Applicant tracking system: Why it is important for your business

September 19, 2022

Importance of applicant tracking system

In this day and age of technology, working smart is more appreciated than working hard. Fortunately, technological advancements have helped a lot of sectors smoothen their processes. Hiring is one of them. From screening top candidates from a large pool to onboarding that one final candidate, an Applicant Tracking System(ATS) does it all. 

As per a report by Capterra, 75% of hiring professionals and recruiters use an ATS. So businesses are rampantly moving toward using this tool, given its benefits. In fact, this tool has been in place since the mid -to late ’90s. It speeds up the entire hiring process, primarily impacting the business’s overall success.

Why you should use an application tracking system?

Using an applicant tracking system implies that you do not have to rely on multiple software to help you in your hiring process. It means bidding farewell to sit for long hours, skimming through spreadsheets and emails, and compiling files. An ATS enables doing all of this and more in one single place. 

Some more benefits of the system include: 

  • You can customize and configure the system depending on the nature of your business
  • You can integrate it with your social media channels, hiring platforms, and job boards 
  • It lets you gather all candidates’ information in one place

One of the most significant advantages of an ATS is its customizability. A retail store’s hiring process will be different from a corporate chain. ATS allows you to configure it as per your business requirements. 

5 ways an applicant tracking system helps your business

Undoubtedly companies need to adapt to technological advancements for better and faster hiring. We’ve listed five ways an ATS will help your business smoothen the process. Let’s get to it.

Automates repetitive administrative tasks

The hiring process consists of many administrative tasks like publishing job postings, sending follow-up emails, conducting telephonic interviews, screening resumes, and analyzing candidates. Performing these tasks for a small pool of candidates is still manageable. However, it gets challenging when you’re mass hiring. 

The chances of missing out on sending a follow-up email to candidates are high since there is an element of human error involved. An ATS sends out notifications to the candidates, blocks the calendar for the candidates and panels, collects interview information, compares candidates, creates reports, and much more in the same place. 

Entire hiring workflow in one place

Intelligent systems offer integral support, which makes the hiring process a cakewalk. Through an ATS, you can not only store candidate details but manage the end-to-end recruitment process by creating your workflow. 

The system lets you create your workflow and even integrate third-party tools to make the process easier. You can create different workflows for varying job roles to make the process more efficient.  

Instead of juggling spreadsheets and emails, you need to create a workflow concerning a job role. The system lets you manage the rest with ease.

Automates reports and eases employee on-boarding

Traditionally, HR is expected to share the candidate’s review with the concerned hiring managers. An ATS comes to aid as it generates automated candidate test reports and transmits them directly to the hiring managers. You can easily track each candidate’s hiring journey and see who has been interviewed and accepted the job proposal. 

When the candidate accepts the job offer, the system automatically moves the candidate onto the onboarding process. The system keeps notifying the candidate and the hiring managers to complete the required documentation. This streamlines the entire process and ensures the candidate follows all guidelines. 

Plus, the system allows you to filter candidates depending on specific keywords, scores, skill sets, years of experience, etc. You can customize the job requirements and selection rounds per the job role. However, ensure your hiring process is pre-decided before customizing the system to avoid unnecessary and frequent customizations. 

For example, you can create as many rounds of hiring as you want. This will create a hiring funnel for each candidate making it easier for you to keep a tab on it.

Helps in hiring quality candidates

Each company wants to hire a candidate who aligns with its values. The right candidate will take your business up with their technical and interpersonal skills—the one who aligns with your company culture and is excellent at his job. While you may assume an ATS won’t consider the hires’ quality, that is not the case. The system screens the candidates based on your initial requirements. 

In the first screening, recruiters engage with the best candidates from the applicant pool. Plus, the system automates most administrative tasks leaving the hiring managers ample time to engage with the candidates. This means they can gain complete insight into the candidate’s caliber and make thorough assessments before hiring them.

Enhances employer’s reputation and boosts employee retention

As per a 2019 report, 94% of job seekers take employer brand reputation into account before joining. So if you have a consistent and engaging recruitment process, it will strengthen your employer branding over time. 

Some ATSs also come with features like fully branded career pages. Such features will enable them to impress candidates and also enhance your talent pipeline.

Through an ATS, you get insights into how your candidates are applying for the job and the recruitment process steps. Observing these steps long enough will create a fully automated, engaging, and optimized recruitment process that will eventually boost your employer branding. People will like to work with companies that use the current technology to their advantage. 

Moreover, it also improves employee retention. The system helps you find the right fit for the job. This implies that you are satisfied with the candidate and the candidate is happy with the job, reducing employee turnover and improving retention rates.


Businesses now lean on intelligent ways to improve efficiency. ATS is one of those ways. Although companies have been using this system for a long time, the system continues to incorporate new advancements as technology keeps changing. So check out the available systems in the market. 

While using an ATS is all perks, ensure it aligns with your business needs and budget requirements. Businesses prioritizing people skills over academic achievements may not benefit from an ATS since it may discard candidates immediately while screening resumes. You may lose out on an otherwise potential employee in this case. So know the type of candidates you want before thinking of purchasing the software.

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