The purpose of this buyer’s guide for an Applicant Tracking System (ATS) is to help businesses of different sizes—small businesses, startups, medium-sized businesses and enterprise companies—select an ATS that meets their specific hiring needs and budget. 

It outlines key considerations for each type of business, suggests essential features to look for, and provides a step-by-step approach for evaluating and implementing the right ATS. 

This guide aims to assist organizations in streamlining their recruitment processes and improving hiring outcomes by choosing the most suitable ATS.

What is an ATS?

An ATS is a software tool that automates and streamlines the recruitment process for businesses. It helps organizations manage job postings, gather and screen resumes, schedule interviews, and track the progression of candidates through the hiring process. 

ATS solutions are designed to save time and reduce costs by automating many of the manual tasks involved in recruiting, such as filtering applications based on specific criteria and managing candidate communications. These systems also support compliance with hiring regulations and provide analytics to optimize recruitment strategies. 

Advanced ATS platforms can offer features like resume parsing, interview scheduling automation, and integration with other HR systems to enhance the efficiency and effectiveness of recruitment efforts.

BUYING TREND: SHRM reports that ATS adoption among organizations has grown steadily, reaching 72% in 2023, indicating a continued focus on streamlining recruitment workflows and managing candidate data efficiently.

ATS Considerations for Different Sizes of Businesses

Choosing the right ATS requires considering the specific needs of different types of businesses, from small enterprises to large corporations. Below are some key considerations for each.

Small Businesses

Small businesses have specific needs when it comes to Applicant Tracking Systems (ATS) compared to larger companies. Here are some unique considerations for them:

Budget

Cost: Small businesses typically have a budget that reflects the volume of hiring they need, and that’s lower than large enterprise companies. Here’s a general range to consider when evaluating small business ATS options:

• Freemium models: These can be a good starting point, offering basic functionalities for free with the option to upgrade to paid plans for additional features and user seats. Costs typically range from $0 to $≳$50 per month.
• Per-user pricing: Many ATS solutions offer pricing based on the number of users who will access the system. Prices can vary depending on features included, but typically fall within the range of $20 to $100 per user per month.

Return on Investment (ROI): Focus on features that directly benefit your hiring process, especially for a smaller team. Don’t get overwhelmed by functionalities a small team might not fully utilize.

Consider solutions that offer clear pricing structures and transparent pricing models to ensure you’re not paying for features you don’t need.

Single-Point Solutions: Small businesses with limited resources may benefit from single-point solutions, also known as all-in-one ATS platforms. These solutions combine features for multiple stages of the hiring process, often including job posting, applicant tracking, interview scheduling, onboarding, and even basic performance management tools.

While not as feature-rich as some enterprise-level ATS options, single-point solutions can offer a cost-effective way to manage the entire recruitment process within a single platform, reducing the need for multiple software subscriptions.

REMEMBER: The specific cost of an ATS will depend on the features you need, the number of users, and the specific vendor you choose. Be sure to compare pricing plans and features from different vendors before making a decision.

Ease of Use

Learning Curve: Small businesses often have limited HR resources. Choose an ATS with a user-friendly interface and minimal training requirements to get your team up and running quickly.

Scalability: Consider an ATS that can grow with your business. Look for solutions that offer flexible plans or allow adding features as your hiring needs increase.

Specific Features

Focus on Core Functionality: Small businesses might not need all the bells and whistles of an enterprise ATS. Prioritize features like automated job postings, resume parsing and basic interview scheduling.

Integration with Existing Tools: Look for an ATS that integrates with your existing tools like email, calendar and productivity suites. This streamlines workflows and avoids data silos.

Support

Responsive and readily available customer support is crucial for small businesses. Ask vendors about their support resources for onboarding, implementation, training and customer success and support channels. 

Other Considerations

Here are some additional tips for small businesses choosing an ATS:

• Free Trials: Take advantage of free trials offered by many ATS vendors to test-drive the system and see if it fits your needs.
• Read Reviews: Read online reviews and user testimonials to get insights into the user experience and potential drawbacks of different ATS options.
• Consider Alternatives: Explore alternatives to traditional ATS, such as applicant tracking spreadsheets or project management tools with recruitment functionalities.

