What is an applicant tracking system?
An applicant tracking system (ATS) is a software application that human resources (HR) teams use to manage and organize all aspects of the hiring process. An ATS helps recruiting teams collect and sort résumés, store candidate information, and facilitate communication between organizations and candidates.
Companies of all sizes use applicant tracking systems to organize résumés, collect candidate contact information, and simplify workflows for stakeholders involved in the hiring process.
Basic elements of applicant tracking systems
The right ATS offers various features and functionality to simplify hiring and recruiting tasks. Some of the critical elements to look for in applicant tracking systems are:
- Candidate sourcing and job postings. An ATS makes it easier for recruiters and HR teams to post jobs across many career sites and job boards. Application tracking systems also help teams go further by enabling businesses to analyze candidate information as they apply for.
- Résumé importing. Gathering and storing résumés can be challenging. Recruiting teams find application tracking systems to be helpful for organizing and segmenting résumés, making locating and managing them easier.
- Résumé parsing. Reviewing hundreds of résumés is time-consuming and overwhelming. An ATS with résumé parsing capabilities makes it easy for s hiring teams to quickly sort résumés and remove unqualified applicants.
- Interview management. Scheduling and coordinating interviews takes up significant time for recruiters. Applicant tracking systems allow teams to integrate their calendars for a more seamless scheduling process for hiring teams and candidates. Some ATSs also provide structured interview kits and feedback forms.
- Candidate relationship management (CRM). ATSs are designed to track applicants as they move through the hiring process so recruiting teams can better understand which stage candidates are at and who is no longer under consideration for the role. Candidate relationship management also stores candidate information, which comes in handy when applicants aren’t a good fit for a current role but could be right down the road.
Benefits of applicant tracking systems
An ATS can strengthen an organization’s talent acquisition strategy and hiring processes. Some of the key benefits include:
- Improved collaboration amongst stakeholders. It’s not uncommon for multiple people or departments to be involved in the hiring process, but communicating and collaborating can be tricky without the right tools. ATS software centralizes communication and encourages a collaborative approach involving stakeholders.
- Enhanced candidate experience. With an ATS, candidates are more likely to have a positive hiring experience as the process is smooth and easy to follow. An ATS can shorten the candidate lifecycle, help with critical communications, and simplify onboarding procedures for a winning candidate experience.
- Consistent hiring practices. One of the most significant benefits of an ATS is the level of organization and consistency these types of tools provide. A predictable hiring practice makes recruiting and hiring teams' lives easier and creates a replicable and fair routine for bringing on new team members.
- Fewer errors and quicker resolution times. When data entry processes are manual, data can fall through the cracks. For example, updating a spreadsheet with candidate information manually is prone to error. An ATS allows teams to find and address mistakes and fix them quickly so team members don’t have to spend unnecessary hours sifting through data.
Best practices for using an applicant tracking system
An ATS helps businesses hire employees quickly and effectively while simplifying the process for all involved. Organizations should consider the following best practices to maximize the use of ATS software.
- Select a system with an easy-to-use interface. Not all HR and recruiting personnel will have the same level of experience and technology skills. Choosing a software system that the team can adopt and learn how to use is essential. An ATS should make jobs easier, not over complicate them.
- Determine the level of reporting and insights the organization needs. When searching for the right ATS, HR teams must take into consideration the analytics and insight capabilities the platform offers. Analyzing the data provided helps teams improve the hiring process and calculate how much it costs the business to recruit and hire for open positions.
- Choose an ATS with integrations for current tools. Most applicant tracking systems integrate with other applications for ease of use. HR teams should look for an ATS that integrates with their pre-existing tools, such as the human resource management system (HRMS) or human resources information system (HRIS).
Applicant tracking system vs. candidate relationship management
Applicant tracking systems and candidate relationship management systems are essential tools for sourcing, attracting, hiring, and retaining top talent, but they serve unique purposes.
Ready to get new roles in front of candidates? Recruitment marketing can help.
Alyssa Towns
Alyssa Towns works in communications and change management and is a freelance writer for G2. She mainly writes SaaS, productivity, and career-adjacent content. In her spare time, Alyssa is either enjoying a new restaurant with her husband, playing with her Bengal cats Yeti and Yowie, adventuring outdoors, or reading a book from her TBR list.
