5 minute read. Updated November 20, 2020.
What is an Applicant Tracking System (ATS)?
An applicant tracking system is a type of HR software that automates the hiring and onboarding process.
Why is 2021 hiring hopeless without one?
Let’s talk about it.
Acquiring talent for a small or medium size business has never been easy. Even before 2020 when everything got harder. Before the pandemic, recruiters complained of a lack of candidates due to low unemployment and talent shortages. Companies that could move applicants quickly through their process had the advantage. Of course, they needed a good evaluation process to find best-fit candidates.
In 2020, the pandemic upended recruiting. Essential businesses started hiring at scale. Companies that pivoted suddenly needed to fill new job roles. Employers in shrinking industries were inundated with applicants for the few openings they had. Because many started working from home, hiring processes had to be adapted so they could be conducted virtually.
Regardless of the unrecognizable hiring landscape, an ATS is still the answer. Are you doing high volume hiring in 2021? An ATS is essential for managing multiple job openings simultaneously.
Are you recovering in 2021? You probably have a shorthanded hiring team. ATS automation will allow a small team to meet your hiring needs while you are getting back on your feet.
11 Undeniable Benefits of Applicant Tracking Systems
1. An Applicant Tracking System Saves You Lots of Money
Applicant tracking systems provide an impressive ROI. How much? A small company can save up to $10,000 using an ATS.
Companies using applicant tracking system reap the rewards. New-hire turnover is 40% less on average, and they can fill vacancies 20% more quickly.
New Hires Generate Revenue More Quickly
ATS help you fill positions faster. This shortens the time it takes for the new hire to generate revenue. ATS with onboarding tools further shorten the time-to-productivity.
2. Hire Top Performing Candidates Before Your Competition
An ATS help you identify top candidates and present an offer before the applicant is hired by a competitor. These high-demand employees drive productivity and innovation.
3. Track Hundreds of Resumes With Ease
When it comes to administration, ATS automation is truly impressive. Systems can handle hundreds (even thousands!) of applications, resumes, and other workflows.
Not only do you save on the cost of labor for the hiring team, but you also free up their time.
They can use that time on improving hiring strategies. Improved hiring strategies can then help your business grow even faster
With the strategic use of an ATS, you can become the budget hero in your company.
4. An ATS Creates a Dynamite First Impression
During the recruitment process, your goal is to attract top people to your company. You aren’t just recruiting; you’re marketing. Shockingly, 69% of unemployed people wouldn’t take a job if the company had a bad reputation—they would rather stay unemployed!
Applicant tracking systems help you put your best foot forward. Automate communication with candidates, so no one falls through the cracks. Get your job listed on prestigious job boards across the internet. Brand your application portal so it’s unique to your company. This is how you communicate a professional image of your company to job seekers.
5. Your Competitors Are Using An ATS
If you haven’t implemented an ATS, take note. 98% of Fortune 500 companies and at least 66% of large companies use it. The adoption rate for small companies is lower, but growing quickly. Last year, it was estimated that 35% of small organizations use ATS.
Keep in mind that you are also competing with talent sourcing agencies. The ATS adoption rate for professional recruiters is nearly 100%.
6. Recruitment Texting is a Must in 2020
Many companies are using recruiting texting in their hiring operations. The open rates for marketing texts are legendary. Some studies put the text open rate above 90%! Compare that with around 45% for emails.
Consider this: if a person has set up texting notifications, they can see a preview without opening the message. If the text is short, they can probably see the whole message in the notification window.
If you aren’t engaging with your candidates through texting, you are falling behind. ATS texting helps you leverage the power of many candidates’ preferred method of communication.
7. Quickly Narrow Down The Application Pool
First, you create a job posting. Your ATS posts it to multiple online sites (of your choosing). The applications start coming in. The system collects and organizes them in a central database. It creates a profile for each applicant.
As you know, job seekers format their resumes in a variety of ways. The ATS extracts the information and organizes it in the same format for each candidate profile. In the profile template, there is a field for each relevant piece of data.
For example, there is a field for each degree earned, each previous job title, and each skill.
This type of organization gives you searching superpowers. You can analyze and compare by work experience, education, or previous employers. Or job titles, skills, or demographic variables.
Let’s talk about resume filtering. The software uses keywords from the job posting. It matches the keywords with those found in the resumes. Consider how long it takes you to read one resume. An ATS can parse thousands of resumes in seconds.
This process weeds out the candidates who don’t have the necessary qualifications and it delivers a pool of qualified candidates before you need to read a single resume!
8. Screening Questions Help You Find Better Candidates
When you’re reviewing resumes, you’re going to choose quality over quantity every time. No one wants to waste time going through dozens of unqualified applicants. An applicant tracking system allows you to add screening questions to your application to ensure applicants meet basic qualifications like education level or years of experience. Some applicant tracking systems let you create scoring rules that weigh certain questions more heavily, so better applicants automatically rise in your review queue.
9. ATS Can Post To Multiple Online Job Boards
With an ATS, your job posting gets maximum online exposure. Most will post to LinkedIn, Indeed, ZipRecruiter, Glassdoor, CareerBuilder, and Monster (just to name a few) with one click. While you’re at it, post it to your social media sites and careers page.
You create the job posting in the ATS, and the software takes care of the posting. This is a huge timesaver for busy hiring managers.
10. Applicant Tracking Systems Improve Collaboration
You are more likely to find high quality candidates if multiple stakeholders can weigh in.
But if expanding the hiring team slows down the process, the top candidates will lose interest. They will seek out firms that move faster.
ATS databases enable effective collaboration. Each decision maker can enter notes and applicant ratings. (The rating system is customizable, by the way.) Mobile apps allow recruiters to access the ATS from any internet-enabled device. Some systems include video interviews that team members can watch at their convenience.
11. Applicant Tracking Systems Help You Comply With Labor Laws
To say that recruitment compliance is complicated is an understatement.
The laws are always in flux and they vary by location, industry, and business size. Small companies have fewer resources to ensure that processes are compliant.
ATS help you comply with regulations related to hiring. Vendors update SaaS systems to stay current with hiring regulations.
In addition, ATS generate reports to protect you in case of a legal challenge.
For example, suppose a rejected candidate alleges discrimination. Don’t worry. Your ATS has the documentation to validate your legal hiring criteria.
Who uses Applicant Tracking Software?
If you receive applications, you need an applicant tracking system. ATS software clients include:
- Independent recruiters
- Staffing agencies
- Executive search firms
- Large enterprises
- Small and medium-sized businesses (SMB)
Typically, the applicant tracking software is managed by the human resources department or a hiring manager.
We’ve touched on a few ATS functions. Let’s take a deeper dive into the inner workings of applicant tracking systems.
What Does an Applicant Tracking System Do?
ATS perform a wide variety of functions to make the recruiting and onboarding process easier for managers as well as new employees. Any applicant tracking software should perform the following five functions.
There are incredible people out there just waiting to fill your positions – but if they never see the job posting, they won’t apply. A Pew Research study found that “researching and applying for jobs online is nearly universal” for job applicants. When selecting an ATS software, look for one that gives you access to critical job posting boards like Monster and Indeed.
In 2015, almost 60% of younger job seekers used their smartphones to search for job openings, and half of that population used a smartphone to fill out a job application. Those numbers are only expected to increase. Any of the ATS you look into should be mobile-friendly, creating job listings that allow applicants to submit documents via mobile phone and to bookmark jobs for later.
As any amateur job seeker will tell you, networking is the best way to find a job. Your applicant tracking system needs to sync with the most popular social networks–LinkedIn, Facebook, and Twitter. You don’t have to worry about unqualified applicants when you use applicant tracking software because they’ll be weeded out. You just want to get your posting in front of as many eyeballs as possible.
Inc. reports that for every job posting, companies receive an average of 250 applications. Larger companies will be flooded with applications for each job they offer, and that’s not necessarily a bad thing. ATS software should allow you to quickly and painlessly sift through applicants, bringing the best-qualified people to your attention and automatically rejecting unqualified candidates.
Most ATS allow you to create prescreening questionnaires. Applicants are required to answer certain questions, and ‘wrong’ responses will remove them from the candidate pool (while automatically sending a thoughtfully worded e-mail thanking them for the application). Some ATS go a step further, assigning value points to each question so you can sort candidates by score.
The best applicant tracking software integrates and automates resume parsing, resume storing, and reference checking. If it doesn’t have to be done by a human, why not automate it? The HR department or hiring manager shouldn’t have to sort through dozens of easily eliminated candidates. An applicant tracking system performs the menial tasks of analyzing dozens of candidates, so the hiring manager can focus on the few who really stand out from the crowd.
Communication is key in every aspect of life, and that includes the hiring process. The way you communicate with a potential new hire says a lot about your company’s values, and knowing where they stand in the application process is essential for applicants.
ATS let you automatically update candidates with news about the job posting. Give stragglers a gentle nudge to complete an application, or let someone know that you’d love to conduct an interview. Past applicants will appreciate knowing if the job has been filled, and may opt to receive job updates from your company in the future.
Once you’ve narrowed down your applicant pool, applicant tracking software eliminates the back-and-forth of trying to schedule an interview by creating a calendar with open slots for preliminary phone or in-person interviews. Out-of-state jobs may require video interviews so you can analyze behavioral tendencies; some kinds of applicant training software offer this integration as part of the package. The hiring manager enters the times he or she is available, and the interviewee selects the option that works best. No more complicated weeks-long games of email tag to find a time that works for everyone!
