Key Benefits of an Applicant Tracking System (2023 List)

Recruitment is no longer about sifting through stacks of resumes manually. With 75% of large companies using an Applicant Tracking System (ATS) to review job applications according to Jobscan, it's evident that the age of technology has revolutionized hiring processes. But what exactly makes an ATS so valuable to recruiters? Let's delve into its key benefits.

What is an Applicant Tracking System (ATS)?

Before we hop into the benefits, let's define what an ATS is:

• Applicant Tracking System (ATS): A software application that enables the electronic handling of recruitment needs. It can be implemented or accessed online, often being integrated with company websites for job postings.

Top Benefits of an Applicant Tracking System

Streamlined Recruitment Process

• ATS platforms offer a centralized hub for job postings, applicant tracking, and communication, which streamlines the entire hiring journey, from posting a job to onboarding a candidate.

Reduced Time-to-Hire

• With automation and easy filtering features, recruiters can swiftly shortlist suitable candidates, significantly cutting down the hiring cycle's duration. According to Capterra, 94% of recruiters believe that using an ATS improves their hiring speed.

Enhanced Collaboration

• Multiple stakeholders – from HR managers to departmental heads – can collaborate seamlessly on a single platform, making collective decisions and reducing communication mishaps.

Efficient Data Management

• ATS platforms store all applicant data, resumes, cover letters, and communication logs systematically. This treasure trove of data can be leveraged for future hiring needs or analytics.

Cost Savings

• By automating various recruitment tasks and reducing time-to-hire, companies can achieve significant cost savings. Software Advice estimates that companies save an average of 20% on recruitment costs after implementing an ATS.

Improved Quality of Hires

• With advanced algorithms and keyword matching, ATS platforms ensure that only the most suitable candidates are shortlisted. This boosts the quality of hires and, consequently, long-term retention rates.

Compliance Maintenance

• Especially crucial for large corporations, ATS platforms automatically adhere to hiring laws and regulations, ensuring companies remain compliant and mitigate potential legal risks.

Are There Any Drawbacks?

While ATS platforms offer myriad benefits, potential pitfalls include:

• Potential Misfiltering: If not calibrated correctly, an ATS might filter out suitable candidates based on keywords, missing out on potential top talent.

• Initial Learning Curve: Like any software, there's an initial learning curve involved. However, with training, users can quickly leverage the platform's full potential.

A Must-Have for Modern Recruiters

The sheer efficiency, cost savings, and quality improvements offered by ATS platforms make them indispensable in the modern recruitment landscape. Whether you're a small business or a global conglomerate, leveraging the power of an ATS can redefine your hiring success.