Application Tracking System (ATS) has been around since late 1990s. According to the most recent research done by Jobscan in 2019, 99% of Fortune 500 companies use ATS. These mid-to large-sized companies have proved that ATS is such a beneficial tool for recruiting new employees. With the usually large number of applicants, ATS can automate the time-consuming tasks in no time and accurately.
What is an Application Tracking System (ATS)?
Application Tracking System (ATS) is a software to help the new recruitment process carried out by the employer. This software helps the employer from database functionality to unify, filter, manage, and even analyze candidates. Ultimately, this software can optimize the hiring process and the result to be effective and just right.
How does Application Tracking System (ATS) work?
There are many ATS software available online. They offer various features and functions. So you should choose ATS software that fits what you have and your goals to optimize the output.
However, ATS usually work in the same way. Firstly, you can post job vacancies to multiple job boards at once. This feature will help the ad to reach further across job sites.
ATS also provides a feature to manage schedules. So you can use ATS to schedule an interview. It includes calendar integrations, customizable built-in, interview calendar, and a feature to send a self-scheduling link to candidates.
Convenience to communicate with teammates to make hiring decisions. There’s also a scorecard feature to assess the candidates. Also employer branding to communicate the company culture, vision, mission, and value.
Difference Between ATS and CRM
Candidate Relationship Management (CRM) is also a recruitment tool. Making ATS oftentimes being compared with CRM. While both serve distinct different purposes, employers usually use both.
ATS is used to manage the application process from selecting to hiring candidates, automate the administrative tasks, and improve core recruitment metrics. While CRM tends to be used by employers to build and nurture relationships with both active and passive talents. With the ability to nurture the passive talents, CRM also functions as talent pools.
The reasons employers use ATS and CRM to hire new employees are to attract and engage with passive candidates, improve the employer branding, streamline competitive job offers, and create more engaging and faster customer experiences.
Benefits of Application Tracking System (ATS)
1. Extend recruiters reach and reduce friction
Employers who use ATS software can take as many job applications as they can and not worry about sorting them in the first stage of the hiring process. They can use ATS to do this task effectively, stress-free, and free from such time-consuming administrative tasks. If there’s software to sort the resume effectively, then there’s no reason to reject ATS. ATS also maximizes the visibility for internal job boards and eliminates barriers for potential job seekers. Then it can help to further the job offers to reach more of them.
With such a fixed system, it should reduce potential frictions. Because everything is already set and both employers as well as the job seekers can just use it according to the guidance.
2. Automate and increase efficiency
On the employer’s side, ATS can help you to automate the administrative tasks that usually can be time-consuming because in the past, you had to do it manually. With the automation feature, it helps you to do many tasks in a short time. From collecting the applications, digitizing the resume, database function, ensuring data security, communication, to scheduling interviews.
As a result of this automation, ATS is beneficial in increasing the efficiency of the hiring process. The fixed system will also reduce the potential of mistakes. As long as you didn’t make any mistake from the start, usually ATS work properly.
3. Organize and keep track of all recruitment activities
From the time you start using ATS, ATS software has its own system that ensures all of your activities are tracked and organized well. With a usually large number of job applicants, ATS is highly beneficial. Once you submit data in the beginning correctly, the next and rest of the hiring process tend to be easier because everything and most importantly, the applicants’ data are already organized well. Making it easy and fast for you anytime there’s certain information that you want to search.
The tracking system is great. For example, you can track where the candidates found your job posting. With the centralization system, you can find whether they find it from the job board, company website, through a referral, or other sources.
4. Build high quality talent pools by powerful techniques
While CRM has a talent pool feature, so does ATS. This feature is great to nurture passive candidates through talent pools. Making ATS is good for candidate management.
Talent pool is important for employers for the future purpose. You don’t need them at the moment, but you also don’t want to lose them. Because you may need them someday. Thus, you need a tool to work on the talent pool.
Not only do they come in a data form, you also need to nurture these inactive applications. That’s why ATS can be beneficial for this reason. To make it more effective, you also need to pair it with a CRM platform, one of the best tools to work on a talent pool.
