What Is an Applicant Tracking System?
An Applicant Tracking System (ATS) is software used by organizations to manage the entire recruitment lifecycle. It streamlines job posting, résumé parsing, candidate screening, interview scheduling, and analytics—all in one integrated platform.
How Does an ATS Work?
- Resume parsing: Extracts candidate details (skills, education, experience) and stores them in a searchable format.
- Automated screening: Filters applications based on keywords and predefined criteria to identify strong fits.
- Candidate tracking: Monitors each applicant’s stage—from application to hiring—in a unified dashboard.
- Workflow automation: Automates job distribution, email communications, interview scheduling, and feedback collection.
- Recruitment analytics: Offers reporting on time‑to‑hire, source effectiveness, diversity metrics, and more to drive data-based improvements.
Key Benefits of Using an ATS
- Faster hiring: Organizations report up to 40% reduction in time-to-hire by cutting manual review time.
- Lower cost per hire: Automating recruiting tasks reduces administrative effort and staffing overhead.
- Centralized data: All candidate information stored in one database improves efficiency and source reusability.
- Improved collaboration: Hiring teams can share candidate profiles, notes, and feedback seamlessly within the platform.
- Bias mitigation & compliance: Many ATS platforms include tools to anonymize candidate data and support labor law compliance.
Features to Look For in an ATS
- Built-in job board integration and social media posting
- Custom screening criteria and Boolean search filters
- Embedded calendar integration and interview tools
- Candidate relationship management (CRM) and talent pooling
- Custom reporting dashboards and diversity analytics
- Seamless integration with HRMS, payroll, background check, and onboarding tools.
Companies That Use ATS
Nearly all large enterprises—averaging 98% of Fortune 500 firms—use ATS platforms as the backbone of their recruitment operations. Mid-sized and smaller businesses increasingly adopt ATS tools to gain scalability and efficiency in hiring.
Why ATS Matters in Modern Recruitment
An ATS empowers recruitment teams to shift from repetitive administrative tasks to strategic hiring. Teams that adopt ATS platforms can focus on candidate engagement, diversity recruitment, and overall hiring quality—creating a better experience and stronger outcomes.
