Applicant Tracking System (ATS)

The Applicant Tracking System (ATS) is a software application that enables the electronic handling of recruitment and hiring processes. It is designed to help HR departments and hiring managers manage and organize candidate data efficiently. ATS can screen, sort, and rank job applications based on predetermined criteria such as keywords, skills, former employers, etc.

Last updated: July 23, 2023 6 min read

What Is Applicant Tracking System (ATS)?

An Applicant Tracking System (ATS) is a software application that simplifies the recruitment process by managing job applications and candidates. It is used by Human Resources departments to collect, scan, sort, and rank job applications for an open position. ATS can assist in posting job openings, sorting resumes, and even conducting initial screenings of candidates. It helps companies save time by automating many tasks that would otherwise be done manually.

What Is the History of Applicant Tracking System (ATS)?

The Applicant Tracking System (ATS) was first used in the United States in the late 1990s as a way to help large businesses manage and streamline their hiring processes. The earliest systems were simply designed to store applications for later retrieval. Over time, systems have become more sophisticated, providing a full suite of features such as job board integration, resume storing, interview scheduling, and onboarding.

In the mid-2000s, as more and more jobs required online applications, ATS became nearly ubiquitous in large and medium-sized businesses. The increasing demand for efficiency and faster hiring processes made ATS critical for not just sorting resumes but also for managing and streamlining the recruitment process.

In recent years, with the advent of Artificial Intelligence and Machine Learning, ATS has evolved to include intelligent features such as keyword matching and skill-based assessment to efficiently screen candidates. Today, ATS has become an integral part of the hiring process in organizations of all sizes around the world.

What Are Some Examples of Applicant Tracking System (ATS)?

  1. Taleo
  2. Workday
  3. Greenhouse
  4. Jobvite
  5. iCIMS
  6. Lever
  7. BambooHR
  8. Bullhorn
  9. SmartRecruiters
  10. JazzHR
  11. Zoho Recruit
  12. SuccessFactors (by SAP)

What's the Difference Between Applicant Tracking System (ATS) and Candidate Management System (CMS)?

An Applicant Tracking System (ATS) and a Candidate Management System (CMS) are both integral parts of modern recruitment processes, but they play different roles.

  • An ATS is an application used to manage the recruitment process. It assists in handling job postings, applications, candidate screenings, and the interview process. The primary focus of ATS is to streamline and automate the initial stages of the recruitment process, and it's primarily applicant-focused.

  • On the other hand, a CMS covers a broader scope. Besides managing applications, it also handles candidate relationship management. This includes maintaining and nurturing relationships with potential candidates (both active and passive), tracking communications, and managing talent pools for future vacancies. CMS is more candidate-focused and concerned with long-term relationship building.

In short, while an ATS manages the application process, a CMS manages the candidate experience and relationship.

What Are Some Examples of Candidate Management System (CMS)?

  1. Avature
  2. Yello
  3. Beamery
  4. SmashFly
  5. Phenom People
  6. Bullhorn CRM
  7. Zoho Recruit
  8. Lever Nurture
  9. Workable
  10. Greenhouse CRM
  11. iCIMS Nurture
  12. GR8 People CRM

How Does an Applicant Tracking System (ATS) Differ From a Recruitment Software System?

An Applicant Tracking System (ATS) is a specific type of recruitment software that focuses primarily on tracking and managing applicants throughout the recruitment process, from job posting to hiring. Its functions typically include job posting, resume screening, tracking applicants' progress, communication with candidates, and reporting.

On the other hand, a Recruitment Software System has a broader scope. It not only includes applicant tracking but also extends to other aspects of talent acquisition. It can incorporate features such as candidate sourcing, recruitment marketing, candidate relationship management, interview scheduling, and onboarding among others.

In essence, while an ATS is part of a Recruitment Software System, the latter is more comprehensive and covers more aspects of the hiring process.

What Are Some Examples of Recruitment Software?

  1. Workable
  2. Greenhouse
  3. Jobvite
  4. Lever
  5. Bullhorn
  6. BambooHR
  7. SmartRecruiters
  8. Zoho Recruit
  9. JazzHR
  10. iCIMS Talent Acquisition Suite
  11. SuccessFactors Recruiting (by SAP)
  12. Oracle Taleo Cloud Service
  13. Breezy HR
  14. Newton Software
  15. Recruiterbox
  16. Ceridian Dayforce
  17. ADP Workforce Now

What Are the Benefits of Applicant Tracking System (ATS)?

