HR AND DIGITALIZATION Applicant Tracking Systems (ATS) Candidate Relationship Management (CRM) systems

In the past decade, with technological advancements, roles and job descriptions in the business world have evolved from traditional roles with fixed duties to increasingly specialized roles that undergo changes within short periods. The increase in the world population and qualified education is also expanding candidate pools. Considering globalization, finding suitable candidates from these vast pools for very specific roles is a key agenda in the world of human resources. While digital transformations in human resources continue unabated, many tools with different functions are entering the realm of human resources utilization. Among these tools, Applicant Tracking Systems (ATS) can be considered the most widely used. While recruitment holds the biggest place in human resources processes and organizations manage thousands of applications every year, tracking candidates' processes regularly is one of the greatest needs. More than 95% of Fortune 500 companies use an ATS to manage and track candidates applying for open positions. In addition to the support of ATS for tracking candidate information, Candidate Relationship Management (CRM) systems also hold a significant place in recruitment processes. The integration of ATS and CRMs allows for finding the best talents, centralizing potential hires, and engaging more efficiently. Besides recruitment in HR processes, the use of dashboards for monitoring, analyzing, and reporting Key Performance Indicators (KPIs) is also increasing. Artificial intelligence, another popular agenda of digitalization, has begun to find its place in the world of human resources. The importance of leveraging technology not only for candidate tracking and communication but also for evaluating candidates is rapidly increasing, especially in roles where hundreds or even thousands of candidates apply. Collaborating with technologies referred to as algorithmic HR to make the right candidate selection improves HR departments' decision-making processes and enhances workforce planning. According to SHRM's State of the Workplace Report, Artificial Intelligence and digitalization can reduce data entry errors by up to 50% and accelerate recruitment processes by up to 40%. According to Sage's Changing Face of HR 2024 Report, 91% of HR managers state that their roles have undergone significant changes in the past five years, but only 32% believe that this change will continue. Similarly, 83% of HR leaders do not believe they are currently using the right HR technology, and only about half state they use automation. As NBS Human Resources, we have provided consultancy on the use of new-generation artificial intelligence-based interview tool and ATS in approximately 50 organizations throughout 2023. By implementing only two tools, we achieved a 52% time saving and a 46% cost reduction in the process of filling open positions. McKinsey's research indicates that 56% of HR experts' current jobs could be reliably performed by artificial intelligence. Considering that wrong hires can cost as much as an employee's annual salary, obtaining human resources support blended with technology is crucial for companies to succeed. References: