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Your Ultimate Guide to Applicant Tracking System (ATS): Everything That You Need to Know 

Managing job applications and the hiring process through technology isn’t a recent innovation.  

Applicant Tracking System (ATS) have a rich history spanning over several decades. Throughout the years they have undergone significant evolution. In fact, the first ATS system was developed back in 1970s. However, it was a very rudimentary software that could only offer only basic data entry and organization of applications. These old versions of ATS relied heavily on manual support for an efficient operation. 

The modern ATS available in the market today employ background automation and are much more capable of performing tasks by themselves. But what exactly is an ATS? What can you expect from it? In this blog, we will discuss everything that you need to know about an applicant tracking software to help you develop a very thorough understanding of these recruiting software

What is an applicant tracking system (ATS)?

An ATS is a specialized talent management tool that has been designed to help recruiters and organizations to manage their recruitment operations. An ATS software allows recruiters to collect talent information, organize their database, and to filter and manage the candidates. According to recent data, more than 90% of Fortune 500 companies are currently using an applicant tracking system to develop a more efficient hiring culture.

While there are HRIS software which allow recruiters to store and sort talent information, ATS systems have gained popularity because of the multitude of features that they offer. Most applicant tracking systems in the market enable an efficient talent collection, management and organization. Some of the better ATS systems in the market also offer insights and analytics to enable the recruiters to make better decisions and come up with better recruitment strategies. Best ATS systems today empower talent acquisition teams to track all communications with prospective hires in a single location and work more efficiently to effectively engage, interview, and analyze leads.

In short, applicant tracking systems (ATS) are talent management tools that have been designed to help recruiters find the top of the talents that closely match the job profile. 

How do applicant tracking systems work?

Person using an applicant tracking software to work faster and more efficiently

Applicant tracking systems (ATS) are designed to work alongside the recruiter every step of the way. 

An ATS software proves invaluable in every aspect of operations, whether it be drafting a job description or extending a job offer. Certain ATS systems in the market go as far as enabling users to automate job requisitions and offer letters, thereby, substantially alleviating the workload of their users.

In order to understand the working of a typical ATS better, let’s explore the functionality using an example. Somhako is one of the best ATS in the market, that is providing a cost-effective talent management solution to recruiters wordwide. 

Let’s try to trace the process of recruitment through an ATS, using Somhako ATS as an illustrative example. Here is an outline of the stages within this process:

  1. The recruiter adds a job requirement and a job description into this recruitment software. Somhako ATS allows users to generate an instant job requisition with the help of an AI. Other ATS in the market also have similar features. Some of them don’t offer an AI generated description but offer templates instead. 
  1. Once the requirements have been generated and added into the system, the job gets posted across multiple locations. The talent pool can now view, and apply, to this job. Their applications get collected within the database of the ATS software
  1. The applicant tracking software now proceeds to analyze these applications, cross-referencing the job profile details with the information provided in applicants’ resumes. Somhako ATS, for instance, prioritizes and ranks these applicant profiles for the benefit of recruiters while simultaneously suggesting candidates the positions that align closely with their resumes. This process significantly enhances the quality of talent search outcomes. Similarly, numerous other ATS systems provide resume parsing features, enabling the ranking and sorting of applicant resumes based on their relevance to the job. 
ATS system lets the recruiter review resumes and make quick desicions
  1. The recruiters then have to review these shortlisted applications and select the candidates that they think are suitable. In case of Somhako ATS, an automated selection email is promptly dispatched to both the candidate and the client, therefore expediting the interview scheduling. Similar functionality can also be found in other recruiting software available in the market. 
  1. ATS now ensures that the recruiter remains informed about the progress of the selected candidates throughout the hiring process. Recruiters also often have the option to add personal notes and feedback within the system, which they can revisit at a later stage.
  1. When a candidate clears the interview, the software will also often send an offer letter to the candidates. Somhako ATS, for instance, uses an AI to enable the recruiter to generate a customised offer letter every time. Other ATS software usually offer some similar features or templates. 
  1. When the candidate accepts the offer letter, they are “hired” into the HR system. This information is stored for future reference. 
  1. Some of the best ATS solutions in the market, such as Somhako ATS, meticulously track and analyze each stage of the process, generating insights that can be used by recruiters to consistently enhance their decision-making capabilities.

The automation and the organization that an ATS brings to the process of recruitment cannot be underestimated. By enabling swift action and unbroken communication, an applicant tracking software allows the recruiter and the organization to save a lot of time which is essentially the most precious asset of the corporate world.

So, what exactly can you do with an applicant tracking system (ATS)? 

The short answer is that you can save time and resources. 

ATS have become popular as recruiting software because they help recruiters and organizations to let go of a huge amount of tedium that hangs over their everyday processes. These software work as effective talent management tool to make the workflow more dynamic and promote a healthier and efficient work practice amongst recruiters. 

There are several benefits to using an ATS:

Benefits of an ATS:

  1. Wider talent pool
ATS systems can help you expand your talent pool

Most ATS systems have user friendly platforms to ensure a smooth workflow since that is what they have been designed for. An advantage of this approach is that the ease-of-application often attracts more candidates and therefore allows the ATS to have a larger talent pool. Some of the best ATS in the market also accept profiles from across nations therefore offering global opportunities and attracting skilled talent from diverse backgrounds. 