Applicants want to know how they are doing throughout the process. One study shows that the key pain points are right after submitting the application, when 49% would like feedback; if not selected for an interview, when 39% would like feedback; and after the interview if they weren’t selected, when 43% would like feedback. Each of these is an opportunity for the HR department or hiring manager to show that the company truly cares about its potential employees. ATS software makes this easy to do.
Once you’ve found the best candidates, an applicant tracking system can streamline the hiring process, particularly if you’re using collaborative hiring. Many jobs require input from multiple decision-makers. The ATS software consolidates reviews and reports from every stakeholder, so hiring managers can take in everyone’s opinions at a glance.
Candidates can be scored and rated separately, and a good applicant tracking software includes collaborative tools and reports so everyone is on the same page. Want a background screening? Your applicant tracking system should be able to provide that, too. After you’ve extended an offer to your prospective employee, many ATS offer additional abilities so you can onboard the new hire.
The application process may be over, but onboarding is just beginning. Your new hire has documents to fill out, resources to review, and forms to e-sign. ATS software should have an onboarding portal where you can consolidate documents. Your new hire can sign in, review and securely sign necessary paperwork, and use the portal as a resource to check back on onboarding documentation and company guidelines whenever he or she chooses.
Your applicant tracking system may even sync with payroll, so you can quickly get your new hire into the system and properly compensated. Tasks can be created, edited, and managed for both the new hire and the hiring manager. And all of your documentation is secure and accessible in cloud storage.
The right ATS is your hiring manager’s best friend. Try ApplicantStack for free today. It will help your hiring team succeed in 2021 and beyond.
Updated November 10, 2020
What Are Structured Interviews?
A structured interview uses a uniform script of questions. To conduct the interview, the interviewer follows the same script for each candidate. The questions are chosen specifically for the skills required for the position. They also include questions that reveal desired behavioral attributes. In an unstructured interview, the interviewer is free to change the line of questioning on the fly.
A structured interview rating system also uses a uniform format for rating applicants. The standardized scoring system is tied to the interview questions. Structured interview questions and scoring provide a standardized way to evaluate the interviewee. If you want to improve your hiring outcomes, consider creating a structured interview process.
How Does A Structured Interview Process Improve Hiring?
- It is more objective—all applicants are asked the same questions in the same order
- It minimizes confirmation bias (when the interviewer seeks to confirm a subjective first impression or initial bias)
- It is more effective for evaluating soft skills
- It helps the interviewer cover all the important topics
- It helps the employer comply with laws governing hiring practices
- It is more efficient
How Do You Create a Structured Interview?
- Write a highly-detailed job description
- Include skills/certifications/experience (hard skills)
- Identify the behavioral qualities (soft skills) you are looking for
- Use the STAR method to create behavioral questions
- Create a script that puts the questions in order
- Create a scale to rate the answers to each question
- Keep interview variables as uniform as possible—time of day, location, interviewer
- Train hiring managers on the system
- Make sure interviewers are familiar with the script before they interview a candidate
- Interview applicants
- Rate each applicant on each question/answer
- Schedule feedback meetings with the hiring team
- Evaluate applicants using ratings
What Are Behavioral Interview Questions?
Behavioral questions are more effective for predicting how an applicant will perform in the job role. Behavioral questions (also called situational questions) focus on how the candidate performed in previous positions. Behavioral questions also identify soft skills.
What Are Soft Skills?
Soft skills are behavioral attributes and competencies that help an employee be effective at their job. They are especially helpful for positions that require working with a team. They are also important for management roles.
What Soft Skills Do Employers Look For?
The following soft skills help employees be successful in their jobs:
- Positive attitude
- Communication (written and verbal)
- Time management
- Critical thinking
- Collaborating with a team
- Ability to learn from criticism
- Ability to resolve conflict
- Creative problem-solving
- Honesty and integrity
What is The STAR Method For Behavioral Questions?
The STAR method is a common system for creating behavioral questions. STAR stands for situation, task, action, result. The STAR method works best when you are specific as possible.
