The Cost of Building an Applicant Tracking System

Recruiting and Retention are the Top Reasons Companies Invest in HR Technology

Hiring is a universal business challenge across all industries. This is why 90% of organizations invest in human resources technology, with recruiting and retention being the top challenges driving human resource technology acquisition.

Applicant Tracking Systems Can Help With Recruiting and Retention 

This includes applicant tracking systems: hiring software built to optimize, strengthen, and automate recruiting. 

While many organizations are happy to purchase a prebuilt applicant tracking system for their hiring needs, recruiting is more than a one-size-fits-all process. 

There has been an uptick in organizations looking to build their applicant tracking systems from the ground up for their customers or end users. 

HiringThing Has Experience Building an Applicant Tracking System from the Ground Up 

Here at HiringThing, we’ve built an applicant tracking system from the ground up and know how much time, energy, and money it took, so we wanted to share the costs of building one yourself.

The Cost of Building an MVP

In terms of building, we frame this conversation around the cost of building a minimum viable product, also known as an MVP. An MVP  is a product that satisfies customer needs and begins to generate revenue. 

It’s important to note that an MVP doesn’t have to be perfect or complete but should provide enough value for customers to justify its cost. 

The cost to build an MVP depends on several factors, including the product you’re creating, the industry you’re in, and whether or not you have to hire or outsource a new team to support the production and rollout of the product. It’s a complex estimation that varies from company to company and product to product. 

Based on our experience and available data, we can give you a high-level estimate as to how much the average MVP will cost. These estimates are for all MVPs, not just applicant tracking systems. 

The Monetary Costs of an MVP

While numerous factors affect the outcome, estimates place the range for developing an MVP between $50,000 and 250,000.

However, there’s a high chance costs will be higher.

70% of software development costs occur after implementation, and unexpected changes cause 53% of projects to cost 189% more than initially estimated.

You’ll also need to allocate resources for upkeep and updates that either divert the attention of your core team to work on the new application, pay for new hires, or outsource development talent.

The Time Costs of Building an MVP 

Building an MVP takes an average of 2 to 10 months but can take much longer. 

Remember the time it takes to hire or outsource new talent to produce your new solution, the time to get that talent up to speed, and the learning curve for marketing and selling your new product. Also, allot time for the kinds of hiccups or pivots that arise during the software development process. 

We hope this brief overview gives you a high-level picture of what building an MVP from scratch could cost—it’s not an investment to take lightly!

Check out The Cost of Building an MVP for a detailed breakdown of MVP development costs. 

White Labeling an Applicant Tracking System Could Circumvent Development Costs

After running the numbers, many companies decide to white label an applicant tracking system to save time and money on development costs and leverage the expertise of a new partner. 

White labeling is purchasing a SaaS solution from a vendor, branding it, and presenting it as a proprietary solution. It’s a way for tech companies to circumvent the costs of developing a new product. 

This modality lets you quickly and efficiently add a new solution to your platform, and the best partners will further customize your new solution so that it seamlessly integrates with your current solution. This additional customization and partnership is sometimes referred to as private labeling.

At HiringThing, we offer hiring solutions that can be customized to fit your company, product, vision, or industry. If you feel like recruiting is an addition that aligns with your business goals, set up a chat with one of our Partner Development Representatives, and let’s start strategizing.

About HiringThing

HiringThing is a modern recruiting and employee onboarding platform as a service that creates seamless talent experiences. Our white label solutions and open API enable technology and service providers to offer hiring and onboarding to their clients. Approachable and adaptable, the platform empowers anyone, anywhere to build their dream team.