talent acquisition system decision guide · 2020-06-09 · talent acquisition 4 system decision...

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TALENT ACQUISITION SYSTEM DECISION GUIDE

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TALENT ACQUISITION SYSTEM DECISION GUIDE2

EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

TALENT ACQUISITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

OUTLINE OF SYSTEM OPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

KEY DISCUSSION POINTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

TALENT ACQUISITION DELIVERY MODELS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

CLARIFYING BUSINESS OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

CRITICAL DECISION CRITERIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Focus, Consistency, Direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Speed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Cost and Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

READINESS ASSESSMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

TECHNOLOGY BUSINESS MODEL FOCUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Functionality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Usability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

DEFENDABLE BUSINESS DECISION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

About Talent Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

CONTENTS


EXECUTIVE SUMMARYWith the evolution of both your business and the talent market, the question of which talent acquisition system will best meet your needs will come up often. This paper guides you through the systems available to you and how to assess which option will work best for your organization.

We start by briefly describing the systems you can choose from (TAM, TMS, and HCM) and how they work. Then we talk about how to lead a constructive discussion with the departments in your organization about which system would be the best fit for the business overall.

The foundation for choosing an optimal system is to identify your current talent acquisition delivery model and how that model addresses your core business objectives. We provide you with criteria to assess both.

After that, we provide a series of tables that lay out the key facts you need to know to compare the functionality, usability, integration, cost, and support issues for each system. This comparison will help you envision an ideal system for your organization.

Our decades of experience have shown that if a business is already using a TAM system for its talent acquisition strategy, moving exclusively to a TMS or HCM system causes more problems than it solves. Meanwhile, businesses that already use a TMS or HCM system will need to integrate a CRM module from a TAM system to stay competitive in the talent acquisition market.

69%In a recent survey sent to TA leaders across a range of business sizes, 69% noted they strongly dislike their current ATS.May 2020 survey conducted by Talent Function


TALENT ACQUISITION Talent acquisition is the art and science of identifying, screening, selecting, and onboarding the best talent. It was established as a core business function in the late ’80s and referred to as “personnel.” Its name evolved from “staffing” to “recruiting” to “talent acquisition” over the last 30 years, bringing with it a shift in how talent acquisition and businesses partner with each other to find the best people for the company. The function of talent acquisition in high-growth economies is to deliver talent quickly, but in low-growth economies, quality takes precedence over speed. Regardless of the times, talent acquisition will always be critical to business success ensuring the right talent at the right time at the right cost.

One of the most important technical decisions a business can make regarding talent acquisition is whether to use a talent acquisition management platform (TAM), or the applicant tracking module included with a talent management system (TMS), or the human capital management (HCM) system that comes with an enterprise resource planning system (ERP). This paper will help you make that decision for your own business by providing you with a methodology and sets of decision-clarifying criteria.

Talent Acquisition

RECRUITMENTMARKETING

CANDIDATE RELATIONSHIPMANAGEMENT

(CRM)

ASSESSMENT APPLICANTTRACKING

VERIFICATIONS ONBOARDING

INTERVIEWSCHEDULING

VIDEOINTERVIEW

ONBOARDINGRECRUITMENT MARKETING

LEADCONTACT PROSPECT JOB SEEKER QUALIFIEDAPPLICANT

FINALIST NEW HIREAPPLICANT

MATCHING AI

TALENT MINING

INTELLIGENT MARKETINGJOB

BROADCASTING

EVENT MANAGEMENT

ASSESSMENT(S) VERIFICATION(S)TALENT

COMMUNITY/NETWORK

Talent Management

APPLICANTTRACKING

PERFORMANCE SUCCESSIONPLANING

LEARNINGLMS

HRIS/HRMS

BENEFITS TALENT MANAGEMENT

PAYROLL

TALENTMANAGEMENT

SOCIAL RECRUITING

CAREER PORTAL(S) (DEVICE INDEPENDENT)

MARKETINTELLIGENCE

EMPLOYEE

CANDIDATE RELATIONSHIP MANAGMENT (CRM) APPLICANT TRACKING (ATS)

TALENTINTELLIGENCE

TALENTPLAN


Outline of System OptionsA TAM platform specializes in bringing the best talent into a business. It includes an applicant tracking system (ATS), an onboarding management system (OMS), and a candidate relationship management (CRM) system. A TAM platform creates a strong talent acquisition eco-system with dynamic integrations and solution-provided partner strategies.