By keeping these unique considerations in mind, small businesses can find an ATS that helps them streamline their hiring process, attract top talent and stay competitive within their budget.

Startups

Startups, despite some overlap with small businesses, have some unique considerations when choosing an ATS:

Growth and Flexibility

Scalability: A startup’s hiring needs can change rapidly. Look for an ATS that can easily scale up (or down) as your team grows, accommodating increasing applicant volume and hiring needs.

Data and Analytics: Focus on features that provide insights into your recruitment funnel and candidate quality. This will help refine your hiring strategy as you learn and adapt.

Agility and Speed

Time to Hire: Startups often need to fill positions quickly. Choose an ATS with features that expedite the hiring process, like efficient resume screening, interview scheduling automation and offer letter generation.

Integration with Employer Branding Tools: Look for an ATS that integrates with career page builders or social media platforms. This helps attract potential candidates through employer branding efforts.

Culture and Fit

Company Culture: Startups often have a unique and evolving company culture. Consider how the ATS can support that culture. Look for features that facilitate collaboration and transparency during the hiring process.

Remote-First Considerations: If your startup has a remote workforce, prioritize an ATS with features that support remote interviews, onboarding and candidate communication.

Additional Considerations for Startups

• Security: Ensure the ATS offers robust data security features to protect sensitive candidate information. Compliance with data privacy regulations is crucial.
• Open APIs: Consider an ATS with open APIs (application programming interfaces) that allow integration with custom tools or future HR tech you might adopt.

Overlap with Small Businesses

Startups will also share some considerations with small businesses, such as budget-consciousness, user-friendliness and good customer support. However, the emphasis on growth, agility, and cultural fit is more pronounced for startups due to their fast-paced and dynamic nature.

Medium-sized Businesses

Medium-sized businesses (MSBs) occupy a sweet spot between small businesses and enterprises. They have more complex hiring needs than startups and small businesses, but not quite the extensive requirements of large corporations. Here’s what MSBs should consider when choosing an ATS:

Balancing Functionality and Cost

Feature Range: MSBs need a balance between core functionalities like applicant tracking and more advanced features like skills assessments or onboarding automation. Prioritize features that directly address your specific hiring challenges.

Scalability with Affordability: Look for an ATS that scales with your growth without breaking the bank. Consider tiered pricing plans or solutions that allow adding features as your needs evolve.

Integration and Customization

Integration Power: MSBs often use a wider range of HR and productivity tools. Ensure the ATS integrates seamlessly with your existing ecosystem to avoid data silos and streamline workflows.

Customization Options: Look for an ATS that allows some level of customization to tailor it to your unique workflows and branding. This could include customizable career pages or interview stages.

Data-Driven Recruitment

Advanced Analytics: MSBs benefit from robust reporting and analytics to assess recruitment effectiveness. Look for features that track key metrics like time-to-hire, source of hire and cost-per-hire.

Talent Pool Management: Consider an ATS with features that help you nurture relationships with potential hires and build a strong talent pipeline for future needs.

Additional Considerations for MSBs

• Security and Compliance: As MSBs handle larger volumes of applicant data, robust security features and compliance with data privacy regulations become paramount.
• Candidate Experience: MSBs compete for talent with larger companies. Focus on an ATS that facilitates a positive candidate experience through features like clear communication tools and a user-friendly application process.

Overlap with Smaller Businesses

MSBs will share some considerations with smaller businesses, like user-friendliness and good customer support. However, their focus on data-driven decision making, integration capabilities and a more robust talent management approach sets them apart.

Enterprise Companies

Enterprise companies have complex hiring needs across multiple locations and departments. Here’s what they should consider when choosing an Applicant Tracking System (ATS):

Enterprise-Grade Features and Scalability

High Volume Recruitment: The ATS must handle a large influx of applications and manage the recruitment process efficiently. Look for features like bulk resume processing, automated screening tools and advanced candidate ranking algorithms.

Global Capabilities: Enterprise companies often operate internationally. The ATS should support multiple languages, time zones and recruitment regulations across different regions.

