What is an ATS?
The complete guide to Applicant Tracking Systems.
Many employers and job seekers find the hiring process time-consuming and frustrating. Many companies have started using applicant tracking systems (ATS) to streamline this process. An ATS is usually a cloud-based software program "designed to streamline the hiring process," according to Jobvite, one of the leading manufacturers.
Hiring managers can then screen candidates using the ATS and track their progress through the hiring process. By digitizing the hiring process, an ATS saves employers time and money.
How applicant tracking systems work
There are four basic steps to how an applicant tracking system works:
A job requisition is entered into the ATS. This requisition includes information about the position, such as the job title, desired skills, and required experience.
The ATS then uses this information to create a profile for the ideal candidate.
As applicants submit their Resumés, the ATS parses, sorts, and ranks them based on how well they match the profile.
Hiring managers then quickly identify the most qualified candidates and move them forward in the hiring process.
If you can predict the Resumé keywords that recruiters will use in their search, you'll significantly increase your chances of moving on in the hiring process.
But you don't have to guess which keywords to use. All you have to do is analyze the job description to find them.
What's the difference between an ATS and a CRM?
When it comes to recruiting software, there are two main types of systems:
Applicant Tracking Systems (ATS)
Candidate Relationship Management (CRM) Systems
Let's quickly look at each system.
ATS software is typically used during the hiring and includes features such as Resumé parsing, candidate screening, and assessment tools.
The downside to ATS software is that it only tracks job candidates who have already applied to your company.
Top employers hire for several jobs simultaneously and receive hundreds of Resumés for any opening. Because applying for a job online is more manageable, many applicants are unqualified and figure "it was worth a try."
Conversely, systems are used during recruitment to target potential candidates who still need to join your company.
CRM features include email marketing, scheduling, and communication tools to build relationships with possible candidates.
Whereas ATS only gives you data that candidates input themselves, CRMs allow you to input information that you discover about prospective talent. In other words, ATS is more reactive, while CRMs are more proactive.
You don't necessarily have to choose between the two systems. Many companies use both!
Key features of an applicant tracking system
Applicant tracking systems make it easy to apply for a position on any device without logging in, which means that companies benefit from a larger pool of applicants.
Because there are so many applicants, companies automatically use ATS software to surface and highlight top candidates.
Some other key features of ATS software include:
Resumé parsing is extracting data from Resumés, such as contact information, work history, educational background, and skills.
Advanced search lets you filter applications by specific keywords, job titles, skills, experience, education, and more.
Candidate sourcing allows you to actively search for, identify, and contact potential candidates for open positions.
Multi-channel candidate sourcing lets you search for potential candidates using multiple channels, including job boards, social media, and employee referrals.
In-built CRM software – Some ATS also features CRM software to cover all your needs in one platform.
Email templates – Most ATS offer templates to ensure all your correspondence with candidates is consistent and professional.
Advanced analytics and reporting allow you to generate detailed reports on job seekers, hiring trends, and other data.
Various integrations – This means the ATS can connect with different types of software, such as email marketing platforms like MailChimp, accounting software like QuickBooks, and CRM systems like Salesforce, enhancing its functionality and making the hiring process more efficient.
Ability to schedule interviews –—Automating interviews will save you time rescheduling, sending out reminders, or coordinating multiple calendars.
Real-time collaboration -This allows people from different parts of the organization to get involved in the sourcing, screening, and decision-making regarding new hires.
Automation based on specific events and conditions – Your ATS will only be triggered to do something if a particular scenario occurs.
How accurate is ATS software?
While ATS can save recruiters time and effort in hiring, these systems are far from perfect.
A study by Harvard Business Review revealed that 88 percent of recruiters felt that an ATS ignored qualified candidates because they "did not match the exact criteria established by the job description."
This suggests that ATS emphasizes keywords and needs to consider a candidate's skills, experience, or qualifications.
As a result, many qualified candidates are overlooked simply because their Resumés don't contain the right keywords!
"Many qualified candidates are overlooked because their Resumés don't contain the right keywords. "
However, you can take advantage of this situation by ensuring your Resumé contains the keywords employers seek.
Who uses ATS?
Most large corporations use some form of an applicant tracking system.
Jobscan research found that over 98.8% of Fortune 500 companies use ATSs. At the same time, a Kelly OCG survey estimated that 66% of large companies and 35% of small organizations rely on recruitment software. These numbers continue to grow.
You'll likely face an ATS if you apply to a large organization.
If you're applying through any online form, you're applying through an ATS.
Even job sites like Indeed and LinkedIn have their built-in ATS.
ATS is here to stay, so it's essential to use the right keywords and format your Resumé so that it is easy for ATS software to read.
Hard skills comparison in Jobscan. Click to see a complete example.
Why employers use applicant tracking systems
When you think about it, today's employers face a daunting hiring task.
This is because the internet has made it easy for job seekers to submit applications, so they introduce many. Many of these applicants are unqualified and figured "it was worth a try."
The result is that corporate recruiters now receive hundreds and sometimes even thousands of Resumés for every job opening. This is why they need an ATS.
These automated systems simplify hiring, saving businesses time and money.
ATS software simplifies and speeds up hiring, saving businesses time and money.
The top ATS features many benefits, including:
More accessible communication among hiring managers
Faster applicant screening
Reduced time spent on repetitive tasks
Improved net hiring score
Increased candidate engagement
Better overview of applications
Easy job posting
Improved cost per hire
Improved quality of hire
As a result of these benefits, ATS has become an essential part of the modern recruiting process.
The future of applicant tracking systems
There's no question that artificial intelligence (AI) is rapidly changing the world of recruitment. AI-powered applicant tracking systems (ATS) are already screening Resumés, identifying potential candidates, and conducting initial interviews.
As AI evolves, ATS software will become even more sophisticated.
"As AI continues to evolve, it's likely that ATS software will become even more sophisticated."
These systems are expected to be more fully integrated with social media platforms like LinkedIn. This will enable them to identify active and passive candidates who are a good match for open positions.
Additionally, AI-powered chatbots could answer questions and provide information about the application process.
AI is poised to transform the recruiting landscape in several ways, making the process faster, easier, and more efficient for everyone involved.
What is an ATS optimized Resumé?
There is no universal trick to "beating" applicant tracking systems.
Getting past an ATS and landing a job interview requires a well-written Resumé mindful of ATS algorithms and the people pushing the buttons.
Here's our most straightforward advice for how to beat an ATS:
Carefully tailor your Resumé to the job description every single time you apply.
Optimize for ATS search and ranking algorithms by matching your Resumé keywords to the job description.
For maximum searchability, use the long-form and acronym versions of keywords (e.g., "Master of Business Administration (MBA)" or "Search Engine Optimization (SEO)"). Use a reverse chronological or hybrid Resumé format (avoid the functional Resumé format).
Use tables or columns sparingly, which often cause significant parsing errors.
Use a traditional Resumé font like Helvetica, Garamond, or Georgia.
Use headers or footers sparingly, as the information might get lost or cause a parsing error.
Use standard Resumé section headings like "Work Experience" rather than being cute or clever ("Where I've Been").
Save your file as a docx or PDF.
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Article by Eric Palmer - Chief Recruiter at MySalesRecruiter.co
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