Applicant Tracking Systems for HR: Its Uses and Benefits

an HR talking to an applicant

Recruiters and human resource teams have earned a bad rap due to delayed responses, slow processes, and sometimes, ghosted applicants. However, this is also often the result of an overwhelming workload and a disjointed hiring process. Candidate data is often scattered across emails, resumes need to be accessed through different platforms, and coordinating calendars with hiring managers for interviews is a constant struggle.

An applicant tracking system (ATS) for HR can provide a unified solution, centralizing all recruitment activities to create a more efficient and professional workflow that would benefit both employers and candidates. 

What Is an Applicant Tracking System?

An applicant tracking system, or ATS, is a specialized software application built to digitize the hiring lifecycle. Popular ATSs used in HR departments streamline everything from job posting to onboarding. 

Applicant tracking systems function like a CRM, but are tailored for recruitment. Applicant tracking system features allow HR teams to manage all job applications seamlessly from start to finish.

A modern ATS enables:

  • Sourcing and organizing candidate profiles
  • Job posting across boards and social platforms
  • Parsing resumes and extracting key data
  • Filtering, ranking, and managing candidate progress
  • Interview scheduling, feedback collection, and communication
  • Reporting and analytics on recruitment metrics 

Think of the ATS as the backbone of a modern hiring engine. It moves hiring from scattered tasks into connected, efficient workflows.

magnifying glass in the middle small blocks

How Applicant Tracking Systems Work

An applicant tracking system does a lot of things. Here’s how most popular ATSs used in HR work:

Job creation and distribution

Recruiters create a job opening in the ATS and publish it across channels instantly.

Candidate submission and parsing

Applications automatically funnel resumes into the system. It triggers parsing tools to extract names, skills, experience, and education to populate candidate profiles.

Automated screening and ranking

The ATS automatically applies filters or scoring rules to prioritize candidates that match the job descriptions.

Candidate progression through stages

The HR team views the profiles in a visual pipeline as each candidate moves through the steps, from screening to interviews to offers. Collaboration and feedback are synced.

Secure communication and reminders

Pre-built templates automate emails, scheduling, and check-ins, ensuring no candidate or stakeholder falls through the cracks.

Insightful dashboards

The ATS also automates tracking of recruitment metrics like time-to-fill and funnel drop-off, so HR teams can easily analyze and use insights to inform strategy.

This workflow paints the complete picture of how an ATS transforms manual hiring into seamless automation.

Benefits of ATS for HR and Employers

An effective applicant tracking system delivers measurable, transformative benefits for all stakeholders. Discover why you should use an applicant tracking system:

Efficiency Gains

The main selling point of application tracking systems is its ability to automate repetitive hiring tasks such as resume sorting, candidate follow-ups, and interview scheduling. This feature helps reduce the manual workload of hiring teams, allowing them to handle more job openings and candidates while maintaining quality and speed. 

Applicant tracking systems also frees HR leadership to focus on strategic work like building talent relationships and improving employer branding. So, by improving the recruitment process’s efficiency, ATS also empowers HR teams to make more informed decisions that can have a more powerful impact.

a hiring recruiter smiling

Better Candidate Experience and Brand Perception

An ATS system with built-in communication tools that make it easy for recruiters to send timely updates, which keeps candidates from getting frustrated and dropping out of your process. Smooth, prompt communication and clear updates all help create a great candidate experience without overcomplicating the HR team’s workload. 

An overall positive experience helps build a stronger employer brand, making your company more attractive to top talent, which can make a significant difference in competitive markets.

Faster Time-to-Hire and Cost Savings

An ATS streamlines workflows, automates shortlisting, and centralizes collaboration, which contributes to increased efficiency and shorter hiring cycles. Faster hiring times translate to substantial operational savings by reducing your reliance on recruiters–thus reducing administrative costs–and by improving the quality of your hires. Filling roles faster with the right candidates reduces productivity gaps and lowers the cost per hire, which has a positive impact on the company as a whole.

