Recruitment Technology
What to look for in an applicant tracking system (ATS)
Explore essential features and benefits of Applicant Tracking Systems to streamline your hiring process and attract top talent.
What to look for in an applicant tracking system (ATS)
In today's competitive job market, an efficient recruitment process is critical for organizations of all sizes. An Applicant Tracking System (ATS) can be your best ally in managing hiring workflows smoothly, ensuring you attract and retain top talent. With 98% of Fortune 500 companies using an ATS, it’s clear that this technology is not just a trend; it’s an integral part of effective recruitment strategies source.
ATS adoption and market growth
The ATS landscape is growing rapidly, with the global market valued at USD 14.14 billion in 2022, projected to expand to USD 26.24 billion by 2030 source. This growth indicates that organizations recognize the importance of streamlined recruitment processes.
98% of Fortune 500 companies use an Applicant Tracking System (ATS) source.
The ATS market is expected to grow at a CAGR of 8.3% from 2023 to 2030 source.
70% of large enterprises utilize an ATS, but only 35% of small businesses do source.
ATS impact on recruitment
An effective ATS does more than just manage resumes; it significantly impacts your hiring outcomes. According to recent data, companies using an ATS typically enjoy better metrics in terms of quality of hire and time to hire.
94% of ATS users report improved hiring processes source.
Companies leveraging ATS experience 2-3 times better results in quality of hire and employee retention source.
ATS users fill job vacancies 20% faster than non-users source.
ATS features and functionality
When choosing an ATS, it’s essential to assess its features and functionality. A robust system can facilitate all stages of the hiring process, from job posting to candidate selection.
79% of organizations are integrating AI into their ATS source.
Only 3% of businesses use all available ATS functionalities source.
Many companies are looking for more features, with one in two expressing this desire source.
As company needs evolve, it’s crucial to choose an ATS that can adapt and provide the necessary tools to enhance your recruitment process. In fact, 20% of organizations plan to implement ATS with AI functionalities in the next five years source.
ATS cost savings and efficiency
Implementing an ATS can lead to significant cost savings. For small businesses particularly, this technology can streamline processes and eliminate inefficiencies in hiring.
Small businesses can save up to $10,000 by implementing an ATS source.
Companies that utilize advanced analytics alongside their ATS report 56% greater revenue source.
ATS can reduce the time spent on candidate screening by up to 70% source.
Recruiting typically costs employers around $4,000 and takes 24 days to find and hire new employees source.
Candidate experience and ATS
In an age where candidate experience plays a significant role in talent acquisition, an ATS must not only streamline processes but also enhance the applicant experience. Poor candidate experience can deter top talent and damage your employer brand.
80% of candidates prefer engaging with a hiring manager instead of navigating an ATS source.
75% of job seekers indicate that positive application experiences influence their decision about a position source.
78% of candidates research a company’s hiring process before applying source.
Key features to consider when selecting an ATS
Now that we understand the importance of ATS and its impact on recruitment, it’s crucial to know what features to look for when choosing an ATS that suits your needs:
Resume parsing: This feature automates the process of extracting information from resumes and saves time for recruiters.
Job board integration: The ability to post job vacancies on various platforms simultaneously can expand your reach.
Collaboration tools: A good ATS should enable easy communication between hiring teams.
Analytics and reporting: Make data-driven decisions with robust reporting tools that analyze hiring metrics.
Mobile compatibility: Candidate and recruiter access via mobile devices is crucial for flexibility and efficiency.
Customizable workflows: The ability to tailor hiring processes to fit your organization minimizes redundancies and enhances efficiency.
Compliance tracking: An ATS should help ensure compliance with labor laws and reduce legal risks.
Conclusion
In summary, selecting the right Applicant Tracking System can significantly impact your recruitment process. With the right features, you can save money, enhance efficiency, and improve candidate experience—all essential factors for attracting top talent. As the market grows and technology evolves, organizations must seize the opportunity to implement an ATS that meets their unique needs. As HR professionals, recognizing the implications of ATS adoption isn’t just beneficial; it’s essential for thriving in a competitive job market.
When considering an ATS, think strategically about your current challenges and focus on the features that will provide real value for your organization. Whether you’re part of a large enterprise or a small business, finding an ATS that aligns with your recruitment goals is an investment in your company’s future.