Similarly, a TMS platform has talent acquisition capabilities, but it also tracks employee performance, creates employee learning opportunities, and builds employee succession plans, enabling full talent management within a business—though usually with a much less robust talent acquisition arm than that of a TAM.

An HCM platform focuses on payroll, benefits, and full lifecycle talent management, which means it supports applicant tracking and recruiting—but, again, not nearly as robustly or flexibly as a TAM platform. An HCM is frequently a module in a business’s enterprise resource planning (ERP) system.

The question is, which option is better for your business? It’s true that they all enable recruiting activities, but are you interested in only supporting basic recruitment transactions and operations, or do you want to develop and deploy strategic talent acquisition? The answer to that question will drive your technology decision.

Perhaps you have an effective talent acquisition strategy already in place but are so inundated with current processes that you don’t feel you have the bandwidth to transition to more effective technology. Would the benefits of the new system outweigh the significant disruption the transition would create? Or perhaps you do have the bandwidth to make a transition but lack the knowledge or experience to forecast what the budget would be for such a move, both financially and organizationally.

Whatever the situation, the question of whether to use a TAM, a TMS, or an HCM will come up regularly (probably once every three years), and you must be ready to help define the choice that will best serve the needs of the business. Knowing what to expect from the three systems and what kinds of investment and resources the company will need to deploy to implement its choice effectively will be essential.

As a consulting firm focused on talent acquisition, Talent Function has participated in dozens of business transformation projects. We often see a line drawn down the conference room table during these processes. On one side are those who argue for a TAM approach, and on the other are those who say a TMS or HCM system will be most effective. This battle is often between the talent acquisition department (defending a TAM approach) and the HR/IT departments (arguing for a TMS/HCM approach).

Working through this important decision takes time, especially since it already feels like an ownership battle. But common ground can always be found in everyone’s commitment to improving the business’ bottom line. Which system will make the talent acquisition process more effective? Which system will better perform talent management functions? Which system will integrate better with the company’s ERP? Many questions need to be answered before you can identify the most productive system for your business.

“ I have seen our industry evolve into a critical business function and technology evolve with it.”

ELAINE ORLER

FOUNDER & CEO TALENT FUNCTION


KEY DISCUSSION POINTSEssential to making an effective decision is a strong alignment between talent acquisition (sourcing and recruiting), human resources, and IT. An internal struggle between the various management teams in HR can end up discrediting all of HR in the eyes of the rest of the business. Struggles between TA and IT can build confusion and churn, delaying business performance success. Ensure that you are all working toward the same goal before you try to define and defend your talent acquisition system needs.

Aligning these roles requires transparent conversations, ownership delineations, and leadership vision.

TA’s Role: Business DriverTA’s role is that of thought and business leader, using its knowledge of processes, requirements, and talent to make the organization competitive and profitable. TA is the owner of the entire talent management strategy, including talent acquisition and the business requirements to support that strategy. TA is a customer of IT.

HR’s Role: Business SupporterHR is the owner of the entire talent strategy, and, in most cases, the leadership of the TA team. HR’s role is to align core HR capabilities to business interests. It uses its knowledge of processes, requirements, business goals, and talent to make the organization competitive and profitable. HR is a customer of IT.

IT’s Role: Technology SupporterIT’s role is the keeper of the technology infrastructure, leveraging the department’s knowledge and expertise to improve business operations. IT should develop and support the technical requirements and the technology selection/assessment process by ensuring that the end solution will improve the overall business. IT is also responsible for ensuring that all systems are in good operating order, can exist on the company’s technology platform, and are ready to handle any business need.