Advanced Functionality and Integrations

Customizable Workflows: Enterprises have unique recruitment processes. Choose an ATS that allows extensive customization of workflows, job postings and interview stages to fit specific needs.

Integration with HRIS and Other Systems: Seamless integration with existing HR Information Systems (HRIS), learning management systems (LMS), and other talent management tools is crucial for data consistency and streamlined workflows.

Data Security and Compliance

Robust Security Features: With a large volume of sensitive candidate data, enterprise ATS needs top-notch security features with access controls, data encryption, and compliance with data privacy regulations like GDPR and CCPA.

Advanced Reporting and Analytics: Enterprise companies require in-depth reporting and analytics to track recruitment KPIs, identify trends and make data-driven hiring decisions.

Additional Considerations for Enterprises

• Artificial Intelligence (AI) Integration: Consider an ATS that leverages AI for tasks like resume screening, candidate matching and identifying potential biases in the hiring process.
• Employer Branding Integration: The ATS should integrate with employer branding tools to attract top talent and showcase the company culture effectively.

Overlap with Smaller Businesses

While core functionalities are important, enterprise considerations focus heavily on scalability, compliance, customization and leveraging advanced technologies like AI. These are less critical for smaller businesses.

Key Features to Look for in an ATS

It’s important to look for key ATS features that will help streamline your recruitment process, provide valuable data and analytics and meet your organization’s specific needs. Below are some essential capabilities to consider.

Streamlining the Recruitment Process

Automated Tasks: Look for an ATS that can automate repetitive tasks to free up your time to focus on more strategic tasks. Examples include:

• Email Communication: Automate email communication with candidates, sending pre-written messages for interview scheduling, application status updates, or rejection notifications.
• Interview Scheduling: Integrate the ATS with scheduling software to allow candidates to easily choose available interview slots, streamlining the scheduling process.
• Advanced Resume Parsing and Matching: The ATS should be able to accurately parse resumes and identify qualified candidates based on keywords and skills. This will help you quickly identify the top candidates for your open positions.
• Candidate Relationship Management (CRM): A good ATS will allow you to track your interactions with candidates, nurture relationships with potential hires and build a strong talent pipeline.

Candidate Self-Service Technology

Many ATS platforms integrate candidate self-service technology to improve the recruitment experience for both employers and candidates.  Here’s what to consider:

Candidate Portal Functionality

• Application Management: Look for an ATS that offers a user-friendly candidate portal where applicants can easily submit applications for open positions, update their profiles, and track the status of their applications. This empowers candidates to take ownership of their job search journey.
• Job Search & Filtering: The portal should allow candidates to search for open positions by keywords, location, or job category. Advanced filtering functionalities can further refine searches based on desired salary range, employment type (full-time, part-time, etc.), or specific benefits offered.
• Communication & Updates: Enable candidates to receive automated updates via email or within the portal regarding their application status, interview scheduling information, or additional steps in the hiring process. This keeps candidates informed and engaged throughout the recruitment journey.

Benefits of Candidate Self-Service

• Reduced Administrative Burden: Self-service portals allow candidates to manage their own applications and access information independently, minimizing the need for recruiters to answer repetitive questions. This frees up valuable time for recruiters to focus on more strategic tasks.
• Improved Candidate Experience: Self-service empowers candidates to take control of their job search experience. This fosters a sense of transparency and allows them to stay informed at every stage of the recruitment process.
• Increased Candidate Engagement: A user-friendly portal can enhance the overall candidate experience, leading to increased engagement and potentially attracting top talent to your organization.

Data and Analytics

Smart Analytics Tools: The ATS should provide you with reports and insights that can help you improve your recruitment process. This could include data on time-to-hire, source of hire and diversity metrics.

In-depth Reporting: You should be able to generate reports on a wide range of data points, such as the number of applicants for a job, the time it takes to fill a position and the cost of hiring.

Other Important Features

Security and Compliance: The ATS should be secure and compliant with all relevant data privacy regulations.

Accessibility: The ATS should be accessible to all candidates, including those with disabilities.

