HR & Employee Management Articles

Four Ways the Cloud Is Changing Small Business Hiring

by Rakesh Sharma
Published on 19 June 2012

With its focus on human interactions and assessments, hiring must rank as one of the most important and time-consuming tasks for small businesses. After all, employees make or break a small business.

As a small business owner, your main focus is on providing excellent service and products to your customers. Hence, it follows that the time and energy you spend on administrative tasks such as posting jobs across multiple boards, verifying candidate credentials, and conferring with colleagues are all non-essential tasks or ancillary tasks. So, how can you reduce time spent on non-essential tasks to focus on delighting your customer?

This is where cloud-based hiring apps come in.

They automate routine tasks, enabling you to focus on the essentials. But, such solutions have also led to several significant paradigm changes in hiring processes. They have streamlined processes, introduced new hiring channels, and made agents redundant.

We have outlined four such changes below.

  • ## Cloud Hiring Is Fast Turning Social

Finding a job through connections is old wisdom. This wisdom has been reconfigured into social media in the modern age. In a survey conducted last year by social recruiting firm JobVite, nearly 90 percent of respondents said they were planning to use social media to recruit candidates. That number represents an increase of almost seven percent from 2010 figures.

The reasons for social media popularity aren't hard to discern. Apart from a large user base of potential candidates, social networks enable small businesses to glean rich information about a candidate such as their likes, soft skills, and connections. This information can be useful in determining whether a candidate is a good cultural fit for your organization. Practically, all cloud hiring solutions nowadays integrate with and post jobs on social networks.

  • ## Cloud Hiring Is Analytics

In the old model, HR departments distilled multiple hiring channels and strategies manually to track quantitative metrics related to hiring. Needless to add, the process was time-consuming. In the new cloud-based online model, however, information is available at a click. Thus, you can generate reports, create custom dashboards, and glean important information relating to your hiring statistics and channels with a click. In addition, you can predict future utilization and hiring requirements using solutions such as Projector.

  • ## Cloud Hiring Is Saving On Costs

This one's a no-brainer. Cost savings are built into the Software-as-a-Service business model. Essentially, you do not need to invest in expensive proprietary software installation and service costs. Instead, you can simply subscribe to a solution on a monthly basis. Cloud-based hiring solutions also come with an added benefit: they eliminate recruiting agents and directly connect you to customers. In an earlier review, Matthew Ogston from JobPage quantified cost savings for small businesses. He calculated that companies can shave 20 percent from recruiting costs by eliminating agents. "That's $14,000 commission on a $70,000 salary," he says. Enough said.

  • ## Hiring Is Streamlining Processes

The advent of social media and new recruiting business models have streamlined hiring processes. Besides this, solutions such as The Resumator or Unrabble enable you to verify and validate candidate credentials and accomplishments (or brags, as the folks at Unrabble like to call them) through their connections. Finally, deploying cloud-based solutions works out well for recruiters as well because it enables data redundancy and enables office workers to remain productive, even after office hours.

At the end of the day, hiring can be an expensive, difficult and arduous process. Cloud-based solutions can help you simplify the process but they are not a silver bullet; Ultimately, hiring is about people. To get help regarding asking the right questions, check out another post written by my colleague.

Check a comprehensive list of popular online hiring apps that custom-fit small businesses of any size.

Happy Hiring!


Apps mentioned in this article