How To Choose An Applicant Tracking System: An Expert’s Guide

So you’re in the market for an applicant tracking system (ATS), but you’re not sure how to choose one.

As someone who’s been involved in selecting and implementing no fewer than 3 ATSs in the last 5 years(!), use my guide to help you gain a deeper understanding of what to look out for and the right questions to ask.

What Is An ATS?

Briefly, what is an ATS? An applicant tracking system is a type of recruiting software designed to, first and foremost, help recruitment teams manage candidates through their recruitment process.

An ATS centralizes all applicant data in one system, making it easier for recruiters to review candidates, schedule interviews, and communicate efficiently.

They’re especially useful for handling high numbers of applications and providing insights to help improve the hiring process.

11 Essential Factors to Consider When Choosing An ATS

With the above in mind, what are some key factors to consider when choosing an ATS?

1. Company/recruitment team size

The size of your organization will impact your choice of ATS, or at least your choice of package.

For example, small and medium businesses will need fewer seats (users) and may not need some advanced features, so focusing on basic automation and tracking is key. 

Budget-friendly solutions with transparent pricing are essential for smaller companies that have financial constraints but still require efficient hiring processes.

Larger enterprises typically require a system with advanced features like tiered users, multi-locations, and in-depth analytics.

Customization will also likely be more important for accommodating different departments, teams, and locations.

For companies with high recruitment volumes, the ATS should be able to efficiently manage large numbers of applicants through bulk communication and batch interview scheduling.

For example, when our team was small, basic automation features such as resume parsing and email templates met our needs perfectly. However, as we grew, we quickly realized that the lack of advanced features was holding us back. 

We needed advanced features like bulk resume screening to handle the higher volume of applications, and custom workflows for different recruiting groups. 

We also needed better integration with our other tools like email, phone, and Slack to streamline data across the board. 

Without these features, we ended up wasting time on manual tasks and losing track of candidates. Within about a year, it became clear we needed to upgrade to a more robust system.

2. Hiring volume

Recruitment volume is a key consideration when selecting an ATS as it determines features, scalability, and the automation needed.

As your hiring needs increase, scalability and automations such as bulk communication and interview scheduling and reporting become more important and it’s likely you’ll need richer analytics too.

If your hiring volume fluctuates seasonally, an ATS with flexible pricing models and the ability to scale up or down is ideal, particularly if you need to manage seasonal worker hiring and fast-paced onboarding.

3. Geographic location

We initially didn’t think much about multi-location needs. But as we expanded into regions like Canada, Europe, and even different U.S. states like California and New York, it quickly became clear that our ATS just wasn’t cutting it. 

For example, we had to manage GDPR compliance in Europe in addition to Canada’s privacy laws and even different data privacy and labor laws in states like California, with its unique privacy regulations.

We also had to navigate New York's strict anti-discrimination laws as well. Time zone differences added another layer of complexity and we needed a system that could handle multilingual job postings and candidate communication.

Some guidance here:

Single location

• Simpler workflow: If your recruitment operations are centralized in a single location, your ATS doesn't need to handle multiple regions or offices. A basic system that tracks candidates, automates communication and organizes data should suffice.
• Localized compliance: Focus on an ATS that meets the regulatory requirements specific to your region or country, such as local labor laws, data protection, and reporting standards.

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Multi-location (domestic or international)

• Multi-location functionality: If your business operates across multiple locations, an ATS should offer multi-location capabilities, allowing you to post jobs and manage candidates from various offices or regions within one platform.
• Localized compliance: For international recruitment, compliance is critical. The ATS should help you adhere to different hiring regulations and data privacy laws, such as GDPR in Europe or CCPA in the U.S.
• Language and time zone support: In international settings, consider an ATS that supports multiple languages and time zones to accommodate global recruitment efforts. The system should also make it easy to schedule interviews and communicate with candidates in different locations.
• Regional talent pool: If you recruit globally, an ATS with sourcing features that target talent pools in specific regions or countries can be invaluable for reaching diverse candidates.

4. Cost and return on investment

Different solutions will have different pricing models (e.g., subscription-based, pay-per-use, or feature-based pricing) and be aware of any additional fees for integrations or added features.

Consider the long-term benefits and return on investment (ROI) the ATS offers, including time savings, reduced reliance on external recruiters, and improved hiring efficiency. For further help here, check out Dan George’s excellent article on HR financial literacy.

5. Ease of use

Of course, any solution should be easy to use and designed with the user in mind. Couple of things to look out for here:

• User-friendly interface: The ATS should be intuitive and easy for your HR team and hiring managers to navigate. This is why it’s always important to ask for a live demo.
• Candidate experience: Ensure the application process is straightforward for candidates, offering a mobile-friendly, streamlined experience to prevent drop-offs.

