ATS Pros and Cons: Why are Applicant Tracking Systems Powerful Hiring Tools?

A growing number of companies are using an applicant tracking system (ATS) every day.  The most important goal of using an ATS is to increase the quality of hires, while also reducing both time-to-hire and cost-of-hire.

Let’s explore the benefits and compare some ATS pros and cons.

Why Use an ATS?

These systems are becoming increasingly popular among companies of all sizes to manage the recruiting process. Below are the top reasons why employers choose to use an ATS.

The Key Benefits Of Using An ATS for Recruiting

The most important benefit of using an ATS is to increase the quality of hires. By using an ATS you can do this while also reducing both time-to-hire and costs-of-hire.

Below are key benefits that lead to those outcomes.

1. Streamline Hiring – From Start to Finish

One of the key employer benefits is a more structured and streamlined process. Workflow automation and centralized data helps teams stay organized. Automation can keep the process moving forward from job requisitions to onboarding while reducing the recruiters’ workload. An ATS ultimately reduces the cost of hiring by being more efficient with time and resources.

2. Eliminate Administrative Work

An ATS streamlines the hiring process by consolidating all information and communication in one platform, reducing the time and effort required for manual tracking and individual candidate coordination.

Through automation, most applicant tracking systems:

• Allow applicants to self-schedule interviews based on real-time team availability
• Automatically advance qualified individuals to the next phase and notify recruiters
• Send purposeful communications and reminders to applicants and hiring managers
• Facilitate onboarding with digital offer letter communications and payroll integration

3. Improve Candidate Screening

Organizations that use an applicant tracking system save time screening candidates and also improve their ability to identify top talent. Hiring managers can identify specific skills and qualifications and request recruiters to tag in the profiles.

Some positions may require specific skills, certifications or qualifications. The use of knockout questions in the application form benefits employers by ensuring they only interview applicants who meet the criteria to advance to the next stage.

4. Widen Your Talent Pool

Do you have trouble finding qualified candidates? Are you hiring for hard-to-fill positions? ATS provides many advantages during candidate sourcing:

• Manage multiple job board and careers page postings from a single dashboard
• Facilitate candidate outreach campaigns via email, SMS, and social media
• Save unsuccessful applicants who may be a better fit for a future open position
• Search for talent in applicant pools created across your organization

5. Improve Collaboration and Communication

Every inter-departmental team benefits from improved collaboration. Automating the job requisition process keeps things moving by allowing managers to complete a preset form with an automated approval workflow.

Sharable applicant profiles allow managers and other stakeholders to leave notes on the profiles for others to see. Collaboration keeps flowing without the need to schedule meetings.

Automated notifications can keep processes from getting stuck. Hiring managers are alerted when a candidate’s status has changed or a quick reminder to complete an evaluation.

6. Create an Engaging Candidate Experience

In a competitive market, it’s important to stand out in a good way to reduce drop-offs, creating an engaging candidate experience benefits both employers and applicants. In an increasingly competitive market, it’s important to stand out in a good way to reduce drop-offs.

7. Maintain Data Integrity

Applicant tracking platforms are important tools for storing all candidate information in a secure location. Centralized access benefits all team members in that everyone can see where each candidate is.

The system updates an applicant’s profile as they progress through the hiring process. It can add evaluations or interview scores as a stage completes to maintain profile integrity.

A well-integrated system operates as a single source of truth, benefiting the organization by reducing inconsistencies and data loss in manual information transfers.

8. Measure Hiring Performance Across the Organization

An ATS allows for easy data collection in the hiring process, helping to identify and remove bottlenecks. Multiple tools, manual processes and spreadsheets make it challenging for management to measure how much time is spent in each phase.

Accurate data facilitates process optimization, insights into hiring costs, and return on investment.

The best tracking software can help you understand:

• Which job boards are most productive
• How long do candidates spend in each phase
• How long does it take to hire for each position
• Team progress towards recruiting goals

9. Enhance Compliance

Staying on top of regulatory requirements is an important aspect of any hiring program. Using a tracking system can benefit an organization by configuring processes and workflows to meet requirements set by EEOC, OFCCP, and GDPR.

Applicant Tracking System Pros and Cons

There are many advantages these platforms deliver. Be mindful of potential risks as you choose and use the system. Here’s a summary of ATS pros and cons.

+ ATS Advantages

- ATS Disadvantages

It’s important to weigh the advantages against potential drawbacks and consider what internal measures could help mitigate these risks.