Skip to main content

Applicant tracking systems are ubiquitous in the recruitment world, but what’s all the hype about?

Here I explain what applicant tracking systems are and the key benefits of using one.

What Is An Applicant Tracking System?

An applicant tracking system (ATS) is a form of recruiting software used by organizations to manage their recruitment processes.

The primary function of an ATS is to make it easier for HR departments and hiring teams to manage candidates through the recruitment process and provide an exemplary candidate experience.

Key ATS features include applicant tracking, job posting, interview scheduling, automated candidate communications, and recruitment analytics.

Fundamentally, how ATSs work is a database that stores the candidate's details and information about their application e.g. resume, cover letter, and interview feedback.

Hiring teams can then configure the tool to their recruitment process and move candidates along as they progress through each stage. 

14 Key Applicant Tracking System Benefits

ATSs are useful tools for automating recruitment (at least the annoying bits anyway) and a well-chosen applicant tracking system can provide the following benefits:

1. Improved efficiency

An ATS automates many time-consuming tasks such as job posting, candidate screening, and chasing up candidates and hiring managers, allowing recruiters to focus on more strategic activities.

2. Centralized database

ATSs help organize and store candidate information in a centralized database. Organizations can use this to build a pool of potential candidates that helps with candidate sourcing and recruitment marketing.

3. Easier candidate screening

ATS software can be programmed to ask certain questions at the application phase and automatically reject candidates that don’t meet certain criteria e.g. location or visa status.

Some ATSs claim they can use AI to filter and rank candidates, but we recommend caution here.

4. Streamlined communication

Automated communication tools within an ATS facilitate timely and consistent interactions with candidates and hiring teams, improving the overall candidate experience and keeping applicants informed about their status.

5. Improved collaboration and coordination

The system enables better collaboration among hiring team members by allowing them to share notes, feedback, and evaluations about candidates in one place.

Get weekly insights and how-tos on leadership and HR’s biggest and most pressing topics—right to your inbox.

Get weekly insights and how-tos on leadership and HR’s biggest and most pressing topics—right to your inbox.

6. Data-driven decisions

ATS platforms help with data-driven recruiting by providing analytics and reporting features that offer insights into various aspects of the recruitment process, such as source effectiveness, time-to-hire, and cost-per-hire, helping organizations make data-driven decisions to improve hiring.

7. Improved candidate experience

By providing a streamlined application process, timely updates, and useful data, ATSs help enhance the candidate experience, making it more likely that talent will have a positive impression of the organization regardless of outcome.

8. Cost savings

By automating and optimizing various aspects of the hiring process, an ATS can lead to cost savings in terms of reduced administrative workload, faster hiring cycles, less reliance on external consultants, and improved recruitment outcomes.

9. Compliance and security

An ATS ensures that candidate data is stored securely and helps organizations comply with legal requirements and data protection regulations, reducing the risk of non-compliance penalties.

10. Scalability

An ATS can easily scale to accommodate the needs of growing organizations, allowing them to handle increasing volumes of applications and job postings without a corresponding increase in manual workload.

11. Brand Consistency

ATS systems often include customizable templates for career pages, job postings and communication, ensuring that the organization's employer branding and messaging are consistent across all candidate interactions.

12. Easier compliance and reporting

An ATS can help ensure compliance with labor laws and hiring regulations and keep detailed records of the hiring process.

13. Integration with other HR software

Integrations with other HR software tools, background check software, assessment platforms, payroll software, and calendar systems facilitate the smooth flow of data as employees move through the employee lifecycle. 

14. Global recruitment

For organizations with international operations, an ATS can support hiring international employees by accommodating multiple languages, time zones, and compliance with various local regulations.

Potential Drawbacks Of Using An Applicant Tracking System

While applicant systems are genuinely useful for the most part, there are some potential drawbacks to consider:

Decreased human interaction

Automation can potentially reduce the amount of personal interaction between recruiters and candidates, especially when it comes to providing candidate feedback and rejecting candidates. Some things need a human touch!