Aligning these roles requires transparent conversations, ownership delineations, partnership, and leadership vision.

DEFINITIONS

Talent Acquisition

Talent acquisition (TA) is a subset of

the overall talent management lifecycle,

focusing on the attraction, selection,

and hiring of talent into the organization.

Talent Management

Talent management is not just about

the day-to-day HR work of filling

vacant jobs, processing payroll, and

managing benefits packages. Rather,

it is future-oriented. It prepares pools

of highly qualified external candidates

so that vacated positions can be filled

quickly and effectively. It creates

opportunities for current employees to

develop skills that will help them move

up in the company. It prepares smooth

succession plans.

Talent management is like the wide-

angle lens of HR. It sees the whole

picture and prepares for what is ahead.

This includes managing the company’s

image so that the best people want

to work there, attracting the right

candidates before they are needed, and

training the right employees before they

need to move up.

Human Resources

Human Resources is the organizational

entity that handles everything related

to the overall employee journey, from

assisting in the definition of the position

and specific job attributes in support

of business requirements through the

hiring, administration, and development

of the workforce.


Talent Acquisition Delivery ModelsTo make an effective talent acquisition platform choice, the first thing you’ll need to understand is which TA delivery model your business currently uses. The following are descriptions of the four main models.

Figure 1: Talent Acquisition Delivery Models

CentralizedIn the centralized model, TA is part of the HR department, reporting to the CHRO (or in some cases, the Chief Talent Officer). The TA team manages strategic sourcing, employment branding, recruiting operations, candidate and manager care, and end-to-end delivery of the recruiting process. The most effective technology for a centralized model is a TAM platform, which ensures that the full end-to-end lifecycle of talent acquisition can be optimized and supported.

Business-driven In the business-driven model, instead of the HR department being in charge of selection, onboarding, and placement of candidates, the line managers take care of those functions. This model is often used in high-volume recruiting models where local (store, restaurant, manufacturing, hospital) staff is identified at the local level and recruited into open positions. In a business-driven model, a TMS platform is usually the most effective, as it ensures that the business owners have full access to the talent cycle, from selection to promotion to learning. However, in a business-driven model, you will have to add a CRM to your TMS system and develop recruitment marketing platforms, as TMS systems usually don’t include either.

OutsourcedThe most common form of outsourced TA is a recruitment process outsourcing (RPO) provider. These providers source, identify, select, and onboard talent for your business. They maintain a variable workforce that fluctuates with your business’ needs, and in many cases, they bring their TA technology stack with them, which is usually a TAM solution since it works best with a contracted workforce, user permissions, access, and configuration flexibility.

CENTRALIZED

GENERALIST OUTSOURCED

BUSINESSDRIVEN

Dedicated staff «

Domain focused «

Standard process «

Standard reports/metrics «

Work volume shared «

Direct line reporting structure «

» Localized process

» Various responsibilities

» Individualistic

» Varied reports/metrics

» Position volume varied

» Borrowed time and attention

Multiple job responsibilities «

Employee relations «

Limited recruiting experience «

Individualistic recruitment «

Varied reports/metrics «

Work volume varied «

» Multiple companies supported

» Multiple job responsibilities

» Process ownership and accountability

» Standard reporting/metrics


GeneralistThe generalist model treats talent acquisition as just one of the jobs that HR personnel perform, meaning that usually, no one on the HR staff is a TA specialist. Since there’s no strategic talent acquisition department, recruiting is delivered at a local level. The benefits are that HR is especially attuned to local-level needs and that it has control of the full talent picture—from acquisition to performance to learning. However, this model lacks centralization, stripping HR of the ability to measure and optimize its TA effectiveness. TMS and HCM solutions are best suited to the generalist model as they focus on the end-user and their day-to-day activities.

However, often businesses use a hybrid of two or more of these models. This can make the decision about which platform to use more complicated. As your business evolves, you will likely have to reassess your needs and make changes to your TA platform.