6. Customization

We found that being able to customize reports for different departments was a game-changer. 

For example, our sales team needed detailed insights on where candidates were coming from and how long it took to hire them, so they could better match their recruitment efforts with client acquisition goals. 

Meanwhile, our recruiters needed deeper data on candidates' skill sets and interview feedback to ensure they were sourcing the best candidates for our client roles. 

We used source tracking reports to pinpoint which channels—like LinkedIn or job boards—were most effective, time-to-hire metrics gave us insights into delays and helped speed up the process, funnel analytics revealed where candidates got stuck, and diversity and inclusion reports ensured our hiring practices were fair and inclusive. 

These reports helped us make data-driven decisions and streamline our recruitment efforts. This customization was crucial for optimizing our approach across various departments and roles.

Some useful features here:

• Customizable workflow: Look for an ATS that allows you to adapt workflows to fit your recruitment process. The system should be flexible enough to accommodate different job roles, departments, and hiring stages.
• Custom reporting: The ability to create custom reports and dashboards to track key metrics (e.g., time-to-hire, source of hire) is essential for making data-driven decisions.

7. Scalability

As our agency, Edison & Black expanded, we cycled through four different ATSs in just five years to manage an increasing number of applicants and more complex hiring processes. 

Being involved with three of those transitions, and with the benefit of hindsight, some of these changes could have been avoided with better upfront planning from the start

For example, anticipating future features, even if they seem far off, could have helped us reduce the frequency of our incredibly time-intensive ATS switches.

While with each switch we learned valuable lessons about scaling and refining our requirements to support growth, it still would have been much more cost and time-effective to start with a more scalable ATS, to begin with.

A couple of things to look out for here:

• Growth potential: Ensure the ATS can grow with your business. Whether you're hiring a few employees now or expect to scale up in the future, the system should help you to handle increased volumes of applications and users.
• Multi-location capabilities: If you're hiring across multiple regions or countries, ensure the ATS supports multi-location functionality and can accommodate various compliance needs.

8. Integrations

Ideally, your new ATS should easily integrate with the rest of the tools in your HR tech stack such as your HRMS to facilitate data sharing and create more efficient processes. 

You can check on the vendor website or with their sales team which tools the software already has integrations with, and even ask them to build one if it doesn’t exist (note this might incur extra costs).

9. Collaboration features

Part of the attraction of an ATS is having candidate data in one place that can be easily accessed and updated.

The ATS should facilitate the easy sharing of candidate profiles, feedback, and notes among team members, fostering better collaboration between hiring managers, HR, and recruiters.

It should offer role-based access to ensure that different stakeholders (e.g., recruiters, and managers) have appropriate levels of visibility and control.

10. Reporting and analytics

Recruitment analytics is important for improving the recruiting process and making better quality hires.

Detailed analytics help you make data-driven decisions, improving efficiency and reducing recruitment costs. Additionally, reporting features ensure compliance with legal and regulatory requirements by maintaining accurate hiring records. 

11. Compliance and legal requirements

If your business operates across different regions with varying hiring regulations (e.g., equal employment opportunity laws, GDPR), then multinational compliance capabilities is something to consider when choosing your ATS.

How To Choose An Applicant Tracking System: 5-Step Process

The ATS selection process needn’t be complicated but it should be thorough. Below, I’ve broken it down into five steps.

Step one: Identify needs

Before diving into vendor research, take time to understand the specific needs of your stakeholders e.g. recruitment team members, leaders, and regular employees.

Questions to help you identify your needs:

• How many people do you need to hire in the next 6–12 months?
• Where will you be recruiting?
• What is your interview process like?
• Who will be the main user of the ATS?
• How developed is your employer brand?
• If this isn’t your first ATS, what needs to change?
• Turn the question on them: what are their USPs?

Asking these questions will help you determine what exactly it is you need from your ATS.

For example, if you’d like to gather more data to help track recruitment metrics and improve your hiring processes, a good analytics and reporting feature will be high on the list.

Get input from your stakeholders (IT and finance are always useful) and use their feedback to write use cases and build a matrix comparing what’s important to each stakeholder group.

You’ll now be able to lead the conversation with vendors and give them a list of need-to-have and nice-to-have features for each user.

Step two: Research vendors

It’s time to do some market research and familiarize yourself with the leading HR software solutions for your use case.

Luckily, the web is full of informative websites (like this one) comparing the best applicant tracking software tools to one another. Reading a handful of these is a good way to get an overview of your options.