  1. Efficiency: ATS automates many processes in the hiring workflow, thus saving time and making the process more efficient.
  2. Organization: It keeps all applications and candidate information in one place, making it easy to search, sort, and manage.
  3. Easier Screening: ATS often has features that can automatically screen and rank candidates based on predefined criteria.
  4. Schedule Management: Most ATS have features to schedule interviews, send reminders, and track follow-ups.
  5. Compliance: ATS can help ensure compliance in hiring by maintaining necessary documentation and aiding in fair hiring practices.
  6. Cost-Effective: By streamlining the recruitment process, ATS can reduce the cost-per-hire and time-to-fill a position.
  7. Reporting and Analytics: ATS offers insights into the recruitment process through various metrics, aiding in decision-making and strategy development.
  8. Improved Candidate Experience: Smooth tracking, timely communication and a structured process can enhance the candidate's experience.
  9. Job Advertising: ATS often have features to easily post job openings to multiple job boards and social media platforms.
  10. Scalability: ATS can easily manage increasing volumes of applications as a company grows or has seasonal hiring needs.

What Are the Negative Effects of Applicant Tracking System (ATS)?

  1. Over-reliance on Keywords: ATS often rely heavily on keywords for scanning resumes, which may result in overlooking high-quality candidates who didn't use specific keywords in their application.
  2. Limited Flexibility: Some ATS may not handle unconventional application materials, such as portfolios, well.
  3. Impersonal Experience for Candidates: The automation could make the recruitment process feel impersonal and could discourage some candidates.
  4. High Initial Costs: Initial set-up costs can be high, especially for small businesses.
  5. System Compatibility Issues: Certain ATS may not integrate well with other software used by a company.
  6. Steep Learning Curve: Depending on the complexity of the system, there might be a steep learning curve for the recruiting team.
  7. Overlooking Passive Candidates: ATS is designed for active job seekers and might not be as effective in targeting passive candidates (those not actively looking for a job).
  8. Technical Issues: Glitches or downtime can cause missed applications or other issues.
  9. Lack of Human Judgment: Since it's an automated tool, it might miss out on candidates who could be a good fit but don’t meet the exact criteria set in the system.
  10. Privacy Concerns: Handling sensitive candidate data requires strong security measures to prevent data breaches or misuse.

How Can You Offset the Limitations of an Applicant Tracking System (ATS)?

  1. Complement with Human Review: No system is perfect. Complementing the ATS with human review can help catch high-quality candidates that the system might overlook.
  2. Seek Regular Feedback: Get regular feedback from candidates about their experience with the application process to continually improve it.
  3. Training: Thoroughly train your HR team on how to effectively use the ATS, to shorten the learning curve and make the most use of its features.
  4. Software Integration: Choose an ATS that integrates well with other software in use in your company, to address compatibility issues.
  5. Focus on Passive Candidates: Complement your ATS with a Candidate Relationship Management (CRM) system, which can help you attract and nurture passive candidates.
  6. Regular System Updates and Maintenance: Regularly updating and maintaining your ATS can help address and prevent technical glitches.
  7. Ensure Data Security: Choose an ATS that guarantees strong security measures to protect candidate data and maintain privacy.
  8. Vendor Support: Working closely with your ATS vendor on any issues as they arise can help address many potential problems.
  9. Setting Realistic Criteria: Avoid setting overly strict or specific criteria that might unnecessarily filter out potentially good candidates.
  10. Transparency: Be transparent with applicants about the ATS process. This can help reassure candidates and encourage them to apply.

Which Employers Are Likely to Be Affected by Applicant Tracking System (ATS)?

  1. Large Corporations: Large corporations that receive thousands of applications for various roles across different locations are likely to be most affected by ATS. They utilize ATS to manage and streamline their complex hiring processes.

  2. Medium-Sized Businesses: As they grow and their recruitment needs increase, medium-sized businesses might find the need for an ATS to handle the surge in applications.

  3. Recruitment Agencies: These agencies deal with multiple clients and candidates at a time. An ATS can assist in efficiently managing applications for various roles and clients.

  4. Government Institutions: Given the large number of applications they receive for public sector jobs, government institutions can greatly benefit from an ATS.

  5. Educational Institutions: Universities and colleges use ATS to handle applications for various staff positions.

  6. Non-Profit Organizations: To manage their hiring process effectively and efficiently, especially when they have limited resources, non-profit organizations may be affected by ATS.

  7. Healthcare Organizations: Hospitals and healthcare institutions often use ATS to manage applications for various clinical and non-clinical roles.

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