Talent Acquisition

What Is An ATS (Applicant Tracking System)?

Recruiting is one of the biggest challenges for growing businesses. Sorting through dozens of resumes to find the candidates with the skills you need can be tedious. An applicant tracking system (ATS) is one solution that can address some of the biggest recruiting woes and streamline your hiring process to get open roles filled faster.

What Is an ATS?

An ATS, or applicant tracking system, is a software system designed to help recruiters track applicant data and communications.  It offers a convenient way to review, rate, and communicate with candidates who apply to your open roles.

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Applicant tracking systems provide support throughout the entire recruiting process with features such as:

  • Building thorough and appealing job descriptions with helpful guides and templates.
  • Distributing the job posting to numerous job boards.
  • Providing a centralized platform to review candidates who’ve applied through different job boards.
  • Allowing multiple members of the hiring team to collaborate on candidate decisions.
  • Supporting in-platform candidate communications through email or text.
  • Identifying top candidates based on qualifications and pre-employment assessments.
  • Helping hiring managers prepare and send offer letters to selected candidates.

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How Businesses Benefit from an Applicant Tracking System

An ATS offers numerous advantages for businesses, from organizing candidate data to improving communication. Applicant tracking can be a great asset for businesses and hiring teams. Here are some of the key benefits you can expect when using an ATS.

Centralizes Applicant Data

Keeping track of applications can be tricky when you’re sourcing candidates for several different job boards or accepting applications via email. You don’t want a great candidate to fall through the cracks because their submission got lost in your inbox or in a sea of applications. An ATS centralizes applicant data, making it easily searchable for recruiters.

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Reduces Time to Fill a Position

Time to fill is a metric that measures how long it takes you to fill a role from the time a job is posted until the date that a candidate accepts a job offer. Typically, you’ll want a fairly short time to fill, which means you;re hiring efficiently. 

An ATS can help you do that by keeping the recruiting process organized and helping you find top talent quickly. With smart screening tools and built-in pre-employment assessments, recruiters can identify top candidates promptly and reach out while the candidate is most interested and engaged. 

Makes It Easier To Identify Top Candidates

The job market is tough right now and many businesses are getting more applications than usual. The problem is that sorting through all of those applications is time-consuming and many candidates may not have the skills or experience that you need. 

Wize Tip: Applicant tracking systems make it easier for the strongest candidates to rise to the top of your list.

With an ATS, recruiters can search for the skills, education, or work experience they’re looking for to find the most qualified candidates. Many offer the option to add screening questions to verify whether applicants have the baseline requirements you’re searching for. Some even let you take it a step further with skills assessments or personality tests to get a more well-rounded view of applicants and find the best fit for your team.

Simplifies Compliance

Recruiting compliance can be tricky, especially if you’re hiring remote employees from different areas. An ATS can address several compliance concerns including:

  • Maintaining compliant and secure documents and information storage to protect candidate data.
  • Collecting compliant e-signatures on documents such as offer letters.
  • Providing legally vetted job offer templates.
  • Offering guidance on onboarding compliance.

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Applicant Tracking Systems Also Offer Candidate Benefits

Recruiters aren’t the only ones that benefit from using ATS. Candidates can also enjoy several benefits throughout the hiring process.

Faster Communication and Response Times

Poor or slow communication during the hiring process is one of the biggest frustrations for candidates. It’s often not intentional, but hiring managers can get busy or an email can get lost in their inbox. 

With an applicant tracking system, hiring teams can tighten up their candidate review timelines and get back to candidates sooner. In-platform communication management also helps ensure that hiring managers aren’t missing candidate emails and follow-ups.

54% of job seekers would disengage/lose interest in a job if the employer showed a lack of communication or follow-up.

Source: Wizehire -YouGov Job Seeker Survey

User-Friendly Onboarding

Once you’ve selected your top candidate, you can use an ATS to send offer letters and background check authorizations. ATS platforms often make onboarding forms more user-friendly for candidates, as they can quickly read and sign them through the ATS interface rather than having to print them out or sign them with a PDF editor.

Features To Look For in an Applicant Tracking System

Sorting through all of the options can be cumbersome if you’re new to the world of applicant tracking systems. Here are some key features and considerations to look for when you compare options.

