Things To Know About Applicant Tracking System (ATS)

Supriya Bajaj

Senior Writer

Things To Know About Applicant Tracking System (ATS)

If you belong to the HR (Human Resource) industry, you already are aware of the buzz around applicant tracking systems (ATS). Today, every recruiter is using ATS software to source and filter the best candidate for the job role.

Looking for Applicant Tracking System? Check out SoftwareSuggest’s list of the best Applicant Tracking systems.

Are you confused about whether you should get one for your company too? Worry not, we have got you covered. In this article, we will discuss everything you need to know about an ATS system – its definitions, benefits, current trends, and more.

So let’s dive in.

What Does ATS Means?

An ATS meaning, or applicant tracking system, is a candidate management system specifically designed to streamline the sourcing and filtering of candidates based on the prescribed keywords and other factors. It saves time and increases efficiency by weeding out the unqualified resumes for the role.

It is also identified as a talent acquisition and management product (TAMP) system. Did you know that 99% of Fortune 500 companies as well as small and mid-sized businesses filter resumes through ATS software?

How Does an ATS System Work?

The ATS acts as a centralized platform using which a job is posted on various hiring software, including career pages, job boards, and other channels.

Here, all the resumes collected from different platforms are stored and filtered based on specific keywords and other criteria as mentioned in the job description. Not just that, but it also acts as a talent pool where you can search profiles, evaluate candidates, and schedule interviews.

Besides, the best applicant tracking systems help employers streamline their entire recruitment process by having various integrations with other systems.

It follows four simple steps:

How Does an ATS System Work

1. Collection of Applications

The application tracking system is a locker that stores all the incoming resumes of aspiring job seekers. Once the application is submitted, the human resource managers can extract them anytime from the locker, to process further, if suitable. The point to be noted is that the applications remain secure in the ATS software of the firm, even after the position applied for gets filled up.

2. Viewing of Applications

Some recruiters prefer to follow the next step of automatic ranking directly while few prefer viewing every application which comes in. Such recruiters have a quick look at the applicant’s past job titles, companies they worked in, and other achievements. Over here, they decide if they want to have a deep study of the resume or not.

3. Automatic Ranking of Applications

As shared earlier, some recruiters prefer to enjoy the benefit of automatic ranking by ATS. The job application tracker assigns a rank to the applicants on several parameters like work experience, life skills, etc. Higher rankings are the qualified ones to move to the next step. Certain software options provide automatic ranking to applications based on the best match to the job description.

4. Keyword-based Filtration

Every job description has certain specific identifiable keywords related to job skill and title. The ATS is programmed to identify specific keywords. In case the needed keyword is present in the resume and cover letter, the applicant gets selected for the next step of recruitment.

The Benefits of Using ATS Hiring Software

While technology and business go hand in hand and will continue to develop together in co-existence, it is only natural that business strategies also take a turn to greater and newer ways as a means to continue to improve. So when there is software made available to ease the process and advance to greater heights, we make sure to put it to good use.

Such is the case with the ATS hiring platform. Here are some of the benefits of having an ATS hiring system within your organization.

(a) Eases Out the Recruitment Process

By ease-out, we mean the use of an ATS hiring software that helps streamline the talent acquisition process by systematically sorting, filtering, and storing recruitment-related data.

It easily identifies the qualified applicants, which also reduces your time to go through all the resumes submitted. Besides, it keeps constantly updating your talent database to cater to all your manpower requirements.

(b) Saves Extra Time and Costs

ATS saves time and money

Source: talentlyft.com

You can rely on ATS to save your time, which can again be used to focus more on strategizing the hiring process. It automates the process of job postings, managing email templates, scheduling up interviews, and much more.

Moreover, you do not have to look at unqualified resumes when using the ATS document service.

All in all, ATS tracking simply performs everything – thus, reducing the need to hire extra manpower. It ultimately becomes a cost-effective solution as long as you subscribe to the right ATS solution best fitted for your organization.

(c) Helps Improve Company Image

Today, candidates are more willing to apply to a company that has a good work culture and brand image.

ATS tracking helps in finding the right person for the job, ensuring that both employers and employees are satisfied with each other. It creates a cordial work relationship, which results in an increased retention rate. It has a direct impact on the company’s image.

Besides, using modern technology will ensure that candidates stay updated about their job application status at every stage.

(d) Increases Your Pool of Qualified Applicants

Using the ATS document service, you can manage as many platforms as you want. Eventually, you are able to create your own pool of qualified candidates.

You can then use your own database to find a suitable applicant for future openings, saving you both time and effort. Most importantly, it keeps the database organized. You can easily run a keyword search to filter out resumes.

