Around 10% of the FTSE 250 utilise applicant-tracking systems (ATS). Conversely, in the region of 90% of the Fortune 250 in the US use some form of ATS. Clearly, the benefits of this type of system have yet to be realised in the UK.

In the competitive world of business, efficient recruitment processes are vital to the future of a company. But applicant tracking and talent management no longer has to be managed manually by an HR team. New software systems can alleviate the burden on HR whilst providing an efficient and cost effective method of attracting applicants and processing job applications.

In the UK, the online job seeking population grew 76% to 11.1 million – estimated to be 44% of Internet users and 30% of the total working population. This huge growth in electronic applications has opened the door for companies to manage their recruitment process in a cost-effective and efficient manner.

The UK has the most complex job market in the world, but is also the biggest spending. However, according to the ORES Survey, over half the companies researched do not track their cost per hire and some of them don’t even know the source of the applicant.

The research showed:

• 56% don’t track their cost per hire




• 39% don’t track source of application




• 69% don’t automatically acknowledge receipt of application




• 85% sift CVs entirely by hand




• 87% don’t use online screening tools to cut down on work processing applications.

It seems, then, that time and money is being wasted during the recruitment process. In addition, companies are missing an opportunity to promote a positive and professional corporate reputation by handling applications quickly and effectively.

Why has the UK been slow to move to ATS?

Whilst we are leaders in the development of information technology, many of us are, ironically, resistant in taking it up. We have a traditional approach to business – after all we’ve been doing it for hundreds of years – we like the personal, human approach.

In addition, large organisations may feel daunted by the prospect and the perceived problems of setting up automated online ATS.

Contrast this with the US, where the culture is very comfortable with new technology and very open to adopting it. As a relatively ‘new’ business community, organisations have grown up with a strong emphasis on IT – and undoubtedly, they lead the world in ‘processes’.

In the UK, concern for job security may also be an issue – an automated system will replace people, won’t it? Well, no actually – a good ATS will take the time consuming procedural work out of recruitment management, but it won’t work without the HR team implementing it, providing the human interface, meeting and interviewing applicants.

ATS should be seen as a support tool for HR, freeing some of the department’s time to do other things. In any event, a good applicant tracking system can fulfil both the desire for new technology and the need to maintain the human touch. The software should be configurable and adaptable and evolve with an individual company’s needs.

Another contributing factor to the slow uptake of ATS in the UK is the very strong links between employers and employment and specialist advertising agencies, whereas in the US companies are far less reliant on recruitment agencies and the like. In the UK, we also have a huge choice of print media including very strong recruitment elements in the national newspapers, and again, this is not case in the US.

Many UK recruiters are attached to these traditional methods and some are tied in by long term contracts so it will take some time to see a change. I would estimate five years or so before we see real significant change in UK businesses recruitment methods. And I believe the challenge is to get the HR manager to think more like the recruitment agency.

But the statistics look positive. According to Recruiternet research, 54% aim to create or improve their corporate career site; 48% would like better response management tools; 43% would like to offer candidates online application forms and 38% aim to create their own talent pool.

And this is gratifying because effective ATS can have a huge impact on an organisation’s business.

Dunkin’ Brands, for example, which includes such familiar brands as Baskin Robbins and Dunkin’ Donuts, faced a monumental challenge with its employee recruitment process across 40 countries, 11,000 franchised stores and 10,000 employees.

Dunkin’ Brands needed to address the cost per hire, the time to hire and the amount of paper and disconnects within the recruitment process. By implementing our Projectix ATS, Dunkin’ Brands was able to achieve the following results:

• Average cost per hire reduction of 65%




• Time to fill reduction of 35% (83 days to 54 days)




• Overall recruiting costs slashed by US$1 million in first year




• Six-month return on investment (ROI) of 7,300 per cent

As Joe Capp, Director of Talent Acquisition, Dunkin’ Brands, sums up: “We’ve moved from being a reactive, paper-pushing employment function, to being a proactive, talent-acquisition programme that is doing direct sourcing and creating pools of talent!”

A huge opportunity exists to generate cost and time savings in the UK recruitment process too. The future looks positive as the Recruiternet research found that the majority of UK recruiters intend to make significant improvements to their processes in the near term.

So it’s clear, the move towards applicant tracking and online talent management systems may be slow in the UK, but it is inexorable and coming to a business near you!

Felix Stroud-Allen is Head of Sales for UK & Europe, Recruiternet UK Ltd