Great Customer Support

The amount of support that you’ll get while setting up and using your system can vary widely between ATS vendors. Some vendors just have a basic support line or chat support, while others provide you with a dedicated implementation manager and customer success manager. For businesses that are new to using an ATS, having dedicated ongoing support can make a huge difference. 

Candidate Evaluation Tools

Some ATS include candidate evaluation tools such as pre-employment assessments or pre-screening questions to help hiring teams learn more about candidates. For example, Wizehire supports DISC+ personality assessments to evaluate the candidate’s work style, motivators, and personal strengths. This can give you a better idea of how the candidate would fit with your current team and grow in the role.

Job Templates and Interview Guides

Creating an eye-catching yet informative job description takes time. The job posting is your first opportunity to capture a candidate’s attention and get them excited about the opportunity to work with your business. It also has to be thorough and informative. 

To save time and provide a good foundation for your job posting, some ATS include job description templates. Others, including Wizehire, even offer interview guides to help you ask the right questions during phone screenings, interviews, and reference checks.

How to Get Started with an Applicant Tracking System

To get started in using an ATS, you’ll want to select an ATS vendor and work with their implementation team to set up your account. To take advantage of all of the excellent ATS features discussed above, such as candidate evaluation tools and hands-on support, set up a demo to learn more about Wizehire’s ATS.

Wize Words

Using an applicant tracking system can streamline the hiring process and help you find the best fit for open roles. By cutting down candidate review times and keeping communication organized with an ATS, you can not only provide a better experience for your recruiting team, but also for your candidates.

Frequently Asked Questions About Applicant Tracking Systems

How much does an ATS cost?

The cost of using an ATS can vary greatly based on the vendor and package that you choose. While there are a few free ATS options, they are typically quite limited and may not meet the needs of small and growing businesses. You can view Wizehire’s plans and pricing to learn more about costs and plan options.

Can an ATS integrate with other HR and payroll tools?

Yes, some ATS software systems can integrate with payroll or HRIS tools. Integrating payroll or HRIS software with your ATS can streamline the employee onboarding process, so this is a great thing to inquire about when choosing an ATS. Wizehire supports both payroll and advanced HRIS integrations, though specific integration options will vary by plan.

What types of businesses can benefit from using an ATS?

Applicant tracking systems aren’t just for large businesses or specific industries, any business can benefit from using an ATS. Using an applicant tracking system for small business hiring is a great way to allow small HR teams to cut down on administrative time while hiring. Large or growing businesses often have several open roles at once and will benefit from having an ATS to keep all of the applications sorted and organized correctly.

What features are most important in an applicant tracking system?

The most important features of an ATS include job posting distribution, resume parsing, candidate tracking, interview scheduling, and collaboration tools for hiring teams. Look for systems with automation capabilities, customizable workflows, and reporting tools to streamline the hiring process. Additionally, ensure the ATS integrates with job boards, career sites, and your existing HR tools for maximum efficiency.

How long does it take to implement an ATS?

Implementing an ATS typically takes a single day to a couple of weeks, depending on your plan’s complexity and your company’s size. User-friendly hiring platforms with dedicated support teams—like dedicated Wizehire Coaches—can significantly reduce setup time, allowing you to start posting jobs and tracking applicants quickly.

How safe is the data that’s stored in an applicant tracking system?

Most modern ATS platforms prioritize data security with encryption, access controls, and compliance with regulations like GDPR. Choose an ATS provider with a strong track record of protecting sensitive applicant and company data, and ensure your team understands best practices for maintaining security.

Author

  • kaylyn-mckenna

    Kaylyn McKenna is an experienced writer who specializes in HR and workplace topics, such as employee engagement, workplace policies, recruiting strategy, and DE&I. Her work has been featured on TechRepublic, Business News Daily, and Business Management Daily.

    View all posts Writer
The article was reviewed by Courtney Woods

Kaylyn McKenna

Kaylyn McKenna is an experienced writer who specializes in HR and workplace topics, such as employee engagement, workplace policies, recruiting strategy, and DE&I. Her work has been featured on TechRepublic, Business News Daily, and Business Management Daily.

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