What is an applicant tracking system?An applicant tracking system (ATS) is software that manages the recruiting and hiring process, including job postings and job applications. It organizes information about job seekers and makes it searchable. As its name implies, an ATS tracks candidates through the hiring process. It helps with interview scheduling, issues notifications and alerts, and sends automated emails to candidates and employees, such as recruiters and hiring managers. Show
But these systems are far more than organizers. An ATS is also used to cull applicants and recommend the top candidates. It may conduct a preliminary analysis of the applicants to find the best fits for a job. It may also look for keywords or use AI-type algorithms that run a deeper analysis of the job applicant. The goal is to speed HR's review of job applications and resumes.
How the applicant tracking system process worksAn ATS helps an organization manage each step of the hiring process, from writing the job ad to making a job offer. This includes integrating with major job boards to streamline job postings, organize applications and allow candidates to create profiles. The ATS keeps track of all the activity that takes place around the candidate. The following steps are typical of a recruitment process:
Importance of ATS in recruitment and hiringUsing an ATS is important in many ways, even for small companies. First, candidates have come to expect companies to provide a positive candidate experience and user-friendly application process, which most applicant tracking systems provide. Second, for the employees involved in the recruitment process, such as recruiters, hiring managers and approvers, an ATS automates and streamlines the hiring process. Finally, an ATS provides a repository of data for future reference, for example, when a past candidate applies for a new job, or can be used as a tool to search for potential candidates in applications for previous job postings. The term "applicant tracking system" is in wide use, and an ATS is considered a subset of a recruitment management system. The latter acts as an umbrella term for any technology that deals with recruitment, including candidate relationship management systems. Candidates in the ATS, but not selected for an immediate job, might be considered part of the talent pipeline and available for future opportunities. The candidate relationship management system maintains a connection to those prospects. Benefits of applicant tracking systemsAn ATS is designed to organize and speed up the hiring process by providing the following capabilities and benefits:
Key ATS featuresTaking full advantage of the features available in an ATS can help reduce manual processes, engage potential candidates and ultimately fill open requisitions faster and with better candidates. But many ATSes have other features and benefits that might not be as obvious. For example, an ATS can be used to encourage people to apply. Some systems use chatbots to interact with candidates and help them complete their applications. They may also attempt to keep candidates engaged, update job seekers on their status and alert them if additional information is needed. An ATS also enables collaboration by allowing anyone involved in the hiring process to stay abreast of the progress in filling a job and contribute to the candidate selection discussion. An ATS may use varying degrees of intelligence to sort candidates. The technologies range from keyword matching to algorithms that take a deeper look at each candidate's data. In response to a resume, the ATS may send the applicant a series of questions to help recruiters learn more about the candidate. ATS products that use these keyword-based screening methods are starting to see competition from systems that use machine learning approaches and natural language processing (NLP). Some vendors are building in capabilities that analyze a firm's past hiring decisions to discover the characteristics of top-performing employees. This data on current employees is then used to inform the ATS algorithm, which searches for patterns in work history and education that are indicative of success. Another goal of these ATS technologies is to reduce bias, unconscious or otherwise, in recruiting and hiring. For example, machine learning and NLP are applied to job ads to avoid wording that subtly discourages a man or woman from applying. Bias is a major issue in hiring, according to researchers. Job sites are adding ATS-like tracking features and moving away from the idea that they are just job boards. Some rank applicants by how well they meet the qualifications in the job ad. Job sites may also offer integration with an existing ATS. Choosing an ATS vendorThe ATS market is competitive and crowded, and there are at least 100 ATS vendors. IDC estimated that worldwide revenue from talent acquisition technologies and services -- including ATS and recruiting software -- would grow at a compound annual growth rate of 5.2% from 2019 to 2023. The advantage of the large number of vendors is that you can choose the one that best fits your organization in terms of functionality, cost and other criteria that are important to you, such as cloud-based vs. on-premises deployment. When searching for an ATS, there are two types of vendors to consider.
Popular applicant tracking systemsProminent products from the specialized ATS vendors include the following:
How applicants can 'beat' applicant tracking systemsApplicant tracking software systems are designed primarily to help the recruiting team streamline its processes. Because of this, a candidate's resume may never be seen by a human, and if it is, it may only be for a few seconds. In the past, applicants could employ tricks such as using colored paper to make their resumes stand out. Today there are new tricks to try to beat the system and increase the likelihood of a successful application.
The future of applicant tracking systemsApplicant tracking systems have come a long way in the past 10 years. Once used primarily to simplify the most routine tasks, today they can host video interviews, parse candidate resumes and more. The future of applicant tracking systems will most likely bring a refinement of the functions they already provide. Examples include a continued focus on usability, out-of-the-box integrations with additional HR systems and improvements to the AI capabilities. It is also expected that vendors will keep looking for opportunities to simplify the end-to-end process for recruiters. With some job postings attracting hundreds of applicants, anything that can be done to make the recruiter's job of reviewing applications, communicating with candidates and working with hiring managers simpler should pay big dividends. This was last updated in July 2022 Continue Reading About applicant tracking system (ATS)
Dig Deeper on Talent management
Which of the following best defines recruitment in an organization?Recruitment refers to the overall process of attracting, shortlisting, selecting and appointing suitable candidates for jobs within an organization.
Which management function includes setting standards in organization?Control in management includes setting standards, measuring actual performance and taking corrective action in decision making.
Which of the following terms contains information regarding machines and equipment used at workplace?What is Harmonious relationship at workplace?
...
. What is the vital role of HRM in finding and hiring for a job?HRM professionals cover a wide range of responsibilities to assist prospective candidates as well as current employees. The professionals in a company's HR department create and manage job postings, evaluate applications and resumes, schedule and conduct interviews, onboard and train new hires and more.
|