How Applicant Tracking Systems Benefit Both Sides of Hiring

January 15, 2025 –

By Ethan Sympson

Applicant Tracking Systems (ATS) have become essential tools for modern businesses, streamlining the hiring and recruitment processes. These systems efficiently manage and organize candidate information, ensuring smoother interactions and helping companies identify the best talent. For job seekers, an ATS plays a critical role in getting their applications noticed and reviewed. However, it can also act as a gatekeeper, potentially disqualifying applicants with resumes that aren’t properly optimized. In this article, we’ll explore what an ATS is, the benefits it offers to both businesses and job seekers, and strategies for navigating and optimizing ATS systems effectively.

What Are Applicant Tracking Systems?

Applicant Tracking Systems are software solutions designed to streamline and automate the recruitment and hiring process for businesses. These systems act as centralized platforms that help employers manage job applications, track candidates through various stages of recruitment, and efficiently organize hiring workflows.

Key Features Of An ATS

Resume Screening

ATS software uses algorithms to scan and look through resumes, identifying keywords and phrases that match the job description. It evaluates factors such as skills, qualifications, work history, and educational background. This feature is particularly beneficial for companies receiving hundreds or thousands of applications for a single role, as it ensures that only the most relevant candidates are highlighted for review.

Application Management

An ATS serves as a hub for organizing and storing all applicant information. It tracks applications from the moment they are submitted through various stages of the hiring process, such as initial review, interviews, and final decisions. Recruiters can quickly search and filter candidates based on specific criteria, such as job title or location.

Workflow Automation

Repetitive administrative tasks, such as sending acknowledgment emails to candidates or scheduling interviews, are automated within an ATS. These automated processes save time and help maintain consistent communication with applicants. Some systems even send reminders to hiring managers to review applications or move candidates through the pipeline.

Collaboration Tools

Many ATS platforms include tools that facilitate collaboration between hiring team members. These tools allow recruiters and managers to share feedback, add notes, and evaluate candidates collectively. This makes it easier to involve multiple stakeholders in the decision-making process while keeping all input centralized and organized.

Analytics and Reporting

An ATS provides detailed insights into recruitment performance, offering data on metrics like time-to-hire, cost-per-hire, source effectiveness (e.g., job boards, social media), and candidate drop-off points. These analytics help businesses refine their recruitment strategies and allocate resources more effectively.

How Does An Applicant Tracking System Work?

An ATS is designed to streamline the hiring process by automating and organizing how employers receive, review, and manage job applications. Here’s a step-by-step breakdown of how the system typically works:

Job Posting Distribution: The process begins when a company creates and posts a job opening. An ATS allows employers to distribute job postings across multiple platforms, such as company career pages, job boards (e.g., Indeed, LinkedIn), and social media sites, all from a single dashboard.
Application Submission: Job seekers submit their resumes and applications online, either through the company’s career page or third-party platforms. These submissions are automatically funneled into the ATS for processing.
Resume Parsing: The ATS scans submitted resumes to review key information, such as contact details, education, work experience, and skills. This data is structured into a standardized format for easy comparison.
Candidate Screening and Ranking: Once resumes are parsed, the ATS compares each application against predefined criteria, such as required skills, certifications, or years of experience. Many ATS platforms assign scores or ranks to candidates based on how closely their qualifications match the job requirements. Candidates who meet the criteria are moved forward in the process, while those who don’t may be filtered out.
Application Tracking and Organization: The ATS organizes candidate information into a centralized database, allowing hiring managers to easily access and review applications. Recruiters can track where each candidate is in the hiring pipeline (e.g., initial screening, interview stage, or final offer).
Reporting and Analytics: Throughout the hiring process, the ATS collects and analyzes data to provide insights into recruitment metrics, such as:
- Time-to-hire for specific roles.
- Source of hire effectiveness (e.g., job boards vs. referrals).
- Drop-off rates during application stages.
Candidate Selection and Onboarding Integration: After the final candidates are selected, some ATS platforms integrate with onboarding software to streamline the hiring process further. This might include generating offer letters, setting up new hire documentation, and even facilitating training modules.

How Are Applicant Tracking Systems Used In Conjunction With Other Recruitment Tools?

ATS technology often integrates seamlessly with other HR tools to streamline the hiring process. Here’s how they are used in conjunction with other HR tools:

Integration with Job Boards and Social Media

- - How it works: ATS platforms integrate with job boards (e.g., LinkedIn, Indeed) and social media platforms (e.g., Facebook, Twitter).
  - Benefits: Automates job posting across multiple platforms, tracks application sources, and allows candidates to apply directly through these platforms with their profiles.

