Leveraging Your ATS to Impact Results: Ten Steps That Improve Your Social Media Reach and Increase Recruiter Productivity

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WARNING: Do not read this article unless you want to increase:

  1. Your online shares and referrals
  2. Job distribution and visibility to passive candidates
  3. Candidate response rates
  4. Recruiter productivity when requisition loads are heavy and inbox recruiting is the
    primary activity (The activities described below have reduced time-to-offer by over four days.)
  5. Traffic to your career site
  6. The total number of unique applicants into your ATS each month (The following activities have also resulted in the addition of over 20,000 new applicants in one year.)

Do we have your interest? We should. All of these results can be achieved by taking advantage of an asset you may be underutilizing—your applicant tracking system (ATS). When it comes to investments, the ATS often gets one of the highest allocations in an organization. What’s more, the total cost of ownership extends far beyond the platform itself and its support team. It also includes the expense associated with each uploaded resume and candidate profile. Companies can maximize their return on investment if they begin to use the ATS more like a customer relationship management tool and really leverage the data they currently have. Instead of focusing their efforts on candidates in their external networks, recruiters should be developing effective marketing strategies for the ones already in the system.

The reality is that candidates who have submitted an application through your ATS have already decided, either through their own research or perhaps speaking to an existing employee, that they are interested in your company as a potential employer. A person’s willingness to go through an application process represents meaningful decision and commitment of time; therefore, your ability to leverage this relationship is measurably important. In a case study, candidates who already invested in the brand resulted in a 17 percent higher response rate than cold lists. Similarly, candidates who had previously applied were more likely to refer on social networks at a ratio of 13:1 compared with candidates who were not familiar with a brand.

The following ten steps can help you achieve similar results by maximizing your existing database.

Step 1: Understand your ATS and the types of candidate data that can be downloaded from the system. The data elements that are important are: first name, last name, cell phone, email address, jobs applied, location and status. (Status is critical because it can identify who has previously applied and the outcome of their application. Additionally, it can identify if they are now an employee.)

Step 2: Know what you want to accomplish with this data. Here are some things to consider:

                A. Is this a campaign to touch internal employees or new hires?
                B. Is this to promote a job or a set of jobs geographically?
                C. Is this targeted towards a specific job or set of jobs?
                D. Is this to support a job fair or networking event?
                E. Is this to support a campus hiring event or presentation?

Step 3: Decide how you would like to reach these candidates. Your options include texting, calling, emailing, or social media channels. Each of these outlets has a multitude of tools available in order to help manage, expedite and measure your strategies. However, as with any strategy, planning should take place on the front end to understand the best and worst case scenarios. You must determine, for example, who will follow up with the call to action activity, and what ultimately happens if the volume exceeds expectations.

Step 4: Plan the messaging and call to action. To connect with your candidates,it’s critical that you create strong messaging that is meaningful and clearly communicates your end goal, whether it’s showcasing how to apply to the company, explaining how to contact a recruiter and book an interview, or garnering interest in attending a career related event. Messaging should NOT be a one-size-fits-all approach. Consider having the message derive from a hiring manager versus a recruiter. This is especially helpful if the target population is in high demand, or the voice of a subject matter expert will have a bigger impact.

Step 5: Use imagery. A picture is worth a thousand words. If it’s a visual strategy, what are the images associated with those particular campaigns? Projecting consistency with the overall employment brand is important, but still leaves a lot of opportunity to convey the special messaging that you seek to communicate to your audience.

Step 6: Consider the voice. If the strategy includes a calling campaign that is pre-recorded or includes a video, what is the voice strategy? Consider the tone, whether the voice should be masculine or feminine, and the pace. All of these components make a difference.

Step 7: Review the approach with subject matter experts and your client group. This step is commonly missed, yet can be the most valuable. In many cases the candidates you are seeking will reach out directly to the business team. Determine with your team the appropriate response when a candidate circumvents your intended process.

