6 Things Every Business Owner Should Know About Applicant Tracking Systems
6 Minute Read
What Are Applicant Tracking Systems (ATS)?
Applicant tracking systems are specialized Human Resources software that automate the hiring and onboarding process. Each solution provides a different set of features. Most systems collect, track, and filter resumes and applications.
1. An Applicant Tracking System Saves You (Lots of) Money
Applicant tracking systems provide an impressive ROI. Companies of all sizes can save directly and indirectly. How much? A small company can save up to $10,000 in wasted time and effort using an ATS.
Another way companies benefit financially is by improving the quality of employees. An ATS help you identify top candidates and present an offer before the applicant is hired by a competitor. These high-demand employees drive productivity and innovation.
ATS’ help you fill positions faster. This shortens the time it takes for the new hire to generate revenue. ATS with onboarding tools further shorten the time-to-productivity.
When it comes to administration, ATS automation is truly impressive. Systems can handle hundreds (even thousands!) of applications, resumes, and other workflows. Not only do you save on the cost of labor for the hiring team, but you also free up their time.
They can use that time on improving hiring strategies. Improved hiring strategies can then help your business grow even faster
With the strategic use of an ATS, you can become the budget hero in your company.
2. Your Competitors Are Using An ATS
If you haven’t implemented an ATS, take note. 98% of Fortune 500 companies and at least 66% of large companies use it. The adoption rate for small companies is lower, but growing quickly. Last year, it was estimated that 35% of small organizations use ATS.
Keep in mind that you are also competing with talent sourcing agencies. The ATS adoption rate for professional recruiters is nearly 100%.
3. Applicant Tracking Systems Can Quickly Narrow Down The Application Pool
First, you create a job posting. Your ATS posts it to multiple online sites (of your choosing). The applications start coming in. The system collects and organizes them in a central database. It creates a profile for each applicant.
As you know, job seekers format their resumes in a variety of ways. The ATS extracts the information and organizes it in the same format for each candidate profile. In the profile template, there is a field for each relevant piece of data.
For example, there is a field for each degree earned, each previous job title, and each skill.
This type of organization gives you searching superpowers. You can analyze and compare by work experience, education, or previous employers. Or job titles, skills, or demographic variables.
Let’s talk about resume filtering. The software uses keywords from the job posting. It matches the keywords with those found in the resumes. Consider how long it takes you to read one resume. An ATS can parse thousands of resumes in seconds.
This process weeds out the candidates who don’t have the necessary qualifications and it delivers a pool of qualified candidates before you need to read a single resume!
4. ATS’ Can Post To Multiple Online Job Boards
With an ATS, your job posting gets maximum online exposure. Most will post to LinkedIn, Indeed, ZipRecruiter, Glassdoor, CareerBuilder, and Monster (just to name a few) with one click. While you’re at it, post it to your social media sites and careers page.
You create the job posting in the ATS, and the software takes care of the posting. This is a huge timesaver for busy hiring managers.
5. Applicant Tracking Systems Improve Collaboration
You are more likely to find high quality candidates if multiple stakeholders can weigh in.
But if expanding the hiring team slows down the process, the top candidates will lose interest. They will seek out firms that move faster.
ATS databases enable effective collaboration. Each decision maker can enter notes and applicant ratings. (The rating system is customizable, by the way.) Mobile apps allow recruiters to access the ATS from any internet-enabled device. Some systems include video interviews that team members can watch at their convenience.
6. Applicant Tracking Systems Can Help You Comply With Labor Laws
To say that recruitment compliance is complicated is an understatement.
The laws are always in flux and they vary by location, industry, and business size. Small companies have fewer resources to ensure that processes are compliant.
ATS help you comply with regulations related to hiring. Vendors update SaaS systems to stay current with hiring regulations.
In addition, ATS generate reports to protect you in case of a legal challenge.
For example, suppose a rejected candidate alleges discrimination. Don’t worry. Your ATS has the documentation to validate your legal hiring criteria.
SwipeClock ApplicantStack is the intuitive ATS of choice for small to mid-size organizations. View a free demo today.
By Liz Strikwerda
Simplify HR management today.
Simplify HR management today.
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