Assembling a winning recruitment tech stack is much like recruiting the right candidate. You’re bound to find people who match some of your requirements. There will be a few candidates who seem like a match but don’t tick every box. Then there are those that stand out because of a single quality.
The recruitment tech stack has long served the HR departments in large organizations to streamline their people management. However, for small businesses, using an HR tech stack
can be a big decision. According to a study by Goldman Sachs, 44% of small businesses had only three months of cash reserves during the pandemic. This forced them to be smarter with their resources when it comes to staffing.
HR Recruitment Tech Stack for SMBs: The Status Quo
Considering how HR as a department can be loaded with work in small and medium-sized organizations, it is imperative to have a tech stack that is well-rounded and cost-efficient. Since 2022, small businesses have faced the brunt of a talent shortage during the Great Resignation.
“It's about capitalizing on the tailwinds as the economy heals and fully reopens.”
Courtny Cloeter, Chief Revenue Officer at OneSource Virtual
Talk about the great resignation, retention problems, and underfunctioning tech stacks. A National Federation of Independent Business report found that over 51% of small businesses couldn’t fill all their job openings in October 2021.
According to Oracle’s report on the state of HR tech stack in 2020, HR managers of only 33% of small businesses consider HR tech stack as one of their top three issues. In addition, only 31% of small business HR teams report automating their people management processes. This leaves a lot on the table for SMBs who want to get the most bang for their buck.
How HR in SMB’s Can Use Recruitment Technology to Improve Profitability
SMBs that currently have a non-existent HR tech stack can look forward to gaining immediate benefits. According to Oracle’s report, 66% of SMBs reported seeing a significant improvement in efficiency. But efficiency is just the first step. In the age of talent shortages, remote workplaces, and mass resignations, SMBs can leverage a tech stack or tech recruiting platform to develop a winning hiring strategy. Let’s discover some of the benefits that could do wonders for the growth and revenue of SMBs.
Attract Top Talent
It goes without saying that quality workers benefit an organization much more than average workers. But the contrast between the two can mean either savings or a loss of thousands of dollars for small businesses. A McKinsey study reveals that in low-complexity jobs, high performers are 50% more productive, while the difference is 800% for high-complexity jobs. Developing a robust recruitment technology stack can drive high-qualified candidates faster to SMBs.
Improve Employee Experience
Hiring top talent is just the beginning. You need to retain that talent to save on hiring costs
. That’s where employee experience comes in. A case study by Great Place to Work demonstrates how essential employee experience is. Brains on Fire
, a creative agency, used employee surveys to increase their engagement score from 74% to 92% in just two years. Armed with the data from the survey, the small business refined its hiring process and boosted trust and engagement exponentially. SMBs will benefit greatly from a tech recruiting platform that includes engagement initiatives in its stack.
Increased productivity means higher revenue. In fact, Harvard Business Review reports that organizations that report 40% more productivity than average also have a 30–50% higher operating margin. That makes a massive difference for small and medium-sized organizations.
How SMBs Are Using Recruitment Technology to Overcome Talent Shortages
The battle for qualified candidates starts way before a job application comes in. Many small businesses are making inroads into quality talent pools with recruitment marketing. For instance, many recruitment marketing tools allow organizations to instantly advertise on premier job sites. This saves time and helps SMB HR teams reach more candidates faster. Recruitment marketing tools are critical in the HR toolkit of SMBs.
AI in Recruitment Tech Stack
AI is a cross-functional technology in HR processes. With AI in recruitment, small businesses can maximize both time and resources to automate areas of hiring, candidate screening, interview scheduling and performance management. Data analytics can help uncover crucial
insights into challenges, which can then be addressed with AI-based HR solutions.
Conclusion: What Can Small Businesses Anticipate in the Future of Recruitment Technology?
With technology recruitment, small businesses learn to tackle everything from hiring talent, managing performance and productivity, and shaping employee engagement.
With technology, recruitment becomes more functional, performance-driven, and efficient. Small businesses can script tailored HR strategies
that get the most out of their resources and deliver impressive results like it did for Brains on Fire.
As SMBs continue to adopt modern tech recruiting platforms as their go-to HR management solution, they can shift their efforts towards strategic scaling. With a recruitment tech stack that scales with growing businesses, SMBs can sit back and focus on what matters: driving revenue.
Frequently Asked Questions
What are the technologies used in a tech recruiting platform?
Some of the technologies used to leverage recruiting platforms include artificial intelligence, applicant screening and tracking, recruitment CRM tools, video interviewing tools, and training platforms.
Is recruitment CRM a part of a modern recruitment tech stack?
Yes. Recruitment Candidate Relationship Management (CRM) is used as part of the hiring process. It is used to manage all aspects of staffing and recruitment. It helps to build relationships with the talent pool and create a seamless hiring process.
What are the must-haves in a recruitment technology stack?
The must-haves of a recruitment stack are employee referral tools, email automation, video interviewing, CRM, social media automation, and job posting.