Signs That You Need an Applicant Tracking Solution

Signs your business need an ATS tracking

Hiring people is one of the most crucial processes in any organization. It is a lengthy and ongoing process. Improper recruitment management can come in the way of organizations achieving their strategic objectives. Therefore, it becomes necessary to streamline recruitment management processes as much as possible.

The recruitment process is extremely complex. From sourcing candidates to interviewing them and onboarding the selected candidates, every step has its own set of challenges.

There are various checks and approval involved in the different stages of the recruitment process. It requires a lot of coordination and communication. ATS Recruitment System is a combined effort of multiple individuals within the organization.

Considering all these factors, businesses can certainly not rely on manual hiring strategies, given the current business environment. Fortunately, we now have an all-in-one, integrated recruitment tracker that streamlines and automates the recruitment process.

Here are some signs that depict you are in need of an ATS solution.

1. No Proper Data to Formulate Hiring Plans

To devise effective recruitment plans, you need to be able to establish realistic timelines. Applicant tracking solutions provide vital metrics such as ‘time to fill’ or an estimation of the time required to fill a position. This information can enable organizations to forecast their workforce requirements, budget their resources, and plan their business activities accordingly.

2. Tracking Applications With Emails, Spreadsheets, and Paper Trails

In all probability, you receive hundreds, if not thousands, of applications for the various job openings in your company. Recruiters must manage all these applications and correspond with all the applicants. They may also have to involve interviewers and hiring managers in the process.

Naturally, this can get pretty overwhelming. An applicant tracking software solution can eliminate all these hassles. It collects and organizes all the applications on a centralized platform. It allows all those involved in the hiring process to track the status of every application on a single system.

3. Posting the Same Vacancies on Multiple Job Portals Manually

Companies try to reach out to as many candidates as possible to hire the best talent. This means that the talent acquisition team has to post job openings on multiple job portals and social media platforms.

Doing it manually is not only a waste of time, but it can also be extremely repetitive and tiresome. Applicant tracking solutions allow you to post jobs on multiple platforms in one go, with just a few clicks.

4. Getting Irrelevant Applications from Ineligible Candidates

There’s a definite advantage in spreading the word far and wide about your organization’s vacancies. However, there’s a downside to it as well. More often than not, people who are ineligible for a post end up applying for it anyway because they ignore, misinterpret, or misunderstand the information provided in the job description’s information.

Thus, recruiters waste a significant amount of time evaluating these irrelevant applications. Applicant tracking system solutions can come in handy here as they allow you to add pre-screening application forms, tests, and questionnaires that can filter out candidates who do not have the skills you require.

5. Having Trouble Updating and Maintaining the Careers Page

Almost all the companies have a ‘Careers’ or ‘Work with us’ page on their website. It is one of the most popular ways to bring attention to its various job openings and give potential candidates an idea about working in your company. It is one of the best ways to make a positive impression on a candidate and educate them about its brand values.

Therefore, it is essential to update and maintain the careers page. Doing it manually can be a tedious task. An ATS hiring platform can keep your career page up-to-date with just a few clicks. It even lets you build a branded careers page without requiring any coding.

6. Your Candidates Have to Follow a Lengthy and Complex Application Process

Gone are the days when candidates would jump through hoops to land a job. Technology has made it much easier for them to find suitable openings with ease. Applicants now expect a certain kind of candidate experience. They have multiple options at their disposal and are not afraid to ditch an opening if they have a terrible experience with a potential employer.

Complex and lengthy job application processes lead to a significant amount of candidate drop-off rates. Studies show that applicants do not complete the process of filing an application form if it takes them more than 15 minutes.

Moreover, they expect to be able to fulfill such requirements from their smartphones. Indeed, a leading job portal revealed that more than 70% of millennials and Gen Z candidates prefer to manage all their job leads from their mobile phones.

The benefit of having applicant tracking software is that it allows recruitment teams to create customized, short, and simple application forms. Also, everything is optimized for mobile phones.

7. Scheduling Interviews is Challenging and Time-Consuming

The hiring process involves a lot of collaboration, email exchanges, and coordination. Scheduling interviews manually can quickly go out of control. Not only do you need to determine candidate availability, but you also have to take into account the hiring manager’s availability.

You need to follow up with them for their confirmation and then remind them well in advance to ensure that the interview takes place as scheduled. This becomes increasingly complex when you are working on multiple positions and dealing with many people at a time.

Applicant tracking tools integrate with your digital calendars so your recruitment team can track the availability of the hiring managers and even candidates. ATS hiring solutions also issue automatic reminders to those involved in the interview

8. Approaching External Recruiters Regularly for Mid-Level Hiring

External recruiters are great for closing crucial positions that require a rare skill set or a highly experienced, senior-level candidate. However, using their services for standard job openings is not just costly, but also a clear sign that you are getting overwhelmed with managing a manual recruitment process.

