The state of tech for the talent acquisition market: What you need to know
4 mins, 21 secs read time
In the talent acquisition market, resilience is key. As you get ready to tackle whatever it has in store this year, ask yourself: Do I have the tools that will help me effectively compete for talent, improve the candidate experience and focus on quality of hire? If you’re like the majority of TA professionals, then unfortunately, the answer is no.
More than half – 58% – of companies are dissatisfied with their existing applicant tracking system (ATS). And one in four enterprise companies are looking to replace theirs this year.
Greenhouse recently partnered with Aptitude Research to produce the eBook, Moving from a legacy ATS: When you need a modern talent acquisition system. Let’s explore a few of the key findings on the state of tech for the talent acquisition market.
Understanding your options
If you find yourself lacking the technology to meet your hiring needs, you have a few paths to consider. You can:
Stay the course
Simply continue with your legacy systems and avoid the disruption or change management that’s inevitably with a switch to a more modern system.
Invest in an HCM provider
If you’re ready to make a change but not to fully replace your current systems, you can leverage the recruiting module from your existing ATS and invest in an ecosystem of providers to fill the gaps.
Go best of breed
If you’re prioritizing a modern experience and expertise across all areas of TA tech, you can invest in a best-of-breed provider.
Why replace your existing TA tech?
When making the decision to replace your TA tech, it comes down to what your TA team and company are prioritizing. Let’s think about talent acquisition trends – for the past two years, efficiency was the number one driver of investment in TA tech. Companies were looking at technology providers to improve time to fill, to increase recruiter productivity and speed and to improve overall decision-making.
And while efficiency is still critical, the pendulum is swinging back to quality of hire as the number one driver of TA investments in 2023. One reason for this shift is the increased focus on retention. Because attrition is a growing concern, leaders are paying closer attention to tech decisions, and recruitment serves as the first line of defense for turnover. Identifying quality hires early helps organizations prepare for future needs.
82% of business leaders are more focused on talent acquisition this year than in the past.
Sometimes there can be a conflict between quality of hire and efficiency, but you shouldn’t have to sacrifice either when considering new technology. Modern TA systems can help you deliver on better outcomes in both.
What can you expect from a modern TA system?
There used to only be a few major TA providers that offered standalone products in defined categories like background screening, job boards, ATS, assessments and onboarding. Today, the market has exploded and there are thousands of providers. Many of them offer several solutions or have created new categories of technology, making your decision as a buyer that much more complicated.
If you’re ready to start evaluating TA tech providers, we recommend that you define your needs before you begin to consider partners.
The modern talent acquisition technology stack includes three layers:
Talent acquisition big four
Four major technology solutions – CRM, ATS, onboarding and internal mobility
Ecosystem
A system of solutions that enhance the value of integrated talent acquisition
The foundation
The base on which to develop integration, data and automation capabilities
When combined, these categories represent a holistic approach to strategic talent acquisition.
The benefits of a modern TA system
Why go through all the effort and change management involved with replacing your TA tech? A modern system facilitates depth in functionality, expertise in talent acquisition and integration with other solutions. When you invest in such a system, you’re better able to compete for talent and prepare for an uncertain future. Here are a few of the major benefits of a modern TA system:
Enhanced ability to compete for talent
Innovative technology supports a more efficient hiring process, which leads to a better candidate experience.
Increased customer retention
Your talent directly impacts customer retention and satisfaction metrics. When you hire quality talent, you’re better able to meet customer needs and improve your overall company brand.
Better communication with candidates
According to Aptitude Research, 58% of candidates never receive a response from employers. Traditional systems aren’t designed to help TA improve the candidate experience while modern systems remove roadblocks and ensure no candidates feel forgotten or ignored.
Improved quality of hire
Companies that improve their quality of hire have three characteristics in common – they invest in technology, use data to make better hiring decisions and gather ongoing feedback that they then act on. The truth is, a modern TA system can support improvements in all areas of hiring.
Stay tuned for the next installment on moving from a legacy ATS, where we’ll explore the steps and considerations involved in replacing your current TA provider.
Interested in digging deeper into the TA tech market and defining your own TA tech needs? Download the eBook here.
Priscilla Sanchez
is a Mid-Market Marketing Manager at Greenhouse where she cross-collaborates with various teams to support the achievement of mid-market segment revenue goals. Prior to joining Greenhouse, Priscilla worked on go-to-market program management and demand generation in the healthcare fintech industry. Outside of work, she's an avid dog walker, book nerd, runner, and frequently in search of the best pizza slice in NYC. Connect with her on LinkedIn.