Top 4 Reasons to Implement a Human Resources Electronic Application System

If you understand what an electronic application system is, then you only need to answer one question:

Business owners and managers, would you like the HR staff to act as strategic partners and help you exceed your operational goals?

Human Resources professionals, would you like to remove yourself from the stacks of paperwork and concentrate on issues that matter?

Implementing an electronic application system is one of the fastest ways to streamline business processes and expand the responsibilities of the Human Resources department. As demonstrated below, an electronic application system saves time, saves money, reduces errors, and increases compliance.

What Is an Electronic Application System?

Most large businesses already possess an electronic application system. It is referred to by different names at different companies, such as the online application system, applicant tracking system, e-recruiting software, or talent management system.

No matter the name, the central purpose of the electronic application system is to store and track job applicant data for the Human Resources department. In most cases, applicants enter their information into a web form, which is then stored in a database for future retrieval, querying, and reporting. The electronic application system may be a stand-alone module, or it may be part of a complete suite of Human Resources Management software that links employee appraisals, disciplinary action, training, and payroll. Popular applicant tracking software includes iCIMS, CATS, Zoho Recruit, Jobscience, Kronos, and Newton.

If you already owe a customer relationship management (CRM) system or Human Resources Information Systems (HRIS) software, you may be able to purchase a compatible employment application module from your current vendor. Examples include Peoplesoft, Salesforce, and Microsoft Dynamics CRM.

The Importance of Effective Applicant Tracking

A 2004 survey by Mercer Human Resource Consulting identified that 69% of HR professionals considered their recruiting/applicant-tracking processes to be ineffective. These staffing experts complained that they were spending too much time on transactional record-keeping and not enough time on important business matters.

While many circumstances have changed since 2004, the issue of identifying, recruiting, and tracking qualified applicants is still a critical concern for most employers. An electronic application system can transform the traditional approach to recruiting into an efficient, effective, data-backed process.

1. Saves time

One of the primary advantages that sprouts from an electronic application system is times savings. In the past, changing a single question on a job application meant rewriting the information, reformatting it on a Microsoft Word document, and reprinting the file numerous times on a desktop printer or sending it off to FedEx Office. With an electronic application system, in less than a minute the wording can be changed right on the Internet, the new question is available instantaneously for applicants, and no unnecessary printing costs are incurred.

Many electronic application systems also offer the benefit of automatic screening, which means that unqualified applicants can be rejected without wasting time on manual reviews. For instance, if you designate that a Bachelor's degree is required, anyone possessing an Associate's degree or less is dropped out of the applicant pool. This feature alone can chop a substantial amount of wasted time from the recruiting process, as people who are just applying to any job they see are automatically screened out and dismissed.

A third time-saving component built into most applicant trackers is on-demand reporting. Hiring managers can immediately access the details they need, while the HR department can track the characteristics of successful employees and forecast the organization's recruiting needs. Employees can use the standard reports that come with the software or customize their own. They can also redirect the time they save on manual work to strategic Human Resources activities.

2. Saves money

Due to the informal law of business, any savings in time also produces a savings in money. Do you realize that recruiting costs can reach as high as 30% of the employee's first year salary, not including the additional training expense? As previously mentioned, an electronic application process slashes printing costs, but it also uses automation to eliminate inefficient processes and wasted time. Why pay the Human Resources department to perform tasks that technology can do for them?

By using an electronic application system, the HR staff can also avoid unnecessary follow-up phone calls, an expense benefit that is discussed below.

3. Reduces errors

In most paper application processes, the applicant scribbles information into tiny boxes, sends the application through the mail, and waits for the Human Resources representative to interpret the phone number that was written and call for an interview. Alternately, if the application is last minute, the applicant may drop off the required documents during business hours. If none of the staff can read the phone number, they may attempt contact via the email address or merely shred the application, thereby discarding a potentially good candidate.

With an electronic application process, the applicant types the contact and resume information into a web form, which means the details are always legible. The form can also use error-handling to require valid information. Consequently the application will not be submitted until phone numbers have ten digits, birthdates are formatted in month-day-year order, proper names are capitalized, and the employment history has no unexplained gaps. Because the form is online, it can be accessed 24/7 by both applicants and business staff. The office does not need to be open in order to attract employment requests from excellent candidates.

Since many electronic application systems are also integrated into employee-centered software, staff members avoid duplicate data entry and typos. They no longer have to track every detail in a Microsoft Excel spreadsheet and risk mistakes or computer crashes. After an applicant is hired, contact information can be disseminated to other areas of the company electronically without manual intervention.

4. Increases compliance

The final benefit arising from electronic application systems is increased compliance with reduced effort. Staying compliant with all national, state, and local regulations is a critical issue in any employment practice. Most employment software vendors provide regular updates on federal regulation changes, and modifications at the state or local level can be accomplished through on-demand edits.

Because applicant information is submitted electronically, a robust system can safeguard data from employee accidents, loss, and destruction. In addition, since the information is presented in a quality format from the applicant, it can be relied upon for Equal Employment Opportunity Commission purposes. An electronic application system also minimizes litigation expenses by permitting you to prepare for and prevent accusations of unfairness and other recruiting-related lawsuits.

In summary, an electronic application process can move your organization forward and present new opportunities for technological and people-based growth. Instead of focusing on minutiae and dealing with low-level transactions, the Human Resources department can concentrate on strategic business objectives. Implementing an electronic application system will save time, save money, reduce errors, increase compliance, and change the way you do business.