To write an interview question using the STAR method:
- Identify a challenging situation common to the position
- Identify the task you wish to achieve (your goal)
- Identify what action should be taken to accomplish the task
- Identify the ideal result
Examples of Behavioral Questions And The Soft Skills They Reveal
- Why do you feel you are the best person for this position? (Strengths, self confidence, ambition)
- Tell me about a time you made a mistake. What did you do about it? (Weaknesses, maintaining composure under pressure, ability to receive criticism, self-awareness)
- Describe a problem at your previous job and how you solved it. (Problem solving ability)
- Describe a situation in a previous position where you had to resolve a conflict between members of your team? What did you do? How did it turn out? (Conflict resolution, creative thinking, ability to work as a team, leadership, positive attitude)
- What’s your favorite thing about [insert applicable job position]? (Values, goals)
- How would you prioritize competing projects that have the same deadline? (Organization, creative problem solving)
- Describe a time you disagreed with your manager and what you did about it. (Coachability)
- Describe a time you had to persuade team members to do something they didn’t want to do. (Leadership, management)
- Describe a time you had to learn something fast for your job. (Adaptability, creative problem solving, critical thinking)
- Did you ever fail to meet a deadline? Why? What did you do about it? (Work ethic, organization, time management)
- Have you ever had an ethical dilemma at work? What did you do? (Integrity, honesty)
Tailor these questions to the position. For example, for a customer service position, ask the applicant to describe a time they solved a problem for a customer. For a teaching position, use scenarios involving students.
Behavioral questions can reveal whether a candidate is a better fit for another position. Keep the applicant in your candidate pool for future openings within your company.
How Do I Create a Structured Interview Process?
A structured interview process requires organization and documentation. An applicant tracking system (ATS) with interview tools streamlines the process. You create job postings, job descriptions, questionnaires, interview scripts, and ratings scorecards.
Cloud-based systems help your hiring team collaborate. They provide centralized access and electronic records. Everyone can see the feedback and scoring for each applicant. Search tools help you track multiple applicants and job positions.
ATS’ maintain a candidate pool. You can reach out to previously rejected (but qualified) applicants for future openings. This gives you a head start for each job opening.
An ATS simplifies interview scheduling. You can email applicants from the software. You create email templates for the standard ‘Thank you for your application’ emails. Write personalized emails when you can. Let the system send auto-emails when you don’t have time.
Applicant Tracking Systems With Interview Tools Make it Easy
ATS’ are affordable for small businesses and tight hiring budgets. Most have a nominal sign-up fee. You can start small and inexpensive and scale up as your company grows. If you are wary of long-term contracts, look for a month-to-month subscription. For a small investment, you can try it out. Discover how it streamlines structured interviewing.
Systems with onboarding tools allow you to change an applicant’s status to ‘Hired’ and migrate them to the onboarding process. You won’t have to enter all of their information again.
SwipeClock ApplicantStack for Structured Interviews
ApplicantStack Recruit helps small businesses implement the same type of structured interviews used by large employers. ApplicantStack solutions help you thrive in today’s competitive labor market. You can try ApplicantStack Recruit for free and start improving your hiring outcomes.
Hiring bias limits efforts to increase workforce diversity. Companies that do more than pay lip service to diversity identify the types of bias in their process. After that, they create a detailed plan to eliminate it. To carry out their plan, they dedicate the necessary resources, measure outcomes and modify as needed.
Working toward demographic parity is not just the right thing to do from a moral standpoint. It’s the best thing to do from a business standpoint. At the end of this article, we discuss the benefits of increasing workforce diversity.
First, we’ll discuss seven insidious types of hiring bias. After that, we will outline an 11-step roadmap to eliminate the bias and build a more diverse and inclusive workforce.
7 Types of Hiring Bias to Root Out
These are categorized as cognitive biases. A cognitive bias is a flaw in judgment. Think about a coin toss that comes up heads ten times in a row. While there’s always a 50% chance that the next flip will be tails–it seems unlikely.
1. The Halo Effect
We all know that first impressions matter. This is related to the halo effect. Once we have a favorable opinion of someone, it takes a lot to change our mind. Another element of the halo effect is the idea that because a person excels in one area, he or she will also excel in others. For example, we might assume that because someone is an excellent public speaker, he will also make a good content writer. In reality, these skills don’t necessarily influence each other.
2. Expectation Bias
This is related to the Halo Effect discussed previously. A recruiter might read through dozens of resumes. One candidate looks particularly good ‘on paper.’ When that person comes in for an interview, the recruiter may be more likely to overlook obvious flaws. For example, the person doesn’t make eye contact or is inarticulate. If you expect someone to be something–whether that’s good or bad–he or she is likely to fulfill those expectations.
3. Confirmation Bias
Confirmation bias is the tendency to seek out information that validates your current opinion. For example, people who tune into Sean Hannity are typically more conservative. People who watch Rachel Maddow are typically more liberal. As a hiring bias, it’s the tendency to focus only on the aspects of a person that coincide with the recruiter’s pre-established opinion.
4. Anchoring Bias
Anchoring is a hiring bias in which the hiring manager fixates on one piece of information. As a result, they give it more weight than it deserves. Say, for instance, you have a candidate who is the president of the local Mensa Society. Even if the candidate isn’t the best for the job, it may be tempting to overlook her flaws because ‘She’s in Mensa!’
