Applicant Tracking Systems (ATS): What They Are and Why You Need One

If you’re doing any recruiting, you’ve probably heard “ATS” mentioned. But what is it? And do you actually need one?

Short answer: An ATS (Applicant Tracking System) is software that helps you manage the entire hiring process - from posting jobs to making offers. Think of it like a CRM for candidates instead of customers.

Do you need one? If you’re hiring more than a few people per year, yes. Without one, you’ll be drowning in spreadsheets, emails, and missed opportunities.

“An ATS isn’t just a database - it’s the central nervous system of modern recruiting. It connects every part of the hiring process and provides the data you need to make better decisions.” - Dr. John Sullivan, HR thought leader

The reality: Managing recruiting without an ATS is like trying to run a business without accounting software. You can do it, but it’s messy, inefficient, and you’ll make mistakes. With an ATS, everything is organized, tracked, and automated.

This guide explains what ATS platforms do, how they work, which features matter, and how to choose the right one for your needs.

What is an Applicant Tracking System?

At its core, an ATS is a software platform designed to streamline and organize the recruiting process. It serves as a centralized hub where recruiters, hiring managers, and candidates interact throughout the hiring journey.

Basic Definition

An ATS helps you:

• Post Jobs: Distribute job openings across multiple channels
• Collect Applications: Receive and organize candidate applications
• Track Candidates: Monitor candidates through each stage of the process
• Schedule Interviews: Coordinate interviews and manage calendars
• Store Information: Maintain candidate databases and resumes
• Generate Reports: Track metrics and measure recruiting performance
• Ensure Compliance: Maintain records for legal and regulatory requirements

The Evolution of ATS

ATS platforms have evolved significantly:

Early ATS (1990s-2000s):

• Basic resume databases
• Simple application tracking
• Limited automation
• On-premise installations

Modern ATS (2010s-Present):

• Cloud-based platforms
• Advanced automation and AI
• Integration with other tools
• Mobile accessibility
• Advanced analytics and reporting
• Candidate relationship management features

Next-Generation ATS (Emerging):

• AI-powered candidate matching
• Predictive analytics
• Enhanced candidate experience
• Seamless integrations
• Real-time collaboration

Why Companies Need an ATS

Understanding the value proposition helps justify the investment.

Managing High Volume

Most companies receive far more applications than they can manually manage:

The Numbers:

• A single job posting can generate hundreds of applications
• Companies with multiple open roles receive thousands of applications monthly
• Manual management becomes impossible at scale

How ATS Helps:

• Automatically organizes applications
• Filters candidates based on criteria
• Tracks candidates through the process
• Prevents applications from getting lost

“Without an ATS, you’re essentially trying to manage hundreds of relationships with sticky notes and spreadsheets. It doesn’t work at scale.” - Tim Sackett, author of “The Talent Fix”

Improving Efficiency

Recruiting involves many repetitive tasks:

Time-Consuming Activities:

• Posting jobs to multiple boards
• Scheduling interviews
• Sending status updates
• Collecting feedback
• Generating reports

ATS Automation:

• One-click job posting to multiple channels
• Automated interview scheduling
• Automated candidate communications
• Streamlined feedback collection
• Instant report generation

Time saved on administrative tasks can be reinvested in relationship building and strategic activities.

Ensuring Consistency

Manual processes lead to inconsistency:

Problems Without ATS:

• Different recruiters use different processes
• Information gets lost or forgotten
• Candidates have inconsistent experiences
• Compliance risks increase

ATS Benefits:

• Standardized workflows
• Consistent candidate experience
• Complete audit trails
• Reduced compliance risk

Data and Analytics

Recruiting decisions should be data-driven:

What You Can’t Measure Without ATS:

• Which job boards perform best
• How long each stage takes
• Where candidates drop off
• Source of best hires
• Time to fill metrics

What ATS Provides:

• Real-time dashboards
• Custom reports
• Historical data analysis
• Performance metrics
• ROI calculations

Data helps optimize processes and demonstrate recruiting value.

Candidate Experience

Modern candidates expect professional experiences:

Expectations:

• Quick application process
• Timely communication
• Easy interview scheduling
• Status updates
• Mobile-friendly experience

ATS Capabilities:

• Streamlined application forms
• Automated communications
• Self-service scheduling
• Real-time status updates
• Mobile-optimized interfaces

Better candidate experience improves application rates and offer acceptance.

Compliance and Legal Protection

Recruiting involves legal requirements:

Compliance Needs:

• Record retention requirements
• EEOC reporting
• Data privacy (GDPR, CCPA)
• Background check documentation
• Audit trails

ATS Features:

• Automated record retention
• Compliance reporting
• Data privacy controls
• Complete audit logs
• Secure data storage

Proper documentation protects companies and ensures legal compliance.

