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The complete guide to applicant tracking systems

Written by Workstream | Aug 13, 2024 3:52:42 AM

Applicant tracking systems, or ATS, have become an essential tool for many businesses. It allows them to manage the recruitment process more efficiently and effectively.

In this guide, we’ll provide a comprehensive overview of what an ATS is and how it can be used to streamline the hiring process. We’ll also discuss some of the key features you should look for when choosing an ATS. So, if you’re looking to improve your recruitment process, read on!

What is an applicant tracking system?

An applicant tracking system is an application that helps businesses manage the recruitment process. It’s designed to streamline how companies collect, sort, and track job applications. An ATS can be used to track all aspects of the recruitment process, from initial job postings to final applicant selections.

How do applicant tracking systems work?

There is no singular ATS that all businesses use. Applicant tracking systems work in different ways depending on the specific software. However, most applicant tracking systems share some common features and functions. These common features include:

Data storage

Perhaps the most foundational function of an ATS is the storage of applicant information. ATS software is designed to collect and organize applicant data. This data can include everything from contact information, work history, resumes, and cover letters. Applicant tracking systems typically allow employers to search this data using keywords or other criteria. This makes it easier to find qualified applicants when needed.

Screening

Being able to screen potential applicants effectively is vital when handling large numbers of applications, which means it's important that your applicant tracking system has robust screening capabilities. These features should include:


The ATS will also consider things like the applicant's work experience, education, and skills. By ranking resumes, the ATS can help you quickly identify the most qualified applicants for a job. This is a huge time saver as you no longer have to review each and every resume that comes in manually.

Reporting

Any decent ATS software should provide you with some basic reporting functionality. This includes things like the ability to track how many resumes have been received, how many candidates have been contacted, and how many interviews have been scheduled. This information can be extremely valuable, as it can help you gauge the effectiveness of your recruiting efforts. For example, if you're not receiving many qualified resumes, you may need to adjust your job postings. Or, if you're finding that most applicants are rejected after the first interview, you may want to reconsider your interviewing process.

Automation

Finally, you can expect your ATS to automate some of the more tedious and time-consuming aspects of recruiting. This can include everything from posting job openings on your website to sending automatic email responses to applicants. By automating these tasks, your ATS can save you a considerable amount of time and effort. This allows you to focus on more important things, like meeting with applicants and making hiring decisions.

What are the benefits of using an ATS?

Employers and recruiters have been utilizing ATS for years. The best applicant tracking systems have several key benefits:

Time-saving

Perhaps the main advantage of using an ATS is that it can save you a considerable amount of time and effort. By automating repetitive tasks, an ATS can free up your time so you can focus on more important things like meeting with applicants and making hiring decisions.

Improved organization

Another benefit of using an ATS is that it can help you better organize your recruitment process. An ATS can store all your applicant information in one centralized location, which makes it easy to keep track of things. Additionally, an ATS can automate things like job postings and email responses, which can help improve how you organize your hiring efforts.

Higher quality hires

Because an ATS can rank resumes and track applicant information, it can help you identify the best candidates for a job. This, in turn, can lead to higher-quality hires.

Increased applicant engagement

Finding great applicants isn't worth much if you can't get them to apply for your open positions. However, an ATS can help with this by automatically posting your job openings to multiple job boards and websites. This helps increase the visibility of your open positions and, as a result, can lead to increased applicant engagement.

Keep up with the competition

An applicant tracking system is almost mandatory if you want to keep up with the competition. This is because more and more employers are using an ATS to streamline their recruitment process. Failure to use an ATS will mean you'll likely be at a disadvantage when competing for top talent, and it can close you off from great hiring opportunities.

Improved efficiency

One of the main goals of using an applicant tracking system is to improve the efficiency of your recruitment process. An ATS can help you achieve this by automating repetitive tasks and storing applicant information in one centralized location. This makes it easy to find the information you need when you need it, which can save you a lot of time and effort.

Reduced costs

Finally, you can expect to see a reduction in costs when using an applicant tracking system. As you improve efficiency and cut out much of the unnecessary busy work, you free up time and money that can be spent on more important things like training your staff.