5. Social Comparison Bias
Managers hiring for their team are especially vulnerable to this one. The social comparison bias is the tendency to dislike or feel competitive with others who may have similar skills. For example, suppose you’re known as the company’s expert on a certain software application. You may feel reluctant to hire someone whose skills exceed your own. For decades, research has shown that this is a relatively common phenomenon. Therefore, it’s an issue you’ll want hiring managers to consciously avoid.
6. Ingroup Bias
Ingroup bias is the tendency to favor people who are similar to oneself. Those who are part of the same ‘group.’ Like sexism or racism–it’s blatantly unfair. But there are less obvious examples of ingroup bias. Some hiring managers, for example, might look more favorably on fellow alumni. You may feel a sense of camaraderie with a candidate who participated in the same fraternity or sorority. There are several types of ingroups, so make sure your team watches out for them.
7. Shared Information Bias
While this type of bias may not directly affect your candidates, it can certainly draw out the hiring process. Shared information bias is the tendency for members of a group to discuss information that everybody is already aware of, rather than focusing on hidden information that is only available to some. For example, if one interviewer notices an irritating quality in a candidate, he or she should share this with the group–even if it doesn’t seem relevant. All members of the team should have the full scope of information.
Now that we have discussed types of unconscious bias, hopefully you will consciously avoid them. Many experts suggest that AI is the solution. An applicant tracking system (ATS) can be used in many ways to root bias out of your hiring process. For example, an ATS can hide aspects of a candidate’s profile that you don’t want to consider. Also, you can use an ATS to manage gender- and ethnically-neutral job descriptions. Plus, you can decrease the shared information bias when everyone keeps notes in a central location. Lastly, tracking all candidates and hires in a centralized location makes it easier to track your diversity metrics.
An 11-Step Roadmap for Increasing Diversity Through Recruitment
Once you’ve identified the types of hiring bias going on, it’s time to make a plan to reduce and, hopefully, eliminate them. Use these steps to create a plan designed for your company. Many factors will affect your plan. For example; your industry, the size of your hiring team, the number of yearly hires, and your current level of diversity.
1. Set Measurable Goals
Firstly, assess your workforce. Consider gender, ethnicity, and age. Also educational background, socioeconomic status and geographic location if you have remote workers. (If you don’t have remote workers, why not?)
In addition, be mindful of not discriminating based on sexual orientation or gender identity. Though this information would be difficult and inappropriate to address in an assessment. (Under no circumstances should you ask any employee about his/her/their sexual orientation or gender identity! It would be illegal and in extremely poor taste.)
Secondly, create a diversity mission statement. Let your employees know about your diversity hiring goals. If you use an HR portal, remind your employees of your diversity mission frequently.
Thirdly–and this is most important–make a specific goal to increase your target hires in each underrepresented group by X in X months.
Lastly, include your diversity mission statement in your employee handbook and training materials. Put the statement on every piece of recruiting communication. Use it on internal documents so it’s always top of mind for your employees.
Keep in mind that diversity doesn’t just mean varying nationalities. It’s also important to hire professionals from a range of industry backgrounds and diversified levels of experience while paying attention to gender balance. The beauty of diversity is there is no perfect formula. Every team will look unique. (Sheryl Lyons, “The Benefits of Creating a Diverse Workforce,” Forbes)
2. Incorporate Employee Resource Groups
Make diverse candidates feel more comfortable by using employee resource groups (ERGs) during interviews. (Hopefully, you have ERGs. If not, encourage your staff to create them and support them in the effort.)
Employee Resource Groups (ERGs) are voluntary, employee-led groups that foster a diverse, inclusive workplace aligned with organizational mission, values, goals, business practices, and objectives. Other benefits include the development of future leaders, increased employee engagement, and expanded marketplace reach. (Catalyst)
3. Review Resumes Blind
Studies show that resumes with white-sounding names receive more callbacks or interviews than those that seem non-white. Consequently, many candidates ‘whiten’ their names and backgrounds. But why should a candidate’s name affect whether he or she is a fit for an open role? You can use an ATS to remove names and hide demographic information. This will help your team avoid unconscious bias during the resume review process.
4. Diversify Your Hiring Team
Is your hiring team diverse? Applicants will notice. If minority candidates have several job openings to choose from, the makeup of the interview team could be a factor in their decision. Diversify your interviewing team. This will help them make better collective decisions.
5. Train Employees on Hiring Bias
You can’t increase workforce diversity if your employees don’t understand unconscious bias. Therefore, it’s important to conduct formal training. You can create your own internal training program, hire a consultant, or use online resources like Google’s unconscious bias training.
The Harvard Business School’s Implicit Project (requires registration) is an eye-opening exercise. It can help people recognize and measure their biases. At the start of training, consider having participants take a few surveys to learn what social stereotypes they may be harboring. Encourage them to challenge their assumptions.
