Applicant Tracking System (ATS) is a software designed to automate, simplify, and expedite the recruitment process. The significant benefits of using ATS are demonstrated through its ability to improve three key HR metrics: recruitment time, cost per hire, and hiring quality.
What is an Applicant Tracking System (ATS)?
An Applicant Tracking System (ATS) is software designed to enhance the recruitment process through optimization and automation.
ATS provides various solutions for different recruitment challenges, from sourcing to screening and selecting the most suitable candidates.
ATS offers an automated solution to streamline and expedite the entire recruitment process, from receiving applications to hiring employees, simplifying the tasks for human resources professionals.
Why do recruiters need to pay attention to Applicant Tracking Systems (ATS)?
What are the exact benefits of ATS for recruiters?
Features of an ATS
A modern and convenient Applicant Tracking System (ATS) can help you achieve recruitment goals and overcome challenges by providing the following features:
- Powerful candidate sourcing tools
- One-click job posting to multiple job boards
- Centralized storage for candidate resumes and CVs
- Easy information retrieval from a large candidate database
- Automated resume analysis and screening
- Simple interview scheduling
- Interview tools and scoring sheets
- Convenient use of HR templates
- Automatic email responses
- Easy collaboration and teamwork
- Recruitment analysis and reporting
Benefits of an Applicant Tracking System
Utilizing all the features of this ATS brings numerous benefits, including:
- Speeding up the recruitment process
- Reducing recruitment costs
- Improving hiring quality
- Enhancing candidate experience Building a high-quality talent pool Developing stronger relationships with candidates Facilitating decision-making Upgrading HR team communication and collaboration Using an Applicant Tracking System has been proven to enhance the most critical recruitment metrics: recruitment time, cost per hire, and hiring quality.
First Benefit of ATS: Shortening Recruitment Time
What is recruitment time?
Recruitment time is the total duration spent to fill a position. This is an extremely important factor in evaluating the recruitment process. Calculating recruitment time involves various activities such as creating job postings, advertising job vacancies, sourcing candidates, interviewing, and finally hiring candidates.
This key factor indicates the effectiveness of the recruitment process and provides insights into the difficulties of hiring for that position.
How does ATS improve recruitment time?
According to GetApp's research, 86% of recruiters say that using ATS has helped them recruit faster.
With the Applicant Tracking System (ATS), tasks that used to take a lot of time can now be easily and quickly completed—or even automated. Some of these tasks include resume analysis, screening out unqualified candidates, scheduling interviews, and automating emails.
The Applicant Tracking System (ATS) also saves time by building a "talent pool" that you can use to find perfect candidates for future positions.
Second Benefit of ATS: Reduce Cost per hire
What is the cost per hire?
The cost per hire is the total cost incurred to hire a new employee. This is the second important factor in evaluating the effectiveness of the recruitment process. The cost per hire is calculated based on various variables, including recruiter salaries, employee referral bonuses, job advertising costs, administrative costs, etc.
This key factor will indicate the cost effectiveness of the recruitment process and help you allocate a reasonable budget based on budget expenditure reports for jobs.
How does the Applicant Tracking System (ATS) improve the cost per hire?
Time is money, and the Applicant Tracking System (ATS) simply saves costs by saving your valuable time. With many administrative tasks in recruitment automated, you'll spend less time on a position. This helps make your recruitment strategy more efficient and cost-effective.
Furthermore, building and maintaining a talent pool can significantly save you costs per hire. Imagine always having suitable candidates for any new position—wouldn't that be great?
Additionally, understanding which recruitment sources are bringing you the best new candidates (a feature that ATS provides) can help you eliminate unnecessary costs.
For example, if you know that referred candidates are your best fits, then you don't need to spend much money on paid job boards.
Third Benefit of ATS: Better Recruitment Quality
What is recruitment quality?
Recruitment quality is the total value that new employees bring to the company in terms of their job performance. This is the third important factor in evaluating the quality of the recruitment process. Recruitment quality is measured based on various variables, including performance evaluations, ramp-up time, revenue, turnover and retention rates, hiring manager satisfaction, etc.
This recruitment index shows the effectiveness of the recruitment process and measures the accuracy of your evaluation.
How does ATS improve recruitment quality?
The article "Advantages of using ATS" on LinkedIn also shows that 80% of recruiters using ATS have improved the quality of candidates they hire.
According to research from recruiters' and HR experts' daily work experiences, high-quality candidates only stay on the market for 10 days!
By expediting the recruitment process, you can secure those top candidates before they are snatched up by other companies.
Moreover, by sending automated emails to ensure frequent and timely contact with candidates, you can significantly improve interaction levels and candidate experiences.
According to various studies and surveys (such as the CareerBuilder Survey and Candidate Experience Reports), candidates who have a positive experience in your recruitment process are more likely to accept your job offers, reapply in the future, and refer other high-quality candidates to your company.
Should recruiters invest in an Applicant Tracking System (ATS)?
As you can see, an ATS offers various solutions for different recruitment goals and challenges. Therefore, choosing the right ATS is not an easy task.
If you are planning to invest in a new recruitment tool, start by identifying your recruitment goals and challenges.
What are your most pressing recruitment challenges?
Are the following challenges among your recruitment hurdles?
- Spending too much time on recruitment
- High recruitment costs
- Low recruitment quality
- Difficulty finding skilled and suitable candidates
- Using multiple Excel sheets and emails
- Lack of a centralized database, making candidate information hard to find
- Unclear recruitment and selection processes
- Manually scheduling interviews, which is time-consuming
- Lack of interview tools, assessments, and candidate scoring sheets
- Difficulty communicating with candidates
- Manually rejecting and providing feedback to candidates
- Lack of talent pipeline building strategy
- Not utilizing previous applicants for future recruitment rounds
- Inability to assess and measure the effectiveness of recruitment strategies
If so, you can definitely reap the rewards of investing in a modern and well-designed Applicant Tracking System.
An ATS will make your recruitment strategy more effective and cost-efficient by helping you organize and track job applications, manage talent pools, and streamline your selection process.
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