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Foundations 10

(August 03, 2001)
What good is an Applicant Tracking System?

In America, with its bizarre regulations about Equal Employment Opportunity, the role of an Applicant Tracking System (ATS) is to create a veil of legal defensibility. The reason that most companies don't use the advanced searching and workflow functionality in their ATS is that the reporting requirements are not focused on successful recruiting, they are focused on the achievement of legislative requirements. Trying to morph the work of a good lawyer into a usable tool for managing Human Capital Inventory is not an easy challenge.

Recently, we reported on the relatively clever study produced by the Electronic Recruiting Exchange that attempted to measure customer satisfaction in the ATS arena. The one thing that the study neglected to cover was the fact that customer satisfaction is somewhat irrelevant in the niche. After all, how many accounting systems are really purchased because the people who fill out W2s are happy or unhappy? Meeting regulatory requirements causes the providers of many ATS to deliver dull and plodding systems...Yawn.

In other countries, freed from the imposition of compliance issues, ATS are designed to facilitate the workflow of the recruiting team. In those settings, the freedom from regulatory considerations allows the ATS vendor to focus on the real needs of hiring authorities.

In any organization, you need to be able to coordinate hiring and placement decisions. Feedback from various constituents, the candidate's personal data and the requirements of the job need to be considered, compared and decided upon. Interviews need schedules, travel arrangements must be made and the results of the process communicated at a variety of levels. These administrative details should be automated in elegant forms.

The ATS marketplace is a cluttered array of services that target very specific niches. We think that it is admirable (but questionable) that Recruitsoft is sticking to its target market and refusing to compromise its commitment to the ASP model (they don't customize, period, and only work for big companies). Other players, like Sendouts.com or Staffsheets.com maintain high levels of customer satisfaction because they stick to their knitting. They are young enough to understand how to manage the regulatory thing and still produce results.

But, be careful in the ATS jungle. The real problem is the management and control of human capital inventory. The very name of the niche implies that the tool is designed for "Applicants". The US government may be interested in Applicants, most companies are interested in potential employees, candidates, new hires and reassignment policies.

- John Sumser © TwoColorHat. All Rights Reserved.

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