What Is an Applicant Tracking System (ATS)?

An applicant tracking system (ATS) is a type of software that handles recruiting and hiring needs by allowing employers and recruiters to easily collect information, organize and filter applicants, and keep track of the recruitment process.

What Does an Applicant Tracking System Do?

Applicant tracking systems facilitate recruitment by automating several processes such as job posting and applicant screening to identify the most qualified candidates. They may also generate interview requests automatically and provide collaborative tools.

Applicant tracking systems are commonly adopted to save time through automation, increase the productivity of the hiring team, and streamline the application process to improve the experience of the candidates.

How Does an Applicant Tracking Software Work?

An applicant tracking software (ATS) works by automating all of the tasks related to hiring new employees.

For example, HR employees can enter all the information regarding a position such as the job title or the skills and experience required, and then the ATS creates an ideal profile. When applications are submitted, the ATS ranks and sorts the candidates based on how well they match the profile.
HR professionals can then identify the best candidates quickly and proceed with the rest of the hiring process.

Why Use Applicant Tracking Software?

Companies should use applicant tracking software in order to simplify their hiring process and provide a better experience for the candidates.

Companies that receive a large amount of applications when they post a job position benefit from using an applicant tracking software to avoid losing time sorting all the candidates.

Who Uses Applicant Tracking Software in a Business?

HR professionals and managers tend to use applicant tracking software, especially if they work for big companies with hundreds or thousands of employees.

Some smaller companies also use applicant tracking software in their recruitment process.

Any professionals who have the responsibility of hiring employees can use an applicant tracking software to simplify the hiring process.

What Are the Benefits of Having an Applicant Tracking System?

Common benefits of having an applicant tracking system include:

  • Reducing cost per hire
  • Saving time
  • Providing a better overview of the hiring process
  • Facilitating job posting
  • Improving quality of hire
  • Improving communication between stakeholders
  • Promoting collaborative hiring
  • Improving employer branding
  • Improving interview scheduling

What Are the Key Features of Applicant Tracking Systems?

Common features of applicant tracking systems include:

  • Job offers posting
  • Receiving and sorting applications
  • Managing communications with applicants
  • Contributing to the candidate pool of the company
  • Tracking the progression of current candidates through the different steps of the hiring process
  • Scheduling interviews

How much does an ATS cost?

The cost of an ATS can greatly vary depending on the quality of the software and the usage. Typically ATS charge their customers on a monthly basis based on the number of users they have.

The cost can go anywhere from $50 to $100 per month, per user, plus additional fees such as setup or activation.

What is the difference between ATS and CRM?

ATS helps professionals sort applicants who applied for a specific job offer.

CRM helps sales professionals track potential leads that could convert into customers. Some HR departments may use CRM to target candidates who have not applied yet to a job ad but might have an interesting profile for a certain position.

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