Step 8: Ensure your project is measurable and reportable to the business team. Numbers paint a powerful picture. Some important metrics you should track include: percent of opened emails, click through rates, number of new applicants, attendees, returned calls or texts, candidate screens, interviews conducted and hires made. I further recommend capturing a baseline and measuring these data points over time to demonstrate the ongoing results of your marketing efforts.

Step 9: Monitor trends. What are the trends you wish to monitor—social referrals, opt out rates, hires per recruiter over time? Whatever it is, determine if your strategy influences single a point in time or an entire process. If it has process implications, then measure the results over a period of three to four months to understand if the hypothesized outcome was the actual outcome.

Step 10: Test and refine your strategy. Leverage your metrics, monitor trends and listen to candidate feedback. Based upon the outcomes, determine what components of the campaign can be adjusted. In a recent campaign for SEC accountants, we tested the effectiveness of two similar video emails; one was from the recruiter, the other was from the hiring manager, and discovered that the video email with the hiring manager resulted in a better quality of applicants.

Every year your organization makes huge investments to generate applicant traffic and each of these individuals has invested in your active jobs. Recruiters can maximize this investment and their own productivity by remembering that this wealth of opportunity lies within ATS—and with a targeted recruitment campaign, they are far more likely to achieve their hiring objectives.

 

 contact: tfriend@agile1.com

 

 

 

Connecting the Philadelphia Airport Community to Employers

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Another great solution by Agile-1 RPO! The Philadelphia Airport now has a career center to connect airport employers with the local community. Our recruitment marketing, technology and programs team brought this to life with a great partnership from the Airport. Way to go! Love how our teams are leveraging technology to enhance the recruitment process.

 

http://www.phljobportal.org./

IRS steps up employment tax audits – Independent Contractors The Focus

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IRS steps up employment tax audits

Background

Companies are required to withhold income and payroll taxes for their employees, but are not required to do so for independent contractors. In addition, a business must fulfill requirements under labor laws for employees that generally would not apply to contractors. The distinction between an employee and a contractor is therefore important for the withholding of taxes and reporting of income – which are crucial for ensuring tax compliance – and for applying labor laws, such as minimum wages, work place safety or eligibility for unemployment benefits.

The principles for distinguishing between independent contractors and employees are complicated. They are based on long-standing common law, and depend on as many as 20 factors related to the relationship between the worker and the business and must be applied on a case-by-case basis. Moreover, some rules apply to all workers, while other rules exclude specific categories of workers, such as engineers, designers or programmers.

For businesses that have historically classified workers as independent contractors, a special provision (Section 530 of the Revenue Act of 1978) provides a “safe harbor” exception from the usual 20-factor test. Under this safe harbor, the IRS may not reclassify workers as employees – even prospectively or for newly hired workers.

The issue of proper classification of workers as employees or independent contractors can have severe financial consequences to the business that misclassifies its workers. Not only is the company subject to retroactive tax withholding, but also penalties and interest if the classification is incorrect. In many cases, the liability adjustment made in an employment tax audit could bankrupt the business.

Employment taxes are “trust fund taxes.” This means that officers and owners of the company have personal liability for these taxes and cannot discharge them in bankruptcy, if the business cannot pay. Thus, the IRS takes no prisoners. If employment taxes are misappropriated in any way and there is a misclassification, the owner is generally personally liable.

The potential liability for misclassification of workers is already frightening and it may become more expensive. The classification of workers is also under legislative scrutiny by Congress and the Minnesota Legislature. Although the use of independent contractors is completely legal and legitimate, some believe there has been abuse; and therefore legislative proposals are made to restrict, if not eliminate, independent contractor status.

Employment Tax Audits

The IRS conducts 60,000 employment tax audits per year. An employment tax exam audits the following Federal taxes:

  • Federal Income Tax Withholding
  • Social Security Tax (“FICA”)
  • Medicare Tax
  • Federal Unemployment Tax Act (“FUTA”)

Federal employment tax examinations determine whether or not:

  • Workers are properly classified.
  • The employment tax liability is substantially correct.
  • Whether IRS information returns and W-2 wage statements are substantially correct and have been filed.

Employment tax audits are very fact intensive and time consuming.