HR Management Systems (HRMS) Integration

- - How it works: ATS often links to broader HRMS platforms (e.g., SAP SuccessFactors, Workday) to provide a seamless flow of candidate data into employee records upon hiring.
  - Benefits: Reduces data duplication and ensures that new hire information is automatically available for onboarding and payroll.

Assessment and Testing Tools

- - How it works: ATS platforms integrate with skills assessment tools (e.g., HackerRank, SHL) and personality testing tools (e.g., Myers-Briggs).
  - Benefits: Facilitates pre-screening tests, automatically scores assessments, and stores results in candidate profiles.

Interview Scheduling Tools

- - How it works: ATS platforms often integrate with calendaring tools (e.g., Google Calendar, Microsoft Outlook).
  - Benefits: Simplifies scheduling by enabling recruiters and candidates to select interview slots based on real-time availability, reducing back-and-forth communication.

Communication and Collaboration Tools

- - How it works: Many ATS platforms integrate with email (e.g., Gmail, Outlook) and communication tools (e.g., Slack, Microsoft Teams).
  - Benefits: Enables direct communication with candidates, facilitates internal discussions about candidates, and keeps communication history centralized.

Background Check Services

- - How it works: ATS systems often link with background check providers (e.g., Checkr, Sterling).
  - Benefits: Automates the initiation and tracking of background checks, ensuring compliance and reducing manual effort.

Analytics and Reporting Tools

- - How it works: Advanced ATS platforms integrate with business intelligence tools (e.g., Tableau, Power BI).
  - Benefits: Provides insights into key metrics like time-to-hire, cost-per-hire, and source effectiveness, enabling data-driven decision-making.

Key Advantages of Integration:

Efficiency: Automates repetitive tasks and reduces manual errors.
Consistency: Maintains uniform data across platforms.
Enhanced Candidate Experience: Reduces time lags and improves communication.
Scalability: Supports large-scale hiring efforts without overwhelming HR teams.

What Businesses Use Applicant Tracking Systems?

Did you know that about 98% of Fortune 500 companies use an ATS? But applicant tracking systems aren’t just for the biggest companies, they are used by businesses small and large that have large or growing numbers of applicants. Here’s a closer look at who benefits from using an ATS:

Non-Profit Organizations: Managing volunteers, part-time employees, and full-time staff can be complex, especially for mission-driven organizations with limited resources. An ATS helps streamline recruitment and ensures the best talent is found to support their cause.
Small Businesses: As small businesses grow, they often face challenges managing the influx of job applications. An applicant tracking system helps them stay organized, save time, and compete with larger companies for top talent.
Mid-Sized Businesses: With diverse hiring needs and an increasing number of roles to fill, mid-sized companies benefit from the efficiency and scalability of an ATS, allowing them to keep up with their expansion plans.
Government Organizations: These entities often deal with lengthy application processes and a high volume of candidates. An applicant tracking system will ensure compliance with hiring regulations and simplify the evaluation of applicants across multiple departments or locations.
Staffing Agencies: As experts in recruitment, staffing agencies rely heavily on ATS platforms to track candidates, manage placements, and maintain strong communication with both employers and job seekers.

Benefits of Applicant Tracking Systems

Applicant Tracking Systems offer many different advantages for both employers and job seekers, enhancing the recruitment process and creating opportunities for better matches. Here’s how both sides benefit:

Benefits for Employers

Streamlined Recruitment Process: Automates tasks like resume screening and interview scheduling, saving time and effort.
Efficient Resume Screening: Quickly identifies qualified candidates by matching resumes to job-specific criteria.
Improved Collaboration: Enables teams to share feedback and align on hiring decisions through a centralized platform.
Enhanced Candidate Tracking: Tracks applicants at every stage, ensuring no candidate is overlooked.
Analytics and Insights: Provides metrics like time-to-fill and source effectiveness to improve hiring strategies.
Compliance and Record-Keeping: Ensures compliance with labor laws by maintaining detailed hiring records.
Scalability: Handles increasing applicant volumes effortlessly as businesses grow.

Benefits for Job Seekers

Increased Visibility: Ensures applications are properly received and reviewed, reducing the chance of being overlooked.
Faster Communication: Provides automated updates, keeping candidates informed throughout the hiring process.
Fairer Screening: Evaluates resumes based on objective criteria, reducing bias in initial reviews.
Consistency Across Applications: Standardized processes make it easier to meet employer expectations.
Opportunity to Optimize Applications: Encourages candidates to tailor resumes for better alignment with job requirements.
Access to More Opportunities: ATS integration with job boards expands visibility and application reach.
Enhanced Candidate Experience: Professional communication and transparency create a more positive application process.