What are the features of an ATS?

When it comes to applicant tracking systems, there is a wide range of features you can expect, including:

Resume screening

A feature you can expect with just about any ATS is the ability to screen resumes. This will allow you to filter out resumes that don't match the criteria you need. This filter may be done based on the job description or other screening factors like smart-screening questions.

Keywords

A keyword feature allows you to parse through resumes and identify which ones contain the keywords you're looking for. These features also allow you to use negative keywords to avoid looking at resumes that include a keyword you aren't interested in.

Filters

A filtering feature lets you narrow down the pool of applicants by specifying certain criteria. For example, you may want to only look at applicants who can work and live within a certain radius of the job location.

Automated emails

One feature that applicant tracking systems offer is the ability to automate email communications. This means you can set up automatic responses after you receive a resume, when an applicant moves to the next stage of the process, and so on.

Advanced analytics

Some applicant tracking systems also offer advanced analytics features. This can include things like being able to see what sources your best applicants are coming from or predicting how long it will take to fill a role.

CRM software

Many applicant tracking systems have CRM (customer relationship management) software built in. This allows you to engage your potential applicants directly via the system rather than needing to rely on external tools like email.

Applicant pool sourcing

An applicant pool sourcing feature allows you to retain information and data from potential candidates even if they don't get offered the role for which they originally applied. This allows you to grow your applicant pool and contact individuals for future roles that may be a better match.

Integrations

The best ATS should be able to integrate with your existing HR software. This allows you to have all your applicant data in one place and makes it easy to keep track of.

Onboarding

Finally, many applicant tracking systems offer an onboarding feature. This means you can use the system to help new hires get acclimated to their new role and company. This can include things like collecting new hire paperwork, setting up training programs, or sending out welcome emails.

Drawbacks of using an ATS

While ATS software is a fantastic tool to help recruiters and employers bring in talent, there are a few potential drawbacks to using applicant tracking systems.

 

ATSs are becoming more and more commonplace in the recruiting landscape. However, it's important to be aware of the potential drawbacks of using applicant tracking systems before deciding whether to use one or not.

How accurate are applicant tracking systems?

As it stands, ATSs are very accurate when you account for just how much data they work through. They can help narrow down an applicant pool to a manageable list of qualified candidates in a relatively short amount of time. However, there are a couple of caveats.

Firstly, they struggle to differentiate between similar candidates. This is because ATSs are automated systems that rely on algorithms to sort and select candidates. These algorithms are not perfect and can sometimes make mistakes. This can lead to good applicants being overlooked or even rejected outright.

Secondly, ATSs are not human and cannot replace the personal touch that is so important in recruiting. They can help narrow down an applicant pool and save time, but they should not be used as a replacement for human interaction. They cannot interview applicants, nor can they assess competence or character.

Finally, the results you get are only as good as the data you input. This means that applicant tracking systems can only be as accurate as the information you give them. If there are errors in your data, the applicant tracking system will make errors in its assessment.

For these reasons, it's important to use applicant tracking systems as one part of your recruiting process. They can be valuable tools, but they should not be the only tool you use. Applicant tracking systems should be used in conjunction with other methods, such as personal networking, referrals, and job boards.

How to ensure success when implementing an ATS

As it should now be clear, there are enormous benefits to using applicant tracking systems as long as you set yourself up for success.

  • Recognize why you need an ATS
    What is the exact problem you need to solve? Success will come when the applicant tracking system complements your current recruitment strategy. Trying to fix what isn't broken will only lead to frustration.
  • Get buy-in from all stakeholders
    An applicant tracking system can only be as successful as the people using it. This means that you'll need to get buy-in from everyone who will be using the system. This includes managers, recruiters, and even the IT team.
  • Have a plan for data migration
    An applicant tracking system will only be as good as the data you put into it. This means you'll need to have a plan for migrating your data into the system. This can be a time-consuming process, but it's essential for success.

Summary

Incorporating an applicant tracking system can be the difference between a successful hiring process and a frustrating one. It can save you time and money while also improving the quality of your hires. Want an applicant tracking system that can transform your hiring workflow and help you source the best available applicants? Learn more about Workstream.