20-Factor Test

Historically, the IRS uses what has become known as the “20-factor” test to determine whether a worker is an independent contractor or an employee. Over the years, the IRS has attempted to simplify and refine the test. The IRS has consolidated the “20 factors” into eleven main tests and organized them into three main groups: behavioral control; financial control; and the type of relationship between the two parties.

The IRS uses three characteristics to determine the relationship between businesses and workers:

  • Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training or other means.
  • Financial Control covers facts that show whether the business has a right to direct or control the financial or business aspects of the worker’s job.
  • Type of Relationship relates to how the workers and the business owner perceive their relationship.

If a business has the right to control or direct, not only what is done, but also what how it is to be done; then the workers are most likely employees.

If the business can direct or control only the result of the work – and not the means and methods accomplishing the result – then the workers are probably independent contractors.

Section 530 Relief

In certain circumstances, Section 530 can relieve businesses of employment tax liabilities resulting from worker misclassification, but the business must meet specific requirements under the law.The business must meet the following three requirements in order to receive relief under Section 530:

  • a reporting consistency,
  • a substantive consistency, and
  • a reasonable basis for treating the workers as independent contractors.

A business must meet all three tests. Making these tests means that the business will not owe employment taxes for the workers in question.

The New National Research Program Audits

In addition to its regular employment tax audits, for the next three years, 2000 companies per year will be randomly selected to provide data for the IRS’ National Research Program (“NRP”). The results of these audits will be used by the IRS to study employment tax compliance. The NRP is the first such intensive IRS employment tax audit in 25 years. The NRP exam is comprehensive in scope and more rigorous than a typical employment tax audit. IRS agents will look at related documents such as Form 1120 corporate returns and IRS 1099 forms.

In addition to reviewing payroll taxes, the NRP program will examine:

  • Worker Classification. Independent contractor and worker classification issues, including executives rehired as consultants, dual status employees, and employee leasing arrangements;
  • Fringe Benefits and Employee Expense Reimbursement Plans. Fringe benefits, including the usual “planes, trains, and automobiles”, as well as other expense reimbursement arrangements. For example, credit cards, cell phones, use of personal digital assistance (PDAs) provided by employers, and other noncash benefits;
  • Officer Compensation. Executive compensation and fringe benefits issues, such as use of corporate aircraft, executive retirement contracts, golden parachutes, stock options, and other compensatory issues of executives; and
  • Non filers. Determine if the independent contractor has reported his Form 1099 income on his tax return.
  • The NRP has two major goals:

To secure statistically valid information for computing the amount of the employment “tax gap” and

To determine the salient compliance characteristics of businesses so the IRS can focus future employment tax audits on the most noncompliant employment tax areas.

Why the Scrutiny on Independent Contractors?

Simply put, narrowing the tax gap is the key motivation behind proposals to crack-down on misclassification of employees as independent contractors. Businesses must withhold income taxes, withhold and pay social security and Medicare taxes, and pay unemployment taxes on wages paid to employees. By contrast, businesses do not have to withhold or pay any taxes on payments to independent contractors. Employers are more likely to withhold and submit taxes than independent contractors are to voluntarily pay their liabilities. The latest IRS study on the subject found that 15% of employers misclassified 3.4 million workers as independent contractors, causing an estimated total tax loss of $2.7 billion in inflation-adjusted 2006 dollars.

The same IRS study also found that workers misclassified as independent contractors for whom employers did not report compensation on Form 1099-MISC reported only 29% of their compensation on their tax returns. Left unsaid in the report, but clearly implied, is that independent contractors organized as corporations did not report their compensation. This will be cured under the recently enacted Health Care law of 2010 that requires the issuing and filing of Form 1099 to an independent contractor organized as a corporation.

Steps Businesses Should Take to Avoid Worker Classification Problems

Given these potential risks, the overriding lesson to learn from the recent IRS audit focus, is that it is increasingly dangerous to misclassify an employee as an independent contractor to avoid paying taxes, health benefits, overtime liability, and other costs. With increased scrutiny from both the State and Federal levels, employees should audit their independent contractor agreements to ensure that they will withstand inspection. This is an area in which a little prevention can be better than the cure.

