What is Applicant Tracking System (ATS)?
Applicant Tracking Systems (ATS) is a software utilised in the recruitment process to manage and structure data related to job applications. These systems gather information from candidate resumes, eliminate those who do not meet the qualifications, and assist in arranging interviews. ATS is a repository for data, such as resumes, cover letters, references, and other pertinent recruitment and hiring information, which can be easily accessed and managed by HR teams. They monitor the status of job applicants throughout the recruitment pipeline, filter out those who do not meet the criteria, and suggest the most suitable candidate for a position based on the parameters established by HR. ATS are beneficial for companies as they help in organising and analysing a large volume of applicants simultaneously.
Table of Content
Features of Applicant Tracking System (ATS)
1. Advanced Search: This feature allows organisations to filter applications based on specific parameters. These parameters can include keywords, job titles, skills, experience, education, and more. It helps to reduce the count of applicants.
2. Candidate Sourcing: This is a proactive approach to finding potential candidates for open positions. It involves searching for, identifying, and reaching out to individuals who could be a good fit for the job.
3. Multi-Channel Candidate Sourcing: This approach involves using multiple channels to find potential candidates. These channels can include job boards, social media platforms, and employee referrals. It broadens the scope of the search.
4. In-built CRM Software: Some Applicant Tracking Systems (ATS) come with integrated Customer Relationship Management (CRM) software. This feature allows you to manage all organisational needs on a single platform, enhancing efficiency.
5. Email Templates: Most ATSs offer email templates to ensure consistency in communication. These templates help maintain a professional tone in all correspondence with candidates.
6. Advanced Analytics and Reporting: This feature allows you to generate detailed reports about job seekers, hiring trends, and other relevant data. It provides valuable insights that can guide your recruitment strategy.
How does an Applicant Tracking System (ATS) Work?
1. Many applicant tracking systems (ATS) primarily serve to automatically scan resumes and applications, identifying candidates who are suitable for the next stage of recruitment. These systems often employ filters based on keywords and predefined parameters such as years of experience, skill sets, and other criteria specified by the organisation to select applicants. However, some ATS are now utilising more sophisticated techniques like artificial intelligence and natural language processing for application screening.
2. Every feature of an ATS is engineered to enhance the recruitment process for both recruiters and applicants. Integrated communication channels and automated email reminders enable recruiters to maintain regular contact with applicants, thereby making applicants feel more engaged and informed throughout the process. ATS also acts as a hub where recruiters and hiring managers can provide feedback and collaborate to select the most suitable candidate , ensuring that organisations do not miss out on top talent and applicants are kept informed about their status.
3. Furthermore, many organisations employ ATS to evaluate and refine their existing recruitment process. With the capability to generate reports on their hiring data, recruiters can pinpoint bottlenecks and drop-off points that might be adversely impacting the applicant experience.
4. ATS is designed to streamline the management of active job applicants. Its primary objective is to simplify certain tasks and enhance efficiency when dealing with a large pool of job applicants. An ATS enables the hiring manager to post job descriptions, manage applications, select interview candidates, and progress with the recruitment process. The appropriate ATS can result in cost savings within the recruitment budget and improve the overall hiring score.
Accuracy of Applicant Tracking System (ATS)
Although Applicant Tracking Systems (ATS) can streamline the recruitment process, they are not without flaws. A Harvard Business Review study found that 88% of recruiters believe that ATS overlooks qualified candidates who don’t meet the job description’s exact criteria. This indicates that ATS may overemphasize keywords, neglecting to consider a candidate’s skills, experience, or qualifications. Consequently, candidates who lack the “right” keywords on their resumes, despite being qualified, may be inadvertently disregarded.