How Is Artificial Intelligence Affecting Applicant Tracking Systems?

Artificial Intelligence (AI) is changing everything, especially the job market and Applicant Tracking Systems, making them smarter, faster, and more effective for both employers and job seekers. Traditional ATS platforms relied heavily on basic keyword matching, but AI now enables systems to analyze resumes in greater depth, considering context, phrasing, and nuanced skills. For job seekers, AI tools enhance the application experience by suggesting resume improvements, ensuring their applications align better with job requirements. These innovations make the recruitment process more efficient and inclusive while delivering real-time insights that optimize hiring strategies.

Improved Accuracy: AI goes beyond keywords to analyze context and skills for better candidate matching.
Automated Communication: Chatbots and email tools ensure timely updates and streamlined scheduling.
Bias Reduction: Algorithms focus on objective data to promote diversity in hiring.
Enhanced Analytics: Predictive insights help employers make smarter, data-driven decisions.

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Collaborating with a staffing partner equipped with a strong ATS and a network of pre-vetted, high-quality candidates can significantly enhance your hiring process. We support businesses across Kansas City by connecting them with top talent to help them thrive and grow. If you’re seeking a staffing partner dedicated to finding candidates tailored to your exact needs, contact us today and discover how we can help elevate your workforce.

Applicant Tracking Systems – Statistics (2025)

75% of recruiters around the world use an applicant tracking system (Source)
Using an ATS can shorten the hiring cycle by 60% (Source)
94% of recruiters say that using an applicant tracking system has improved their hiring process (Source)
When using an ATS, it’s reported that turnover rate of new hires is often times 40% less than those without (Source)
The global ATS market is projected to be worth $3.2 Billion by 2026 (Source)

Frequently Asked Questions – Employers

How Should We Choose Our Applicant Tracking System?

When evaluating ATS platforms, consider the size of your team, volume of hiring, and the features you value most. Many platforms offer free trials or demos, so you can test them before making a commitment. Investing in the right ATS can save time, improve candidate quality, and enhance the overall recruitment process.

What ATS Platforms Should We Consider?

When selecting an Applicant Tracking System, businesses should consider platforms that align with their specific needs. Here are some notable ATS platforms to consider:

BambooHR: Ideal for small to mid-sized businesses, BambooHR offers an intuitive interface that integrates applicant tracking with broader HR functions.
Workday: Suited for enterprise-level organizations, Workday provides comprehensive talent management with global hiring capabilities and advanced analytics.
Greenhouse: Designed for companies emphasizing collaborative hiring, Greenhouse features interview scheduling, candidate evaluation scorecards, and customizable workflows.
Lever: Perfect for growing businesses and startups, Lever combines applicant tracking with CRM functionality, offering data-driven insights and customizable pipelines.
iCIMS: Suitable for mid-sized to large enterprises, iCIMS delivers AI-powered recruiting, career site integration, and robust analytics to enhance the hiring process.

Why should my company use an ATS?

Applicant tracking systems save time, improves hiring efficiency, ensures compliance with hiring laws, and helps identify top candidates quickly.

Can an ATS handle high volumes of applications?

Yes, most ATS platforms are designed to process and organize large volumes of applications efficiently.

What integrations are available with an ATS?

Many ATS platforms integrate with job boards, HR management systems, onboarding software, and even CRM tools. These integrations streamline the recruitment process further and provide a seamless experience for both hiring teams and candidates.

Frequently Asked Questions – Job Seekers

How do I make my resume ATS-friendly?

To optimize your resume for ATS compatibility, use a clean format without graphics or tables, and include relevant keywords from the job description. Avoid fancy fonts or complex layouts, as these can confuse the system. A straightforward structure with clear headings and bullet points is best.

Will my application be rejected if it’s not ATS-compatible?

If your resume isn’t formatted for ATS systems, it may not be read correctly, which could result in your application being overlooked. Using an ATS-friendly resume ensures that the system can process your information and match it to the job requirements.

How do I know if a company uses an ATS?

Most companies with online application portals use ATS platforms, especially mid-sized to large organizations. Clues include being asked to fill out detailed application forms or upload resumes in specific file formats.

Can I follow up on my application if the company uses an ATS?

Yes, following up on your application is encouraged. While the ATS manages the initial stages, recruiters still value proactive candidates. You can follow up via email or through the company’s application portal to express interest and inquire about the next steps.