6. Retool Your Job Descriptions and Job Requirements
Do you use gender-neutral terminology? Scrutinize your job descriptions and take out any gender-specific language. Instead of ‘he’ use ‘he or she’ or ‘s/he’. You can always use the job title in place of any pronoun.
Many words used frequently in job postings discourage women from applying. Here is a free gender decoder tool. Just paste in your job description. Create job description templates after carefully crafting them to avoid bias. Manage them in an applicant tracking system.
Just as important as giving your job descriptions a makeover, consider your job requirements. If ‘corporate culture match’ is a hiring criterion, remove it. This is an easy place for unconscious bias to creep in. It will hinder your efforts to increase workforce diversity. Furthermore, if your company culture reflects a homogenous workforce, you don’t want to use it as a measuring stick anyway. Increasing workforce diversity will improve your company culture.
7. Use Structured Interviewing
In addition to retooling job descriptions, rewrite interview scripts to avoid bias. Train your interviewers to use them correctly along with EEOC guidelines. Manage your structured interviewing scripts in your ATS. Standardizing interview questions enables a consistent and fair experience for all candidates.
Lastly, remind employees to avoid asking questions that could lead to a candidate sharing his or her age, religious affiliation, sexual orientation or gender identity. This information doesn’t relate to a candidate’s ability to perform in the role and could bias hiring decisions. If the candidate volunteers the information, instruct your interviewers to steer the conversation elsewhere and discourage them from sharing the information with the rest of the panel.
8. Seek Diverse Referrals
In addition to revamping recruitment communications, use your employee referral program. Encourage employees to refer applicants from underrepresented groups. Our closest associates are likely from our same demographic group. When moving outward in our network, however, we find more diversity. Therefore, encourage your employees to look beyond their first- and second-degree connections.
Pinterest created a program designed to increase the diversity in their engineering teams. They asked their engineers to refer potential job applicants from target demographics. They discovered that if their employees made a conscious effort, they could find referrals from underrepresented groups. Pinterest’s diversity referral program was a success. They are taking additional steps to increase diversity in other departments. (Medium)
9. Improve Onboarding
You might wonder what onboarding has to do with workforce diversity. It comes after a candidate accepts the job, after all. The reason onboarding is key is because good onboarding reduces turnover. Hiring more employees from inadequately represented groups is the first step. Retaining them is the second step.
Consider the employees who have quit your company in the last five years. Identify whether minorities, women or older employees have shorter tenure. If they do, you’ve got problems with culture and management. Your company may not be welcoming to underrepresented groups. The topic of turnover leads to the next section.
10. Use Exit Interviews
Hopefully, you don’t have a lot of employees quitting. If you do, use exit interviews to learn why they are leaving. You may discover you have problems with your managers. Perhaps your company doesn’t support work/life balance. Maybe there are limited opportunities to progress along a career path. Are your advancement policies discriminatory? Find out what’s going on and fix it.
11. Revisit Your Benefits
Does your company recognize employees in different life stages? Do you support working mothers and fathers? Which holidays do you recognize? If your benefits are designed for a homogenous workforce, it will hamper your workforce diversity goals.
Offer benefits such as onsite daycare, childcare subsidies and flexible schedules, and let new hires know that you are willing to accommodate cultural and religious holidays and diversity-friendly (but office appropriate) apparel choices.
Wall Street Journal
The Business Advantages of Workforce Diversity
Let’s discuss the benefits of workforce diversity from a business standpoint. A diverse workforce has increased depth of experience, knowledge. and skills. It is more productive and innovative. It’s impossible to successfully introduce a product into a new market if you don’t understand the culture. Diverse teams can better serve diverse clients.
Through 2022, 75% of organizations with frontline decision-making teams reflecting a diverse and inclusive culture will exceed their financial targets. And gender-diverse and inclusive teams outperformed gender-homogeneous, less inclusive teams by 50%, on average. (Gartner)
The consulting group BCG found that organizations with above-average diversity on their management teams had higher innovation revenue. 19 percentage points higher, in fact, than companies with below-average leadership diversity. 45% of total revenue versus just 26%. Note that this study involved leadership teams. This underscores the importance of increasing diversity at the highest levels. If you focus only on entry-level positions, you won’t experience the same benefits.
In conclusion, let’s reiterate the steps to increase workforce diversity. First, understand the types of hiring bias. Second, identify which ones are inherent in your process. Third, create a detailed plan to eliminate the biases. Fourth, set a measurable goal for increasing diversity. Fifth, follow the plan and measure results along the way. Sixth, tweak the plan as needed until you reach your diversity goals.
Human resources functions are critical for business recovery. HR is tasked with redesigning processes for safety and compliance. They must also lower overhead. For some small businesses, survival depends on it.
How can Human Resources functions reduce labor costs?