Take the time to study their websites and take notes of any questions that arise. Are there case studies and reviews that demonstrate the tool's main USPs?

You can also join HR communities or tap into your network for recommendations. 

Some vendor-specific questions to ask:

• Who are the top vendors for your use case?
• Which are the best-rated in their category?
• What is each tool’s top-rated feature?
• Is it a small business solution or is it more suited for enterprise use?
• What do customer reviews and testimonials have to say? What are the most commonly reported benefits and drawbacks?
• What kind of onboarding, training, support, and other resources does the vendor offer?
• Is there robust documentation available?
• Do the tool’s features meet your needs?
• Does the software integrate with the HR tools you’re already using?
• User interface: is it visually appealing?
• User experience: is it intuitive to navigate and easy to use?
• Is this tool simple or complex enough for your human resource management needs? 
• Does it offer the flexibility or customizability you need?
• Does it offer robust security standards and comply with data privacy regulations and best practices? Is an on-premise option available?
• Does the pricing meet your budget? Is the pricing clear? Is the price warranted based on the software’s capabilities? Are certain key features only available in more expensive pricing tiers? 
• Does it offer a demo or free trial?

Step three: Make a shortlist and reach out

Now you’ve identified some likely vendors, it’s time to go a bit deeper and book some demo calls.

1. Send each vendor a request for information (RFI) so you can compare your options point for point
2. If you want to be really thorough, send each of your shortlisted vendors a request for proposal (RFP). This will include key information about your company, your specific needs, a vendor questionnaire, and any specific proposal submission rules they should follow, such as submission deadlines.
3. Schedule a meeting with their sales rep and go through your questions.

These calls, which should ideally include demonstrations of the product in action, will also help you get a feel for the vendor and whether you can form a good partnership.

To help compare vendors, use this handy evaluation template.

Step four: Make the business case

With all the above data gathered, it's time to put together your business case for the new software. 

This doesn't have to be a 10-page document, it can be as simple as a one-page memo (because who has time to read 10 pages anyway).

 Decision-makers are looking for answers to the following questions:

• How much does it cost? 
• What pain points will the software solve?
• If we didn’t invest in the software, then what?
• How long will it take to implement?
• Why do we need to invest now?
• What is the ROI of implementing ATS software?

You may not know the answers to the cost question; however, seeking approval at this stage will set you up for success.

In my experience, getting stakeholder buy-in is all about clear communication and solid planning. 

You need to be both specific and realistic about what you expect the ATS to accomplish in terms of value and expected ROI.

For what was our third ATS upgrade, I helped by detailing our need for advanced reporting, better integration with Google Business Suite (Calendar, Gmail, etc) and Slack, along with automation features to show how the new system would solve current issues and deliver ROI.

We made sure to emphasize how the upgrade would fix our current issues, make our processes smoother, and provide a clear ROI. 

We pulled together data on costs, the implementation timeline, and potential risks, which made a strong case for the decision-makers.

Here's a business case template you can use for ATS Software:

• Executive Summary: Brief overview of the proposal, key benefits, and conclusions.
• Current Situation and Problem Statement: Description of the current state and specific challenges or problems being addressed.
• Proposed Solution and Benefits: Detailed description of the proposed solution and its expected benefits, including a cost-benefit analysis.
• Implementation Plan and Risk Assessment: Step-by-step implementation strategy, timeframe, and a summary of potential risks with mitigation plans.
• Conclusion and Recommendations: A concise summary of the business case with final recommendations for decision-makers.

Step five: Implement and onboard

In our experience, the biggest challenge was not selecting the right ATS but rather implementing it effectively. 

For instance, we faced significant issues when our initial rollout lacked adequate training and support. 

Many team members struggled with the new system’s interface and features, leading to inconsistent usage and errors in data entry.

 We also had trouble integrating the ATS with our G Suite, calendar, email, Google Analytics, and Slack, which caused delays in processing candidate information and disrupted our workflow. 

Without proper onboarding and ongoing support, even the most advanced ATS couldn’t deliver the results we expected, leading to frustrated users and missed opportunities.

Effective change management is crucial. For colleagues to use your new software, they need to understand how it benefits them (e.g. it saves them time/they’ll get better candidates) and know how to use it. 

Here are some tips to help with this.

• Clearly communicate that you’re adopting new ATS software, what this will mean for people, and invite them to ask questions.
• Take advantage of any onboarding and training offered by the vendor and make it mandatory for those who need to be trained to complete this training within a realistic timeframe.
• Charge someone with the responsibility of spearheading implementation and being a point of contact for any questions (and feedback) employees might have.
• Make employees aware of any self-service resources available and make sure they know how to log a support ticket if they run into difficulties.

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