What is an Applicant Tracking System?

Applicant tracking system (ATS) is a human resource software application that enables companies to manage applicant information during the hiring process by capturing job applications and resumes,. automating the recruiting process, and managing information of potential candidates.

Applicant tracking systems act like databases for recruiters and hiring managers to stay organized, streamline the hiring process, and communicate with large groups of applicants.

Applicant tracking systems allow companies to search through candidate information, ask pre-screening questions, and often automate email communication, all to save time and avoid human error.

How do Applicant Tracking Systems work?

Knock out Questions

All ATS follows the same basic process. When an applicant applies through an ATS they have to answer what are known as “knock out” questions. Also known as screening questions or pre-interview questions, these are used as a vetting process to save hiring managers from wasting time on unqualified candidates. Knock out questions are designed to narrow the pool of applicants by eliminating people who are unwilling or unable to perform necessary job functions, don’t meet the requirements, or show other red flags.

If the applicant answers the questions incorrectly, their resume will be flagged or automatically rejected. When the questions are answered correctly, the applicant’s resume will be pushed through to the next stage of the process.

Searchable Resumes

Applicant tracking systems store resume information in a way that allows recruiters and hiring managers to search through candidate information based on different functionalities. ATS use a process called Resume Parsing to separate different parts of a resume and then organize the structured information. Filters can be applied when searching through applicant information, such as location and application date.

Recruiters and hiring managers are also able to make notes and rank qualifications within the ATS software. ATS are able to automate customized emails so applicants receive a response to their application or a rejection letter.

The best ATS use artificial intelligence (AI) to screen and sort applicant information. These systems use algorithms to scan resumes, search for keywords, and perform other data analyses.

What are the benefits of using Applicant Tracking Systems?

Applicant Tracking Systems offer many benefits to companies including time efficiency, reducing the cost of the hiring process, and improving the quality of candidates. Recruiters and hiring managers have more time to get to know the applicants when they are confident each applicant has already been vetted for the basic position qualifications. Companies that annually receive 1,000 applications or more are likely to see a significant ROI when integrating ATS into their hiring process.

Most recruiters and hiring managers receive far more applications than they can realistically review because the internet makes it easy for job seekers to apply for new positions, especially with sites like Indeed and LinkedIn. Many job seekers are able to save their resumes and apply for multiple positions quickly. With overwhelming amounts of applications flowing in, applicant tracking systems ease up the workload of having to sift through high volumes of applications. Another benefit to ATS storing resumes is the ability for companies to search information for other positions they need to fill at a later date.

As long as the application process is easy and associable, companies will receive more applications and resumes than their hiring managers can sort through. Application Tracking Systems save time and reduce cost during the hiring process by streamlining communication, organizing applicant information, storing resumes, allowing candidate information to be searchable, and offering pre-screening or knock out questions. Contact us to learn more about integrating ATS into your hiring process.