Higher Quality Hires and Passive Talent Engagement

With improved efficiency also comes better quality. One of the many features of ATS is AI-driven scoring. This tool filters and ranks candidates according to job requirements so hiring managers only see the most qualified applicants. This means that recruiters don’t need to filter through hundreds of applicants for hours manually. Instead, they can spend more time evaluating the best matches, increasing the chances of hiring the best candidates. 

In addition, ATS tools enable saved talent pools that make it easier to re-engage strong candidates from previous searches, expanding the reach to passive talent who may be ideal fits for future roles.

Improved Collaboration and Fairness

An ATS centralizes candidate data and feedback, allowing hiring managers, HR staff, and interviewers to collaborate in real time. Structured evaluations and scoring systems reduce bias, ensuring all candidates are measured against the same criteria.

ATS also improves collaboration between the HR team and hiring managers, thus improving transparency and promoting a more equitable hiring process. Overall, ATS can help improve the quality of hires and strengthen compliance with equal opportunity standards.

Data-Driven Decision Making and Compliance

Applicant tracking systems feature built-in analytics that can help recruiters identify bottlenecks and best practices. Leaders can use these insights to support informed hiring decisions and improve candidate experience and cost-per-hire. 

An ATS also provides audit trails, which promote transparency and help ensure compliance with labor laws and recruitment regulations. These are vital for legal purposes and brand reputation.

How to Select the Best ATS for Your HR Department

If you’ve been considering getting an ATS for your HR department, you’re in the right place! Here are some things to consider when choosing which ATS is best for your HR team:

Match Features to Hiring Needs

Start with what problems you’re trying to solve. Maybe you’re looking to hire faster, lower costs, or find higher-quality candidates. The right ATS will help you meet those goals and make your entire hiring process more efficient.

A sample CV

Ensure Seamless Integrations

You should find an ATS that aligns with your organization’s IT capacity. Some ATS options may have more complex requirements that your systems can’t support. The best way to maximize returns on your investment is to match the ATS’s complexity with your IT infrastructure.

Seamless ATS integration with your recruitment system eliminates duplicate data entry and ensures all your activities are managed within a unified, efficient platform. Smooth integration also helps your HR team adopt the new ATS system with less friction.

Prioritize Usability and Adoption

A user-friendly interface is essential for quick adoption by recruiters and hiring managers. Choose an ATS with intuitive navigation, clear candidate pipelines, and minimal training requirements to keep your team productive from day one.

Check Scalability for Growth

Always consider the possibility of your hiring needs changing when choosing an applicant tracking system. You should find an ATS that can handle increased job postings, larger candidate pools, and more users as your company expands. Scalability ensures that your investment remains valuable as your company evolves.

Review Compliance and Security Features

Choose an ATS with built-in compliance tools, audit logs, and strong data protection measures. Comprehensive security is vital in safeguarding sensitive applicant information according to data privacy regulations and ensuring that you maintain fair hiring practices.

Evaluate Vendor Support and Reliability

Look for an ATS provider with a proven track record, responsive support, and ongoing updates. Reliable vendor support ensures technical issues are resolved quickly, minimizing downtime and keeping your hiring process running smoothly.

Calculate Return on Investment

Weigh the overall cost of the ATS against your organization’s potential savings, reduced mis-hires, and lower agency fees in the long run. The right ATS should have measurable ROI, so it should be easy to calculate the value it adds and justify the investment.

applicants in queue

Elevate Your Recruitment Processes Today!

The best ATS for HR departments is the one that can transform hiring into a disciplined, data-driven, fair, and efficient journey. They are more than just tools. For recruiters and employers exploring modern recruitment tech, ATS is the foundation for scalable talent acquisition.

Skillfuel delivers that foundation by combining intuitive workflows, transparency, and powerful automation. Try our free applicant tracking system and see how it simplifies hiring, engages candidates, and fuels hiring success from first application to onboarding.

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Better hires start with better options. Streamline and optimize every aspect of your recruitment process with Skillfuel’s web-based talent acquisition and recruitment automation tool built for your HR team.

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