Costs

Implementing and maintaining an ATS can be expensive, especially for small businesses or startups with limited budgets, which is why we put together a list of applicant tracking systems for small businesses.

Overblown claims

As alluded to above, some ATSs claim they can use AI to filter, rank and maybe even reject candidates. But, as recruitment expert Mariya Hristova puts it:

“I am yet to see an ATS with a well-executed “AI” or even “machine learning” model of CV rating per role. Even roles with the same title can be so different that I don’t see any current tool being able to reliably rate candidate CVs. Most just end up being SEO catchers i.e. looking for keywords and the frequency of their use.

For this reason, while it can be tempting to use them to help share the load, I avoid these tools. Instead, my solution is to not let CVs pile up and regularly review them (take 30 mins daily).”

Some systems also have issues scanning and interpreting resumes that are irregularly formatted.

How Applicant Tracking Systems Work

ATSs work by automating and streamlining various stages of the recruitment process:

1. Job posting and distribution

  • Creation: Recruiters create job posts within the ATS detailing job descriptions, requirements, and other relevant information.
  • Distribution: The ATS includes job posting tools that distribute these job postings to various job boards, company career pages, and social media platforms to reach a wider audience.

2. Application collection

  • Online applications: Candidates apply for jobs through the ATS, submitting their resumes, cover letters, and other required documents.
  • Email applications: Some ATS platforms can also capture applications sent via email and automatically import them into the system.

4. Candidate screening

  • Keyword Matching: The ATS compares the candidate's qualifications and experience to the job requirements using keyword matching and other criteria.
  • Automated Ranking: In theory, candidates are automatically ranked based on their suitability for the position, allowing recruiters to prioritize the most qualified applicants.
  • Screening Questions: Some ATS platforms include customizable screening questions that help further filter candidates based on specific qualifications or criteria.

5. Candidate management

  • Profiles: The ATS creates individual profiles for each candidate, storing all relevant information, documents, and communication history.
  • Pipeline tracking: Recruiters can track candidates through various stages of the hiring process, such as application review, interview scheduling, and offer management.

6. Communication and engagement

  • Automated emails: The ATS can send automated emails to candidates at different stages of the recruitment process, such as application confirmation, interview invitations, and rejection notices.
  • Interview scheduling: Recruiters can use ATS with integrated interview scheduling software that integrates with calendars to avoid scheduling conflicts.

7. Collaboration and feedback

  • Team collaboration: Hiring team members can share notes, feedback, and evaluations about candidates within the ATS, facilitating a collaborative decision-making process.
  • Rating and comments: Recruiters and hiring managers can rate candidates and leave comments, helping to build a comprehensive view of each applicant.

8. Reporting and Analytics

  • Data analysis: The ATS provides recruiting analytics tools that offer insights into various aspects of the recruitment process, such as source effectiveness, time-to-hire, and candidate quality.
  • Custom reports: Recruiters can generate custom reports to track specific metrics and make data-driven decisions.

9. Compliance and security

  • Data protection: The ATS ensures that candidate data is stored securely, complying with data protection regulations.
  • Audit trails: The system maintains detailed audit trails, documenting all actions taken within the ATS for compliance and accountability purposes.

10. Integration with other systems

  • HRIS Integration: The ATS can integrate with human resource management systems (HRMS) and other HR tools to ensure a seamless transition from candidate to new hire.
  • Third-Party Services: Some ATS platforms integrate with background check services, assessment tools, and other third-party providers to enhance the recruitment process.

Get Expert Advice

To help start your journey choosing a new ATS, we've compiled a handy list of the best applicant tracking systems. Alternatively, you can talk to one of our HR software experts.

Need expert help selecting the right Applicant Tracking (ATS) Software?

If you’re struggling to choose the right software, let us help you. Just share your needs in the form below and you’ll get free access to our dedicated software advisors who match and connect you with the best vendors for your needs.

Finn Bartram

Finn is an editor at People Managing People. He's passionate about growing organizations where people are empowered to continuously improve and genuinely enjoy coming to work. If not at his desk, you can find him playing sports or enjoying the great outdoors.