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Streamlining the Hiring Process: Understanding Applicant Tracking Systems

March 09, 2023 · 5 min read

An ATS can help automate and streamline various aspects of the hiring process, from posting job vacancies to screening resumes to scheduling interviews.

How Applicant Tracking Systems Work

An ATS typically begins with the posting of a job vacancy on a job board or the organization's website. Job seekers can then submit their resumes and other application materials online, which are then stored in the ATS database. From there, the system uses algorithms and search functions to filter and rank the resumes based on keywords, skills, and other criteria set by the hiring organization.

The hiring manager or recruiter can then review the resumes and move qualified candidates through the hiring process, such as scheduling interviews, conducting assessments, and performing background checks. The ATS can also send automated email updates to candidates, keeping them informed throughout the hiring process.

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Do you know?

The first ATS was developed in the late 1990s and early 2000s by a company called Resumix, which was later acquired by Yahoo! HotJobs.

Benefits of Applicant Tracking Systems

ATS can provide many benefits for organizations, including:

  1. Time savings: An ATS can automate many aspects of the recruitment process, such as resume screening and candidate communications, which can save significant time for hiring managers and recruiters.
  2. Improved candidate experience: An ATS can provide automated updates to candidates, keeping them informed throughout the hiring process and improving their overall experience with the organization.
  3. Better quality of hire: By using algorithms and search functions to filter and rank resumes, an ATS can help identify the most qualified candidates for a position, leading to better quality hires.
  4. Compliance with hiring regulations: An ATS can help organizations stay compliant with hiring regulations, such as equal employment opportunity laws and data privacy regulations.

Challenges of Applicant Tracking Systems

While an ATS can provide many benefits, there are also some challenges to using this type of software, including:

  1. Over-reliance on technology: An ATS can sometimes lead to an over-reliance on technology, with hiring managers and recruiters relying solely on the system's rankings and recommendations rather than reviewing resumes in detail.
  2. Limited customization: Many ATS have limited customization options, which can make it difficult for organizations to tailor the system to their specific needs.
  3. High costs: Some ATS can be expensive to implement and maintain, particularly for small or mid-sized organizations.
  4. Potential for bias: The algorithms and search functions used by an ATS can sometimes perpetuate biases, such as gender or racial biases, leading to discrimination in the hiring process.
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Do you know?

The most popular ATS systems used by companies include Taleo, Workday, Kenexa BrassRing, iCIMS, and Greenhouse, according to a report by Software Advice.

Tips for Using Applicant Tracking Systems Effectively

  1. Choose an ATS that meets your organization's specific needs and goals.
  2. Customize the system to align with your organization's hiring process and values.
  3. Train hiring managers and recruiters to use the ATS effectively and to avoid over-reliance on the system's recommendations.
  4. Regularly review and update the ATS to ensure it is working effectively and accurately.
  5. Use additional tools and strategies, such as diversity training and candidate outreach programs, to mitigate the potential for bias in the hiring process.
  6. Consider the candidate experience and ensure that the ATS provides clear and timely communication throughout the hiring process.
  7. Monitor and analyze the effectiveness of the ATS to identify areas for improvement and ensure it is achieving the desired outcomes.

Future Trends in Applicant Tracking Systems

  1. Increased use of artificial intelligence and machine learning algorithms to improve the accuracy and efficiency of ATS.
  2. Integration with other HR technologies, such as HR analytics and performance management systems, to create a more comprehensive talent management system.
  3. Enhanced customization options and flexibility to meet the unique needs of different organizations and industries.
  4. Greater focus on diversity and inclusion, with ATS incorporating features to mitigate potential bias and support fair and equitable hiring practices.
  5. The continued evolution of ATS to keep up with changes in the job market, such as the rise of remote work and the increasing demand for specialized skills.
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Do you know? 

According to a study by Jobscan, more than 98% of Fortune 500 companies use ATS to manage their hiring processes.


Applicant tracking systems can be a valuable tool for organizations looking to streamline and automate their recruitment processes. By using algorithms and search functions to filter and rank resumes, an ATS can help identify the most qualified candidates and improve the overall hiring process. However, it is important for organizations to be aware of the potential challenges and limitations of an ATS, and to use this type of software in conjunction with human review and decision-making to ensure fairness and accuracy in the hiring process.

KEY TAKEAWAYS
  • Applicant Tracking Systems (ATS) automate and streamline various aspects of the hiring process, from posting job vacancies to screening resumes to scheduling interviews.
  • An ATS works by posting a job vacancy, allowing job seekers to submit their applications online, and then using algorithms and search functions to filter and rank the resumes based on specific criteria set by the hiring organization.
  • Benefits of using an ATS include time savings, improved candidate experience, better quality of hire, and compliance with hiring regulations.
  • Challenges of using an ATS include over-reliance on technology, limited customization options, high costs, and potential for bias.
  • Organizations should carefully consider the benefits and challenges of using an ATS before implementing it and ensure that it is tailored to their specific needs to avoid perpetuating biases in the hiring process.

FAQ

What is an ATS?

An ATS is a software system that helps organizations manage their recruitment processes by automating and streamlining tasks such as job posting, resume screening, and candidate communications.

What are some of the challenges of using an ATS?

Some challenges of using an ATS include over-reliance on technology, limited customization, high costs, and potential for bias in the hiring process.

Can an ATS integrate with other HR software systems?

Yes, many ATS can integrate with other HR software systems, such as onboarding and performance management systems, to create a more seamless and efficient HR workflow.

Are ATS only useful for large organizations?

No, ATS can be useful for organizations of all sizes, as they can help save time and improve efficiency in the recruitment process.

by Yevheniia Osmakova

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