What is ATS (Candidate Tracking System)? What are the advantages?

In a constantly changing and evolving world, HR trends continue to be updated. Efficient and effective management of the recruitment process plays a critical role in the success of every organization. Human resources specialists take on the responsibility of meticulously working through each stage of this process to select and place the most suitable candidates. At this point, Applicant Tracking Systems (ATS), thanks to the advantages offered by modern technology, stand out as an important tool in making the recruitment process more organized, trackable, and efficient. ATS is a software or platform used to manage candidates' information, communication, and progress from the application stage to the hiring process.

What is ATS?

Applicant Tracking System (ATS) are software programs that can be translated into Turkish as "Aday Takip Sistemi." These packaged programs filter and categorize resumes submitted for job applications, making the work of human resources employees easier.

ATS functions as a tool used to collect, manage, and track candidates' information at various stages of the recruitment process. This system provides employers and HR professionals with the ability to communicate more effectively with candidates, evaluate applications in a more organized manner, store candidate data, and generate reports.

What Does ATS Do?

ATS is designed to manage various stages of the recruitment process and track candidates' progress. Below are the details of the general workflow of an ATS.

Creating and Publishing Job Listings:

• The recruitment process begins with the creation of a job listing that meets the requirements of the relevant position.
• The job listing is created on the ATS and published on various job listing sites or social media platforms.

Evaluating Applications:

• Candidates see the job listing and submit their applications through the ATS.
• The ATS collects, stores, and organizes application forms or resumes.
• The HR team filters the applications to select and evaluate suitable candidates.

Evaluating and Eliminating Candidates:

• ATS helps determine the most suitable candidates by comparing their qualifications, experience, and skills.
• Suitable candidates are invited for interviews or tests. Feedback and updates are also communicated to relevant parties.

Interviews and Assessments:

• ATS manages different stages such as interviews, skill assessments, or tests.
• Interview appointments and details are recorded in the system for both candidates and interviewers to follow.

Offer Stage and Hiring:

• Suitable candidates who successfully complete the interviews reach the offer stage.
• ATS is used to create, approve, and manage the process of offer letters, including candidates' acceptance or rejection.

Onboarding and Placement:

• For candidates who accept the offer, the onboarding process begins, and necessary documents, training, and start details are managed through the ATS.
• The performance and progress of the hired candidate are tracked, and updates are made as needed.

Data Analysis and Reporting:

• ATS collects data from various stages of the recruitment process. It then analyzes this data, helping HR managers assess and improve the efficiency of the process.
• HR managers use reports and analyses to evaluate the effectiveness of the process and take steps towards improvement.

According to survey reports by JobScan, over 98.8% of Fortune 500 companies use ATS, while 66% of large companies and 35% of small businesses rely on ATS.

Advantages and Disadvantages of Applicant Tracking Systems

Advantages of ATS

One of the main benefits of ATS, when used effectively, is that it makes tasks easier, saves time, and reduces costs. Here are some of the biggest advantages of using an ATS:

Saves Time by Automating Repetitive Tasks

The recruitment process involves many steps, such as finding suitable candidates for an open position, screening resumes, conducting interviews, and performing detailed evaluations. Even small tasks that might seem insignificant can take up more time as the number of candidates increases.

• Job Posting Efficiency: ATS saves time with the feature of posting job listings to multiple job boards with a single click. If an employer usually has to manually post job listings on each job board, this single feature provided by the ATS can result in significant time savings.
• Automated Tasks: Other tasks that can be automated with ATS include scheduling interviews, sending follow-up emails, and reminding candidates about incomplete steps (e.g., completing a sent test, sending references). This reduces the workload and allows for more focus on meaningful tasks like conducting interviews.

Helps Screen for Minimum Requirements

An ATS is an effective tool for managing a large stack of applications, such as reducing 200 resumes down to 20. The resume screening tools of ATS identify the minimum skills, education, or experience required for the position and help eliminate candidates who do not meet these requirements.

Facilitates Collaboration

ATS allows different team members to collaborate efficiently by providing a platform where they can share notes, comments, and feedback on candidates. This ensures that everyone involved in the hiring process is on the same page and can make more informed decisions collectively.

Facilitates Collaboration

If the recruitment process involves multiple hiring specialists or several stakeholders contributing to selecting the best candidate, the collaboration feature of an ATS provides great convenience. With a team account, multiple users can access each candidate's profile, add notes, leave scores, and check where candidates are in the process.

Many ATS programs include scorecards and rating systems to help standardize feedback from multiple parties on a candidate. Trying to compile and objectively compare notes from each person using traditional methods can be challenging.

Speeds Up Your Hiring Process

An ATS plays a critical role in speeding up the hiring process. Traditional hiring methods involve many stages, such as physically reviewing resumes and manually handling communication. This process is time-consuming and can hinder attracting the best talent.

By automating the hiring process and centrally managing data, ATS addresses these issues. It enables rapid job posting, quickly collects applications, conducts preliminary screenings to evaluate candidates, and automates communication. This way, you can identify qualified candidates faster and move the process forward more quickly.

