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A real time extension of the great salesperson's
Rolodex, CRM prompts certain behavior and attempts to help the experience of
doing business with a company feel more intimate. We enjoy being called
"Mr. Sumser" at the grocery store (the cash register tells the clerk
to do that using a CRM system). In California, that is the only place that
someone gets called "Mister". In yesterday's edition, we ran a piece by Kevin
Wheeler that described one approach to thinking about the utilization of the
principles of CRM in a recruiting environment. Many of the ATS vendors are
offering exactly what Kevin described: Candidate Relationship Marketing Systems.
The distinction, though subtle at first, is powerfully important. A Customer Relationship
Management System collects data from a variety of transactions and uses
that information to increase the likelihood that more delight can be embedded in
the relationship. A Candidate Relationship Marketing System makes
little pretense about improving the relationship but is a sort of filter for the
spam it generates. It is very important to understand that while
industrial Customer oriented systems are powered by huge engines that search for
meaning in transactions, the Candidate oriented systems are little more than
sophisticated emailing programs that "match" a resume and job
opportunities. We know of no offering in the industry that even pretends to
care about candidate satisfaction. Customer satisfaction is the end goal of the
original CRM approach. It is also very important to understand that at
least 50% of customer oriented CRM installations fail, usually because they are
used as marketing weapons rather than customer satisfaction generators. With the single exception of Hire.com's toolset,
none of the current crop of vendors offer any real insight into the development
of relationships with potential employees that result in a growing pool of
people who are excited about the prospect of going to work for your company.
While that should be the objective of any CRM system applied to the Recruiting
business, the reality of most CRM applications in our industry is that they are
primitive and potentially destructive. The original intent of CRM was to produce layers
of delight in customers by getting little things right in the relationship. The
intent of CRM systems in our industry is to produce candidates. The former
strengthens ties with customers. The latter is a lead generation system. For the
most part, the tools being sold through ATS companies scavenge databases looking
for "matches" and then ship unsolicited email to those matches. It's a
sophisticated spam generation game. The interesting consequence is that by using one
of the available tools, your company gets to join the ranks of other
mass-marketers who, notably, offer Viagra, varieties of porn, debt reduction,
Nigerian get rich quick schemes, online gambling and unintelligible Asian email.
We're damned certain that this is not the path to becoming the employer of
choice. All we can see, even in the short term where some results are produced,
is damage to the company reputation. We wouldn't want our company's email to be
thrown away in the same trash can as most of that stuff. We assume that the only
reason trench level recruiters are getting away with using these tools is that
their managers do not understand the damage that is being done. There are ways to utilize the principles of CRM
in recruiting that are powerful, good extensions of company branding in the
employment sphere. We'll discuss them tomorrow.
How does this happen -- and what can you do about it?
There are three costly mistakes organizations make with new recruiting software. At VirtualEdge, we've written a helpful white paper that explains how you can avoid them.
Visit VirtualEdge to download your FREE White Paper today.
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