The pros and cons of Applicant Tracking Systems (ATS)

Jobscan research found that over 98.4% of Fortune 500 companies use Applicant Tracking Systems (ATS).  So what is ATS?

ATS software is a way of managing candidates during the hiring process. It helps to streamline the recruitment process.  It enables hiring teams to customize job ads, organise and evaluate candidates and track candidates throughout the hiring process. With large volumes of resumes an ATS can help to save companies a huge amount of time in quickly finding the right applicants.

What are some key  pros of using an ATS?

1.  With a large volume of open jobs and candidates, an ATS can streamline the hiring process, saving businesses time and money.  An ATS centralises the recruitment process. It allows hiring teams to filter and rank applicants and their resumes, email applicants with automated responses, track applicants and for the hiring team to collaborate throughout the hiring process.

2.  An ATS can improve the candidate experience by ensuring they get timely responses throughout the hiring process and speed up the hiring time.  It also allows for a simpler application process and data used to onboard successful candidates .

3.  The ATS collects a significant amount of data and becomes a vital database for potential future hires.  When used properly, it can be a way of identifying top candidates for future roles, thus saving time and money.

What are some key disadvantages of using an ATS?

1.  An ATS can reject desired candidates.  Filtering resumes with key words may exclude potential candidates who may fit roles well.  There can be biases within ATS's .   Jobscan analyzed nearly a million job searches and found that resumes with the job title in the headline received 3.5 times more interview invitations!

2.  Candidates may feel there is a lack of personal contact with automated communications .  This may leave candidates feeling under valued and frustrated.

3. Implementing an ATS can be a lengthy process and requires education within organisations in order to fully utilise their functionality.

4. An ATS only contains candidates that have applied for a role.  Thus it excludes a large number of other possible candidates - especially those not actively looking for a role. Internal talent acquisition staff then still need to source candidates proactively.

An ATS is a hiring tool. From a business perspective, it can create great efficiencies. However it can also exclude top potential candidates and result in candidates feeling disillusioned with such an automated process. Nothing beats personable experiences!