What is an Applicant Tracking System (ATS)?
An Applicant Tracking System (ATS) is a software that manages recruitment and hiring processes in organizations. Think of it as a centralized digital hub for all things related to job applicants.
Its primary purpose is to help HR teams and recruiters manage a high volume of applications efficiently, from the initial job posting to the final hiring decision.
The software organizes and filters the documents by parsing CVs and organizing the candidate information to a searchable database. The system facilitates communication, keeping contact with potential candidates to ensure no promising candidate is missed..
ATS Features and Functions for HR:
The system is beneficial to HR and streamlines processes by replacing manual tasks to automated workflows. These include:
- Job Posting Distribution: Posting the open positions to the company’s career page as well as numerous job ad websites (like Indeed, LinkedIn, Ogajob etc.) at the same time.
- Resume Parsing and Storage: Scanning and pulling salient information (including skills, education, and work experience) that reside in a resume into a candidate profile.
- Candidate Sourcing and Search: Enabling recruiters to search in the historical and current applicant database for candidates that have keywords, skills (or any other filters) to meet the listed role.
- Application Management: Tracking each candidate’s status (e.g., New, Screening, Interview, Hired, Rejected) through a visual pipeline.
- Communication Tools: Automating emails to acknowledge applications, schedule interviews, or send rejection notices.
- Collaboration and Reporting: Enabling hiring team members to share feedback and generating reports on key recruiting metrics like time-to-hire and cost-per-hire.
Why is an ATS Important for HR?
- Efficiency and Time Savings: An ATS functions as a virtual assistant for recruiters. These systems automated many repetitive administrative tasks allowing recruiters to focus on strategic activities like engaging with top candidates.
- Improved Candidate Experience: The ATS systems have many functions which makes the processes very smooth. Applicants receive regular and timely updates on their application status.
- Enhanced Quality of Hire: The software evaluates candidate profiles on their skills and streamlines a list showing the most qualified candidates. To avoid missing A players, ATS systems should be used.
- Compliance and Data Management: Making candidate data secure and accessible for future compliance audits is easily achieved through ATS systems. The stored data and hiring law processes through which the auditable record is achieved, are seamlessly integrated.
- Builds a Talent Pipeline The resumes of applicants are availed in a talent pool, allowing easy retrieval for future positions as candidates.
Challenges of Using an ATS
Even if an Applicant Tracking System has many advantages, organizations may still face several challenges while using this system:
Bias in Screening
Bias in screening occurs in systems where algorithms are used to sort resumes. Resumes are automatically rejected based only on the “exact match” keywords. Highly qualified people can be rejected based on lack of keywords in their CVs.
Learning Curve
Learning an ATS system can be difficult for some in HR and recruiting. System training for HR and recruiting is mandatory for full realization of system benefits.
Over-Reliance on Automation:
While automation can be helpful, it’s important for HR professionals to maintain a human touch during the recruitment process. Over-relying on ATS can lead to the loss of personal engagement with candidates.
Integration Issues
Integration of an ATS with other HR software like payroll systems and performance management systems may be difficult. This can lead to variation in the data captured, which compromises the quality of the data acquired. This may also lead to increased reliance on technical assistance.
Popular ATS Tools
Some of the most popular Applicant Tracking Systems used by HR professionals include:
- Workday: A comprehensive ATS solution that also integrates other HR functions like payroll and performance management.
- Lever: A user-friendly ATS that emphasizes collaboration and candidate relationship management.
- Greenhouse: Known for its powerful analytics and recruitment process management capabilities.
- iCIMS: Offers a highly customizable platform for managing the entire recruitment lifecycle.
- Jobvite: A robust ATS with social recruiting and employee referral features.
A Note for Job Seekers: Because most medium and large companies use an ATS, it’s important for applicants to tailor their resumes with relevant keywords from the job description to increase the chances of being selected by the system.
Related Terms: Talent Acquisition, Recruitment, Candidate Relationship Management (CRM), Resume Parsing, Talent Pipeline, Onboarding.
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