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Applicant Tracking System Employee Experience

6 Reasons Why You Need an Applicant Tracking System

July 29, 2021
5 min read
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Performance Management, Supercharged


We’ve talked about what Applicant Tracking Systems (ATSs) are, how to choose the right one for your organization, and some major benefits of using an ATS. Now we’re talking about the why and getting into the top reasons why you need an ATS as part of HR processes at your organization. We’re taking a closer look at six reasons to use an applicant tracking system in today’s post.

Recap: What Is An ATS?

An applicant tracking system is an automated tracking system employers use to manage job applications and candidate information. It makes life easier for recruiters, HR departments, and candidates — in other words, everyone involved in hiring and recruiting! ATSs began as a faster means of parsing resumes, and today, they boast tons of features ranging from passive candidate sourcing to job board posting to offer letter management. Using an ATS is a sure way to streamline outdated recruiting and hiring processes and help recruiters and hiring teams work more efficiently.

In today’s competitive talent market, using an ATS is more important than ever. Job seekers have options, candidate expectations have shifted, and old ways of recruiting and hiring aren’t cutting it. Step up your recruiting and hiring game with an applicant tracking system.

Need more reasons why you should use an #ApplicantTrackingSystem? @ClearCompany’s got 6 of them:

Top Reasons Why You Need an ATS:

1. Applicant tracking systems save time and money.

As you know, time is money, and that’s especially true when it comes to the expensive process of hiring, recruiting, and onboarding employees. Hiring alone is estimated to cost over $4,000 per employee, and it can take weeks. Companies have reported cutting that weeks-long hiring time by 20% by using an ATS, thanks to reduced miscommunication, fewer tedious data-entry tasks, and a more engaging candidate experience. Not to mention, that fast hiring process means fewer empty seats, increased productivity, and a successful business!

2. An ATS enables a better candidate experience.

Candidate experience makes a noticeable difference when talent is hard to come by. 54% of Generation Z candidates won’t even bother applying if your hiring methods are outdated — and you can’t afford to miss out on such a large part of the talent pool. The right applicant tracking system will enable your teams to improve candidate experience with its features:

  • Keep candidates updated on their hiring status (81% of candidates said this would have the biggest impact on their experience)
  • Help recruiters get in touch with candidates faster to maintain engagement and speed up the hiring process
  • Make it easier for candidates to apply with mobile application tools and responsive career sites
  • Simplify new hire onboarding with an ATS that seamlessly integrates with other HCM software solutions

3. An ATS builds a passive pool of candidates.

This important reason why you need an applicant tracking system can be underestimated: it provides you with an ever-growing pool of candidates who are already at least a little bit interested in working for your company. 73% of job seekers are passive candidates who are looking for a job casually or not at all, and they’re a valuable source during a talent shortage. Use your ATS to engage with your pool of talent and turn them into potential candidates, referral opportunities, or new employees. If this seems like a big hill to climb, most applicant tracking systems should come with tools to help you automatically group and reach out to talent pools.

4. ATSs are becoming standard.

Need just one really significant reason why you need an applicant tracking system? 75% of recruiters are already using an applicant tracking system. That means that in the war for talent, you’re doing your competition a favor if you haven’t implemented or improved your ATS in recent years. While you may usually want to stand out from the crowd, if you’re not using an ATS, you’re standing out in a negative way, both to candidates and to HR team members. ATSs that are easy to use, enable faster hiring, and simplify applications are becoming standard. Without one, candidates will notice and potentially abandon their application before even completing it. Your current HR team members will also notice —and with more than 40% of workers considering a new job this year, the absence of an applicant tracking system might even push them into another company’s HR department.

Did you know? 75% of recruiters are already using an ATS.

5. Applicant tracking systems bring in more qualified candidates.

Turnover costs can range from upwards of $3,000 for a $10-an-hour position — about 16% of their salary — to over $200,000, or 213%, of a senior executive’s $100,000 annual salary. Long story short, you want to avoid bad hires to increase retention, and 78% of recruiters say that an applicant tracking system has improved their quality of hire. An ATS helps sift through resumes fast, identify candidates with the most relevant skills and experience, and enable your recruiters to focus on people who are best suited for the open position. They’ll waste less time searching for a needle in a haystack and instead, can more thoroughly evaluate a selection of skilled candidates.

Use an #ApplicantTrackingSystem to bring in more qualified candidates than ever before. See 5 more reasons to use an ATS from @ClearCompany:

6. The more an ATS is used, the more insight you’ll gain.

It makes sense that using software over a longer period of time increases its benefits. Implementing an applicant tracking system means you’ll gain continuous insight that only improves as time goes on and it’s used more and more. Learn how your interview and onboarding processes can improve by accurately assessing key performance indicators like time-to-hire and retention rates. Thanks to your ATS, your candidate pool will grow, your ATS will learn which traits result in best-fit employees, and you’ll identify many ways to make recruiting and hiring processes easier and more efficient.

With so many strong reasons why you need an Applicant Tracking System, it’s worth serious consideration of which ATS solution could work best for your organization. Finding the perfect applicant tracking system won’t be effortless, but you can use our ATS buyers’ guide to narrow down your options and make an informed decision about which solution your organization should invest in. Download our Applicant Tracking System Buyer’s Guide today and consider which system is right for your company.

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