What is an Applicant Tracking System (ATS)? A Complete Guide

Hiring the best candidates is crucial for businesses.

However, manually sorting resumes and cover letters is extremely time-consuming. Nothing short of an aneurysm, especially if you recruit talent for a scaling organization.

This is why most companies use an ATS (Applicant tracking system). It automates and simplifies various aspects of the recruitment process. An ATS does everything from posting job openings to managing candidate communications and scheduling interviews.

But what is the meaning of ATS, and what does ATS stand for? How can it help you hire better candidates and improve the hiring time?

Let’s understand in this blog. We will also guide you in choosing the best applicant tracking system for your organization in the upcoming sections.

What Is an ATS (Applicant Tracking System)?

ATS stands for applicant tracking system. It is a software application that allows organizations to track job applications throughout the hiring process. It is a centralized hub for managing resumes, cover letters, and candidate information.

With an ATS, recruiters can automate tasks such as:

• Collecting and storing job applications and resumes
• Scanning resumes for keywords and qualifications
• Shortlisting candidates based on predefined criteria
• Scheduling interviews and sending communication to applicants

This automation helps recruiters focus on more strategic aspects of the hiring process, such as evaluating shortlisted candidates and conducting interviews.

How Do Applicant Tracking Systems Work?

The ATS centralizes and manages the entire recruitment process, from initial application to final hiring stages. Here’s how an applicant tracking system works and a guide on how to use an applicant tracking system. 

Setting Up Your ATS Software

Ensure your ATS aligns with your company’s unique policies and requirements by following these key steps:

1. General Settings

Define basic settings such as your company name, website, and brand logo. Integrate your company’s career page to seamlessly post job openings. And add your organization’s locations and departments for a comprehensive setup.

2. Hiring Flows

Create a customized hiring flow that reflects your interview process. A typical pipeline might include stages such as sourced, application review, telephone interview, face-to-face interview, offered, and hired. However, most ATS platforms, like Keka, allow you to add or remove stages from the pipeline. 

3. Candidate Scoring

Implement a candidate scoring system to evaluate applicants objectively. This feature is particularly useful when multiple stakeholders are involved in the hiring process. For example, when hiring for a technical role, managers can rate candidates after the interview so HR can proceed with the application or reject it based on the feedback.

4. Rejection Reasons

Define rejection reasons within the ATS to streamline the rejection process. The system will automatically send an email to the candidate and inform them of the decision and the reason behind it.

5.  Offers and Onboarding

Create offer letter templates within the ATS by incorporating a range of attributes such as name, date of joining, offer expiry date, and salary breakup. This feature expedites the offer letter release process and enables faster hiring.

6. User Roles

There are three major types of roles in an ATS. 

• Global Admin: Has all the permissions across the system including account and billing-related information. 
• Super Recruiter: Has permission to add, manage, and archive jobs, offers, candidates, and the hiring team. 
• Recruiter: Has access to add, manage, and archive candidates and the hiring team at the job level for the assigned jobs. 

Using the ATS

Now that you’ve set up the ATS for your requirement, let’s understand how to use it. 

1. Jobs

View the jobs you or your team has created, along with other details such as location, recruiter’s name, creation date, candidates, and actions.

2. Open Positions

Click on any open position to view the progress. Since the ATS integrates with the careers portal, any resume submitted on the website will appear in the “Sourced” section. You can then move candidates down the pipeline based on the rounds they go through. You can also add notes and rate candidates during the interview, which will be visible to every recruiter in the portal.

3. Detailed Candidate View

Click on any applicant’s name to see their complete details, including their resume and the activities you have had with them. 

4. Add Candidate

For resumes received from other sources, add them to the system using the “Add Candidate” feature.

5. Job Offers

Once a candidate is ready to proceed, release the offer and track it in the “Offers” tab. Track the status, recruiter name, date offered, date of expiry, and more.

What Is the Main Purpose of an Applicant Tracking System?

The main purpose of an applicant tracking system (ATS) is to provide a centralized platform that allows organizations to efficiently source candidates, manage the hiring process, and facilitate collaboration throughout.

1. Source

An ideal ATS enables seamless candidate sourcing through several key capabilities. It streamlines the process of attracting and identifying qualified candidates, making it easier for recruiters to build a strong talent pipeline:

• Job Board Posting: Publish openings to multiple free and paid job boards from a single interface
• Branded Careers Portal: Showcase the company culture and employee value proposition while providing a unified application process
• Employee Referrals: Encourage employees to refer their friends who fit an open position
• Direct Sourcing: Search the ATS resume database or external candidate networks for potential fits
• Talent Pool Management: Create and engage curated groups of candidates for current and future roles

2. Manage

Job applicant tracking system offers a range of features to keep hiring organized and efficient. These features allow recruiters and hiring managers to track candidates, automate tasks, and maintain visibility into the process. 

• Customizable Application Forms: Gather job-specific information and screening questions
• Automated Resume Parsing: Extract key candidate details like skills, experience, and education
• Configurable Workflows: Create unique hiring stages tailored to each open job
• Centralized Applicant View: Easily move candidates through the pipeline and track progress
• Bulk Actions: Perform tasks like email communications or status changes on multiple candidates simultaneously
• Offer Management: Create, approve, and extend job offers while tracking acceptance rates

3. Collaborate

An ATS enhances collaboration among hiring stakeholders by providing a centralized platform for communication and decision-making. It ensures that everyone involved in the hiring process has access to the information they need.

• Shared Candidate Views: Access applicant resumes, materials, and feedback in one place
• Commenting and Rating Tools: Provide input on candidates being considered to facilitate discussions
• Built-in Communication Features: Mention team members, send messages, and keep everyone informed
• Automatic Notifications: Send email reminders for upcoming interviews, decisions, or other key events to keep the process moving
• Self-Service Interview Scheduling: Allow candidates to book available time slots, reducing back-and-forth coordination easily
• Evaluation Scorecards: Standardize feedback collection with customizable criteria for each role

Benefits of Applicant Tracking Systems

Applicant tracking systems empower organizations to enhance their recruitment processes, ensure compliance, and simplify onboarding. If you’re still wondering why use an applicant tracking system, here are eight reasons.

1. Helps Find The Best Candidates

Recruiters can set granular criteria for each role, such as skills, qualifications, years of experience, and keyword matches. This automated filtering rapidly surfaces the most qualified candidates, saving time and effort.

2. Improves Candidate Experience

An ATS manages all candidate interactions centrally through customizable email templates, automated updates, and self-service portals. Candidates stay informed throughout the process, from application to hire, fostering transparency and engagement. 

3. Integrates with Job Boards

Seamless integration with major job boards allows postings to be syndicated across multiple platforms within the ATS. Candidate applications flow directly into the system, eliminating redundant data entry. This bi-directional integration ensures a continuous talent pipeline while maintaining a single source of truth.

4. Ensures Compliance

An ATS provides auditing tools to track decisions, document processes, and generate reports demonstrating adherence to EEOC and OFCCP. Furthermore, its comprehensive recordkeeping mitigates legal risks while structured hiring workflows promote consistent, ethical practices across the organization.

5. Simplifies Onboarding

The ATS extends beyond hiring to streamline onboarding for new employees. Electronic signatures, task automation, and integration with HRIS systems enable efficient transitioning while maintaining a cohesive experience. 

6. Supports Growing Hiring Needs

As companies expand, an ATS scales seamlessly to handle increased applicant volumes across multiple roles, locations, and departments. Centralized candidate data, consistent processes, and elastic provisioning enable efficient, high-velocity hiring. 

7. Saves Time

An ATS reduces time-to-hire through automated resume screening, interview scheduling, and follow-up communications. AI-powered matching and bulk actions enable efficient processing of large candidate pools. This allows HR professionals to focus on high-value activities like relationship building and strategic workforce planning. 

8. Reduces Manual Errors

Centralized data and automated workflows minimize human error in the hiring process. Standardized entry, validation checks, and version control ensure accuracy across candidate information. This improves data integrity, enhances decision-making, and leads to more reliable hiring outcomes. 

Why Do Businesses Need Applicant Tracking Systems?

An applicant tracking system elevates the candidate experience, ensures governance, reduces administrative overhead, and ultimately improves the quality of hire. Here are three key reasons why you need an ATS.

1. ⁤Improves Time to Hire

⁤ATS systems automate tasks like resume parsing, candidate screening, and communication. This automation allows hiring teams to focus on more strategic aspects of the recruitment process. Moreover, centralized databases and collaboration tools enable faster sharing of candidate information and decision-making among hiring teams. In fact, an effective ATS can reduce the average hiring cycle by 60%.

2. ⁤Decreases Cost to Hire

An ATS automates manual tasks and improves efficiency, reducing the need for additional hiring resources and overhead costs. It enhances candidate sourcing and matching, minimizing the expense of screening unqualified applicants. Teams using an ATS find 62% more high-quality candidates and experience a 40% lower turnover rate, further cutting hiring and training expenses.

3. ⁤Improves Quality of Hire

AI-powered matching algorithms within an ATS ensure better candidate-job fit by analyzing job requirements and candidate qualifications. Comprehensive candidate profiles provide a holistic view of each applicant, enabling hiring teams to make more informed evaluations. Furthermore, reporting and analytics capabilities within an ATS help optimize sourcing channels and practices for better-quality hires over time.

How To Choose the ATS?

While there’s no one-size-fits-all applicant tracking system, ensure the solution you choose has the following features. These features make the hiring process faster and more efficient. 

1. Sourcing

Identify top talent from various sources, including job boards, social media, and employee referrals, with robust sourcing capabilities.

2. Data and insights

Analyze strategies, identify areas for improvement, and make informed decisions using actionable data and insights.

3. Advanced Candidate Search

Find the best fit for any role by searching candidates based on specific criteria, including skills, experience, location, and education.