Users of Applicant Tracking System (ATS)
Applicant Tracking Systems (ATS) are widely used across various organisations. If you’re applying to a large organisation or through an online form, chances are you’ll encounter an ATS. Even job sites like Indeed and LinkedIn employ their built-in ATS. Given the prevalence of ATS, it’s crucial to use appropriate keywords and format your resume in a way that’s easily readable by ATS software. ATS is here to stay. Here are the usual users of the ATS system, aims
1. Fortune 500 Companies: Nearly all Fortune 500 companies use ATS to filter resumes, ensuring only the most relevant candidates are considered.
2. Large Corporations: A significant portion of large corporations rely on ATS for recruitment, streamlining the hiring process efficiently.
3. Small and Medium Businesses: Many SMBs have adopted ATS to manage their recruitment needs, despite having fewer resources than larger companies.
4. Recruitment Agencies: ATS is a staple for recruitment agencies, aiding them in managing multiple client hiring processes simultaneously.
5. Human Resources Departments: HR departments across various industries use ATS to handle the influx of job applications and resumes.
6. Hiring Managers: ATS provides hiring managers with tools to review applications and move candidates through the hiring pipeline.
7. Tech Startups: Startups, especially in tech, utilize ATS to compete for talent in a fast-paced, innovation-driven market.
8. Healthcare Providers: Healthcare organisations use ATS to meet the demand for skilled professionals in a critical sector.
Differences between ATS and CRM
|
Basis |
ATS |
CRM |
|---|---|---|
|
Objective |
ATS aims to simplify and automate recruitment workflows. | Recruitment CRM aims to design cultivate, and sustain relationships with candidates. |
|
Candidate Database |
ATS focuses on candidates actively seeking jobs. | CRM encompasses both actively and passively seeking individuals. |
|
Sorting Candidates |
ATS sorts candidates based on their present employment details. | Recruitment CRM sorts them according to the roles they aspire to. |
|
Engaging Candidates |
ATS has restricted capabilities in tracking candidate engagement. | Recruitment CRM offers robust tools for engagement analysis and relationship cultivation. |
|
Metrics for success |
ATS provides fundamental hiring metrics, like time-to-hire. | Recruitment CRM delivers detailed metrics for informed decision-making. |
|
Core features |
ATS is geared towards reducing administrative burdens in recruitment | Recruitment CRM emphasizes fostering candidate connections and managing relationships. |
Frequently Asked Questions (FAQs)
1. What is Resume Parsing in an ATS?
Resume Parsing is a feature in an ATS that extracts essential data from resumes, such as contact information, work history, educational background, and skills.
2. How does the Advanced Search feature work in an ATS?
The Advanced Search feature in an ATS allows recruiters to filter applications based on specific parameters, like keywords, job titles, skills, experience, education, etc.
3. What is meant by Multi-Channel Candidate Sourcing in an ATS?
Multi-channel candidate Sourcing refers to the use of multiple channels, such as job boards, social media, and employee referrals, to find potential candidates.
4. How does an ATS help in scheduling interviews?
An ATS can automate the interview scheduling process, eliminating the need for rescheduling, sending reminders, or coordinating multiple calendars.
5. What is the significance of using the right keywords in a resume for an ATS?
Using the right keywords in a resume is crucial, as ATS often emphasizes keywords. A resume may be overlooked if it doesn’t contain the “right” keywords, even if the candidate is qualified.
Conclusion
Applicant Tracking Systems (ATS) play a crucial role in modern recruitment processes. They streamline the hiring process by automating tasks such as resume parsing, advanced search, candidate sourcing, and interview scheduling. ATS also integrates with various software types and allows real-time collaboration. However, they are not without flaws. Overemphasis on keywords can lead to qualified candidates being overlooked if their resumes don’t contain the “right” keywords. Therefore, candidates need to use appropriate keywords and format their resumes in a way that’s easily readable by ATS software. Moreover, an ATS needs to be fully optimised with CRM to avoid wasting time on non-value-added tasks and focus on strategic initiatives. Overall, ATS is here to stay and continues to evolve to meet the changing needs of recruitment.