Key Features of Modern ATS Platforms

Understanding ATS features helps you evaluate platforms and use them effectively.

Job Posting and Distribution

Core Capabilities:

• Multi-Channel Posting: Post to multiple job boards with one click
• Job Board Integration: Direct connections to Indeed, LinkedIn, Glassdoor, etc.
• Social Media Sharing: Easy sharing to social platforms
• Career Page Integration: Seamless integration with company career pages
• Job Template Library: Pre-built templates for common roles

Advanced Features:

• Smart Job Distribution: AI-powered channel selection
• A/B Testing: Test different job descriptions
• Performance Tracking: See which channels drive applications

Application Management

Core Capabilities:

• Application Forms: Customizable application forms
• Resume Parsing: Automatic extraction of candidate information
• Application Organization: Sort and filter applications
• Duplicate Detection: Identify duplicate applications
• Bulk Actions: Process multiple applications at once

Advanced Features:

• AI-Powered Screening: Automatic candidate ranking
• Skills Matching: Match candidates to job requirements
• Application Scoring: Automated candidate scoring

Candidate Tracking

Core Capabilities:

• Pipeline Management: Visual candidate pipelines
• Stage Tracking: Monitor candidates through each stage
• Status Updates: Track candidate status
• Activity Logs: Complete history of candidate interactions
• Notes and Tags: Organize candidates with notes and tags

Advanced Features:

• Custom Workflows: Create role-specific processes
• Automated Stage Transitions: Move candidates automatically
• Predictive Analytics: Predict candidate success

Interview Scheduling

Core Capabilities:

• Calendar Integration: Sync with Google Calendar, Outlook, etc.
• Automated Scheduling: Candidates self-schedule interviews
• Interview Coordination: Coordinate multiple interviewers
• Reminder Emails: Automated interview reminders
• Video Interview Integration: Built-in video interview tools

Advanced Features:

• AI Scheduling: Optimal time slot suggestions
• Time Zone Management: Handle global teams
• Interview Kits: Automated interviewer preparation

Communication and Engagement

Core Capabilities:

• Email Templates: Pre-built email templates
• Bulk Communications: Send messages to multiple candidates
• Automated Workflows: Trigger emails based on actions
• SMS Integration: Text message capabilities
• Candidate Portal: Self-service candidate portal

Advanced Features:

• Chatbots: Automated candidate support
• Personalization: Dynamic, personalized communications
• Multi-Language Support: Communicate in multiple languages

Reporting and Analytics

Core Capabilities:

• Standard Reports: Pre-built reports for common metrics
• Custom Reports: Create custom reports
• Dashboards: Real-time recruiting dashboards
• Export Capabilities: Export data for analysis
• Historical Data: Access historical recruiting data

Advanced Features:

• Predictive Analytics: Forecast hiring needs
• ROI Analysis: Calculate recruiting ROI
• Benchmarking: Compare to industry standards
• Data Visualization: Advanced charts and graphs

Integration Capabilities

Common Integrations:

• HRIS Systems: Connect with HR information systems
• Background Check Services: Integrate background screening
• Assessment Tools: Connect skills testing platforms
• Video Interview Tools: Integrate video platforms
• Calendar Systems: Sync with calendar applications
• Email Systems: Connect with email platforms
• Slack/Teams: Team communication integrations

Integration Benefits:

• Seamless Workflows: Data flows between systems
• Reduced Manual Work: Eliminate duplicate data entry
• Better Data: More complete candidate information
• Improved Efficiency: Streamlined processes

Mobile Accessibility

Mobile Features:

• Mobile Apps: Native iOS and Android apps
• Mobile-Optimized Web: Responsive web interfaces
• Offline Capabilities: Work without internet connection
• Push Notifications: Real-time updates on mobile

Benefits:

• Accessibility: Recruit on the go
• Responsiveness: Quick candidate responses
• Flexibility: Work from anywhere
• Candidate Experience: Mobile-friendly applications

Types of ATS Platforms

Different types of ATS platforms serve different needs.

