We do not need to repeat that today’s job market is highly competitive. Having the right tools to automatise the recruitment process, such as an Applicant Tracking System (ATS), will help you reach the best talents.
What exactly is an ATS? How does it work? What are the benefits of using one of the tools? In this guide, we will provide you with everything you need to know about Applicant Tracking Systems. Whether you are an HR professional, or just someone interested in recruitment’s behind-the-scenes, this article is for you.
What is an Applicant Tracking System (ATS)?
An Applicant Tracking System (ATS) is software used to improve the efficiency of the recruitment process. It acts as a digital manager for the hiring process. It allows an employer to collect, sort, scan, and rank the job applications they receive for all open positions. The system helps to speed up the process and provides a smooth experience for job-hunting candidates. It also saves recruiters’ precious time and the company’s funds.
An ATS automates key stages of the hiring process: receiving and sorting applications, scanning resumes for keywords, scheduling interviews, and providing analytics. It stores all the information in a database, making it easy for employers to search and track applicants.
BRIEF HISTORY OF APPLICANT TRACKING SYSTEM
Recruitment has seen many changes in the last decades, especially with the development of the Internet. The old announcement boards have gone digital. The 1. ATS systems appeared in the late 1990s. Back then, they were basic tools used to store and process resumes. Over time, they got upgraded with more useful functions that help to acquire as many applications from top candidates as possible. Nowadays, around 75% of recruiters use ATS (source: medium.com). Over 98% of Fortune 500 companies have employed the systems on a daily basis.
How do applicant tracking systems work?
The ATS simplifies the recruitment process. They allow the employer to quickly post job requisition listings on the company website, job boards, and various social media platforms. Moreover, it collects all resumes submitted across these channels for easy review. This includes applications received via email, job boards, the company’s career site, or even resumes that have been manually entered into the system.
When the 1. stage of recruitment is concluded, the ATS scans each resume and cover letter. It organises the information into a standardised format, including the candidate’s name, contact information, work experience, education and skills. To make the process faster, the ATS screens the documents based on predetermined criteria. The recruitment team may choose any keyword, skill, former employer, years of experience, and school attended. This initial screening process filters out unqualified candidates.
For simplifying the task, the ATS ranks applicants based on how well they match the job description. When the recruitment team chooses the ideal candidate, the system can aid in scheduling interviews using an online calendar.
The ATS helps to communicate efficiently with the candidates at various stages of the recruitment process. It sends out automatic email responses when applications are received, rejection messages, or an invitation to the next stage. The ATS can integrate with other HR tools: onboarding software, HRIS, payroll systems, and background check services. This facilitates a smooth data flow. It allows you to easily maintain consistency across the process.
The ATS gathers data for analytics purposes. It can be further used to simplify the recruitment process. The employer gets information that allows for identifying any issues. Once a candidate is successfully selected, the system can facilitate document collection and initial training scheduling.
ATS workflow
Let’s summarise how the ATS systems improve your recruitment process:
- Job Posting
- Application Collection
- Resume Screening
- Ranking of the Applicants
- Review Shortlisted Candidates
- Interview Scheduling
- Communication with Candidates
- Collecting Onboarding Documents
- Reporting
The benefits of using ATS systems
If your company is struggling with high-volume recruitment needs, employing more recruitment specialists is never a solution. The solution is to use a system that will optimise the hiring process. The ATS will provide your company with multiple benefits that cannot be compared to the traditional recruitment process.
Improved efficiency
The ATS automates many daunting, time-consuming tasks: sorting through resumes, identifying qualified job seakers, and scheduling interviews. This saves hiring managers a significant amount of time. They can focus on engaging with candidates and skip most administrative tasks.
Better organisation
The ATS centralises all recruitment information in one place. This reduces the risk of losing documentation or asking for the same paper twice. From a candidate’s point of view, miscommunication can lead to disappointment in the recruitment process. A top talent resigning from a job offer because of a messy company’s politics does not help your business grow. Thanks to the ATS, all team members are updated on the status of candidates and open positions.
Increased quality of hiring process
The ATS ensures that only the most suitable candidates are considered for a position. As the initial resume screening is based on predefined criteria, it helps to focus on relevant applications. The system eliminates human bias in the process.
Improved candidate’s experience
The ATS provides prompt communication at each stage and reduces waiting times. It also ensures the right candidates are not overlooked. A positive experience during the recruitment process enhances your brand as an employer. The likelihood of top talents accepting your job offer increases.
Compliance with hiring regulations
The ATS helps to adhere to fair hiring practices. It maintains a record of all hiring activities for future review. This is crucial for audit purposes. You have everything you need to demonstrate compliance with laws related to anti-discrimination, data privacy, and equal-opportunity employment in one place.
Valuable insights
With the ATS, you gain access to crucial recruitment metrics, such as time-to-fill, source of hire, and applicant-interview ratios. These insights can guide strategic decision-making for effective recruitment efforts.
The disadvantages of ATS for recruiters
Although ATS reduces the time and cost of the recruitment process, it also has some downsides that you should be aware of. The software comes with a price. It may require a substantial upfront investment or a monthly subscription fee. It might seem prohibitive for smaller start-ups but, in the long run, it will save your company money.
Without a doubt, automation speeds up the recruitment process. However, it sacrifices personal interaction with candidates. Some people may feel overlooked if all the communication is through a soulless system. Take into consideration that ATS sifts through numerous applications quickly, but it might not always get it right. A potential star candidate could be overlooked if their resume does not include the programmed keywords.
The ATS may struggle to accurately get information from resumes if it is in an unusual design. The system ignores most graphics and can misread PDF format. Moreover, an overreliance on an ATS makes your organisation vulnerable to errors and service discontinuation. To protect your business, ensure you have a backup of all the relevant data.
How to select an Applicant Tracking System?
There are many Applicant Tracking Systems on the market. How do you choose the best one? Before you start exploring different options, define what you need to accomplish. Consider your hiring volume, the size and structure of your recruitment team, and the specific challenges you are facing. This will help you to prioritise the features.
Review the functionality of each ATS. Check which one aligns better with your organisation’s needs. As there will be many people using the system, the ATS should be intuitive. If it is too complex, it will lead to confusion and slow down the whole process. Use a demo or trial period to ensure the system is what you are looking for.
The ATS should be available on mobile devices for your recruitment team and job seekers. The possibility to apply via mobile will broaden your pool of applicants. Choose a system that grows with your company. If you plan on increasing your hiring efforts in the future, you will need an application that handles a big number of resumes.
The ATS that integrates with other HR software will save your team lots of work. Double-check that the system works with the tools you are currently using. The implementation of the new system may require additional training. Ensure that the vendor provides adequate support.
Using Applicant Tracking Systems in recruitment
Your business’s greatest asset is its people. Using an ATS will profoundly impact recruitment efficiency. It is a real game-changer that empowers recruiters to make more informed decisions. However, it is just a tool. It is there to support, not replace, the human touch in recruitment. The goal is to bring the right talents into your organisation. While ATS will help you with that, it is the people behind the system who make the real difference.
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