What is an Applicant Tracking System
An applicant tracking system (ATS) is a software platform that provides recruiters with automated processes to foster both time and cost efficiency throughout the hiring process. Let’s take a closer look at the common features of Applicant Tracking Systems.
Common Features of Applicant Tracking Systems:
- Automated job postings: Integration with many job boards allowing recruiters to post job openings on multiple boards by simply selecting the sourcing platforms from those offered by the ATS. The job boards then automatically deliver candidates to the ATS job pipelines. Such integration streamlines the recruiting process and optimizes job visibility.
- Resume filtering: Extracts keywords in resumes that match skills and experience noted in the job description and provides a percentage match that helps recruiters prioritize the candidate pool.
- Database Management: Builds a database of candidate profiles that include contact information, employment history, LinkedIn profiles, and other relevant details enabling recruiters to easily find candidates matching specific criteria.
- Applicant Tracking: Allow recruiters to set recruitment stages such as” Applied;” “Reviewed;” “Screen;” “Interview;” “Offer,” and “Disqualified. This allows all members of the hiring team to easily track candidate progress through the pipeline.
- Facilitate Candidate Communication: Create email templates tied to each stage noted above, thereby fostering candidate communication and engagement.
- Interview Scheduling: Enables easy scheduling of interviews by creating invitations with an embedded calendar link that integrates the calendars of recruiters and candidates email provider. Reminders may also be sent which reduces instances of “no show.”
- Data Analysis: Reporting on various recruitment metrics, such as analyzing from which sourcing channel most successful candidates have applied from. This helps hiring teams to select the tools that foster the best results.
Benefits of an Applicant tracking system for employers
- Automates the recruitment process, resulting in considerable time, as well as cost savings by filtering features that save recruiters the need to review resumes from unqualified candidates. In this job market, where high caliber talent is scarce, the ability to quickly move a candidate from application to offer becomes a valuable resource.
- Increases transparency of the recruiting process to all members of the hiring team thereby offering increased opportunities for continuous collaboration enabling timely feedback to candidates.
- Contains keyword-rich job templates for a wide variety of job descriptions so that recruiters can match candidates resumes and select only the most qualified to move forward.
- Many ATS platforms contain searchable candidate databases from which recruiters can source qualified candidates when a new role opens. Certain ATS platforms also integrate with job boards allowing recruiters to import candidates from their databases thereby increasing the talent pool.
- Ensures that the hiring process adheres to all state and federal fair labor practices (FLSA).
Important Considerations When Selecting an Applicant Tracking System
With a wide variety of ATS available, employers need to evaluate a few factors before deciding on the best tool for their hiring needs.
- Targeted Features: Most ATS can be used for a wide range of roles, from entry- through senior level. However, bespoke options may be best for specific hiring needs; for example, if your company needs to hire many highly technical roles, the best ATS solution may be one that creates keyword-rich job descriptions, automates pre-employment skill assessments, and uses AI to create a targeted candidate profile and matches resumes to the job description. Similarly, if your company needs to hire high-volume roles, the best ATS solution may be one that provides resume filtering options with auto-disqualification, so recruiters do not need to review resumes of candidates who do not meet the job criteria.
- Compare cost to budget: It is important to consider the cost of all Applicant Tracking Systems under consideration. Some ATS offer robust functionality at a prohibitive cost but may not be needed by an early-stage or mid-size company with only a few roles open. There are also Applicant Tracking Systems that offer a free (basic) option with limited functionality but that may be all that is needed for a small company. Most Applicant Tracking Systems are scalable, allowing customers to upgrade with additional features. if needed in the future.
- System Integration: Many full-service ATS products involve much complexity, so it is important to ensure that your organization has the time to implement complex systems that can take months to complete. It is also important to evaluate whether the company has the IT infrastructure capability to integrate the ATS with existing software platforms, such as background and drug screening tools or pre-employment assessments.
A few caveats:
- Candidate Alienation: Excessive automation can result in a lack of human touch so that candidates come to feel alienated and undervalued. This can result in a negative impression of the employer brand to the point that you lose highly qualified candidates.
- Potential for Bias: If not carefully calibrated, Applicant Tracking Systems may inadvertently perpetuate biases from historical data, the algorithms that are “trained” on this data, or even the language used in job descriptions. Each of these factors can result in a biased hiring process and decrease workplace diversity.
- Overuse of Profile Matching: Applicant Tracking Systems rely heavily on keyword matching. While this is a useful tool that enables recruiters to efficiently filter resumes, overuse of this tool may inadvertently bypass candidates with valuable skills, competencies, or workstyle preferences not explicitly listed in their resume.
Can Applicant Tracking Systems completely replace human judgment and decision-making?
No, while applicant tracking systems increase efficiency, they cannot replicate the discernment and professional insights recruiters bring to the process.
How can employers reduce potential biases in Applicant Tracking Systems?
Incorporate diverse data sources to update the historical search record; periodically review and revise algorithms to remove any factors that may result in biased hiring decisions; facilitate bias awareness training to hiring teams.
Is there a universal ATS solution that will address the needs of all employers?
No. Your company should select the ATS that best aligns with your current recruiting needs and unique processes.
What role does ATS play in improving time-to-hire metrics?
ATS significantly contribute to reducing time-to-hire metrics via automated processes that streamline the recruitment process.
What are some popular ATS systems?
Popular ATS systems include Breezy, Greenhouse, iCIMS, Lever, Workday, and Zoho Recruit. These platforms offer customizable features, and user-friendly interfaces but customers should research several platforms and request demos to ensure the system aligns with hiring needs and preferences.
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