Given your hiring team manages thousands of applicants each year, your company needs a robust applicant tracking system (ATS) in your HR tech stack to stay organized and achieve your hiring goals. In fact, over 95% of Fortune 500 companies currently use an ATS to manage and track applicants who apply to open positions.
While a traditional ATS is excellent for storing candidate details, the best applicant tracking systems today work in lockstep with other talent acquisition technology, including candidate relationship management systems (CRMs) to source top talent, centralize communication with prospective hires, and more efficiently engage, interview, and analyze applicants. Using a leading ATS system, recruiters can easily search resumes and filter candidate information, decreasing the time needed to manually source talent for open positions and ensuring they connect with the best people for each position.
If you and other hiring stakeholders at your organization are wondering how an ATS can streamline and improve your recruiting and hiring efforts, you’ve come to the right place. Let’s answer your most pressing questions in this FAQ guide.
Applicant tracking systems (ATS) have become an invaluable tool for companies looking to streamline and optimize their hiring process. But what exactly are they, and why should you use one? In this comprehensive guide, we’ll cover everything you need to know about applicant tracking systems.
What is an Applicant Tracking System?
An applicant tracking system (ATS) is a software that helps companies manage their entire recruitment process in one place. It serves as a central database for all applicant and job-related data, allowing recruiters and hiring managers to track and organize applicants through every stage of the hiring funnel.
Key features of an ATS include
- Job posting and distribution
- Candidate sourcing
- Online applications
- Résumé storage and organization
- Automated screening and ranking
- Interview scheduling and notes
- Offer letter/contract management
- Analytics and reporting
In short an ATS takes all the manual work out of hiring and centralizes it into an easy-to-use platform. This saves companies time and money while providing structure and organization to their recruiting efforts.
The Benefits of Using an ATS
Here are some of the top reasons companies are turning to applicant tracking systems:
1. Streamlined Hiring Process
An ATS connects all the disjointed parts of hiring into one seamless workflow. Job openings are automatically distributed online, applications are stored in one place, and candidates can be sorted and ranked with just a few clicks. Everything recruiters need to source, track, assess, and communicate with applicants is housed in the ATS platform.
2. Improved Candidate Experience
ATS platforms allow companies to create a more positive experience for job seekers. Candidates can easily search and apply for open positions through customized career sites. They receive automated application confirmations and updates rather than being left hanging. And recruiters can use ATS data to identify and eliminate any roadblocks or bottlenecks in the process.
3. Enhanced Collaboration
Most ATS platforms include features that facilitate collaboration among hiring teams. Recruiters, managers, and other stakeholders can share feedback on applicants, exchange notes, and work together to advance candidates through the funnel. This ensures alignment across the organization.
4. Unified Data and Analytics
All applicant data, including résumés, correspondence, assessments, and notes, are stored and accessible in one ATS platform. Recruiters can use this data to generate reports on metrics like time-to-hire, source of hire, and more. The insights gained allow companies to continually refine their hiring strategies.
5. Increased Efficiency
By automating administrative tasks, centralizing information, standardizing workflows, and eliminating manual data entry, an ATS significantly increases efficiency in recruiting. Hiring teams can spend less time on busywork and more time on strategic talent acquisition initiatives. This maximizes your HR capacity.
Top Features of Applicant Tracking Systems
While ATS platforms share common core capabilities, they can vary widely in terms of specific features and functionality. Here are some of the most important features to look for:
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Job Distribution: Post openings to your career site, LinkedIn, job boards, social media, and other sources with just a click.
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Candidate Sourcing: Search résumé databases, leverage AI matching, and integrate with external networks to find qualified candidates.
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Application Tracking: Capture application materials, assign statuses, and move candidates through customized workflows.
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Communication Tools: Send automated notifications, create email templates, conduct video interviews, and track all correspondence.
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Collaboration Features: Share feedback, exchange notes, and enable team-based hiring.
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Interview Management: Schedule interviews, create customizable scorecards, and maintain structured notes.
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Assessments: Administer pre-employment tests, screenings, and custom assessments.
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Analytics: Gain insights into source of hire, time-to-fill, workflow efficiency, and other metrics.
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Reporting: Build customizable reports on hiring performance.
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CRM Integration: Share applicant data across your CRM and ATS platforms.
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API/Integrations: Connect your ATS to other HR systems and tools you already use.
Who Needs an Applicant Tracking System?
Any organization that regularly hires new employees can benefit enormously from implementing an ATS. They are used by companies across all industries and verticals.
That said, ATS solutions are particularly advantageous for:
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High-volume hiring: Enterprises that hire large numbers of employees (like retailers and hospitality companies) can greatly streamline operations with an ATS.
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Decentralized hiring: For companies with recruiters or hiring managers working in disparate locations, an ATS unifies and connects the team.
