1) What is an RMS? (Recruitment Management System)
A software system developed specifically for managing and executing HR functions is an RMS i.e. Recruitment Management System.
It works at several levels – while it begins with automation of HR processes, especially those that are repetitive and time-consuming (e.g. payroll), it also streamlines other functions like applicant hiring, employee management, training and development (etc.). Further, it also frees up HR employees so that they can focus on other value-creating tasks.
As a result, it not only improves the quality of talent hired but, importantly, also the efficiency of overall company operations thus improving the ROI on company CapEx deployed. Ultimately, an RMS ensures a robust ROI across company operations.
~~~ Recruitment Management Software works superbly for companies. Whether posting job openings on numerous popular job sites, updating applicants with requisite details, managing the application process, deploying an ATS (Applicant Tracking System), using analytics, and generating meaningful reports, an RMS is a key tool for today’s companies ~~~
This blog will focus on top tips for ensuring companies derive maximum ROI from their investment in an RMS.
2) Maximizing company ROI with a Recruitment Management System
Let us look at some top ways in which organizations can ensure a healthy ROI across companywide operations from the investments it makes into an RMS.
i) Attract the best talent available: Recruitment methods of the past are, well, in the past! Such traditional methods of recruiting talent are now insufficient in today’s hyper-active world of constant interaction, outreach, and a plethora of communication channels.
To attract the best talent out there, an RMs is a crucial tool. By using the relevant keywords, setting up organized and focused candidate searches, and managing the application process effectively through an ATS (Applicant Tracking System), HR teams can effectively source, and recruit, the best talent out there.
For example, tools offered by the RMS include video-conferencing facilities that speed up the hiring process.
ii) RMS optimizes the recruiting process: Companies grow and prosper due to their good strategies and strong strategic maneuvers. However, it is the employees that orchestrate all this. The most important benefit of using an RMS is that it optimizes the recruitment process, making sure that the best possible talent is recruited. In today’s competitive world, attracting and retaining quality workers is a hugely challenging task.
A lengthy and tedious process full of paperwork is prohibitive. An RMS automates monotonous tasks, reduces error, and optimizes the efficiency of the entire hiring exercise. Not only does this improve the quality – and, hence the productivity – of company employees but it also helps HR employees tackle their tasks with greater efficiency.
Additionally, since all modern RMSs are cloud-based, it also offers a flexible system for remote and hybrid HR teams. All this adds up while calculating company returns on CapEx invested.
iii) Cost-Benefit ratio: An important benefit of creating a more efficient recruitment system with an RMS is that it reduces the time and cost of recruitment.
While attracting and recruiting the best workforce is key, it also needs to be done in a cost-effective manner to keep the operating costs of the HR department within the acceptable range. Otherwise, the HR operating costs – as a cost head – will spiral into unviable levels.
iv) Better channels of communication: Clear and unambiguous channels of communication are a critical lifeline of any successful organization. It isn’t any different with the HR function, whether for HR-related tasks or for company-wide communication with peers, teams, co-workers (etc.)
An RMS ensures that clear – and multiple – communication channels are maintained. As a result, employees feel empowered that their voice – suggestions, comments, grouses, opinions, ideas – are being heard promptly and by the relevant people.
Whether digital forms like emails, intranet-based platforms, meeting rooms, or more traditional forms like one-on-one sessions (which, also can now be done online!) or even anonymous communication, an RMS facilitates all such modes of open communication.
As a result, employees work better, perform better, and add to the productivity of the company.
v) Secure data on a centralized server; Reusing candidate data: RMSs today are cloud-based applications that are based on centralized servers. Not only does this provide a secure environment to store the data but it also aids service and upgrades. As a result, new features can be added to the system without any trouble.
Another benefit is that candidate data of those that were not made offers or those that were shortlisted initially can be retained within the system for future use. The candidate profiles can be segregated into buckets with comments that would help in revisiting them for future use. This helps HR teams and Business Managers to create a talent pipeline to draw from. Ultimately, it improves the quality of company employees and improves company productivity.
vi) Integration with existing MIS and other company systems: While we have touched upon the many benefits of an RMS, it is equally important that it functions in collaboration with a company’s existing MIS or other technology. If it fails to integrate seamlessly with other systems it stands the risk of turning into a silo – and, that creates major barriers to the efficient running of a company. Ultimately, the productivity & ROI of operations is hampered.
Modern RMS uses API-led integrations to successfully integrate with other company MIS. Given that employee data is crucial for many company-wide initiatives – e.g. succession planning – and not just for HR tasks, this enables companies to improve their efficiency.
vii) Powerful analytics: An RMS is a powerful tool in more ways than one. Perhaps, the most important benefit is its robust analytical capabilities.
With advanced algorithms and AI-led led features, it does a great job of analyzing employee performance and productivity vis-à-vis employee deliverables, and ultimately, rolls this up to company requirements. Clear metrics, ample data, and well-defined responsibilities form the base for such analytics that have buy-in from all the stakeholders. This is crucial for overall company performance, and shareholder return.
Conclusion: A Recruitment Management System is a great tool for maximizing your talent ROI. With its robust technology, easy access, and powerful features, it helps HR Managers and Business Managers to improve company productivity and profitability.
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