Improves Candidate Experience

Constant communication with candidates is important. ATS helps eliminate communication gaps for both selected and screened-out candidates.

Applying for a position and then receiving no response leaves a bad impression of the company. Even if a candidate is not positively evaluated for the position, the company should have the courtesy to provide a negative response. This action by the company also positively contributes to the employer brand.

Provides a Strong Talent Pool for Continuous Applications

An ATS helps build a robust talent pool that can be tapped into for future job openings. By maintaining a database of past applicants and their qualifications, HR teams can quickly identify potential candidates for new positions, reducing the time and effort needed to start the hiring process from scratch each time. This ongoing talent pool allows for more efficient and proactive recruitment strategies, ensuring that the organization always has access to a pipeline of qualified candidates.

An ATS makes all candidate data and communication history with the company easily accessible. Perhaps a strong candidate wasn't a perfect fit for an initial position they applied for, but could be a great match for another position that opens up two months later. The ATS database allows you to continue from where you left off without starting from scratch.

It also offers robust analytical features. These capabilities allow you to regularly measure and analyze recruitment metrics, helping you continuously improve your talent pool. Companies can use ATS to find more effective solutions for improving metrics like recruitment time, cost per hire, and acceptance rates.

According to the Recruitment Strategies Report, approximately 79% of recruitment professionals have observed an increase in the quality of hires after implementing an ATS (Applicant Tracking System).

Disadvantages of ATS (Applicant Tracking Systems)

While ATS provides significant benefits in managing recruitment processes, like any technology, it also comes with certain disadvantages that reflect situations where human judgment cannot be replaced and highlight limitations of ATS usage.

1. Computerized Screening Can Exclude Good Candidates: ATS systems typically operate within the parameters you set. This means that some excellent candidates may be excluded because they do not perfectly match all listed requirements. For example, if a job requires five skills, a candidate with four may be automatically rejected, or if they have one less year of experience than specified, they might not pass through initial screening.
2. Technical Challenges May Arise: Using ATS can lead to technical glitches. For instance, some ATS may not fully parse certain applications, potentially leading to qualified candidates being inadvertently excluded. Additionally, if resumes are formatted in specific fonts or styles, ATS systems may struggle to accurately parse these documents. Technical issues can also result in applications getting lost within the system or being categorized incorrectly. Problems like internet connectivity issues, system crashes, or slowdowns can also impact the effectiveness of the recruitment process.
3. Challenges of Transitioning to a New System: Like with any new software, there can be a learning curve, especially if transitioning from an old system or starting from scratch. Some team members may resist the change if they are comfortable with the old methods or do not have time to learn a new system.

What Should Be Done for the Right ATS Selection?

Effective management of recruitment processes is critical for the success of any organization. Recruitment professionals work diligently at every stage to attract and select the best talents. However, using modern technology to make recruitment processes more efficient and effective has become an indispensable necessity. Here’s where ATS stands out as a significant tool to organize, track, and streamline recruitment processes.

Selecting the right ATS is key to optimizing your recruitment processes. Here are the steps you should take:

1. Conduct a Detailed Needs Analysis: Understand the needs of your business and HR department by conducting a thorough needs analysis. Consider factors such as the size of your business, industry, and operational structure to determine which features and functionalities are suitable for you. Identify which stages of the process ATS will optimize, such as application management, candidate tracking, communication, and evaluation.
2. Consider Desired Features and Functionalities: When selecting an ATS, consider the specific features and functionalities you need. Essential features include easy management of applicant submissions, customizable forms and processes, performance tracking, candidate assessment, and detailed reporting capabilities. Also, ensure that the ATS can scale with your business as it grows.
3. User-Friendly Interface: A user-friendly interface is crucial for effective ATS usage. Both users and business owners being able to easily navigate the system enhances productivity. Additionally, the ability to integrate with other software enhances efficiency. Mobile compatibility allows candidates to easily apply, while detailed reporting and analytical capabilities help you better track and improve recruitment processes.
4. Evaluate Other Considerations: Factors such as cost, security, reference checks, support, and training should also be evaluated when choosing an ATS. Making the right ATS choice is a crucial step towards optimizing your recruitment processes and effectively attracting talents. Consider your business needs, future growth goals, and efficiency improvements when making this decision.

In conclusion, while Applicant Tracking Systems (ATS) offer substantial benefits in organizing and optimizing recruitment processes, they also come with inherent limitations. These include the potential exclusion of otherwise qualified candidates, technical challenges, and the adjustment period required when transitioning to a new system.

However, selecting the right ATS involves understanding your organization’s needs, choosing features that enhance efficiency and scalability, and ensuring user-friendly integration and support. By carefully evaluating these factors, businesses can leverage ATS to streamline recruitment, enhance candidate experiences, and ultimately, attract and retain top talent effectively.

The key lies in balancing technological automation with human judgment, ensuring that ATS complements rather than replaces the nuanced insights and decision-making capabilities of recruitment professionals.