Enterprise ATS

Characteristics:

• Scale: Designed for large organizations (1000+ employees)
• Features: Comprehensive feature sets
• Customization: Highly customizable
• Integration: Extensive integration capabilities
• Support: Dedicated support teams
• Cost: Higher cost, typically $10,000+ annually

Examples: Workday, Oracle Taleo, SAP SuccessFactors

Best For: Large enterprises with complex needs and dedicated recruiting teams

Mid-Market ATS

Characteristics:

• Scale: Designed for mid-size companies (100-1000 employees)
• Features: Robust feature sets with good balance
• Ease of Use: More user-friendly than enterprise solutions
• Integration: Good integration options
• Support: Strong customer support
• Cost: Moderate cost, typically $5,000-$15,000 annually

Examples: Greenhouse, Lever, SmartRecruiters

Best For: Growing companies with established recruiting functions

Small Business ATS

Characteristics:

• Scale: Designed for small businesses (1-100 employees)
• Features: Essential features without complexity
• Ease of Use: Very user-friendly
• Setup: Quick setup and implementation
• Support: Good support, often community-based
• Cost: Lower cost, typically $50-$500/month

Examples: Breezy HR, Recruitee, Zoho Recruit

Best For: Small businesses and startups with limited recruiting needs

Industry-Specific ATS

Characteristics:

• Specialization: Built for specific industries
• Features: Industry-specific features
• Compliance: Industry-specific compliance
• Integration: Industry-specific integrations
• Examples: Healthcare, hospitality, retail-specific platforms

Best For: Companies in specialized industries with unique needs

Open-Source ATS

Characteristics:

• Cost: Free or low-cost
• Customization: Highly customizable
• Community: Community support
• Technical Requirements: Requires technical expertise
• Examples: OpenCATS, Odoo, various GitHub projects

Best For: Technical teams comfortable with self-hosting and customization

How to Choose the Right ATS

Selecting an ATS is a significant decision. Here’s how to approach it.

Assess Your Needs

Start by understanding your requirements:

Key Questions:

• How many positions do you fill annually?
• How many recruiters will use the system?
• What’s your budget?
• What integrations do you need?
• What features are must-haves vs. nice-to-haves?
• What’s your technical capability?

Document Requirements:

• Create a requirements document
• Prioritize features
• Identify deal-breakers
• Consider future needs

Research Options

Explore available platforms:

Research Methods:

• Online Reviews: Read reviews on G2, Capterra, TrustRadius
• Industry Reports: Review analyst reports (Gartner, Forrester)
• Peer Recommendations: Ask other recruiters
• Vendor Websites: Review vendor materials
• Demos: Request product demonstrations

Evaluation Criteria:

• Feature fit
• Ease of use
• Integration capabilities
• Customer support quality
• Pricing and value
• Company stability

Request Demos

See platforms in action:

What to Look For:

• User Interface: Is it intuitive?
• Key Features: Do must-have features work well?
• Workflow: Does it match your process?
• Performance: Is it fast and responsive?
• Mobile Experience: How does mobile work?

Questions to Ask:

• How long does implementation take?
• What training is provided?
• What’s the onboarding process?
• How is customer support?
• What’s the upgrade path?

Consider Total Cost of Ownership

Look beyond initial pricing:

Cost Components:

• License Fees: Per-user or per-company pricing
• Implementation: Setup and configuration costs
• Training: Training costs for team
• Integrations: Costs for integrations
• Customization: Development costs
• Support: Ongoing support costs
• Upgrades: Future upgrade costs

Calculate ROI:

• Time saved on administrative tasks
• Improved time to fill
• Better quality of hire
• Reduced cost per hire
• Improved candidate experience

Check References

Talk to current customers:

What to Ask:

• How long have you used the system?
• What do you like most?
• What are the biggest challenges?
• How is customer support?
• Would you recommend it?
• What would you change?

Red Flags:

• Difficulty getting references
• Consistently negative feedback
• Support issues
• Implementation problems

Start with a Pilot

Test before committing:

Pilot Approach:

• Start with one team or department
• Use for a limited time period
• Evaluate against criteria
• Gather user feedback
• Make go/no-go decision

Pilot Benefits:

• Real-world testing
• User buy-in
• Risk mitigation
• Better decision-making

Implementation Best Practices

Successful ATS implementation requires planning and execution.

Planning Phase

Key Activities:

• Project Team: Assemble implementation team
• Timeline: Create realistic timeline
• Resources: Allocate necessary resources
• Stakeholders: Identify and engage stakeholders
• Success Criteria: Define what success looks like

Timeline Considerations:

• Implementation typically takes 4-12 weeks
• Allow time for data migration
• Plan for training and adoption
• Consider business cycles

Data Migration

Preparation:

• Data Audit: Review existing candidate data
• Data Cleanup: Clean and organize data
• Mapping: Map old system to new system
• Testing: Test migration with sample data

Migration Process:

• Work with vendor on migration plan
• Execute migration carefully
• Verify data accuracy
• Test system functionality

Configuration

Key Areas:

• Workflows: Set up recruiting workflows
• User Roles: Configure user permissions
• Email Templates: Create communication templates
• Job Templates: Build job description templates
• Integrations: Set up integrations
• Branding: Customize with company branding

Best Practices:

