Charles? concern about companies using ATS product screening questions is legitimate, based on our experience. We just finished an analysis for a client using a well known ATS and our call center simulation, mental alertness, and job fit tests. We found that the higher the job candidate scored in the ATS questionnaire (meaning the more likely the employer felt they should advance in the hiring process because of their answers), the more likely they would actually be terminated in the job, or opposite of what the client thought would happen (r = .162; p =.022; N=200). The good news is that our analysis will help us establish better questions for the client. The bad news is that the client has been advancing wrong candidates in their hiring process.

Certainly this is just one example, but it illustrates that screening and selection cannot be accomplished by just writing some questions based on hiring ?experience?. Careful process and data analysis based on well established legal guidelines should be followed.

In terms of value, both ATS and assessment vendors will live and die by the same rules. For HR to be a strategic player, it will need to demonstrate that it provides financial value to the organization. ATS and Assessment vendors that can show that an investment in their solution will provide CFO certified value should win business and grow.

Thanks Charles for nicely summarizing some of the key challenges facing applicant tracking and assessment systems.

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As to your question of which convergence model might offer the most utility or profit, it seems that several may be equally beneficial to customers and that none can be altogether avoided by winning vendors. From our position as a middle market ATS and wide market recruitment software, we encounter a range of customer needs that speak to multiple approaches.

Strategic Relationships and Plug-and-Play Integration are obviously important, and to that end we are working with our own house XML and also the Assessment XML schema developed by HR-XML.org for use with developed content (ideally validated and proven content).

We also believe that ATS systems must support seamless custom assessment because the world?s stock of existing (and deliverable) content will never entirely meet the need. An analogy would be to use only pre-developed dialogue throughout a verbal interview – possible, but not practical for anything but rote hiring for non-knowledge roles. As roles do change and morph, assessment needs to as well, and those cycles may not be concurrent. In plain English, our customers want to ask some of their own questions. We define Marketing as the total delivery of our solutions, and from a marketing perspective, we expect that offering easy data exchange and custom content tools will be the best way to ensure high value for the most customers.

Up the ATS food chain, it may make better sense to buy content and domain expertise, but as noted, the DNA is quite different between ATS and Assessment firms and customer results may vary. Also, it?s hardly certain that ATS or Assessment could prevail- or CRM for that matter.

Did anyone catch the item in the New York Times business section Sunday discussing successful off-shoring of drive through restaurant order takers? In that kind of world, staffing vendors of all kinds may find successful niches; from ATS to Assessment all the way to integrated HCM.

Soon enough, we should have name-brand vendors who will meet with the boards of big companies, learn of the strategies envisioned, and outsource it from there, possibly contracting with individual business units- showing that if you outsource long and hard enough, like a Mobius strip, it could come all the way around!

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Thanks – Dan

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