2.1BILLION

$

The global applicant tracking system market to reach US$2.10 Billion

by 2025, fostered by need for enhanced recruitment

process.According to the latest

report by IMARC Group

https://www.imarcgroup.com/global-applicant-tracking-system-market


CLARIFYING BUSINESS OBJECTIVESAs we all know, market conditions are continually fluctuating—sometimes in big ways. Talent acquisition responds to these changes differently than HR and IT do. TA needs to be flexible since finding talent in a high-growth economy is very different than finding it in a low-growth economy. HR and IT usually strive to maintain the status quo within the organization during these fluctuations. A TAM system is much more flexible than a TMS or HCM system, which is why TA professionals prefer a TAM system.

Further, TA manages a minimum of eight different personas throughout the recruiting process, including contacts, leads, prospects, seekers, applicants, qualified applicants, finalists, and new hires. Each persona requires a different journey, expectation, activity, or action, and a TA professional needs to shift between each of them daily. The more systems a business uses to support these personas, the more logins, duplicate data entry, and busywork a TA professional is required to manage. So, when considering platforms for talent acquisition, look for one which gives you the most efficiency, the greatest flexibility, and the largest economy of scale.

Talent Acquisition

RECRUITMENTMARKETING

CANDIDATE RELATIONSHIPMANAGEMENT

(CRM)

ASSESSMENT APPLICANTTRACKING

VERIFICATIONS ONBOARDING

INTERVIEWSCHEDULING

VIDEOINTERVIEW

ONBOARDINGRECRUITMENT MARKETING

LEADCONTACT PROSPECT JOB SEEKER QUALIFIEDAPPLICANT

FINALIST NEW HIREAPPLICANT

MATCHING AI

TALENT MINING

INTELLIGENT MARKETINGJOB

BROADCASTING

EVENT MANAGEMENT

ASSESSMENT(S) VERIFICATION(S)TALENT

COMMUNITY/NETWORK

Talent Management

APPLICANTTRACKING

PERFORMANCE SUCCESSIONPLANING

LEARNINGLMS

HRIS/HRMS

BENEFITS TALENT MANAGEMENT

PAYROLL

TALENTMANAGEMENT

SOCIAL RECRUITING

CAREER PORTAL(S) (DEVICE INDEPENDENT)

MARKETINTELLIGENCE

EMPLOYEE

CANDIDATE RELATIONSHIP MANAGMENT (CRM) APPLICANT TRACKING (ATS)

TALENTINTELLIGENCE

TALENTPLAN

Figure 2: Talent Acquisition Technology Stack


Critical Decision Criteria

QUALITY

FOCUS

REASONSFOR

ACTIONS

SPEED

COST &REVENUE

Quality » Robust, searchable candidate pipeline for just-in-

time recruiting » Refined applicant selection, improved talent pools,

and higher quality of hire; filling vacancies quickly across multiple locations

» Higher-quality employees drive increased customer satisfaction and greater business growth

Speed» Talent pipeline exposure

for understanding true time to fill; pre-sourcing activities to decrease vacancies and lost revenue» Candidate response rates correlated to candidate

experience (customer experience)

Focus, Consistency, Direction » Focused resource time and energy on strategic

thinking about how, where, and who » Increased brand extension, customer loyalty, and

resource retention » Improved candidate experience and employee

satisfaction through easy-to-use tools and communication

» Metrics and reporting for business impact and audit

standards

Cost and Revenue » The overall cost of change » Reduction in transactional

efforts; increase in strategic efforts » Reduction in vacancy rates correlated to revenue

(time-to-fill as a function of revenue) » Reduction in time spent on non-revenue-generating

activities » The overall cost of not changing


READINESS ASSESSMENTAs you assess your existing solution and define the criteria for an optimized solution, the most important factors to consider are vendor business model, functionality/usability, integration, cost, and ongoing support. These factors are unique enough to uncover the core differences between TAM platform solutions and a TMS or HCM module. We will focus on each of these factors and outline their most significant differences.