Integration with Other Tools: The ATS should integrate with other tools that you use, such as your calendar, CRM and email system.

Customization: The ATS should be customizable to fit your specific needs and workflows.

ATS Evaluation and Selection Process

We understand that selecting the right ATS can be daunting—but with careful planning and consideration, you can make an informed decision that will benefit (or hurt) your hiring processes for years to come. 

In this guide, we’ll walk you through the essential steps to evaluate and choose an ATS that aligns with your unique recruitment needs and goals.

Identify and Involve Key Stakeholders

In the evaluation and selection process, it’s essential to identify and involve key stakeholders to align the system with organizational needs. Here’s a concise approach:

• Define Project Goals: Start by clarifying what you want to achieve with the ATS
• List Stakeholders: Include HR, IT, recruiters and hiring managers who will use the system.
• Assess Impact and Influence: Determine how each stakeholder will affect or be affected by the ATS
• Prioritize Engagement: Focus on stakeholders with significant influence or interest to allocate resources efficiently
• Regular Communication: Keep stakeholders involved through updates and feedback sessions to ensure the ATS meets all needs

Engaging stakeholders not only helps in selecting the right ATS but also eases its adoption across the organization

Identify Pain Points in Your Current Hiring Process

It’s important to thoroughly review each stage of your recruitment to pinpoint areas needing improvement. Here’s a streamlined approach:

• Identify Bottlenecks: Look for stages where delays consistently occur. Are there stages where candidates or hiring managers get stuck? Analyzing each step from job posting to onboarding can reveal critical holdups​
• Assess Candidate Quality: Are you attracting too many unqualified applicants, or perhaps not enough qualified ones? This could indicate issues with how job descriptions are written or where they are posted​ 
• Evaluate Communication: Consider whether candidates receive timely and personalized communications. Frequent communication breakdowns can deter qualified candidates and damage your employer brand​
• Check Technology Use: Determine if your current digital tools are adequate and user-friendly. Overly complex systems can discourage use or lead to errors​
• Examine Candidate Feedback: Gathering and analyzing feedback from past applicants can provide insights into their experience and highlight areas for improvement​

Focusing on these areas will help you better understand your recruitment process’s strengths and weaknesses, allowing you to choose an ATS that addresses these specific issues effectively.

Determine Key Features Needed

When determining the key features needed for your organization’s Applicant Tracking System (ATS), consider a variety of functionalities that align with your specific recruitment processes and goals:

• Customizable Workflow Management: Look for an ATS that allows you to tailor workflows to your specific job roles and hiring stages, which helps streamline your recruitment process and ensure a seamless candidate experience
• Candidate Sourcing and Job Posting Integration: Your ATS should support advanced candidate sourcing tools and integrate with job boards and social media platforms to broaden your reach and attract top talent effectively
• Resume Parsing and Screening: An effective ATS should offer powerful resume parsing and screening tools to automatically extract candidate information and filter applicants based on your predefined criteria, speeding up the initial screening process
• Effective Communication and Collaboration Tools: Opt for an ATS that facilitates easy communication and collaboration among your recruiting team. This includes features for scheduling interviews, sharing candidate feedback and automated candidate messaging to enhance the candidate experience
• Reporting and Analytics: To refine your recruiting strategies, choose an ATS with robust analytics capabilities that provide insights into your hiring process, allowing you to make data-driven decisions
• Integration Capabilities: Ensure the ATS can seamlessly integrate with your existing HR systems to streamline data management and reduce the risk of errors associated with manual data entry
• User-Friendly Interface: A straightforward and intuitive interface is crucial to ensure high adoption rates among users, minimizing training time and enhancing overall productivity
• Scalability: As your business grows, your ATS should be able to scale with you, handling an increasing volume of applicants and more complex hiring processes without a drop in performance

It is unlikely that you will find one tool that can do everything you want. Create a checklist and assign scores to the features that are most important, important or not important. This will give you a guide and grading criteria.

