Filling a job position can often be a very daunting and expensive task for HR or anyone tasked with recruiting new talents. In the US, it is estimated that it costs an average of $4,000 and one month to employ a new skill.
In the UK, that amount is an average of £3,000 and about the same time as in the US. These figures are the average. It is common knowledge that it sometimes takes months to fill a position.
This high cost, together with several other factors including how difficult it sometimes is to get the right talent for a particular job, has prompted HR to search for and begin using technologies such as Candidate Relationship Management and recruitment CRM software.
Candidate relationship management (or CRM)is a method or procedure for managing and improving the relationship between a company and its past, current, and potential future employees (or job candidates).
It is a method used by HR professionals to define and improve candidate experience and encourage candidate engagement. The goal is to maintain a positive and healthy relationship with these talents so that you can have a ready pool of skills from which you can fill vacant positions when the need arises.
It is a relatively new method of recruiting and managing talents introduced to HR to solve one of the biggest challenges the talent acquisition world has – attracting and retaining the best employees.
With CRM, HR can build and maintain a relationship between itself and three different levels of candidates, which are past candidates (or silver medallists), future potential candidates, and current candidates.
Besides the increasing cost and time of recruiting new employees, a method such as this became inevitable in the face of the shrinking job market and changes in job seeker trends.
The most prominent of these changes include the fact that talents have moved from being just job seekers to being the desired (or sought after).
A candidate relationship management system or recruitment CRM is a software system for managing the entire recruiting process while simultaneously building and maintaining relationships with job candidates.
In today’s job market, recruiters must provide a superior candidate experience if they want to attract the right professionals.
HR professionals can achieve that with the use of a sound CRM system. With it, they can proactively source and nurture the talents they need, collaborate with candidates more efficiently, engaging with then on a deeper level, and accurately measure the efforts that go into the entire process from sourcing to hiring.
Consider the following:
These simply tell you that you should be proactive in building your brand and engaging with candidates.
A customer relationship management system is now a priority for all recruiters, and here are some reasons why:
More often than you think, high-value candidates leave their jobs in search of others or are in constant passive search mode. This could be because they are not satisfied with their job requirements or do not fit into the culture at their current company. Their current company is downsizing because of financial issues or any number of other reasons.
The companies they leave may or may not be your direct competitors. However, suppose you have been in contact with them, building a pipeline of high-value candidates using the CRM, closely following their career paths, and nurturing a relationship with them through personalized marketing. In that case, you can be the first to reach out to and recruit them.
Irrespective of whether your company is the leader in the market or has the highest pay structure, one thing is sure, some candidates will love your company’s culture. Every culture attracts it’s kind of people.
This is not an excuse to not improve company culture, however. But even if your company’s culture is the best, candidates on the outside will have no clue until they get some kind of insider experience, and that’s one of the things the CRM does for them.
When candidates identify with the culture at your company through the CRM practice, they are more likely to be better employees when recruited, engage more, become more passionate and invested in the goals they are meant to achieve.
In the age we’re in, candidates now go ‘window shopping’ for employers and turn to employer reviews. They do this before they ever contact employers for a job.
With this in mind, it will be detrimental to an organization to downplay the importance of building an excellent employer brand. If you do, attracting and employing the right talents may be complicated.
And even when you are the one who reached out to the candidate, he or she will most often check you out. Suppose you are known to have a poor reputation for maintaining a relationship with both your past and current employees. In that case, it will significantly hurt your ability to recruit the right talents.
Why? Most candidates are beginning to realize that the people and environment they work in is more important than the work they do. They want to be sure they are headed in the right direction and have matching values and work ethic.
When you use a recruitment CRM to carry out recruitment marketing, building a great employer, brand candidates won’t forget to become an easy (not without effort) task. Most importantly, they will be the ones drawn to you, making your sourcing, and recruiting more comfortable.
One great feature of CRM is that it helps you to nurture talents you discover. There are times when you’ve found some great expertise but are unable to recruit them all.
Instead of letting them go and forgetting about them totally, you can stay in touch through the CRM, and nurture them using it. Nurturing talents is mutually beneficial as you can hire them later or even ask them to make changes to their job profiles so you can hire them for a different position.
Every company’s HR seeks to ensure that the talents in a company’s pipeline are varied and of wide demography and diverse skill sets. With recruitment CRM, you can analyze the diversity of your candidates.
If you discover that they are not as diverse as needed, you can make changes and begin proactively targeting talents in line with your company’s goals through your recruitment marketing.
Using a CRM, you can even segment the candidates you have to get a one-look overview of the kind of talents currently in your pipeline.
Your CRM can be used as a diagnostic tool to determine the points in the recruitment journey in which candidates are dropping out. Of course, if they are dropping out (with proper use of the CRM, you will experience little to no dropouts).
If you have a smart CRM solution, you will be able to tell the events that led to a candidate dropping out. This is because such a solution records all communications touchpoints between you and the candidates, providing useful data for analysis.
This is the process through which candidates are sourced, engaged, and nurtured, and it consists of five essential functions or stages. Here’s a summary of what they are:
Having understood what a CRM is, its usefulness, and its process, it is also crucial to understand what the top features of a CRM are before venturing to get one. Below are some of the best features of a sound Candidate Relationship Management system (or software).
A right CRM should allow you to create candidate profiles from the data collected from their resumes and the different interactions between the candidate and your HR team. These interactions can be the email communications between both parties, assessments, and offer letters. If you are a staffing agency with external clients, you should be able to share the created profile with your clients through any CRM software you use.
An ATS or applicant tracking system helps you source and organize candidates for your organization. Together with a good CRM software, you have the perfect recruiting software. The ATS typically excludes data from resumes and put them into a format that you can use. When you have fund candidates using the ATS, you can establish a long-term relationship with them using the CRM.
Your CRM should come with the ability to segment talents, so you can organize them into the skill sets needed in different departments or positions.
A CRM that needs you to carry out every activity manually is not the right solution. You should be able to automate specific processes and tasks such as sending personalized email notifications to candidates after uploading their resumes or scheduling an interview.
While your CRM should be able to integrate with an ATS that already has this functionality, it doesn’t hurt for it to be able to parse resumes too. You will need the data from it to organize candidates according to different categories, including their level of relevancy to the available positions.
Using your CRM, you should tell what sourcing channels are performing well and which aren’t. You should be able to track the number of employee referrals coming in, the number of conversions you’re making, and those who are not conversion-worthy.
Your CRM should be able to track every needed data and your campaign progress. Importantly, you should be able to export the information or analytics into different file formats such as PDF and CSV for your use beyond the software.
Within whatever CRM solution you choose, you should be able to rate candidates concerning their skill sets, cultural fit, and more. You can use this rating system to prioritize candidates, so you quickly access the data when needed.
It is not enough to access your CRM only on a PC or laptop. You should be able to access it on-the-go, through a mobile device. So a CRM with a mobile app is a great have. You should be warned that some platforms offer less functionality through mobile apps than they do with their desktops. Usually, the best way to find out is to do a test drive if they offer free trials.
Check out this list of Top Candidate relationship management tool
Candidate relationship management is a central system for creating and nurturing a talent pool and recruiting those talents when the need arises. It is a system that helps you control candidates’ perceptions of your brand while engaging with them. If you currently do not use it in your organization, you should immediately consider adopting it. It can be a significant game-changer.