What is an Applicant Tracking System (ATS)?

At a glance

An Applicant Tracking System, or ATS, is a digital tool that streamlines hiring by managing, organizing, and tracking job applications and candidates across the recruitment pipeline.

Published on:
October 17, 2024

Understanding Applicant Tracking Systems

An applicant tracking system (ATS) is essential in modern-day recruitment. 

As the hiring process has become more digital, tracking applications and candidates has become more accessible. However, managing resumes, coordinating communications with candidates, and managing processes across roles can still be challenging. ATS platforms aim to alleviate these troubles by tracking and managing candidates through the entire recruitment lifecycle. 

In a competitive job market, an ATS can be a valuable tool for attracting and hiring top talent. Small businesses that need to maximize their resources can significantly benefit from this sophisticated recruitment software to organize their applicants.

Advantages of Applicant Tracking Systems

Implementing an ATS can lead to more efficient and effective hiring. Automating specific tasks helps ease the administrative burden on talent acquisition teams. For instance, automating repetitive processes like resume screening and candidate communication speeds up recruitment. This automation reduces the likelihood of errors, allowing HR teams to spend time on higher-value tasks like interviewing candidates and strategizing for future hiring needs. 

Moreover, an ATS usually provides useful data and analytics about applications, empowering small businesses to track key recruitment metrics and address inefficiencies or bottlenecks. This sense of control can boost confidence in the recruitment process. 

ATS platforms streamline hiring by organizing and automating repetitive recruitment tasks, saving valuable time and resources.

Challenges and Considerations

Not all applicant tracking systems are built equally. Some platforms face issues like a lack of user-friendliness. When an application process is too complex or redundant, it disincentivizes people from applying, so ensure that your platform does not contribute to this.

Some platforms don't integrate well with other recruitment tools, such as career sites, job boards, and HRIS platforms. Ideally, the ATS you select will seamlessly integrate with your different tools to provide an excellent candidate experience. Finally, the cost of an ATS can be a barrier for some businesses. 

Small businesses can struggle with ATS integration due to budget constraints and integration with other recruitment tools.

The Future of Applicant Tracking Systems

ATS platforms have used artificial intelligence (AI) for years and will only grow in capability. AI will likely handle and streamline previously manual tasks like resume screening and candidate matching, opening HR teams' time to other tasks. Other recruitment trends point to more candidate-centric hiring, a greater focus on building a positive candidate experience, and increased customization and personalization. The future of ATS systems is exciting, with more mobile-friendly features and increased automation.

AI-driven ATS platforms will further automate recruitment tasks and create more personalized hiring experiences.

Best Practices for Small Businesses

Small businesses should research the many existing ATS platforms to find a fit for their needs. Choose a system that is easy to use and offers features that matter most to you, such as resume parsing, automated communications, and data reporting. It's also crucial to prioritize the user experience, ensuring that the platform is intuitive and engaging for applicants. This can encourage applicants to complete and submit their applications, thereby increasing the effectiveness of the ATS.

Create personalized communication touch points throughout recruitment to inform applicants about the process and avoid candidate "ghosting." Use your ATS to build a talent pool of candidates who may not fit the current role but could be great for future positions. This will save time and resources when finding future hires by being able to pull from a list of pre-screened candidates.

Finally, it's crucial to regularly review your ATS and how you're training relevant employees to ensure the platform is still meeting your business's unique hiring needs. This proactive approach will help you stay ahead in your recruitment strategies.

Small businesses should focus on selecting an ATS that meets their specific needs and regularly optimizing its use.

Main Takeaway

Main takeaway

An ATS is an essential recruitment tool for small businesses. By automating and organizing essential recruitment tasks, ATS platforms allow companies to attract, assess, and hire top talent more efficiently. To fully leverage the benefits of an ATS, businesses should carefully select a platform that meets their needs and refine its use over time to improve hiring and build a strong talent pool for future recruitment.

About the author

Casey Pontrelli

Casey Pontrelli is a multi-talented professional with a background in content creation, branding, and social media marketing. Whether writing for a newspaper, eCommerce website, B2B startup, or a marketing agency, she has taken her strong background in journalism and turned her focus to SEO and content marketing. She’s written about everything from boutiques to cars to small businesses, and enjoys most when she knows her writing has had an impact. When she’s not writing up a storm or creating attention-grabbing social media posts, Casey enjoys hanging out with her partner and three cats, Eddy, Larry, and Marcus, going on long walks in the Green Belt, and, predictably, reading.

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