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Specialized hiring: Healthcare systems, tech companies, and other organizations with complex hiring needs depend on ATS functionality.
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Scalability concerns: Fast-growing startups and SMBs use ATS to build scalable recruiting processes right from the start.
If your current hiring process is disjointed, inconsistent, reliant on spreadsheets, or simply inefficient, an ATS is likely right for your organization.
Getting Started with an ATS
Transitioning to an applicant tracking system is a big move for any company. Here are a few tips for ensuring a successful implementation:
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Start with core needs: Outline your must-have features before demoing solutions so you choose the right platform.
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Map out workflows: Take time to strategize exactly how you want your future hiring workflows to operate within the system.
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Clean your data: Eliminate duplicate records, correct information, and organize your backlog of applicants before importing data.
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Train your team: Adoption is critical. Provide adequate training and resources to recruiters and hiring managers.
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Integrate: Connect your ATS with your existing HRIS, talent mobility platform, background check system, and any other relevant tools.
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Optimize over time: Continuously gather feedback from users, monitor analytics, and tweak workflows to maximize the value of your ATS.
Top Applicant Tracking Systems
With so many ATS solutions on the market, it can be daunting finding the right one. I recommend checking out these top-rated options first:
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BambooHR: Best for SMBs seeking an end-to-end HR system with built-in ATS.
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Workable: Best for customized, collaborative hiring workflows.
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Greenhouse: Best for mid-sized companies wanting robust analytics and reporting.
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Jobvite: Best for enterprise-level recruiting needs and deep CRM integration.
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Zoho: Best budget-friendly ATS with wide-ranging functionality.
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Lever: Best for companies focused on sourcing passive candidates.
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SmartRecruiters: Best for optimizing the full talent acquisition lifecycle.
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JazzHR: Best for startups and small companies looking for an intuitive, easy-to-implement ATS.
I suggest setting up demos with a few leading options, asking about pricing packages, and evaluating how well they align with your needs.
Common Questions about Applicant Tracking Systems
How much do applicant tracking systems cost?
Pricing varies widely based on the solution, number of users, and features included. Small business plans often start under $100/month while enterprise solutions can cost tens of thousands annually. Many offer discounts for annual contracts. There are even some free open-source options.
What if we already use an HRIS – do we need a separate ATS?
Some HRIS systems have built-in applicant tracking functionality. But for many companies, it makes sense to have a best-of-breed standalone ATS that integrates with your HRIS. This ensures you get robust purpose-built recruiting features.
Are applicant tracking systems worth the investment?
The return on investment is substantial for most companies. The efficiency gains, improved analytics, and scalability that ATS delivers far outweigh the costs over the long-term. ATS also helps build competitive advantage in attracting top talent.
How long does ATS implementation take?
The average implementation timeline is 1-3 months depending on the scope and whether you are migrating historical data. Larger-scale, customized deployments can sometimes take 6 months or longer.
What are the biggest ATS implementation challenges?
Insufficient planning, lack of executive buy-in, and poor user adoption are common pitfalls. Take time upfront to strategize workflows, clean data, and train everyone involved to ensure a smooth onboarding process.
Applicant Tracking Systems: An Essential HR Technology
In today’s fast-paced, competitive talent landscape, applicant tracking systems have become indispensible technology for any organization serious about recruiting top candidates efficiently and at scale. The automation, structure, and insight ATS provides are transformative.
While implementing an ATS requires thoughtful planning and change management, the long-term dividends are well worth the effort. Moving forward with a modern recruiter-centric platform will keep your company poised for growth and success.
How does a top ATS work?
Every ATS is different, but here’s a high-level workflow that the top applicant tracking systems can achieve:
- Once the talent acquisition team has secured an adequate pool of applicants, they can then be tagged and labeled accordingly, based on resume information.
- From here, recruiters can sort through candidates by filtering based on skillsets and job descriptions published internally and externally to find strong-fit candidates for open roles.
- The ATS can then enable recruiters to communicate with candidates and schedule screening interviews and hiring team interviews.
- Hiring team members submit feedback immediately following interviews with applicants and add notes about each candidate. These scores and notes allow hiring decision makers to evaluate prospects in a bias-free manner and advance ideal applicants quickly.
Note that the process will look very different between enterprises using a modern versus traditional ATS. For instance, the best ATS software solutions use the latest technology, such as natural language processing, to scan resumes, provide recommendations on which candidates to reach out to for job openings, and locate passive talent that’s already in the ATS.
Plus, a top ATS integrates with both common and niche job boards, and offers universal, one-click job posting to easily publish listings for available positions.
What is an ATS?
An ATS helps companies organize candidates for hiring and recruitment purposes. These systems allow businesses of all sizes and across industries to collect candidate information, organize prospects based on experience and skill set, and filter applicants.
