommon for companies to neglect their ATS in favor of a flashy CRM. In fact, 61% of companies spend more money on their CRM than their ATS, while others fail to use an ATS altogether. This quickly becomes a problem, as you need both systems in order to be successful.
"We were hiring about 15 to 20 people a year. I would say right now, we're probably at a run rate of hiring between 20 and 35 people a year."
Bansal accounted for this growth by explaining that, at the beginning of his time in the company, he was hyper-focused on hiring and diversifying.
"Soon after I acquired the business, I went through a very substantial reorganization, building a functional leadership model with three departments: I would be hiring not only junior level talent, but junior, mid, and senior level talent. I'm a believer that the best organizations have internal promotions, and are also infusing new talent at all levels of the organization."
It was crucial to have better systems in place to accommodate such a shift; 86% of recruiters say that their ATS considerably speeds up time-to-hire, and with only one HR rep, Bansal desperately needed the efficiency boost.
"The level of recruiting efforts was going to be amped up substantially. And I wanted to have a more scalable platform in place that would allow for this. But I had one HR manager, who was responsible for all administrative benefits, and wearing all hats."
"Price and functionality. As a small business, I didn't need anything too sophisticated, and price was an important consideration for me. I recognized the need for ATS to better manage talent acquisitions in a more sustainable way."
Considering that an ATS can save an average of $10,000 in time and resources, it was a no-brainer for Bansal to invest in the system – but there were a number of characteristics he was looking for in particular. He wanted an ATS that was:
Applicant tracking systems, on average, tend to cost between $60 and $100 per user, per month. That can add up quickly for small businesses – which is why Bansal thought very critically about the traits he wanted his ATS to have, and whether they were worth the investment.
For Bansal, purchasing an applicant tracking system immediately fell into his top-priority list. It was clearly going to solve a lot of problems for the business. After getting a second opinion, he felt that the investment of both time and money would more than pay off.
"I partnered with an HR consultant firm called Agile Talent to do a basic assessment of our HR stack, and it was made immediately clear that an ATS system would make our lives increasingly easier, especially with the number of open requisitions that we would have."
There were a few key benefits he noticed right away: lighter administration load, greater efficiency, better talent coming through the doors, and more.
"As someone who had recruited so heavily for 10 years and understood the importance of getting good talent in the doors, I was increasingly frustrated; I had no system to see all the candidates that were coming in. I wanted the functionality to vote immediately so that HR knows what my view on a candidate is. An ATS would solve that instantaneously."
To convince your CFO that investing in an ATS is worth the spend, we highly recommend signing up for our free online course on Calculating and proving the ROI of using HR Tech.
"Getting internal stakeholders involved is critical to the success of this process. People want to feel empowered about the decisions they make, especially the recruiting department. I made sure to have our HR manager be a key stakeholder in this process."
Getting stakeholder buy-in is certainly crucial for something as systemic as an ATS, which will have a direct impact on the way that everyone in the company recruits. If you want to be supported in the changes that you're making, it's important to show how those changes will positively impact the business as a whole.
"I also looped in the chief of staff who helps me within the business. Because he had gone through multiple vendor purchasing processes with me; he knew how rigorous I wanted to be in evaluation, and he knows how to negotiate effectively based on seeing me do it in the past."
After getting key team members involved, Bansal whittled his options down to just a few vendors and went with his chief of staff to listen to the sales pitches.
"We did the initial and second demos for the three applicant tracking systems against the criteria that we had for ourselves, then I looped in our HR manager and got her buy-in. I also combined a layer of knowledge that our HR consultant had – they were very familiar with one of these vendors in particular, Jazz HR. And that did have some influence on our decision-making."
With the combined knowledge of his team, they were able to make the decision that best fitted TribalVision.
"About two months. I didn't have the luxury to draw this out; I had an HR manager, I had an HR consultant, and my Chief of Staff, plus the rest of the organization excited about bringing on board an ATS. We also had to go through a list of other HR software tech that we had to evaluate, like a performance management system. So I felt two months was sufficient."
Bansal and the team were able to make their decision in that allotted time frame, having plenty of insight into their vendor through word-of-mouth reviews.
"Our largest competitor in Boston, who I'm friendly with, had been growing about 100 to 150 percent year over year for the last two years, and had been recruiting extensively. And they were on Jazz HR as well. So we had a lot of validation, which allowed us to more quickly make a decision."
When deciding between three key vendors, Bansal and his team made the excellent decision to agree on a set of criteria they could use to rate each one. This made it easier to see which vendor was the best fit for their needs.
Their criteria included:
When push came to shove, all three vendors met these criteria to some degree – but it was a matter of price and suitability that made the final decision to land with Jazz HR.
"There was very varied pricing across these three systems, and we were driving competitive tension by saying, 'We were speaking to this vendor. They have this; it doesn't seem like you have this. We'll consider going with you if you bring pricing down 30%.'"
Simply having an in-depth understanding of each vendor, and how they met or didn't meet their criteria, gave them the ability to put together a pricing strategy that worked in their favor.
"I am a believer that you have to make the ask, and you have to be ready to walk. I said, 'If you're not able to get to this price, I think we're gonna have to hold off on moving forward and potentially move with another ATS vendor.' And they all came back within 24 hours, either with 'No, we can't do anything greater than this', or 'We were actually able to meet your request and come down to your pricing.'"
If you're a small business, it's so valuable to learn how to negotiate and get a fair price. Tactics like this aren't unfair or unkind; as Bansal said, you simply need to ask for what you feel is a fair price, and be willing to walk away if you don't get it.
It's always nerve-wracking in those first few weeks and months after making a serious investment; will the effort pay off? Fortunately for Bansal, his team saw results quickly.
"Having Agile Talent helped us with the implementation. It took about a month for them to get in there, set it up the way we wanted for our organization, train the HR manager, and train the key hiring managers for the first four or five open requisitions that we were putting on the system."
The HR partner, Agile Talent, was able to help them build out the ATS so that it worked for their business, and then train key users so that they could get the most out of it. This kind of help can be invaluable when you're trying to onboard a new piece of software effectively.
"I'm so glad we had an HR partner who knew how to integrate Jazz HR and help us onboard the platform. Otherwise, I feel like we would have fallen flat on our face. I highly recommend using an HR consultant; I think it made a huge difference for seamlessly adopting the platform very quickly."
"Everything we wanted has played out perfectly. It's brought so much value to the organization, and it's brought leverage to our HR manager. The ability to vet people very quickly as soon as the resume comes in the door is tremendous. Some days, my inbox is flooded with Jazz HR requisitions. But that's okay – it takes me 15 to 30 seconds to go through these resumes."
The ATS process was fairly seamless for the team at TribalVision, but Bansal did have a final piece of advice to share with anyone considering an ATS purchase.
"I highly recommend that anyone who's looking at using an ATS use the SelectSoftware Reviews organizer. I recall a great blog that was linked to that organizer on '300 questions to use to evaluate vendors'. We obviously didn't ask 300 questions, but it allowed us to pick out the top 15 to 20 questions that we wanted to consistently ask these three vendors that we were evaluating."
While most vendors will have plenty of information about their services or products on the company website, you'll never know whether the vendor is truly a fit for your business until you ask the right questions. Be sure to do your research and ask pointed questions so that you can make the best decision for your company.
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