Let’s suppose you need to reduce expenses by 20%. You can’t move forward without bringing back the employees you furloughed. Your experienced high performers will help you get back on your feet. You don’t want to cut their pay. Like your business, they aren’t exactly rolling in dough right now.
Where do you start?
Consolidate Your Human Resources Functions
Here is your solution. It consists of two straightforward components:
1. Get a unified Human Resources portal
2. Use best practices for Human Resources functions
5 Steps to Lower Costs 20%
Drastic cost-cutting requires everyone’s cooperation. This means executives, managers, administrators, and employees.
First, we’ll do the math. Then we’ll discuss unified Human Resources portals in more detail.
1. Reduce Overtime—5% Savings
Managers can’t be full-time overtime cops. They wouldn’t get anything else done. An HR portal monitors overtime. It sends the manager an alert when an employee is approaching the end of their straight time hours for the week. The manager can take the necessary staffing actions to save the labor budget from time-and-a-half.
2. Optimize Shift Scheduling—3% Savings
Predict scheduling needs to prevent expensive overstaffing. When you unify human resources functions, the system collects data. Use historical data to forecast staffing requirements.
3. Reduce Cost-Per-Hire—5% Savings
The applicant tracking tool in the HR portal improves efficiency. It saves your hiring team all that tedious manual work they hate. The system stores job descriptions, applicant questionnaires, interview scripts, and all the email templates discussed previously. It also shortens time-to-hire which further optimizes your hiring budget.
4. Automate Human Resources Functions–4% Savings
The HR portal automates up to 80% of Human Resources functions. The best practice here is to create checklists to eliminate redundancies. Assign tasks to team members and record progress in the system. Collaborate in a centralized interface. Get rid of spreadsheets that aren’t updated in real time.
5. Reduce Employee Time Theft–3% Savings
When an employee misrepresents more hours than actually worked, it’s called time theft.
There are several different methods:
- Punching in earlier than authorized
- Punching out later than authorized
- Failing to punch out for unpaid breaks and meals
- Buddy punching
A unified HR system has many options for time tracking. Workers can clock in with a web clock or hardware clock. Depending on the type of time clock, employees can buddy punch by sharing their system pass codes, swipe cards, or fobs.
Sync your HRMS with a biometric time clock. It requires a biological identifier so employees can’t clock in for each other.
Managers set shift rules in the system. The time clock enforces schedules based on the custom settings.
What is a Unified Human Resources Portal?
A unified HR portal is an integrated suite of tools. A systems that manages all HR processes is called a Human Resources Management System (HRMS).
It is a cloud-based system employees access with a connected device. For example, a smartphone, tablet, or computer. The software has an interface (or gateway) through which employees, managers, and admin handle HR-related transactions.
How Does an Employee Use The HR Portal?
The employee opens the company HR portal. If they are using a mobile phone, they use the companion app.
They are greeted by a branded dashboard. If they are an hourly worker, they clock in for their shift. You can customize prompts for critical company messaging. For example, employers are using their HRMS to remind employees of social distancing, work from home policies, and the latest COVID-19 workplace guidelines.
HR Portal Employee Dashboard
The employee dashboard has, well…everything.
- Clock in/out, current punch status
- At a glance: next pay date, link to company directory
- Payroll: links to recent pay stubs, tax forms
- Engagement: employee recognition board, check-ins, anonymous suggestion box, chat
- Documents: employee handbook, training materials, benefits forms
- Work schedule
- Time Off: requests, approvals, PTO balance
- General HR: to do lists, employee filing cabinet
How Does a Manager Use The HR Portal?
The portal gives the manager complete employee oversight. They have all employee information in a centralized location. It is updated in real time.
They see who is clocked in and when they clocked in. GPS-enabled timekeeping lets them see where mobile or offsite employees are working.
All requests and approvals are managed and stored in the same place. Managers approve shift changes and time off requests. They monitor and approve time cards.
Manager Shift Scheduling
In the schedule module, managers create employee schedules. The scheduling tool has drag-and-drop. Just drag employees into shifts. Use the system templates or make your own. For example, if your staffing fluctuates during the year, make a template for the busy season and another for the slow season. Copy schedules forward.
The schedule tool will alert you if you double book an employee at two locations. Set limits for maximum hours to prevent expensive overtime.
Do you have shift requirements for skills and/or certifications? For example, a restaurant that employs minors who can’t serve alcohol. The manager needs some servers of legal age for every shift. If this is the case, set shift skill requirements. Each employees’ qualifications are recorded in their profile. The schedule tool compares shift requirements with the employees scheduled. It will alert you if you don’t schedule the pre-set number of employees with the necessary skills/certifications.
How Does The HR Team Use The System?
The system manages the paperwork and other functions with workflow stages. Let’s discuss system actions linked to workflow stages.