• Start with standard configuration
• Customize based on actual needs
• Document configurations
• Test thoroughly

Training and Adoption

Training Strategy:

• Role-Based Training: Train different user types differently
• Hands-On Practice: Provide practice opportunities
• Documentation: Create user guides
• Ongoing Support: Provide continued support

Adoption Strategies:

• Champions: Identify and train champions
• Incentives: Create adoption incentives
• Feedback: Gather and address feedback
• Iteration: Continuously improve

Change Management

Key Principles:

• Communication: Communicate changes clearly
• Involvement: Involve users in process
• Support: Provide adequate support
• Patience: Allow time for adjustment

Common Challenges:

• User resistance to change
• Learning curve
• Process adjustments
• Technical issues

Common ATS Mistakes to Avoid

Learning from mistakes helps ensure success.

Mistake 1: Choosing Based on Price Alone

Problem: Selecting cheapest option without considering needs.

Solution: Evaluate total value, not just cost. Consider features, support, and long-term needs.

Mistake 2: Over-Customization

Problem: Customizing system beyond recognition, making upgrades difficult.

Solution: Use standard configurations when possible. Customize only when necessary.

Mistake 3: Insufficient Training

Problem: Not investing enough in user training.

Solution: Provide comprehensive training and ongoing support. Invest in user adoption.

Mistake 4: Ignoring Integration Needs

Problem: Not considering how ATS integrates with other systems.

Solution: Map integration requirements early. Test integrations thoroughly.

Mistake 5: Poor Data Migration

Problem: Rushing data migration, losing or corrupting data.

Solution: Plan migration carefully. Test thoroughly. Verify data accuracy.

Mistake 6: Not Involving Users

Problem: Making decisions without input from actual users.

Solution: Involve recruiters and hiring managers in selection and configuration.

Mistake 7: Setting and Forgetting

Problem: Implementing ATS and never optimizing or updating.

Solution: Regularly review and optimize. Stay current with updates and new features.

Measuring ATS Success

Track metrics to measure ATS effectiveness:

Key Metrics

Efficiency Metrics:

• Time saved on administrative tasks
• Applications processed per recruiter
• Time to fill improvements
• Cost per hire reductions

Quality Metrics:

• Quality of hire improvements
• Candidate experience scores
• Hiring manager satisfaction
• Offer acceptance rates

Adoption Metrics:

• User adoption rates
• Feature utilization
• System usage frequency
• User satisfaction scores

ROI Calculation

Calculate return on investment:

Cost Savings:

• Reduced time on administrative tasks
• Lower cost per hire
• Reduced agency fees
• Improved efficiency

Revenue Impact:

• Faster time to fill (reduced vacancy costs)
• Better quality of hire (productivity gains)
• Improved retention (reduced turnover costs)

Intangible Benefits:

• Better candidate experience
• Improved employer brand
• Enhanced compliance
• Better data and insights

Future of ATS Technology

ATS platforms continue to evolve:

Artificial Intelligence

Current Applications:

• Resume screening and ranking
• Candidate matching
• Chatbots for candidate support
• Predictive analytics

Future Possibilities:

• More sophisticated candidate matching
• Automated interview scheduling
• Enhanced candidate experience
• Better bias detection

Integration Expansion

Trend:

• Deeper integrations with more tools
• API-first architectures
• Ecosystem approaches
• Seamless data flow

Candidate Experience Focus

Trend:

• Mobile-first design
• Faster application processes
• Better communication
• More transparency

Analytics and Insights

Trend:

• Predictive analytics
• Real-time insights
• Benchmarking
• Actionable recommendations

Conclusion

Applicant tracking systems are essential tools for modern recruiting. They streamline processes, improve efficiency, ensure consistency, provide valuable data, and enhance candidate experience. While choosing and implementing an ATS requires investment and effort, the benefits far outweigh the costs for most organizations.

The key to ATS success is choosing the right platform for your needs, implementing it thoughtfully, training users effectively, and continuously optimizing. With the right approach, an ATS becomes a strategic asset that drives recruiting success.

“An ATS isn’t a luxury - it’s a necessity. Companies that try to recruit at scale without one are fighting with one hand tied behind their back.” - Anonymous Recruiting Director

Whether you’re evaluating your first ATS or considering a switch, understanding what these systems do and how to use them effectively is essential for recruiting success in today’s competitive talent market.

Next Steps

To continue learning about recruiting technology:

1. Learn about sourcing tools and how they complement ATS
2. Discover recruiting automation and AI applications
3. Explore the difference between sourcing and recruiting
4. Understand recruiting metrics and how to measure success
5. Master the recruiting process from start to finish

Each topic builds on the foundation of ATS understanding we’ve established here.