Applicant Tracking Systems

What is Applicant Tracking Software?

Companies of all sizes constantly look for ways to run more efficiently, especially when it involves their most valuable asset: employees. One offering on the market that helps in this area is applicant tracking systems, also referred to as applicant tracking software, or ATS for short.

This centralized tool manages the employee recruitment process from start to finish. Beginning with candidate searching, applicant tracking software helps with details routine through the date of hire. Some of the common features available to HR managers include career sites, job postings, tools for interviewing and using analytics.

Typically, one job posting generates hundreds, if not thousands, of resumes. Optimizing and automating different aspects of finding the best talent is crucial. As companies grow, an ATS becomes a crucial part of the hiring and scaling process.

There is no shortage in the demands for using hiring software. Talent acquisition is a $120+ billion market worldwide as a majority of companies are using some type of applicant tracking software.

Companies easily spend an average $3,500 per hire. This makes the cost of hiring the wrong person a great concern. With more than 400 competitive solutions for hiring the right person for the job, the market for ATS is expected to grow significantly year after year.

Comparing Features of an Applicant Tracking System

The applicant tracking system serves as a digital hub for hiring employees. This type of system allows companies to have one centralized place for recruiting candidates. All information about each applicant, current job openings and placements get stored into one database.

Most software applications include a website feature. This allows potential employees to complete job applications online. Companies can customize questions to fit their hiring needs.

Previously determined keywords take completed applications through an automated parsing and screening of resumes. Qualified candidates get saved in the database. Hiring managers avoid sifting through hundreds of applications.

Another feature comparison is of applicant tracking systems that integrate with office calendars. This automates interview scheduling based on open slots.

Applicant tracking software comes with document templates like offer or rejection letters to save time in creating each individually. There are also some systems on the market that can provide background checks. Verifying paperwork is another feature that helps to streamline the onboarding process once a suitable candidate is found.

Companies can take advantage of a brandable career site that features job openings and pre-screening questions. They can customize input forms to help ensure selected applicants fit job descriptions.

What Makes a Good Applicant Tracking System?

A good applicant tracking system automates email notifications for selected candidates. It will also have an internal portal for current employees to view and apply to postings, and refer candidates.

There are other basic features to ATS systems such as an advanced search and sorting option. Hiring managers may find this useful in making quick searches by keywords, phrases, experience and skills.

Applicant tracking allows uploading of files, documents and other information related to a candidate’s qualifications for an open position. Some vendors may also call this candidate relationship management because this feature also includes reference checking and assessment tools.

Video interviewing is a popular feature, especially for companies searching for candidates in a different state or country. Most sophisticated applicant tracking systems offer this and automatic scheduling of interviews.

Analytics provide a wealth of information on what is working and/or may need some tweaking. With ATS managing a paperless recruiting process, hiring managers can gather, store and generate helpful reports. They can use the data to identify potential bottlenecks in their hiring process.

Additionally, they can track career site management, social media recruitment efforts and advertising campaigns.

Other functionality and workflow customization round out features of using an applicant tracking software. Companies can take advantage of document collaboration, event management, integrated marketing automation, job board postings, rules and permissions, and website integrations.

Each of these features vary among the different available systems. Some vendors offer each feature as add-ons. Others have systems where these features are standard offerings.

The number of features available, along with varied ATS options, makes it fairly simple for companies to compare. They can look for various monikers such as talent lifecycle management, recruiting software, human capital management and hiring software. Each one offers a combination of features to get the job done.

ATS solutions began by scanning paper resumes into one database to help HR sift through a mountain of resumes for one open position. The technology of this recruiting software has evolved to manage workflow in the hiring process.

Now, hiring managers can filter, manage and analyze candidates before scheduling the first interview. They have access to social media recruiting and task management tools. Modules for billing, PR, CRM and client access are also available with some recruiting software programs.

Challenges and Benefits of an Applicant Tracking System

When compared to an applicant tracking system, recruitment software offers a complete solution for any company’s hiring process. Still, talent management software sits at a crossroads as this market changes rapidly.