Workflow Stages Trigger Actions
This begins during the hiring process. When the applicant applies online, it triggers an application confirmation email. If the hiring manager wants to advance the applicant to the interview stage, the system sends an email with a link to the interview self scheduler. The emails use merge fields to customize the message with the job role, applicant name, and other pertinent information.
As the applicant advances through the recruiting stages, the system performs actions relevant to the hiring stage.
When the hiring manager changes a new hire’s stage to onboarding, the system emails all the new hire paperwork. E-signature allows the employee to sign the necessary documents. Read receipts let the HR team know when documents have been completed.
The HR team monitors the health benefits enrollment and tax paperwork. The employee enters their direct deposit information for the payroll department.
WorkforceHUB Unifies Human Resources Functions
SwipeClock WorkforceHUB is an affordable, intuitive HRMS that can unify your Human Resources functions. If you decide to implement a unified solution, keep in mind that one million employees use SwipeClock products every day. We’ve been helping small to mid-size organizations lower labor costs since 1999.
Post-COVID business recovery depends on HR leadership. Johnny C. Taylor Jr., President & CEO at SHRM (Society for Human Resource Management), called HR professionals corporate first responders. They are on the front lines helping organizations work through pandemic-triggered disruption.
HR will need to be the stewards of physical and mental health, continuity, and wellness. Johnny C. Taylor Jr.
HR first responders will help restore economic security for businesses, communities, employees and their families.
Consider the ways the coronavirus pandemic has required HR leadership:
- Abrupt workforce relocation due to shelter-in-place and lockdown orders
- Widespread absences due to quarantined employees, sick employees, and employees who can’t work due to lack of childcare
- Mass lay-offs and furloughs for businesses that had to close temporarily or reduce services
- Employee fear and anxiety
- High-volume remote hiring and onboarding for essential businesses
- High volume hiring for essential businesses and industries
- Managing new paid sick leave, expanded FMLA and Paycheck Protection Loan qualification
- Employee health and wellness policies
How can Human Resources drive business recovery? With ingenuity, agility and compassion.
In the earliest days, we thought [coronavirus] was strictly a healthcare issue. But it became clear how quickly it morphed into a people issue and how CHROs are playing a critical role in helping their companies get through this. Johnny C. Taylor Jr.
SwipeClock WorkforceHUB Human Resources Management System (HRMS) is your first responder toolkit.
HR First Responder Toolkit For Business Recovery
WorkforceHUB includes the following:
- TimeWorksPlus for mobile and remote employee timekeeping
- Geolocation and geofencing for location tracking
- ApplicantStack for mobile applicant tracking and remote hiring
- In-application texting
- Video interviewing capability
- Structured interview scripts
- Designed for essential business high-volume hiring
- Absence management
- Remote onboarding/offboarding
- Online new hire portal with e-signature
- Onboarding checklists for administrations with completion tracking
- 100% remote onboarding/offboarding
- Shift planning platform
- Staggered schedules
- Schedule rules for occupancy limits
- Complicated team scheduling rotation for social distancing
- Employee wellness and engagement
- Manager checkins
- Recognition wall
- Anonymous suggestion box
- TimeWorksTouch employee time clock
- Biometric time clock with bacteria-resistant fingerprint register
- Customizable prompts for COVID-19 symptom checking
- Syncs with TimeWorksPlus for onsite and offsite clock in/out
HR first responders are exceptional communicators
As you create your business recovery plan, it’s impossible to overstate the importance of effective communication. The landscape has changed dramatically. As employees come back to the office, they will encounter a whole bunch of new rules. Workstations will be rearranged. There will be social distancing policies. They will have less face-to-face interaction with coworkers. Consistent, concise communication will help them succeed.
Dangerous rumors and worker fears can spread as quickly as a virus. It is imperative for companies to be able to reach all workers, including those not at the worksite, with regular, internally coordinated, factual updates about infection control, symptoms, and company policy regarding remote work and circumstances in which employees might be excluded from or allowed to return to the workplace. These communications should come from or be vetted by the emergency response team, and they should be carefully coordinated to avoid inconsistent policies being communicated by different managers or functions. Clearly this requires organizations to maintain current phone/text and email contact information for all employees and test organization-wide communication periodically. If you don’t have a current, universal contact capability already, now is a good time to create this. Harvard Business Review
Managers will need to over-communicate. They should interact with employees face-to-face (six feet apart, of course) as much as possible. They need to continue supporting at-home employees daily (or more often) by video conference. An HRMS can support communication by automating announcements, alerts, symptom checking, and policy education and reminders.
Our employees right now are looking for our leadership. They want to know that we can handle the unexpected. They want answers to their questions. While we might not know what’s happening with the virus, we do know how to run the business. Sharyn Lauby, HR Bartender
Human Resources is stepping up
HR first responders are up to the task. They will lead America’s businesses into a bright post-pandemic future.