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What is an Applicant Tracking System (ATS)? - ApplicantStack

An Applicant Tracking System (ATS) is specialized software that streamlines recruitment by managing candidate data, automating tasks like interview scheduling and notifications, enhancing job posting efficiency through integration with job boards, enabling keyword-based candidate searches, increasing hiring productivity, and ultimately improving company morale by facilitating faster, better hires.

When a business needs to hire, it’s important to have the right tools at its disposal. An applicant tracking system is a must, regardless of company size. Explore this type of system and how it can benefit your organization’s recruitment efforts.

What Does an Applicant Tracking System (ATS) Do?

An applicant tracking system (ATS) is a type of software designed to manage an organization’s recruiting and hiring efforts. Its process involves tracking candidates who may be good fits for open positions. Additionally, an ATS houses data and often includes automated workflows to simplify tasks like:

  • Scheduling interviews
  • Notifying candidates of status updates
  • Issuing alerts
  • Sending messages to applicants and those involved in the hiring process

Benefits of an Applicant Tracking System

Many benefits come with using an applicant tracking system to find and bring on top talent. Here are a few advantages and how they can benefit a small-to-midsized business.

Searches for Keywords

An ATS can sift through data and make recommendations based on keyword searches, algorithms, and other tools that analyze applications and resumés. With an ATS in place, it becomes easier to review applicant data and select the right candidates to interview.

Posts Jobs More Efficiently

An ATS can integrate with external job boards, making it easier to push a listing to many boards with a single click. By getting a job in front of more people, a company will likely receive more applications and have a wider selection of candidates.

Maximizes Productivity

Hiring managers and recruiters can spend less time on manual candidate searches. The automation side of the software saves time and effort, allowing open roles to get in front of the right people efficiently.

Boosts Company Morale

A positive hiring and onboarding experience can make a big difference for candidates. Hiring good people faster reduces the burden on existing employees, improving company morale.

How Does an Applicant Tracking System Work?

While each system may have its own features, most applicant tracking systems share a few key steps to ensure a consistent and straightforward process.

Creating a Job Requisition

The process begins with the creation of a job requisition. The person responsible for recruiting requests approval for a new or vacated position. Upon approval, a job listing can be created.

Creating a Job Listing

A job listing should include:

  • Position title
  • Position location
  • Department
  • Salary range (if applicable)
  • Responsibilities/duties
  • Candidate requirements or qualifications
  • Description of work environment

The writing style for job descriptions should be engaging and avoid language that could indicate discrimination or hiring preferences.

Posting the Job Description

After creating an engaging description, the next step is posting it to various boards. Consider which boards might yield the best results, including industry-specific boards and those designed for particular demographics.

Receiving Applications

Applicant tracking systems can issue rankings to applicants based on specific data, such as keywords on resumés and answers to application questions. Automatic rejection processes can be set up based on required qualifications.

Undergoing the Review Process

Anyone granted access can view applicant data and determine whether to move each candidate forward. Notes from interviews can be kept within the system for easy reference.

Sending Notifications and Follow-Up

Automatic notifications keep candidates informed of their progress and whether they’re moving forward to the next phase. Companies can customize messaging to adhere to their brand and voice.

Extending an Offer

Upon selecting the best candidate, the final step is extending an offer. Applicant tracking systems can provide pre-built templates for offer letters. Accepted candidates’ information can be transferred to the company’s HR system, minimizing manual data entry errors.

Managing Candidate Data

Applicants who aren’t hired immediately can have their data retained in the system for future opportunities, streamlining future hiring processes.

Creating an Account/Onboarding

Onboarding is a key step in the hiring process. A good onboarding experience can improve employee retention and engagement. Applicant tracking systems with onboarding functionality can:

  • Import hires from recruiting modules
  • Upload new hire forms (W-4, I-9, etc.)
  • Create and assign tasks to track progress
  • Invite new hires to view documents and complete paperwork
  • E-sign documentation
  • View and download reports to measure onboarding success

Not all applicant tracking systems include onboarding functionality, but it is an important feature for employee retention.

FAQ about Applicant Tracking Software

What should you look for in an applicant tracking system?

Some of the best features to look for in an ATS include:

  • Pushing job descriptions to boards
  • Automated processes (notifications, applications, etc.)
  • User-friendly interface
  • Onboarding capabilities
  • Integration with other systems (HR, payroll, benefits, etc.)

When should a business use an applicant tracking system?

An ATS can benefit any business that plans to hire. It organizes candidates to simplify the hiring process, filters out unqualified applicants, and highlights those who might be a better fit. If your company has employees or plans to hire, an ATS is beneficial.