What is an ATS?

What is an Applicant Tracking System (ATS)?

An Applicant Tracking System (ATS) is software that helps organizations manage the recruitment process. It saves teams and hiring managers time by automating various stages of hiring, from posting job openings to processing applications, screening resumes, and managing communication with candidates. It functions similarly to a CRM (Customer Relationship Management) in that it organizes data and uses artificial intelligence (AI) as support, but is more recruitment-focused.

These systems are designed to simplify and enhance the hiring process, making it easier to fill open positions while guiding candidates through their initial application steps. Typically, ATS software automates tasks such as resume parsing, interview scheduling, pre-hire assessments, and document management. Some systems also offer built-in background check capabilities when needed as well.

Key Functions of an ATS:

Job Posting and Distribution: It can automatically post job descriptions to various job boards, career websites, and social media channels, saving time for recruiters.

Resume Parsing and Screening: An ATS scans resumes and applications, extracting relevant data (e.g., skills, experience, education) and organizes it for easy review. It can also screen resumes based on keywords and criteria set by the recruiter, helping to identify the most qualified candidates quickly. This is a huge time saver for companies looking for the best fit quickly.

Building a Candidate Database: This system stores all candidate profiles in a centralized database, making it easy to search and retrieve candidate information for future job openings. This can also become one source of contacts to screen to add to a candidate pipeline.

In-Person and Remote Collaboration: It allows recruitment teams to collaborate easily by sharing candidate feedback, ratings, and comments. Multiple team members can evaluate and provide input on candidates, all within the system, making remote collaboration simple and efficient.

Interview Scheduling: ATS platforms often integrate with calendars and scheduling tools to streamline the process of scheduling interviews, a traditionally time-consuming first step of the onboarding process.

Compliance and Reporting: ATS helps organizations maintain compliance with labor laws and regulations by keeping a record of the application process and.all recruitment activities, providing reports on diversity, hiring practices, and other metrics. In this way you can find the best candidates possible to align with your hiring goals.

Communication Management: It can automate candidate communication, including interview invitations, rejection letters, and status updates. This can be especially useful when you’re dealing with high-volume hiring needs.

Why an ATS Helps Recruiters:

Efficiency: It saves time by automating repetitive tasks such as sorting resumes, scheduling interviews, and sending standard communications. Recruiters can focus on more strategic tasks like engaging with more qualified candidates over the phone with more personalized communications.

Better Candidate Screening: With the ability to filter out unqualified candidates and rank resumes based on specific keywords, ATS helps recruiters focus on the most promising candidates, making the hiring process faster and more efficient- a must in a competitive talent acquisition environment.

Improved Organization: It keeps all candidate data in one place, making it easy to track applicants through every stage of the hiring process, from application submission to final offer.

Data-Driven Decisions: ATS systems often provide real-time reporting and analytics that help hiring teams assess the effectiveness of their recruitment strategies, identify trends, and make data-driven decisions.

Candidate Experience: By automating communication and streamlining the process, an ATS can create a smoother, more consistent experience for candidates, which can improve employer branding and attract top talent.

Interesting ATS-Related Recruiting Statistics

Adoption & Usage

ATS Adoption Rate:

• 98.4% of Fortune 500 companies use an ATS for their hiring processes. (Source: Jobscan, 2024)
• 90% of large organizations (over 1,000 employees) use an ATS, compared to 50% of small businesses (under 100 employees). (Source: SHRM, 2023)

Impact on Time-to-Hire:

• Companies using an ATS report a 32% reduction in time-to-hire. (Source: Vorecol, 2024)

Cost Efficiency

Cost Per Hire:

• Companies using ATS technology have 40% lower turnover rate than those without an ATS. (Source: HiringThing, 2024)
• Smaller companies with ATS software spend about $4,000 per hire on average, while larger companies tend to spend $2,500 to $3,500. (Source: Forbes, 2021)

Software Subscription Costs:

• Small businesses can expect to pay anywhere from $50 to $500 per month for basic ATS services, while mid-sized businesses may spend $500 to $3,000 per month. (Source: Software Advice, 2020)
• Larger enterprises might spend $10,000 to $50,000+ annually depending on the size and complexity of the ATS features and user seats. (Source: Capterra, 2021)

Cost Savings from Automation:

• ATS software can automate up to 50% of recruitment tasks such as screening resumes, scheduling interviews, and sending out emails, thus reducing administrative costs. (Source: TalentLyft, 2021)

Demographics & Candidate Experience

ATS and Candidate Demographics:

• 55% of job seekers say they feel discouraged when they encounter an ATS that doesn’t provide feedback or follow-up. (Source: Glassdoor, 2021)
• 69% of candidates want the process of applying for a job to be easy and quick. (Source: CareerArc)

Resumes & ATS Screening:

• 75% of resumes are never seen by a human due to ATS filters and keyword matching. (Source: Forbes, 2020)
• 47% of recruiters said they use an ATS that screens resumes for specific keywords, which means applicants need to optimize their resumes for ATS to get noticed. (Source: Jobscan, 2020)

Mobile Usage for Job Applications:

• 72% of job seekers use their smartphones for job searching, but only 27% report having a good mobile experience when applying for jobs via an ATS. (Source: Glassdoor, 2021)
• 50% of candidates prefer applying via mobile but find the process frustrating due to ATS systems that are not mobile-friendly. (Source: Jobvite, 2021)

Recruiter & Employer Insights

ATS and Diversity Hiring:

• 63% of employers report that an ATS helps improve diversity in hiring by removing biased language and enabling the focus on skills. (Source: LinkedIn, 2021)
• 38% of recruiters say that an ATS helps them manage and track diversity hiring goals more effectively. (Source: Harvard Business Review, 2020)

Recruiter Productivity:

• Recruiters who use ATS tools see a 50% increase in productivity, allowing them to manage more candidates and reduce hiring cycles. (Source: LinkedIn, 2020)

ATS Technology Trends

ATS Integrations:

• 68% of recruiters say they use an ATS integrated with their Human Resources Information System (HRIS), improving data synchronization. (Source: LinkedIn, 2020)

AI and Machine Learning in ATS is increasingly being adopted, with 39% of HR professionals reporting that AI-driven tools for screening and shortlisting candidates have increased their efficiency. (Source: PwC, 2021)

What is an ATS?

Overall, an ATS helps organizations optimize the recruiting process by streamlining administrative tasks, improving the candidate selection process, and offering valuable insights. For recruiters, it’s a tool that saves time, enhances productivity, and ensures a more organized and efficient hiring process. If you need support in building and managing a list of candidates, contact Corporate Navigators today!