A Step-by-Step Guide for Recruiters, Business Owners, and Leaders

Hiring top talent is one of the biggest challenges for recruiters and business owners. With hundreds of applications flooding in for each job posting, manually reviewing resumes, scheduling interviews, and tracking candidates can be overwhelming.

That’s where an Applicant Tracking System (ATS) comes in. An ATS helps streamline recruitment, automate tasks, and improve hiring efficiency so you can focus on finding the best talent for your company. It can also be used to organize these contacts for future hiring needs, saving you time if an open role emerges in your organization.

If you’re new to ATS software or looking to maximize its potential, this step-by-step guide will walk you through how to set up, use, and optimize your ATS.

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Step 1: Choose Your ATS

Before you can use an ATS, you need to first pick one. So the first step is to simply find the right ATS software that fits your company’s hiring needs.

There are a lot of choices out there to consider, with each system having its unique strengths and weaknesses. A good place to start searching for the right fit would be a top 10 list like this one. As you explore each option, consider factors like:

Business size – Small businesses may prefer a system like simpler systems like BreezyHR or JazzHR, while large enterprises often use Greenhouse, Workday, or Lever.
Recruitment volume – High-volume hiring requires robust automation and filtering features, which means you need a powerful system.
Budget – ATS pricing varies from free plans to premium enterprise solutions. As with all things, you will get what you pay for.
Integrations – Make sure it integrates with LinkedIn, Indeed, email, and HR software.

Step 2: Set Up Your ATS

Once you’ve selected your ATS, you can now customize it to match your hiring workflow. Configure hiring stages so you know exactly where each candidate is in the process. This makes it easy to know what tasks needs to be assigned regarding each contact, whether it’s to reach out for a phone screening or to ask to schedule an interview. Typical hiring stages include but are not limited to:

1️⃣ Application Received – The candidate submits their resume and application.
2️⃣ Initial Screening – The ATS filters applications based on keywords, experience, or other criteria.
3️⃣ Phone Screen – A recruiter conducts a quick call to assess the candidate’s background, availability, and interest.
4️⃣ First Interview – The candidate meets with a hiring manager or panel (in-person or virtual).
5️⃣ Second Interview (if needed) – A deeper evaluation, possibly with different team members or leadership.
6️⃣ Assessment (if applicable) – Some companies require a skills test or work sample.
7️⃣ Reference & Background Check – Verify employment history and check references.
8️⃣ Offer Sent – The company extends a formal job offer.
9️⃣ Hired – The candidate accepts the offer, and the onboarding process begins.

📌 Tip: If you frequently hire for different roles, you can create custom workflows for different departments (e.g., sales hiring vs. engineering hiring).

Step 3: Set up email templates for communications.

Examples of ATS Email Templates:

📩 Application Acknowledgment

Sent when a candidate submits their application.
Example: “Thank you for applying for [Job Title] at [Company Name]. We have received your application and will review it soon.”

📩 Rejection Email (For applicants who don’t meet criteria)

Example: “Thank you for your interest in [Job Title]. While we were impressed with your qualifications, we have decided to move forward with other candidates at this time.”

📩 Interview Invitation

Example: “We would love to schedule an interview with you for the [Job Title] position. Please select a time that works for you using the link below.”

📩 Job Offer Email

Example: “Congratulations! We are pleased to offer you the position of [Job Title] at [Company Name]. Please find the offer details attached.”

📌 Tip: Most ATS platforms allow you to set up automated email triggers, so candidates receive timely responses without manual effort.

Integrate with job boards, social media, and career pages for automatic job postings.
Assign user roles (e.g., recruiters, hiring managers, HR team members).

Step 4: Create & Post Job Listings

A well-structured job posting ensures you attract qualified candidates while your ATS helps distribute it widely.

How to Craft a High-Performing Job Posting:

Use a Clear title – Avoid vague job titles; be specific (e.g., “Senior Software Engineer” vs. “Tech Wizard”). At the same time, don’t use a job title that is too granular either. Opt for something that can be generally understood by the masses.
Offer a Detailed job description – Outline responsibilities, qualifications, company culture, and benefits.
Keyword optimization – ATS systems scan for keywords; include relevant skills and experience.

Step 5: Post to Multiple Platforms

Your ATS can automatically distribute job postings, which saves you time. To save you even more time, this can happen on multiple channels at once, such as:

Company Career Page – The ATS updates your website’s job listings in real time.
Job Boards – LinkedIn, Indeed, Glassdoor, Monster, ZipRecruiter, etc.
Social Media – Share job postings on LinkedIn, Facebook, and Twitter directly from the ATS.
Employee Referral Portals – Some ATS platforms allow employees to refer candidates through an internal portal.

📌 Tip: If your ATS integrates with LinkedIn, you can allow candidates to apply directly through LinkedIn without requiring a separate application.

Step 6: Automate Resume Screening & Shortlisting

The real power of an ATS is in automating resume screening, saving you hours of manual review. However, be aware that there can still be inherent bias in automatic screening if certain keywords are favored. Also, resumes that come in unique formats may not be scanned completely, which can cause the automated system to miss important details. Being aware of these potential imperfections is important as you employ an ATS to automate certain steps in the hiring process.

How ATS Screening Works:

Keyword Matching – The ATS scans resumes for relevant keywords from the job description.
Custom Filters – Set up filters based on experience, skills, location, education, and more.
Auto-Scoring & Ranking – Many ATS platforms rank candidates based on how well they match the job criteria.
Auto-Rejections – The system can automatically reject applications that don’t meet the minimum qualifications.

📌 Tip for Recruiters & Business Owners: To avoid missing out on strong candidates, review ATS-rejected resumes periodically. Some great applicants might be filtered out due to formatting or missing keywords.

Step 7: Track & Manage Candidates Efficiently

One of the best things about an ATS is that you don’t have to deal with more messy spreadsheets! Your ATS keeps all candidate data in one place for easy tracking. Here, you can manage your entire pipeline without consulting multiple sources. With an ATS, you can:

View all applicants in one dashboard.
Move candidates through hiring stages (Phone Screen → Interview → Offer).
Assign tasks to hiring managers (e.g., “Review Candidate X”).
Add notes and ratings to candidate profiles for team collaboration.

📌 Tip for Business Owners: Use the ATS analytics dashboard to track hiring metrics like time-to-fill, cost-per-hire, and candidate sources. This helps optimize your hiring strategy.

Step 8: Make Data-Driven Hiring Decisions

When you use an ATS to keep track of all your applicants and candidates you moved along the hiring stages, you can collect real-time data that helps you improve your candidate journey over time. ATS tools allow you to preserve key stats that you can review periodically, such as candidate scores, interview feedback, and test results. These systems can also:

Conduct collaborative reviews with hiring managers in the ATS.
Generate offer letters directly from the system and track responses.
Use built-in background check integrations for compliance.

📌 Tip for Business Owners: If you’re hiring for multiple roles, use the ATS to build a talent pipeline by saving strong candidates for future openings.

Step 9: Onboard New Hires Seamlessly

Some ATS platforms include onboarding features to help new employees transition smoothly. So, you get even more bang for your buck beyond managing candidates during the hiring stage. Since onboarding does take considerable time, these automated features do come in handy:

Send offer letters & contracts digitally.
Automate new hire paperwork & tax forms.
Provide access to training materials & employee handbooks.
Assign mentors or buddies within the system.

📌 Tip for Business Owners: A smooth onboarding process improves employee retention and reduces turnover—use your ATS to create an engaging new-hire experience!