ATS: What is an applicant tracking system, and what are its benefits?

Learn more about this HR software and how you can use an applicant tracking system in your company’s hiring process.

Top employers across the world often receive hundreds of applications for a single job posting, which puts a huge stress on the HR department — especially when multiple roles need to be filled quickly. To help speed up the process and zone in on top talent, hiring teams can use an applicant tracking system. Let’s explore what this is and how you can use it within your own company.

What is an applicant tracking system (ATS)?

An applicant tracking system, or ATS, is a type of software that HR departments use as part of their overall management strategy. This software helps gather and organize information about applicants all in one place and then sorts them based on specific skill sets or experience. An ATS can also track and manage potential hires as they move through the hiring process, including scheduling interviews or collecting necessary electronic signatures to keep the ball rolling.

What is an applicant tracking system used for, and what are its features?

An applicant tracking system is an important tool in the recruitment landscape, and it’s specifically designed to optimize the hiring process from the initial job posting to the final hiring decision. Here’s a deeper look into the functionality of an applicant tracking system:

• Streamline recruitment workflow. An ATS automates many aspects of the recruitment process, which leads to reducing manual work and speeding up candidate screening. This facilitates smoother communication and a quicker overall process.
• Enhance candidate experience. By automating responses and keeping candidates informed at every stage, an ATS can also contribute to a more positive perception of your company or brand.
• Improve candidate sourcing. An ATS expands the reach of your recruitment efforts by publishing jobs across multiple platforms and sourcing candidates from different channels.
• Provide data-driven insights. Lastly, an ATS offers analytics on everything from time to hire to source efficiency. This function helps refine future hiring strategies.

By leveraging an ATS, organizations can make their recruitment process more efficient and improve the quality of those they hire. Here’s a list of the different features an ATS provides:

• Resume parsing and screening
• Job posting management
• Candidate communication tools
• Interview scheduling
• Collaboration tools
• Reporting and analytics

How do application tracking systems work?

Now that you understand how an application tracking system can be beneficial to the recruitment process, you may be wondering how it works. Read this simple step-by-step list to get a high-level overview of how an ATS really works:

• Job creation. The hiring process begins with the employers defining the job requirements and entering them into the application tracking system. Requirements should include details such as the description, qualifications, skills, benefits, and compensation.
• Job posting. Once the job details are ready, the ATS distributes the listing across multiple channels, such as the company’s career page, job boards, and even social media platforms.
• Application receipt. As candidates apply, the ATS collects and organizes the resumes, cover letters, and any other submitted information.
• Resume screening. The application tracking system parses submitted applications and extracts relevant information such as skills, experience, and education. It uses the job requirements as a benchmark and screens the applications to identify individuals that best match the criteria.
• Applicant ranking. The system ranks the best candidates based on their qualifications, which helps recruiters quickly identify the top candidates.
• Communication and scheduling. Through the ATS, employers communicate with candidates to provide updates on their application status and schedule interviews.
• Interview and selection. Recruiters and hiring managers use the ATS to record interview notes, feedback, and evaluations.
• Offer, negotiation, and onboarding. Lastly, certain ATS platforms extend their functionality to manage job offers and support the onboarding process for new hires.

How an applicant tracking system saves time.

In addition to collecting and sorting applicants, an ATS can also filter out applicants that don’t meet your company’s requirements. That way, the HR department doesn’t have to waste time manually weeding through applicants who don’t quite reach the mark. It can also make HR’s process of onboarding remote employees more streamlined when finding talent. A company can accomplish this task by setting different parameters or by searching for specific keywords within applications. Once the ATS narrows down the best candidates, the hiring team can then take a closer look.

Things to consider when selecting an applicant tracking system.

Choosing the right applicant tracking system is important for improving your recruitment process. Before committing to one, understand these key considerations to make your choice easier:

• Recruitment needs. Identify the specific challenges in your current recruitment process so you can select an ATS that addresses your problems.
• Budget. Determine your budget for an ATS. Solutions vary widely in price, influenced by features, scalability, and support.
• Ease of integration. The ATS you choose should seamlessly integrate with your existing HR systems, such as payroll software and other onboarding tools. Integration ensures a smooth flow of data across systems, enhancing efficiency and reducing manual data entry.
• User-friendly interface. An ATS with an intuitive interface will be easier for you and your team to adopt and use effectively.
• Compliance and security. Ensure the ATS complies with relevant employment laws and data protection regulations, such as GDPR.
• Analytics and reporting. Comprehensive reporting tools can offer insights into your recruitment process, helping you identify areas for improvement. Look for an ATS that provides detailed analytics on your hiring efficiency, source of hire, and other key performance indicators.
• Reviews and references. You can also consider feedback from current and past users since they will provide valuable insights into the system’s performance and the vendor’s reliability.

Does my business need an applicant tracking system?

An ATS can be vital if your company manages thousands of applications each year, but even small companies can benefit from a decreased time-to-fill process. No matter the size, these systems can help reduce some of the stress of the talent search while helping to narrow down the right person for the job.

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