Technology Business Model FocusThe following table outlines the key facts you need to know when comparing a TAM system with TMS and HCM recruiting modules on business-model dimensions.

TAM Platform TMS Recruiting Module HCM Recruiting Module

PRIORITYTalent acquisition as a

strategic business processTalent management as a

strategic business processHuman resources as a

strategic business process

INDUSTRY FOCUS

Enterprise-level talent acquisition = strategic

relationships and fulfillment

Enterprise-level talent management = operational

employee engagement

Enterprise human resources = operational/transactional data

facilitation

FLEXIBILITYTA-centric workflows:

CRM/ATS/OMS included;partner eco-system

TMS-centric workflows:ATS/OMS included;

aligned with performance, succession, and learning

HR-centric workflows:ATS/OMS included;

aligned with comp/ benefits and TM

PRODUCT DEVELOPMENT

FOCUS

Talent acquisition:candidate relationship

management, applicant tracking, onboarding

Talent management:performance, succession,

learning, onboarding, applicant tracking

Human resources:compensation, benefits,performance, learning,

onboarding, applicant tracking

Figure 3: Vendor Differentiating Business Model Dimensions

FunctionalityThe following table (See Figure 4) outlines factors to consider when comparing the functionality of a TAM system with TMS and HCM recruiting modules. The TA phases we cover include attract, assess, select, and hire—a complete system assessment. The appendix offers additional tools for building out a full requirement matrix for assessing different solutions.


Background verifications including (but not limited to) full credit, criminal, and educational verifications. Verifications include drug screening, i-9 verification, visa status, and any other credentialing validation necessary for making an offer.

Detailed offer information including (but not limited to) offer amount, title, role, expected work location, variable compensation, and benefits. The offer-approval process offered with the flexibility to be defined at the position/job level or by an authorized user. Integration to Word or Word-based tools with PDF capability for online digital signature acceptance. Notifications to all involved based on response and the next steps.

Talent Lifecycle Phase: ATTRACT

REQUISITION MANAGEMENT Job specifications necessary to hire someone including (but not limited to) title, job description, skills, abilities, compensation, and location.

Approval routing model for variable and fixed approval cycles.

JOB DISTRIBUTION Job marketed description; publication to third-party job destinations with a call to action.

Strategic ad placement of job content to non-job-board destinations to create awareness and call to action.

CANDIDATE MANAGEMENTCandidate data collection, communications, and actions/activities necessary to manage interest, engagement, and experience with a candidate, from the contact stage to the conclusion of interest/no-interest/future interest. Chatbot engagement for candidate questions/answers and online support related to application and information requests.

CANDIDATE RESPONSE Set of actions, activities, and responses from the candidate based on a request for information, including (but not limited to) questionnaires, assessments, surveys, and forms completion. Automated notification of data acceptance and status checking capability. All consolidated into one candidate record/profile for easy data management.

Talent Lifecycle Phase: SELECT

REVIEWThe narrowed slate of candidates (reviewed by someone other than the recruiter) for job/position/cultural fit, to determine invitation to the next step. Resume, profile, and assessment information provided based on business and recruiter preferences.

INTERVIEW Selected applicant notifications. Scheduling of interview event types (e.g. one-to-one, one-to-many, virtual, video). Maintenance of interview feedback and decision summary. Applicant notifications. Travel expense management.

Talent Lifecycle Phase: HIRE

VERIFICATIONSBackground verifications including (but not limited to) full credit, criminal, and educational verifications. Verifications include drug screening, I-9 verification, visa status, and any other credentialing validation necessary for making an offer.

OFFER MANAGEMENT Detailed offer information including (but not limited to) offer amount, title, role, expected work location, variable compensation, and benefits. The offer-approval process offered with the flexibility to be defined at the position/job level or by an authorized user. Integration to Word or Word-based tools with PDF capability for online digital signature acceptance. Notifications to all involved based on response and the next steps.

Talent Lifecycle Phase: ASSESS

MINIMAL QUALIFICATIONSConfigurable field/logic search based on data relationships (e.g. work history, company), weighted criteria, and similar/like records. Keywords as well as natural-language responses.

