When to Upgrade from Spreadsheets to Recruitment Software

Spreadsheets have been a go-to tool for recruitment, especially for small businesses. They are accessible, cost-effective, and familiar to most users. However, as organizations expand, the limitations of using spreadsheets become more apparent. Here’s why you should consider moving out of spreadsheet recruiting and invest in an Applicant Tracking System (ATS).

The Drawbacks of using Spreadsheets for Recruitment

1. Overwhelming Number of Spreadsheets

As your recruitment needs grow, you might find yourself managing multiple spreadsheets—sometimes ten or more—each tracking different positions or different sources or for different stages of the hiring process. 

For instance, one spreadsheet might track candidate applications, another might handle interview schedules, and yet another could be used for feedback. This fragmentation makes it challenging to maintain a clear and cohesive view of your recruitment efforts. This can lead to confusion and missed follow-ups, as seen in many growing businesses that outgrow their initial spreadsheet systems.

2. Sloppy Data Updates and Discrepancies

Manual data entry in spreadsheets is prone to errors. As the volume of data increases, the risk of discrepancies grows, especially when the number of internal stakeholders also grow.

Example: Imagine a situation where a candidate is marked as “Interview Scheduled” in one spreadsheet, but another spreadsheet status says “HM Screen” and schedules a duplicate interview. Such discrepancies can lead to confusion and potentially losing a good candidate due to miscommunication and poor candidate experience.

3. Protecting sensitive information

Spreadsheets often require sharing among team members, which can expose sensitive candidate information with a team member who doesn’t need it. This can lead to data breaches and privacy issues. Unlike dedicated recruitment software that offers controlled access levels, spreadsheets lack robust access control tailored for recruitment usecases.

Example: An interviewer should not be able to see the compensation data or previous evaluations that can potentially introduce a bias in their scoring. 

Reczee ATS offers granular access control across various different roles and thus automatically makes sure that no sensitive information of the hiring process is leaked to irrelevant stakeholders. 

4. Ineffective Measurement of Recruitment Activities

Spreadsheets are not designed for comprehensive tracking and measurement of recruitment activities. Key metrics like time-to-hire, source effectiveness, and candidate pipeline status require extensive manual effort to calculate and track, resulting in delayed insights into the effectiveness of their recruitment strategies. 

5. Difficulty in Collating Comprehensive Candidate Information

Spreadsheets often lack the capability to centralize all candidate-related information in one place. This includes email trails, comments, evaluations, status changes, chronological timeline of all the updates as it can be scattered across various documents.

Example: When a hiring manager needs to review a candidate’s full journey—from initial application to final interview—gathering all relevant information from multiple spreadsheets can be time-consuming and usually would require manual efforts of a recruiter to collate it every time. Recruitment software like Reczee ATS centralizes this data, providing a complete timeline view of each candidate’s status and activity history.

6. Search and Retrieval Difficulties

Searching for specific candidate information in spreadsheets can be frustrating and inefficient. For instance, if a recruiter is trying to recall details about a candidate they previously interacted with, finding this information in a cluttered spreadsheet can be time-consuming and often not captured because spreadsheets might not have been updated with that information.

7. Proactive Recruitment Limitations

Spreadsheets are not ideal for proactive recruitment strategies like talent pooling. Managing relationships with potential candidates and tracking their engagement becomes cumbersome and inefficient.

Example: A company trying to build a talent pool for future roles might find it challenging to organize and track candidates in a spreadsheet, making it difficult to maintain relationships and engage with potential hires effectively.

When to Transition to Recruitment Software

Investing in recruitment software offers numerous benefits, including streamlined processes, improved data accuracy, and enhanced reporting capabilities. While the initial investment may be significant, the long-term advantages of efficient recruitment and better candidate management can outweigh the costs.

Conclusion

While spreadsheets serve as a useful tool in the early stages of recruitment, their limitations become evident as your organization grows. Recognizing when it's time to upgrade to recruitment software can help ensure that your hiring processes remain effective, efficient, and scalable.