Applicant tracking systems can streamline the entire process for you. They automate mundane, repetitive tasks and eliminate much of the manual effort from the process. This allows recruiters enough time to focus on strategic recruitment activities as opposed to transactional ones. With time, you will find that you do not need to depend on external recruiters for standard job openings as much.

9. Delayed or Failed Follow-ups With Candidates

It is estimated that at least half of the applicants do not receive any updates on their applications’ status. Isn’t that a bit unempathetic and highly unprofessional? Every candidate who has invested their time and energy in interviewing with you deserves to know their application’s proper status.

Communication can slip through cracks when it is handled manually. By investing in candidate tracking systems,  you will also be able to provide candidates with more visibility into the status of their applications. Customizable templates allow you to send emails and messages that can politely let candidates know if they have been rejected.

10. Losing Candidates Due to Delay in Offer Approval

There’s always a worst-case scenario. Imagine you had an excellent candidate, and they were keen to join you. However, you are struggling to get their offer approved.

Meanwhile, they receive an attractive offer from your competitor, and they decide to go along with it rather than wait for your offer to come through. What an utter waste of time, effort, and resources!

Applicant tracking systems can prevent such incidents. They are automatic and email-driven, so the formality of offer approval can be processed without disturbing the schedule and workflow of your peers or managers.

Factors to Consider While Choosing the Best Applicant Tracking System

It’s essential to have a recruitment tracker system that fits right into your business’s unique needs.

Compliance Needs

The recruitment tracker you chose should have compliance functionality to avoid any kind of penalties in the future.

Consider from a Recruiter’s Perspective

While purchasing a job application tracker, always involve your HR teams. Organize meetings to understand your recruiters’ pain points and the objectives the organization needs to achieve using the job applicant status. There will be a list of applicant tracking systems to choose from. But recruiters would any day be in a better position to identify the hiring needs of the company.

Go for the Demo and Analyze Every Detail

Before making the payment, it’s always advisable to get a demo of the product. The demo gives you a clear idea of what you can expect from the product.

It helps you briefly understand how it works and what are its capabilities. Make sure that the software you choose is easy to use. Besides, it should offer seamless integration with a rich interface.

Consider Customer Support

Vendor support plays a crucial role in choosing the best ATS platform. Most of them even offer 24*7 customer service but make sure that it is active and reliable. The best way is to check for reviews online and testimonials. If required, you should also talk to their old clients to understand if they faced any issues with the software.

Cost Budget

Another significant factor is the pricing of the ATS. You will find ATS hiring solution in all price range — from low to high. Depending on the functionalities, the prices are set. The ideal way is to make a budget and prioritize the features you will need to meet your objectives.

Important Statistics Related to Job Application Tracker

Now that you understand what ATS is, it’s crucial to know some of the stats discovered by SoftwareSuggest. These stats will help you understand the current market trends and purchase the best recruitment tracker from hundreds of such products thronging the market.

The following are the conclusive findings of analyzing 7000+ ATS software buyers.

Location-wise Usage of ATS System

Our survey revealed that 20.5% of ATS software buyers are from New Delhi, followed by 19.9% from Maharashtra, and 18.7% from Karnataka.

Industry-wise Spread of ATS Software Buyers

When it comes to industry-wise data, the highest number of inquiries for an ATS Software comes from Consulting/Recruitment Firms, followed by the Software/IT Industry.

Preferred Deployment Type: Installation-based Vs. Web-based Software

When it comes to choosing between installation-based and web-based Software, 79.3% of the total customers preferred to buy the ATS software that is online. This is followed by 11.2% of customers who preferred to buy the ATS software —- offering both installations- and- web-based deployment (hybrid).

This clearly shows that as far as ATS is concerned, not many are open to buying just the installation-based solution.

The Estimated Budget Preference (in INR)

We have noticed that the percentage of customers decreases gradually as the budget range increases.

Around 46.4% of the total enterprises surveyed prefer buying an ATS hiring system in the budget range of INR 1,00,000 – 1,50,000. This is followed by 13.3% of companies preferring the budget range of INR 0 – 30,000.

Our observation says that it also comes down to the size of the company and how effectively they can make use of it.

Preferred Location for Buying ATS Software

Selection between a local vendor or the ones with a pan India presence depends on the credibility of the brand. Most often, companies go after pan-India presence as it tends to create more trust amongst the customers.

Wrap Up

Applicant tracking systems can streamline your entire hiring process and enable you to make the best use of your resources. They minimize manual intervention and make everything easily trackable. They empower your recruitment team to go after the best talent available and close open positions in record time. Most importantly, ATS solutions ensure that recruiters, as well as candidates, have a positive experience throughout the recruitment process.

One can not overrule its significance in today’s tech-friendly talent acquisition practices. Make use of the options which best meet your feasibility parameters and minimize your workload of hiring the right man for the right job at the right time.

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