ASSESSMENT (SCREENING) Prescreening capability to determine minimum qualifications, either before ability-to-apply, immediately upon apply response, or as scheduled by a recruiter. Typically includes the business and job standard qualifications (e.g. willing to relocate, older than 18 (where necessary), and ability to provide proof of work eligibility).

ADVANCED SEARCHAdvanced job or behavior-specific assessment/questionnaire to determine job/position fit. Delivered in variable formats, from gamification style to proctored assessment models. Collection of results, scores, and indicators within the candidate record for easy assessment.

FUNCTIONALITY

Figure 4: Functionality Comparison


UsabilityThe following table (See Figure 5) outlines usability factors to consider when comparing TAM with TMS and HCM recruiting modules. Usability by role is critical to the overall success of your talent acquisition platform decision. The appendix offers additional tools for building a full requirement matrix for assessing different solutions.

USER TYPE DEFINITION OF ROLE

EXTERNAL USERS

CANDIDATE Anyone who has applied, shown interest, or agreed to permission to be recruited to a job.

CONTACTThe basic contact information for a candidate, which could include name, phone number, email address, social media handle—any form through which you can create a relationship with a potential applicant as a candidate.

LEADThe basic contact information in the form of a recommendation, referral, or sourced potential candidate that has not expressed direct interest in the company or position.

PROSPECTThe basic contact information provided by a candidate for the specific reason of being considered in the future for opportunities without expressing interest in a specific job/position. A qualified lead that has given permission to be recruited.

JOB SEEKERA candidate that explores opportunities with the organization and takes the minimal steps to create a profile or provide basic information through tools such as on the company’s website, a chatbot, or a third-party site.

APPLICANTA candidate applying for a specific position, looking for detailed opportunities with specific skills. Currently engaged in the recruitment process: phone interview, on-site interview, etc.

FINALIST / NEW HIRE

The qualified candidate identified by the organization with a mutual interest in proceeding to an employment agreement.

ALUMNIA former employee maintaining a relationship with the organization for potential rehire or referral of other candidates to the business.

INTERNAL USERS

EMPLOYEE Internal candidate or source of referrals for open opportunities within the organization.

LINE / HIRING MANAGER

Owner of open job opportunities; responsible for the review, interview, and final hiring decision of a candidate.

RECRUITERCandidate identifier; creator of interest; assessor of candidate qualifications; process manager of selection up to or through onboarding.

RECRUITING COORDINATOR /

SPECIALIST

Coordination of interview schedules, travel, preparation/collection of signed offer letters, candidate form(s) completion, etc.

Figure 5: Usability Comparison.


IntegrationSuccessfully integrating your chosen system can often be more challenging than you had anticipated, and you must explore all aspects of integration. The most important aspect is defining the source of truth for the data set as soon as possible.

TAM to HCMTo be successful, a TAM platform must integrate with your HCM solution, meaning that the systems’ communications must be bi-directional. The TAM platform must be able to receive foundation data related to the business’s organizational model, as well as job/position templates, to build out requisitions. Transferring a requisition directly from the HCM to the TAM platform as a complete record has proved successful in some cases, but you should explore other request models within the TAM platform as well—for example, job sourcing and future workforce planning requests.

HCM to CRMThe benefit of a TMS or HCM platform is that their internal integration gives them seamless access to foundational company data. In most cases, an HCM cannot manage 60% of the talent acquisition lifecycle (candidate, prospect, lead, job seeker), so integrating a third-party CRM is critical to attract, engage and nurture talent just in time for future hiring.

Most of the time, you will need to feed new-hire information from a CRM solution to your HCM system. Some organizations start this transition at the offer stage, but in most cases, the full new-hire record is delivered from the CRM to the HCM for review and acceptance.