This is creating a blurred line between the different systems. It requires constant releases of new features for vendors to differentiate themselves from a crowded market. What is really happening is that next generation features in new releases quickly become standard. This leaves no obvious way for companies to discern one system from another.

Another potential challenge for a constantly changing market is a confusing lexicon. It will take standardization among providers to help companies make the best choice for their needs.

An example of this is how some vendors choose to only use the term applicant tracking software to describe their solution. However, the inclusion of sourcing, tracking, onboarding and analytics means it could also be considered a recruiting software program. Alternately, some vendors use the term recruiting software to market their solution. This is done despite the features that make it an in-house ATS system.

Other vendors seem to want to make things easier for all involved by simply embracing both terms. They choose to market their solution as a recruiting and applicant tracking software system.

The fact still remains that talent acquisition continues to be a strategic and critical part of HR functions. Therefore, the best thing for companies to do is look beyond market fights to agree on different terms. Their focus is best used in finding a solution that fits their business goals. The problems they want to solve, areas that can benefit from streamlining and automating are what’s most important. Knowing what the company needs ensures they will select the best system whether it is called recruiting software or ATS.

Trends in the ATS Industry

The hiring process is more than simply capturing and tracking resume submissions. This change toward managing the people network intersects four key trends that impact innovations in the ATS industry.

Assessments and videos

One challenging question for any recruiter is whether a candidate is just trying to sell themselves or is really qualified. Online tests help them validate an applicant’s skill to ensure they get the right candidate.

Video meetings and interviews are useful when recruiting internationally for positions. The video feature also helps to ease scheduling issues. It can guarantee authenticity and standardization. The hiring team using the same interview process with each qualified candidate can evaluate them independently.

Online talent networks, employee referrals and social recruiting

Recruiting is well beyond just posting openings to a job board. Companies must engage online talent networks that include current and past employees, candidates and fans. Some may even include customers. All these connections are helpful in getting referrals so recruiters can find talent faster.

Social recruiting leverages data in social networks. Recruiters can use automation, gamification and personalized messaging to target potential candidates.

Mobile-first and web-based platforms

Most Americans own a smartphone, which makes mobile recruiting a smart decision. Candidates can apply and interview from their phones. This option also helps hiring managers move away from traditional technology and use newer devices to recruit. With web-based platforms, hiring is possible from any place at any time.

End-to-end workforce management

The entire hiring process is digital. Hiring managers can use recruiting data and analytics to predict which applicants are a good fit. This tool also helps them analyze the process from user experience, to marketing programs and mobile applications.

All-in-one systems can handle onboarding and talent management to keep track of employee progression. HR becomes more functional with the elimination of duplicate data and other inefficiencies in the workforce management process.

Common ATS Applications

Choosing the right ATS application is best viewed as getting a strategic partner in the hiring and management of candidates and employees. Companies will want a software vendor that offers a long-term relationship that can withstand changing business needs.

The ATS market follows three standard business tiers to match companies of all sizes and types: enterprise, agency and small-to-medium businesses.

Enterprises are considered large organizations. These can benefit from a tracking system that integrates with enterprise resource planning or HR systems that already exist within the organizations.

Strong collaboration features can benefit global enterprises. They can share applicant data and get feedback from recruiters.

High-volume staffing agencies may require features similar to enterprises. They can benefit from industry-specific recruiting software. Additionally, they will need features such as customer relationship management to handle client needs.

Small-to-medium sized businesses can benefit from the same features that help enterprises. The difference is SaaS deployments allow simpler formats that are affordable.

Companies that do not have a HR department may opt for free applicant tracking software systems. While this can fulfill some basic need in the beginning stages, companies will need to invest in a paid solution as they continue to grow.

Small-to-medium sized businesses should plan for scalability when they consider feature requirements. Upgrades are not necessarily the answer to avoid transferring data to another system. A more economical solution could be to find a vendor that continuously matches their goals and growth projections.