7 Reasons Why Your Company Needs an Applicant Tracking System (ATS)

Applicant tracking systems have taken the world of recruitment by storm. An ATS is HR software designed to work as a talent management tool for recruiters. With the help of these platforms, a recruiter can gather and organize the candidates’ information and optimize their time. However, despite the growing popularity of ATS software, many companies still hesitate to make the switch to ATS. Their dependency on manual recruitment is not only burdensome for their employees but is also the leading cause of the inefficiency in their processes. If you are thinking about making a switch to applicant tracking systems and wondering exactly how can an ATS benefit your company, here is a list of 7 reasons to help you decide whether your company needs an ATS or not

What even is an ATS?

Before we help you understand why using applicant tracking software is an effective and successful recruitment practice, let’s first learn what exactly ATS is. 

An ATS, or applicant tracking system, is a talent management software used by organizations to streamline and manage their recruitment processes. It acts as a central hub for collecting, sorting, and organizing job applications and candidate information. ATS systems enable recruiters to post job listings, screen incoming resumes, track the progress of applicants through various stages of the hiring process, and manage communication with candidates. These systems often use algorithms to parse resumes, extract relevant data, and match applicants with job requirements. This is why many organizations are using ATS software to enhance the efficiency of their hiring processes. 

Why should you get an ATS?

But how exactly will an ATS work? How does an ATS help? Why do companies invest in an ATS at all, and should your company invest in one as well?

Well, you should think of an ATS as a talent management tool. While it is a very convenient way to interact and engage with a vast talent pool and find the best people to hire for your company, it does so much more than that. We have compiled a list of 7 reasons why companies invest in an ATS to help you understand whether your company needs an ATS as well.

7 Reasons why your company should get an ATS

1. ATS systems save time

The biggest advantage that an applicant tracking system can offer any company is that it can save them their biggest resource: time. By automating job board postings, and CV submissions, and standardizing the process of adding job descriptions, ATS ensures that employees won’t need to manually input data into spreadsheets. Such software will collect all of the candidate data automatically and sometimes even offer an AI-based pre-screening so that additional time is not wasted on unqualified applicants.

2. ATS software facilitates efficiency

ATS software enables smoother talent management by enabling recruiters to easily manage their workflow and track incoming applicants. This keeps their tasks and data organized. ATS systems also perform very quick searches throughout the talent pool, making it easier for the recruiter to navigate through their daily tasks. Some of the best ATS systems also allow recruiters to get more insights to optimize their recruitment cycles, therefore ensuring that they follow only the best and most efficient recruitment practices. 

3. ATS platforms enhance productivity 

As per the present data, more than 90% of Fortune 500 companies are using ATS software to optimize their hiring processes. This is because ATS platforms have many features and functionalities that improve the recruiter’s productivity. Automation of tedious tasks like job posting on multiple job boards and integrated email templates encourages a smoother workflow that not only impacts the recruiter’s morale positively but also enhances their productivity.

4. ATS systems improve the quality of hire

Applicant tracking software is designed to automatically identify top talents that best match the job requirements. They also automatically screen out under-qualified applicants, making it easier for the recruiter to find a good match. Some of the best ATS on the market also offer analytical insights to help recruiters review their recruitment process better. Having the ability to better screen and qualify candidates, and being able to get data-based insights is bound to impact and improve the recruiter’s decision-making, therefore, ensuring a higher employee retention rate.

5. best ATS systems offer performance reports

You can also track the efficiency and progress of your HR department with the help of the performance reports and analytics offered by ATS platforms. Some of the best ATS on the market provide consistent reports that allow you to monitor key recruitment metrics and gain useful insights to better manage the recruitment process. 

6. ATS software gives access to a better talent pool

Applicant tracking systems have a vast talent pool because it is very easy for candidates to apply for jobs on such platforms. Such platforms therefore offer a diverse database of candidates, sometimes even including candidates from other nations. This makes ATS software the perfect choice for companies that are planning to hire talent from all over the world. 

7. ATS systems facilitate better candidate experience

Candidate experience is one of the biggest aspects when it comes to evaluating a good hire. The better the candidate’s experience, the better it is for both the company and the talent that has been hired. ATS systems ensure that only the candidates who have the required skill set and are well-suited for the position are hired, thereby increasing the chances of both the candidate and the company being satisfied with the hire.

When to get an ATS?

Most organizations and startups decide to invest in an applicant tracking system when they notice that their business has started to grow. With new positions that need to be filled, the workload in the HR department of a company is bound to increase. However, an increase in the pressure to perform doesn’t help in increasing the performance. Many studies have shown that excessive workload tends to affect employee performance and health negatively. Therefore, it is often recommended that a company invest in an ATS the moment they experience significant business growth. Companies that invest in an ATS platform at the right time can help their employees manage the challenges of recruitment while also ensuring better hires for themselves. 


In this blog, we discussed only the top 7 reasons why we think that your company should get an ATS. However, before you make your final decision, we recommend that you evaluate your needs and research the best ATS systems available on the market. It goes without saying that an applicant tracking platform eases up the workload of recruiters, enabling them to automate and manage administrative and manual tasks better and therefore help in achieving better and improved hiring results. You can also consider checking out our ultimate guide to ATS if you wish to learn more!

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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