Third-party IntegrationsIf you transition to a new platform, you’ll likely have to integrate six to eight third-party solutions that aren’t covered by the system, such as assessment providers, background verification providers, video interview platforms, and third-party career job distribution publishing destinations. Ideally, these integrations can be managed through an API, depending on the vendors and your business requirements. The ease or difficulty of integrating these solutions should be a part of your system adoption decisions. Identifying each solution provider’s vendor partners will provide very useful information for you to consider in your selection process.

Additional things to consider with third-party solutions: When is the right time to send data? What data do you want to be shared? How often does it need to be shared? When is the right time to transmit information from these solutions to your HCM system about a new hire?

CostIt is important to understand that direct system costs are only a small piece of what you will have to spend on the overall solution. Below are several factors to consider when deciding what you are willing to invest in your future solution.

Cost: The following table (See Figure 6) outlines the key factors for evaluating the costs associated with your existing TAM, TMS, or HCM module.


TAM TMS/HCM

SOFTWARE

Annual SaaS access costs are sometimes defined by the number

of users or the estimated number of annual hires.

Module costs are associated with the full core system, in some cases discounted due to the core spend.

INSTALLATIONVendor services are necessary to

educate, configure, and train on the new platform.

Internal or contracted third-parties are needed to educate, configure, and

train on the new platform. The vendor services team is limited.

IMPLEMENTATION – FUNCTIONAL

Resource allocation is necessary to define and refine business processes,

workflows, user roles, rules, and configurations.

Resource allocation is necessary to define and refine business processes,

workflows, user roles, rules, and configurations.

IMPLEMENTATION – TECHNICAL

Resource allocation is necessary to support integrations, technical

decisions, and workflows.

Resource allocation is necessary to support integrations, technical

decisions, and workflows.

INTEGRATION Vendor services costs are typically

annual.

Third-party integration, middleware, and services need to be configured.

There may be additional costs depending on the number of data

transactions.

RESOURCE ADJUSTMENT (+/-)

There may be a reduction or increase in overall resource delivery headcount

based on process models and efficiencies.

There may be a reduction or increase in overall resource delivery headcount

based on process models and efficiencies.

ANALYTICS / DATA WAREHOUSE APPLICATION

Third-party additional integration may be needed for advanced reporting,

regardless of system.

Third-party additional integration may be needed for advanced reporting,

regardless of system.

THIRD-PARTY SOLUTIONS

Dynamic integrations to third-party applications are typically charged on an integration-by-integration basis—

discounted if found in a partner’s eco-system.

Dynamic integrations to third-party applications are typically charged on an integration-by-integration basis—

discounted if found in a partner’s eco-system.

SUPPORTSupport is run on a TA operations/

system-administration model or a full-service IT support-ticket model.

Support is run on an in-house IT ticket system, prioritized by the overall HR-

related change requests.

Figure 6: Cost Comparison.


SupportSupporting a talent acquisition solution requires a variety of resources, including end-user support, configuration changes, release upgrades, and process and integration changes.

A TAM solution is commonly managed by a TA operations resource, which maintains the overall health and usage of the applications, as well as configuration changes necessary to operate recruiting at the current speed of the market. IT only supports the HRIS integrations and core data warehouse models related to data integrity and security issues.

With a TMS/HCM solution, IT typically manages all changes, including configuration and basic table updates. IT operates at the speed of the business and aligns priorities based on the overall aspect of HR and the business objectives. Any new talent acquisition requirements are prioritized within this structure.

Product Support: The following table (See Figure 7) outlines the key factors to know when researching the product support options for a TAM, TMS, or HCM talent module.

PRODUCT SUPPORT TAM SYSTEM TMS/HCM TALENT MODULE

IMPACT ON IT

Limited impact due to core configuration and structural

ability to provide multiple levels of administration for field-level updates

and changes.

Long-term impact: IT becomes responsible and accountable for all

updates and changes; the application cannot sustain itself without support

from IT.

SCALABILITYBuilt-in; a fundamental principle of

the system.Dependent on historical configurations

and customizations.

IMPLEMENTATIONCYCLE TIME

As a whole system, TAM has technology and application

interdependencies with other systems in the enterprise.