  • Review all worker-written contracts to clarify worker status;
  • Follow the “common law” tests carefully;
  • Obtain a Form W-9 from the worker, pay by check, and issue a Form 1099-MISC;
  • If an individual is really an employee, do not try to classify the person as an independent contractor;
  • Ensure and preserve Section 530 relief and eligibility;
  • Watch for “Form SS-8” IRS request, payroll audit questions, or other signs of any IRS worker classification audit;
  • Once the proper employment status is determined, do not flip flop and change the status in an inconsistent fashion. Maintain consistent treatment to the extent possible;
  • Monitor IRS changes in its worker “Classification Settlement Program” (“CSP”) and announcements on its ongoing study of employee/independent contractor issues;
  • Lobby for legislative changes to clarify status of independent contractors; and
  • If you have questions, immediately seek the assistance of counsel.

Action Point

In light of the above, businesses need to be careful in documenting how they treat their workers and what type of compensation is being paid to them. Businesses need to be very careful and should review their employment practices so that, if the IRS does commence an audit, they will be in the best position to defend themselves, under the “common law” test or other legislative exceptions to employment status. By understanding the issues and undertaking internal compliance reviews, employers may be able to satisfy the relief provisions available in Section 530 for worker classification issues or the “reasonable belief” standard for payroll tax, worker compensation, and fringe benefit issues.

RFP Blunders: Helpful Tidbits for Suppliers and Buyers

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As a supplier the average cost to respond to an RFP / tender process can exceed $15,000.  This is no different than the cost of resources to a buying corporation.  The reality is an RFP is an expensive investment of time and resources, so the outcomes should reflect the commitment invested at the onset of the process. Having sat in the seat as a buyer and a supplier and now as an advisory consultant, WOW there are simple things that can be fixed to make this effort more successful.

Here are some quick tips for both suppliers and buyers to improve the experience.

Buyers:

1.  Take the time to define your requirements: All too often this step of the process is missed or glossed over and the RFP does not capture the right level of detail that will be required to make an informed decision.     Action:  Define your program objectives, desired outcomes and aligned questions of suppliers that will help accomplish those goals.

2. Templates are a starting point: Templates are a tool so you do not have to stare at a blank sheet of paper and create something from nothing.  The importance of a template is the framework of the document and the types of questions asked.  The key is, to leverage this framework and align the questions to the requirements identified at the onset of the process.

3. Communicate data so suppliers can provide the right solution: All too often there is a “fear”  or “discomfort” associated with communicating data and metrics as part of the RFP due to a variety of reasons.  The more data you can provide, the better a supplier can respond to the question based upon the information you are able to provide.

4. Adequate time to review the RFP: The average RFP question takes about 4 – 6 minutes per question, to review.  Multiple the time it takes to review each question, by the total number of RFP questions, this will provide insight on how much time it will take to review and score the RFP.  This total does not include the data analysis required to score and rate the pricing section of an RFP.

5. Contract language: As part of a tender preparation, we recommend providing the supplier with a copy of your contract terms and conditions.  Getting your legal partners involved early will expedite the contract negotiations later in the process.

Suppliers:

1.  Incumbent: If you are an incumbent, align your responses to how you are delivering services today. Letting the dedicated RFP team write your responses with no alignment to services currently being provided will make for an unhappy buyer.

2. Answer the questions: Sounds simple but seemingly it is not.  Answer the question.

3.  Address how the question and your answer will benefit the buyer: Okay so you have answered the question, but the buyer wants to know “how does that impact me?”.  Make it relevant.

4.  Don’t leave blanks: Not answering the question, especially leaving blanks adds time to the process. If the buyer is under a tight timeline you may be ruled out of the process quickly.

5.  Demonstrate operational expertise: If you are an incumbent, be prepared to address how you have remained client focused and have improved the performance of the account?  If you are new, what type of data can you provide to prove not only capability but results?

There are always many points of view around RFP’s and the related success rates. However sometime simple tweaks can make all the difference.

Tracey Friend
traceymfriend@yahoo.com