APPLICANT MANAGEMENT SYSTEMS

Online Applicant Management software is changing the way Human Resources functions just as PC's and accounting software revolutionized the way businesses handled financial operations 25 years ago.

The time has come, the price is right and the benefits a quality Applicant Management System offers makes implementing such software cost effective for most employers, regardless of size.

What is an Applicant Management System
Benefits of an AMS
EEOC/OFCCP Compliance
Definition of an Applicant
Ability to Self Monitor for Compliance
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How the AMS Works
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What is an Applicant Management System

Quality Applicant Management software does far more than simply track applicants. There are many vendors providing applicant tracking systems that offer the ability to collect resumes from postings on job boards and other sources, and some offer the additional ability to minimally screen applicants for qualifications.

For most employers, however, this level of service from an applicant tracking system is inadequate. Since many employers must be EEOC and/or OFCCP compliant, differentiating applicants from job seekers and retaining a record of the differentiation process for every job seeker is critical for compliance. A quality Applicant Management System provides the differentiation process and records the required data for each job seeker/applicant.

Benefits of an AMS

There are two basic reasons for an employer to invest in Applicant Management software:

  1. To collect and maintain the data needed for EEOC and/or OFCCP compliance
  2. To automate the employer's application process yielding greater productivity

Effective Applicant Management software will enhance recruiter productivity by eliminating the need to qualify applicants and simplifying the process by which qualified applicant data is submitted to hiring managers. And, an electronic application process eliminates the need for paper applications and resumes resulting in significant labor savings to the employer.

Integrated background search services can also be included in a quality Applicant Management System as can be testing, assessments and other forms necessary for a complete applicant file. Since the Applicant Management software can collect this information from the job seeker during the application process, resources required to obtain such data and process it can be re-allocated.

A significant feature of the best Applicant Management systems is the ability to integrate tax credit recovery for new hires. Many new hires are often eligible for tax credits that benefit their employer, but the recovery process is so labor intensive that most employers don't take advantage of these lucrative credits. With the right Applicant Management software, applicants can be screened for available credits so that an employer can know immediately whether a qualified applicant might generate credits. Once hired, the Applicant Management system then facilitates recovery of the credits. Consider the following example:

One out of seven entry level and hourly rate new hires qualify for tax credits that average $ 1,300.00 per hire. New hire tax credits represent a one for one dollar reduction in the employer's income tax payable. Thus, if the employer makes 700 entry level and hourly new hires in a year, 100 would likely qualify for new hire tax credits at an average of $1,300.00 each:

100 new hires x $1,300.00 each = $130,000.00 in tax credits Less a 25% recovery fee yielding $ 97,500.00 in additional cash flow to the employer.

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EEOC/OFCCP Compliance

Employers that must be compliant with either the EEOC or OFCCP or both are required to keep an Applicant Log showing specific data for every job seeker/applicant. The Applicant Log must track the disposition of the job seeker/applicant through each step of the employer's selection process. The employer must be able to provide a hard copy of the Applicant Log in the format required by the respective agencies. A quality Applicant Management system provides the functionality necessary for an employer to comply with the Applicant Log requirement.

In addition to providing the data necessary for completion of EEO-1 reporting requirements, effective Applicant Management software collects and retains the data required by the OFCCP in the event of an audit. This data should include all applicant information for each job opening and location of the employer.

Defining an Applicant

On February 6, 2006, the OFCCP's definition of an internet applicant and the associated regulations became effective. A subsequent 90 day extension to be in compliance with the new regulations was implemented. To be considered an applicant under the OFCCP definition, a person must meet the following criteria1:

  1. The individual submits an expression of interest in employment through the Internet or related electronic data technologies.
  2. The contractor considers the individual for employment in a particular position.
  3. The individual's expression of interest indicates the individual possesses the basic qualifications for the position.
  4. The individual at no point in the contractor's selection process (prior to receiving an offer of employment from the contractor) removes himself or herself from further consideration or otherwise indicates that he or she is no longer interested in the position.

To avoid having to keep records for each type of applicant, a contractor should put systems in place to differentiate an applicant from a jobseeker according to this definition. Based on the four criteria, employers subject to OFCCP compliance will need to develop or utilize systems that will allow them to solicit race and gender information - EEO data - for reporting the gender and racial makeup of the applicant pool. In addition, the OFCCP specifies record- keeping requirements for employers using the Internet or related electronic data technologies for recruiting and hiring.

Monitoring Compliance

The OFCCP rules give companies the opportunity to restrict the size of their applicant pool through their definition of an Internet applicant, but employers must develop or utilize policies and procedures that will support this definition. Further, they must have systems in place that allow them to monitor adherence to the new policies and procedures and maintain the records as required by OFCCP regulations.

The CRI Applicant Management System provides the tools needed to differentiate an applicant from jobseekers by the OFCCP definition and aids in compliance by allowing periodic monitoring of selection practices for adverse impact.

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If your organization must be EEOC or OFCCP compliant, don't allow yourself to be duped into purchasing an off-the-shelf Applicant Management System or Applicant Tracking System Software that won't meet your needs. There are systems available that provide basic Applicant Management or Tracking features but these systems cannot incorporate an employer's specific recruiting and selection process. The Applicant Logs required by the OFCCP and EEOC must reflect the employer's entire selection process and any Applicant Management or Applicant Tracking software utilized by the employer must capture the process in full.

How the CRI Applicant Management System Works

CRI specializes in web-based Applicant Management Systems designed to meet an employer's specific needs. The CRI Applicant Management System provides economy, automation, productivity enhancement and compliance in one tool.

The CRI Applicant Management System acts as a data funnel for the employer's selection process:

The CRI Applicant Management System's Funnel of Applicants


The CRI Applicant Management System yields:

  • Better quality applicants who are productive faster and tend to stay longer
  • Uploaded data on new hires into employer's HRIS or payroll system
  • Applicant data for required EEO-1 reports
  • Hard copy of Applicant Log in the required format and with all required data
  • Applicant data by job and by location as required by EEOC
  • Applicant data by job by location as required by OFCCP

1 2 41 CFR Part 60-1 as amended, published in the Federal Register Volume 70, No. 194, Friday, October 7, 2005