Likely dependent on upgrades to the most current version of the core

solution.

USER REQUIREMENTS

TAM systems are a marketing system; user requirements are constantly changing and evolving based on forces external to the business.

The HCM recruiting product set is a data repository; user requirements are static and interdependent with the core

HRMS product.

Figure 7: Product Support Comparison.


DEFENDABLE BUSINESS DECISION If you want talent acquisition to be the driver in the identification and selection of solutions to meet your business’ needs, you will need to make a compelling business case for initiating and maintaining your strategic talent management approach. To be persuasive, you will need a strong understanding of a successful TA strategy and a clear description of how your preferred system meets those requirements.

Our experience at Talent Function has shown that most businesses have a strong case for integrating a TAM system with an HCM, especially if you are already leveraging a TAM platform. The business costs, resource time, functionality loss, and dependencies resulting from migrating to a TMS or HCM-only model usually only damage any existing talent acquisition strategy.

SUMMARYSelecting the best solution for your company is a major decision, which is generally made by multiple business leaders after careful consideration of your company’s needs, resources, and strategy. Once the selection is made, it is time to roll up your sleeves and begin configuring your chosen solution. Typically, this work is done with participation by subject matter experts (SMEs) from across your business operations and, depending on the size of your business, may take up to a year or more to implement. Creating a strong alignment and partnership with HR and IT will ensure that all stakeholders agree as it relates to the business objectives and drivers of selecting a new system.

There are many key facts to know and compare across the three different platforms: TAM, TMS, and HCM recruiting modules (refer to Figure 3: Vendor Differentiating Business Model Dimensions).» Functionality - the TA phases from the time a job is posted to hire. » Usability - this depicts the external and internal users of the system.» Integration - these are the connectors from system to system and determine how the data flows in each direction.

The connection points can be internal systems, such as a data warehouse or HRIS system, or external systems like background check vendors, third-party job boards, etc.

» Costs – there are one-time fees and annual subscription fees you will need to consider. Each vendor has a unique model. Be sure to discuss these to avoid any surprises or hidden fees after go-live.

» Support – this can involve both vendor resources and internal resources. When scoping this, be clear about who owns what. For example, with a TAM solution, you may have a TA resource to manage usage and configurations of the system, whereas with a TMS/HCM solution that support will primarily be managed by IT.

We hope this Talent Acquisition System Selection Guide creates a streamlined and strategic approach while you make this very important decision of selecting the right TA Platform for your company.


AppendixDownload the Talent Acquisition Requirements Matrix Sample Download the Talent Acquisition Process Model ExampleDownload the Candidate Relationship Management (CRM) Capability GuideDownload the Recruiting Chatbot Capability GuideDownload the Talent Acquisition Technology Matrix

About Talent FunctionTalent Function transforms talent acquisition for leading global organizations. We help our clients succeed with forward-looking strategies, leading technologies, best business processes, and smooth deployments to deliver ROI and business performance. As a woman-owned business (WBE-certified), Talent Function is uniquely equipped to meet our client’s requirements. With our exclusive focus on talent acquisition, we offer a depth and breadth of expertise unmatched by any other boutique or large firm. We have the humility to listen to our clients, the creativity and experience to innovate, the expertise to do things right the first time, and the passion for making clients successful. And we love doing it!

Contact InformationFeel free to contact Talent Function at [email protected] call us at 619-607-3136

Copyright 2020, Talent Function. All rights reserved

https://www.talentfunction.com/resources/whitepapers/talent-acquisition-requirements-matrix-sample/

https://www.talentfunction.com/resources/whitepapers/talent-acquisition-process-model-example/

https://www.talentfunction.com/resources/whitepapers/candidate-relationship-management-crm-a-recruiting-essential/

https://www.talentfunction.com/resources/whitepapers/chatbot-capability-guide/

https://www.talentfunction.com/resources/whitepapers/talent-acquisition-technology-matrix-pdf/

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talent acquisition system decision guide · 2020-06-09 · talent acquisition 4 system decision...

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