5. Improve visibility and collaboration across recruiting teams
You don’t work on the recruitment process alone. You will also need to communicate with the recruiting team well. ATS has the collaboration function that ensures to make the communication across the recruiting team easier.
ATS can improve the visibility to avoid potential negative issues regarding the transparency, getting the applicants hired faster, and improve the employer branding.
The transparency in ATS will help both the candidates and employer to do the clear tasks. So none of the steps or requirements will be vague. Thus, making the communication tend to run smoothly.
6. Better candidate experience through faster scheduling and communication
If the company can provide a better candidate experience, it will instantly improve their employer branding. By using ATS, it can guarantee faster scheduling, communication—in fact, the whole hiring process is much better because everything works effectively. Thus, not only ATS is beneficial for the employer, but also the candidates.
How accurate is Application Tracking System (ATS) software?
ATS software is relatively accurate. But no system is perfect. Any system has flaws.
ATS software’s strengths are to automate the time-consuming administrative tasks and scan the candidates’ qualifications based on keywords set by the employers. So, if qualified candidates happened to submit weak keywords, it would cut them from the hiring process instantly. Just because ATS software is unable to read them and it will be such a miss for the employer if not aware of this. And it is one of ATS software’s weaknesses. Because this ATS software only functions well to scan rather than actually analyze the resume.
Who uses Application Tracking System (ATS)?
According to a research done by Jobscan in 2019, 99% of Fortune 500 companies use ATS software. So big companies most likely use this software in their hiring process because honestly, big companies tend to attract a large number of job applicants. ATS software allows employers to sort the candidates in the first stage of the hiring effectively.
Middle to small companies also use ATS. If being compared to big companies, the adoption rate is lower. However, the number of middle to small companies using ATS software in the recruitment process is still growing fast according to a research done by Jobscan in 2018.
Why should employers use ATS?
More companies use job sites to post and promote job offers now. More and more companies demand job seekers to apply through online platforms, those job sites are some of the various ways to apply for a job online. With such a trend in the hiring process, it has to also be supported by other systems that can complement this trend and make the whole process of recruitment and hiring better.
If you are an employer and require the job applicants to submit their resume online, you also need to ensure the next or whole steps of recruitment also require a digital process. It’s all to make the process of hiring effective and not wasting any effort.
Enforcing the candidates to use ATS-friendly resumes will help the employer to sort the resume effectively. If the first step is done effectively and stress free, the employer will have an easier time to navigate what comes next.
Is ATS worthy for startups and small businesses?
Some big startups use ATS software in their application process. Some startups such as Airbnb, Venmo, and Squarespace use Greenhouse. Not only it makes an employer’s task to sort the incoming job applications more effective, but also pushes the job seekers to be more competitive.
The same principle also applies for small businesses. If you are an employer in a small scale business, you are open to using ATS software. Other than previously mentioned benefits, it can also give a sense that your company is adopting a developed hiring system and making your employer branding improved.
ATS software is a beneficial tool in the recruitment process. The automation feature can ease the employer’s administrative tasks. Because sorting the candidates’ resume in the first stage of the hiring process can be time-consuming. On the job applicants’ side, ATS-friendly resumes can simplify their qualities in a precise way. Since their applications go through ATS software, ensuring the resume to be readable by the software is highly important to be noticed.
FAQ about Application Tracking Systtem (ATS)
An ATS is a software system used by companies to streamline their recruitment and candidate selection process. The system helps companies manage job applications efficiently and effectively.
Using an ATS helps companies process job applications faster and more efficiently, saving time and human resources. The system also enables companies to track potential candidates and reduces the likelihood of losing application data.
Features of an ATS may include the ability to post job listings, accept applications, screen resumes for relevant keywords and qualifications, schedule interviews, and provide analytics and reporting. Some ATS systems also integrate with other HR software systems.
One potential drawback of an ATS is that it may screen out qualified candidates who do not have the right keywords on their resumes. Additionally, some candidates may find the process impersonal and frustrating, as they may receive automated rejection emails without any feedback or explanation.
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