  1. Easier and dynamic workflow 

Needless to say, a better workflow is at the core of an ATS’s operation. ATS software are designed to make the recruiting process more engaging and less redundant as the software works in tandem with the recruiter to automate and streamline their workflow. This enables the recruiter to have more time at their hands, make better decisions, research more, and perform more efficiently.

  1. Effortless talent management 

Applicant tracking systems initially emerged in the 1970s with the primary aim of maintaining comprehensive data records for future reference. This is therefore a core benefit of using an ATS. Nearly all applicant tracking software automatically curate and preserve a repository of data, ensuring easy access for recruiters’ future reference and utilization. 

  1. Reduction in workload 

ATS can generate automated job requisitions, mail responses, updates, alerts, and interview schedules. This effectively relieves the recruiters of content generation and managerial tasks. Additionally, certain ATS systems extend functionalities to facilitate efficient Customer Relationship Management (CRM) practices, enhancing the overall workflow efficiency.

  1. Smart and healthy work practices

By ensuring that the recruiter only has to focus on shortlisting candidates, ATS software help to promote a culture of smart work practices. Some ATS also provide insights and analytics to the recruiters helping them to constantly come up with better strategies.

What features to expect in an applicant tracking system (ATS)?

There are a lot of ATS systems in the market, however some general features of an applicant tracking software include:

  1. Resume parsing and advanced search

ATS systems compare applicants’ information with the details outlined in the job description, conducting a thorough analysis of resumes within the database. This analysis facilitates recruiters in conducting advanced searches of resumes, allowing for precise filtering based on specific keywords, job titles, skills, experience, education, and other relevant criteria.

  1. Candidate sourcing options

Most ATS software enable recruiters to actively search for, identify, and reach out to potential talents for open positions.

  1. Integrated CRM features 

Some of the best ATS systems in the market also include some integrated CRM features to allow the recruiters to better manage their communications with the client and the candidates. 

  1. Automation 

An ATS integrates automation in the daily tasks making it easier for the recruiter to navigate through their day-to-day operations. 

  1. Automated updates and insights 
Applicant tracking system (ATS) providing updates and insights

Almost all applicant tracking systems offer automated updates to the recruiter to keep them informed about the status of the shortlisted candidates. Some of the best ATS in the market also offer data driven insights to help the recruiters in making better decisions. 

  1. Rapid interview scheduling 

ATS systems are often integrated with calendar applications and are driven to expedite the interview scheduling process. Some ATS even offer features to generate interviews automatically. 

  1. Templates for email communications and job descriptions 

Most applicant tracking software offer templates to ensure that the recruiter enters their preferences and requirements for the job which can then be used by the software in resume parsing. Some ATS also offer email templates to ensure that all communication that happens on their platform remains consistent and professional. 

How to find the best applicant tracking system (ATS) for your needs?

There are many ATS systems in the market but to find the best ATS for your needs, you would need to have a good understanding of your own hiring requirements as well as the talent management tools an ATS offers. We have identified three major pointers that could help you in identifying an ideal recruiting software for yourself:

  1. Identify your requirements

Before you begin your hunt for an ideal ATS, you should have a good understanding of your recruitment needs. Every organisation has a slightly different talent acquisition culture. Understanding yours could give you a good idea of what recruiting software will fit well with your workflow and what will not. 

It would also be a good idea to identify what kind of talent pool is the ATS software targeting. If you are looking for a localised talent pool then you should search for ATS that are popular amongst the local talents. However, if you are looking for scaling opportunities, then a multi-national ATS platform might be more suited for your organization. 

  1. Have a budget

It is necessary to have an approximate budget in mind before you start searching for the best ATS for your needs. We recommend searching for solutions under your budget and checking which software matches most of your requirements. There are also some free ATS software available in the market if you do not wish to spend. However, they often have limited functionality and do not offer a lot of features. 

If you are looking to buy an applicant tracking system, we recommend signing up for trials and demos before buying the software so that you can experience it first hand and see if it really is worth the cost. 

  1. Evaluate the ATS 

Before you make up your mind, it is essential to truly evaluate the ATS software you have in mind. We recommend truly taking your time and exploring every aspect of the software during the demo period to ensure that you have truly vetted the platform and identified all the pros and cons. Check for client reviews and testimonials. Check online forums for any issues that the users may have reported and take your time analysing every aspect of the recruiting software and its talent management tools before making a final purchase. 

Conclusion 

We hope that this guide helped you develop a general understanding about applicant tracking system (ATS) and we hope that you would now be able to select the best ATS for your needs.  If you are interested in knowing more about Somhako ATS, you can visit our website or book a trial with us!

Somhako is a leading, global talent intelligence company, dedicated to simplifying recruitment operations and driving peak efficiency for recruiters worldwide. Through its AI-driven applicant tracking system, Somhako empowers users to identify top talents, streamline workflows, automate operations, and enhance the efficiency of hiring rates. 

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