What is an Application Tracking System (ATS)?- 6 Top Tips and Features

Hiring the right people is widely believed to be crucial for a company’s success. This means that HR, recruitment, and talent sourcing teams are pressured to get the right talent for the company.

Now, to alleviate this challenge and hire top talents effectively, the HR department can leverage the power of the Application Tracking System (ATS).

Moving further into this article, we will discuss the meaning of ATS, key features, and tips to consider when choosing an ATS.

What is an Application Tracking System (ATS)?

An Application Tracking System (ATS) is a type of software mostly used by the HR department to streamline their hiring process by gathering and organizing information about job applicants. It allows recruiters to store all applicant data in one centralized location and then categorize and filter candidates based on specific skill sets, experience, or other relevant criteria.

Additionally, an application tracking system can facilitate the entire hiring process by tracking and managing potential hires as they progress through various stages, such as scheduling interviews and collecting electronic signatures to expedite the hiring workflow.

The first ATS was used to scan paper resumes into the database, and was complex and difficult to use. Fortunately, with the rise of cloud technology, recruitment software has begun to provide ongoing reassurance, bringing a more user-friendly and efficient hiring process to companies of all sizes.

Now, in addition to tracking and managing candidates, integrated sourcing options are helping to fill the talent pipeline.

Why is an ATS important?

Application Tracking System (ATS) is essential because it solves many issues recruiters and the HR department face when hiring the right talent for the company.

Before delving into the importance of ATS, let’s look at some of the pain points the HR departments face.

Sorting through many applications takes a lot of time, making it hard to find the best candidates quickly.
Creating job descriptions that attract the right people and reach a diverse audience can be difficult.
Screening and shortlisting candidates while minimizing bias and ensuring fairness is complex and resource-intensive.
The hiring process involves multiple time-consuming steps such as resume reviews, phone screenings, interviews, and background checks.
Keeping up with the latest recruitment technologies and tools can be tasking.
Ensuring that the candidates hired are qualified and a good cultural fit for the organization is a significant concern.
Attracting and securing top talent in a competitive job market can be challenging, especially for highly sought-after roles.
Providing a positive candidate experience throughout the hiring process is crucial but can be challenging to manage consistently.
Ensuring new hires stay with the company long-term and reducing turnover rates is a continuous challenge.
Aligning the recruitment process with the organization’s overall strategic goals and needs requires effective communication and collaboration with other departments.
Managing recruitment within budget constraints while attracting high-quality candidates is a common pain point for HR departments.
Ensuring the hiring process complies with various labor laws and regulations, including equal employment opportunity and anti-discrimination laws, adds another layer of complexity.

Looking at these concerns, one can only imagine the pressure the HR department faces. An application Tracking System (ATS) is essential for every business. Here are some important of ATS;

An Application Tracking System automates many aspects of recruitment making it seamless.
It helps in screening candidates’ resumes.
It allows hiring managers and recruiters to cut through the volume of resumes received so they can focus their time on the most qualified applicants.
It reduces the need for paperwork.
It speeds up the screening of candidates.
It also enables hiring teams to view resumes based on the language you use, your location, and other filters.
It leads to faster and more informed decision-making.
It helps in scheduling interviews.

Who uses an Applicant Tracking System?

Companies of all sizes whether small or big use the ATS. They use the ATS to streamline and manage the recruitment process, from posting job openings, and scheduling interviews to onboarding new hires. Here’s a list of people who make use of the application tracking system;

Human Resource (HR) professionals.
Talent Acquisition Specialists.
Recruitment Agencies.
Government Agencies.
Hiring Teams.
Corporate Executives.
Freelance Recruiters.
Non-Profit Organizations.
Small and Medium-Sized Enterprises (SMEs).
Educational Institutions.

Why is an ATS used in recruitment?

An Applicant Tracking System (ATS) plays a crucial role in the recruitment process by providing several key benefits that aim to enhance efficiency, fairness, and effectiveness. Let’s delve into the primary reasons why organizations use an ATS:

Streamlining the Recruitment Process: An application tracking system automates various recruitment tasks, including job posting, application tracking, and candidate communication. Doing so, significantly reduces the administrative workload on HR professionals, allowing them to focus on more strategic aspects of recruitment.
Managing High Volumes of Applications: In today’s competitive job market, organizations often receive many applications for open positions. An application tracking system helps manage and organize this high volume of applications, making it easier to sort, filter, and prioritize candidates based on specific criteria, thus saving time and effort.
Enhancing Candidate Screening: ATS systems enable efficient resume screening by allowing recruiters to set specific parameters and use keywords, skills, and experience to identify the most relevant candidates. This ensures that only the most qualified individuals move forward in the hiring process.
Improving Communication: Effective communication with candidates is crucial for a positive candidate experience. An ATS facilitates this by providing automated responses, interview scheduling, and updates, ensuring that candidates are engaged and informed at every stage of the recruitment process.
Maintaining Compliance: Compliance with labor laws and regulations is essential for any organization. An ATS helps achieve this by providing standardized processes and documentation that ensure adherence to equal employment opportunity (EEO) and anti-discrimination laws, thus mitigating legal risks.
Enhancing Collaboration: ATS platforms serve as centralized hubs for HR teams, hiring managers, and other stakeholders to review candidate profiles, provide feedback, and track the hiring process collaboratively. This fosters better communication and collaboration among the various parties involved in recruitment.
Data-Driven Decision Making: ATS systems offer powerful analytics and reporting features that provide valuable insights into recruitment metrics, such as time-to-hire, cost-per-hire, and source effectiveness. These insights enable data-driven decision-making to improve overall hiring strategies.
Reducing Time-to-Hire: By automating routine tasks and streamlining candidate screening and communication, an application tracking system significantly reduces the time it takes to fill open positions, giving organizations a competitive edge in securing top talent.
Building a Talent Pipeline: An application tracking system allows organizations to maintain a comprehensive database of past applicants and potential candidates, creating a talent pipeline for future job openings. This proactive approach to talent acquisition ensures a continuous supply of qualified candidates.
Improving Candidate Experience: A well-implemented application tracking system contributes to a positive candidate experience by providing a seamless and transparent application process, timely updates, and efficient handling of applications. This enhances the organization’s reputation and attractiveness to top talent.

Key Features of an ATS.

An application tracking system does more than just screening resumes, it improves all aspects of recruitment. Here are some key features of an application tracking system:

Screening of resumes.
Management of job postings.
Effective communication with candidates.
Scheduling of interviews.
Collaboration tools for team members.
Reporting and analytics to track recruitment processes

Other features include;

Posting jobs to multiple job boards and career sites.
Tools to find candidates from various sources.
Helps customize job descriptions and application forms.
Centralized database to store candidate information.
Extract key details from resumes and create candidate profiles.
Tag and filter candidates for easy access.
Easily search for candidate records.
Messaging and automated email templates for candidate communications.
Collaborate with team members on hiring decisions.
Automated interview scheduling and follow-ups.
Structured interview guides and scorecards.
Candidate relationship management to nurture talent pools.
Detailed recruiting reports and analytics.
Insights into hiring metrics like time-to-hire and cost-per-hire.
Diversity and compliance reporting.
Mobile-friendly and branded application process.
Automated and personalized candidate communications.
Feedback and survey tools for candidate input.
Seamless integration with other HR tools and platforms.
Customize settings, workflows, and user permissions.
Reliable and secure platform with high uptime and data protection.
Accessible to all candidates, including those with disabilities.
Prompt and professional support from the ATS provider

Does my organization need an applicant tracking system?

Yes, your organization most likely needs an Application tracking system. An Applicant Tracking System (ATS) results in a higher volume of job applications as it simplifies the job search and application process for candidates.

Additionally, recruiters benefit from reduced hiring cycles as they can efficiently sift through the applicant pool to identify suitable candidates, allowing them to focus on more valuable tasks such as conducting interviews and making offers.

Furthermore, an application tracking system facilitates seamless collaboration among stakeholders, enabling hiring managers to provide feedback on candidates and automate candidate progression through the hiring process.

Tips for choosing the right ATS.

Here are tips to follow when considering an ATS for your business;

Firstly. evaluate the specific challenge in your organization’s recruitment process. It includes identifying pain points such as inefficient candidate sourcing, time-consuming administrative tasks, or poor candidate experience. Understanding these details helps you choose an ATS that addresses these issues.
The next step is to define your budget. ATS tools vary in price depending on their features, scalability, and support options. Setting up a budget helps you narrow down the ATS that meets your finances.
Next, how easy the ATS integrates. It should seamlessly integrate with your existing HR systems, such as payroll software and other onboarding tools.
Furthermore, the user-friendly interface of an ATS is critical. An easy-to-use interface will make it easier for you and your team to adopt and use the system effectively, reducing the learning duration and improving overall productivity.
Additionally, comprehensive reporting tools are essential. It should offer detailed analytics and reporting capabilities to provide insights into your recruitment process. These insights can help you identify areas for improvement, track hiring efficiency, assess the source of hire, and monitor other key performance indicators.
Lastly, consider reviews and references. This information can be instrumental in making an informed decision about which ATS is the best fit for your organization’s specific needs.

In conclusion, an application tracking system is an indispensable tool in modern recruitment, it enables organizations to streamline their hiring processes, improve efficiency, ensure compliance, and ultimately attract and hire the best candidates for their needs.