4. Candidate Pipeline

Visualize and manage your candidate journey with ease using a customizable pipeline. Keka is one of the best applicant tracking system examples that offer this feature. 

5. Flexibility

Adapt to your organization’s unique hiring needs and workflows with customizable templates, configurable workflows, and integration with existing HR systems.

6. Interview Scorecards

Ensure a consistent and structured approach to evaluating qualifications, skills, and cultural fit using predefined criteria in interview scorecards.

7. Workflow Management

Stay organized and efficient with features like automated email notifications, task assignments, and progress tracking that streamline the entire hiring process.

8. Integrations

Connect seamlessly with third-party tools, including background check providers, assessment tools, and payroll software.

9. Collaboration

Facilitate collaboration among hiring teams by easily sharing candidate information, notes, and feedback.

10. Approval Processes

Ensure necessary stakeholders review and approve crucial steps in the hiring process with customizable approval processes.

11. Scheduling

Reduce scheduling headaches with calendar integration, candidate self-scheduling, and automated reminders.

12. Security

Prioritize data protection by selecting an ATS with robust security features like encryption, access controls, and regular backups. 

13. Compliance

Ensure compliance with EEOC, OFCCP, and other US-specific regulations using built-in features designed for today’s regulatory landscape.

14. Mobile Access

Review candidates, provide feedback, and perform tasks on the go with mobile access to your ATS.

15. Support

Ensure users can effectively utilize the system with comprehensive support, including training, documentation, and responsive customer service.

16. Employee Referral

Leverage your employees’ networks with a built-in referral program that allows easy submission and tracking of referrals.

17. Career Site

Create branded, engaging career pages that seamlessly feed into your ATS with career site integration.

Reasons Why You Should Sign Up for Keka ATS System

Keka ATS is a comprehensive applicant tracking system that simplifies the recruitment process. It offers features designed to attract, manage, and hire top talent efficiently. 

With Keka ATS, recruiters can automate resume parsing and candidate screening to find the most qualified candidates. In addition, its customizable candidate pipelines enable recruiters to easily track the progress of each candidate and make informed decisions at every stage. 

Key Features of a Keka Applicant Tracking System

Keka ATS offers a range of powerful features designed to streamline and optimize the recruitment process.

• Advanced sourcing and screening: Utilize sophisticated tools to identify and attract top talent. Quickly find the most qualified candidates for each role.
• Customizable pipelines and project management: Tailor candidate pipelines to track the progress of each candidate and make informed decisions at every stage.
• Consistent evaluation tools: Employ structured interview scorecards and feedback mechanisms to promote unbiased candidate assessments.
• Job board integration: Post open positions on leading job boards directly from Keka to attract a diverse pool of qualified candidates.
• Automated resume parsing and matching: Use advanced AI algorithms to parse resumes and match candidates to job requirements automatically.
• Offer letter management: Simplify the process of creating, approving, and sending offer letters to selected candidates. 

Improved Collaboration for Your Hiring Team With Keka ATS

Keka ATS enhances talent acquisition by fostering collaboration and streamlining processes. Here’s how.

• Seamless information sharing: Access comprehensive candidate profiles in a centralized location to get a comprehensive view of each applicant.
• Real-time pipeline visibility: Easily track candidate progress through each stage of the recruitment process, from initial application to final decision.
• Centralized candidate database: Store and organize job application details effortlessly, even after positions are filled.
• Data-driven decision-making: Leverage actionable insights and analytics to make informed hiring decisions. Continuously refine recruitment strategies based on data-driven recommendations.
• Effortless employee onboarding: Use integrated resource pages and digital paperwork to enable new employees to access important information, complete necessary documentation, and quickly integrate into your organization.

FAQ:

1. What are the Common Features of Applicant Tracking Systems?

Common ATS features include job distribution, database access, candidate screening, interview scheduling, onboarding tools, and social media access.

2. How is ATS different from CRM?

ATS focuses on managing job applications and the hiring process, while CRM is designed for managing customer relationships and sales pipelines. ATS is specifically tailored for recruitment, whereas CRM has a broader scope and is used across various business functions.

3. Why is ATS used by recruiters?

Recruiters use ATS to post job openings, screen resumes, manage candidate communication, schedule interviews, collaborate with hiring teams, and generate reports on recruitment metrics.

4. How does an application tracking system help streamline the recruitment process?

An ATS automates tasks such as job posting, resume parsing, and candidate screening. It provides a centralized platform for managing candidate information, communication, and collaboration.

5. What are the risks of the applicant tracking system?

Risks of the applicant tracking system include potential data breaches, system downtime, and over-reliance on automation. Besides, improper configuration or use of ATS may also result in compliance issues or a negative candidate experience.

6. What factors to check when selecting an application tracking system for HRMS purposes?

When selecting an ATS for HRMS, consider ease of use, integration, customization, data security, customer support, and scalability to ensure alignment with recruitment needs and future growth.