Applicant Tracking System Value Equation

An applicant tracking system (ATS) is software that helps you manage job requisitions, track candidates through each stage, and centralize your recruiting data. Modern applicant tracking system software combines ATS tracking with a simple dashboard so you always know where each candidate is in the hiring process.

Website visitors: a careers link tends to get 25–30% of visitors clicking it. If you have 1000 website visitors per month, that is more people who will know about your open jobs.

Functional value: our product lets you recruit 24/7/365 so that you have a backlog of applicants ready to be interviewed the next time you need to hire.

Monetary value: Our value equation shows how you can feasibly reduce your hiring cost by 50% or more.

Social value: you will be able to connect with more people interested in working for your business. With more applicants, you will have more conversations, and will learn more about why people are excited to work for you. This will increase the surface area of your network.

Psychological value: by getting Vibbn you will feel better knowing that you have modernized your recruiting process, achieved a win for your company, and helped candidates have a frictionless application experience.

How ATS software creates a value equation

Direct cost savings

Example scenario: imagine you need to hire 5 people per year. Let’s say 3 people have left, so you had a bit of turnover, and you’ve also grown as well, so you need to bring on 2 additional headcount. So you hire 5 people over the course of a year.

Staffing firm new-hire: $10k–$20k per hire.

Vibbn can help you source candidates directly and cut your staffing firm hires in half.

Job board advertising: $600–$9000 per hire.

So each time you hire someone, as a best case scenario you’re spending $2600 on advertising the open job, and subsequent training cost.

In a scenario where you hire someone through a staffing firm, advertise, and with a higher training cost, you could be spending closer to $33,000.

If you hire 5 people per year, low end estimates are $13,000, and high end estimates are $165,000.

If you decide to set up a recruiting system with a career site and application forms, we believe you will be able to spend less on job advertising, avoid staffing firm commission payments, and reduce employee turnover.

Yearly license costs for a new recruiting system can go for between $1000 and $5,000 per year. The marginal cost per additional hire is reduced to $0, so the new system is scalable.

With your new recruiting system, your costs will be closer to a predictable number, between $11,000 and $15,000 per year (including an estimate training cost of $2000 per employee).

This is a dramatic reduction in spend.

Calculate the cost savings…

Indirect cost savings – icing on the cake

Reduced turnover = more productivity.

People who apply to your jobs directly are more likely to stay at your company for the long-term, because they found your business on their own volition.

These people WANT to work for you.

They weren’t just passively browsing Indeed, and they weren’t persuaded to join your company by a 3rd party staffing firm.

When you hire people who really WANT to work for your company, you have less turn-over. For example, if someone stays at your company for 2 years instead of 1, your cost of re-training employees is reduced.

A new hire’s first few days or weeks are usually spent learning how to do the job. And it often takes a couple of months before a new hire really starts to be productive.

A new-hire’s manager and other teammates may spend several hours a week coaching or mentoring the new employee.

Employee training: $2000–$4000 per hire.

If your manager makes $50 an hour (for example), and spends 5–10 hours a week training a new hire, your company has an indirect cost of between $1000 and $2000 each month in lost productivity to train the new employee.

If it takes an employee 2 months to get fully ramped up, that means you spend between $2000 and $4000 per hire.

Not to mention the cost in lost productivity associated with losing an employee to turnover and having that role open, without anyone working, for several months.

A better career site and a better applicant flow help you find people who are more likely to succeed at and stay in the job, which could reduce turnover and the need to repeatedly absorb these training costs.