Home | Glossary | A | Applicant Tracking System (ATS) – Features, Benefits, and Best Practices

Applicant Tracking System (ATS) – Features, Benefits, and Best Practices

What Is Applicant Tracking System (ATS)?

An applicant tracking system (ATS) is a software that facilitates and automates the recruitment process in an organization. It helps the HR team manage high volumes of job applications by accumulating, sorting, and storing candidate information in a centralized database. The ATS application also usually includes functions such as resume parsing, multiple job posting distribution, candidate screening, and interview scheduling. The automation of redundant tasks reduces manual intervention, thus minimizing the possibility of error and speeding up the hiring process so that recruiters may dedicate their time to assessing the most qualified candidates.

Core Characteristics of an Applicant Tracking System

Resume Parsing: this involves the extraction of contact information, experience, skills, among others, from resumes. Advanced parsing engines help identify these elements from various resume forms to limit the amount of manual data entry required.

Candidate Sourcing: It integrates with different job boards and social media platforms to help recruiters get potential candidates. This feature delivers the wider reach of job postings and thus makes opportunities available to as many talented individuals as possible.

Job opening management: This enables recruiters to post their job openings at once across different platforms. Not only is this a time saver, but it also ensures that there is no discrepancy in the job descriptions across the platforms.

Application Tracking: Keeps track of each candidate’s status during the entire hiring process. Recruiters can easily see who already completed assessments, took part in interviews, or received an offer.

Collaboration Tools: Enables sharing of notes and feedback between recruiters and hiring managers. Real-time collaboration gets rid of miscommunications and speeds up the decision-making process.

Automated Communication: Sends automated acknowledgments and reminders for interviews to the respective candidates. The more customized they are, the better the candidate experience and in keeping applicants up to date.

Reporting and Analytics: Generates reports that are used to monitor metrics for hiring and the effectiveness of recruiting. These reports give insight into how organizations can improve or modify their hiring strategies to predict future needs for talent.

Advantages and Benefits of Recruitment by an ATS

Time Saver: Automates repetitive jobs like resume screening and interview scheduling. Helps save time through less manual process so that they can have more time interviewing and engaging with candidates.

Better Quality Hires: By filtering applications, it highlights the most qualified candidates; ATS algorithms analyze resumes against job descriptions to find the best matches.

Better Candidate Experience: It provides timely working updates and smooth communication that would cause candidates to feel appreciated for getting the acknowledgment of their applications and feedback on it as early as possible.

Centralized Database: All important details of the candidates can be found in one specific place and easy access to those details can be obtained. Therefore, a searchable talent database is a must to cover up future recruitment.

Compliance Management: Facilitating evidence of compliance with hiring regulations through documentation tracking. Most ATS systems have features built into them that help have EEO reporting.

How Does an ATS Work?

Job Posting: Recruiters create and publish job postings in different avenues; again, ATS does the job in this area by tying into numerous boards, career site or social media.

Application Collection: The system collects applications from various job boards and through social networks, as well as offers applications directly to the system. Some ATS may also accept a candidate’s application by email.

Resume Screening: Parse and rank resumes based on keywords, skills, and experience among candidates; the system can also be configured to highlight preferred skills or qualifications.

Candidate Evaluation: The recruiters will schedule interviews for further evaluation with the top candidates ranked highly. Some ATS solutions allow the use of the video interview capability within their platform for this process to be more efficient.

Hiring Decision: Feedback on interviews are tracked in-system and allows for the narrowing down the selection. Offer letters can be generated by recruiters, and responses from candidates can be traced through the platform.

Challenges and Solution to the Effective Usage of the ATS

Keyword Dependence: Resumes with certain keywords may slip through the cracks.
Solution: A use of AI-enabled ATS that takes into account context and relevance.
Integration Issues: Some ATS may not really work well and integrate with existing HR tools.
Solution: Select a software that allows custom integration in the best way possible.
User Resistance: The recruiters will not find the software user friendly.
Solution: Provide as much training as possible and choose very user friendly platforms.
Data Privacy: Protect candidate data to comply with privacy regulations.
Solution: Choose ATS providers with robust security measures and clear data policies.