Research and Compare Different ATS Options

Here’s how you can research and compare different ATS options:

1. Leverage Your Community

• Professional Networks: Connect with HR professionals or recruiters on platforms like LinkedIn. Ask for recommendations on ATS solutions they use and their experiences.
• Industry Forums: Participate in online forums or communities focused on recruiting and HR. Search for discussions on ATS comparisons and user feedback.
• Peer Referrals: Connect with colleagues or companies in your industry and inquire about their ATS choices. Hearing firsthand experiences can be valuable.

2. Read Reviews and Testimonials

• Software Review Marketplaces: Marketplaces like RecruitmentMarketing.com aggregate information on various ATS solutions. They allow you to filter and compare features, pricing and target industries.
• Industry Publications: Publications focused on HR and recruiting may feature reviews or comparisons of different ATS options.
• Company Websites: Many ATS providers showcase customer testimonials on their websites. These highlight success stories and potential benefits.

3. Follow Your Company’s Procurement Process

• Procurement Policies: Familiarize yourself with your company’s procurement policies regarding software acquisition. This might involve minimum spending thresholds, vendor approval processes, or specific requirements for proposals and contracts.
• Request for Proposal (RFP): If your company’s procurement process mandates RFPs, collaborate with the procurement department to develop a clear RFP outlining your specific ATS needs and evaluation criteria. Issuing an RFP allows vendors to respond with tailored proposals, facilitating a more informed decision.

REMEMBER: If you’re considering replacing your current ATS, involve procurement in the process. When approaching renewal with your existing vendor, consider requesting a renewal bid alongside exploring new options. Aim to compare at least 2-3 different solutions. This allows you to evaluate features, pricing models, and vendor support offerings to identify the best fit for your organization’s needs.

Schedule demos and trials

Here’s how to strategically schedule demos and trials for your chosen ATS options:

Ask Questions

Before scheduling demos, prepare a list of questions tailored to your specific needs and challenges. This ensures the demo showcases the ATS functionalities most relevant to your company. Examples include:

• “Does your ATS integrate with our existing HRIS or payroll system?”
• “How does your platform handle skills-based resume screening?”
• “What kind of reporting and analytics tools are available?”
• “How do you measure applicant satisfaction?

Assess Vendor Support and Resources

During your initial communication with vendors, inquire about their support offerings. Here’s what to consider:

• Implementation Support: Will the vendor provide assistance during setup and data migration?
• Training Resources: Does the vendor offer comprehensive training for your team?
• Ongoing Support: How readily available is technical support after implementation?

Discuss Integrations

Explore how the ATS integrates with other HR applications you use. Seamless integrations can significantly enhance data flow and streamline workflows.

Schedule Demos and Trials

Once you’ve shortlisted a few vendors, schedule demos. Take advantage of free trials if offered, to test-drive the platform and assess its usability firsthand.

Remember

• Prepare an Agenda: Before demos, share an agenda with vendors highlighting your priorities and key areas you want them to cover.
• Involve Key Stakeholders: Invite relevant team members (recruiters, hiring managers) to demos to ensure everyone understands the platform’s capabilities.
• Take Notes and Ask Questions: Actively participate in demos and trials. Take notes and ask clarifying questions to fully understand the ATS’s features and limitations.

By following these steps, you can schedule demos and trials that effectively compare different ATS options and choose the best fit for your organization’s needs.

ATS Implementation and Adoption

Congrats on choosing your new ATS! Now, it’s time to focus on the crucial steps of implementation and driving user adoption. Effective implementation and widespread adoption are key to realizing the full potential of your new ATS and achieving a strong return on investment. 

In this section, we’ll explore best practices for implementing your ATS, strategies for encouraging user adoption, and methods for measuring the success and ROI of your new system.

Best Practices for Implementing a New ATS

1. Process Mapping: Map out your current ATS-related workflows and how they’ll integrate with the new system. This helps identify areas for streamlining.
2. Change Management: Implementing a new system is a change for your team. Develop a change management plan to address concerns and encourage user buy-in.
3. Vendor Support: Leverage the expertise of your chosen ATS vendor during implementation. They can guide you through configuration and data migration.

Strategies for Driving Team Adoption

• End-User Training: Invest in comprehensive training for all users, from recruiters to hiring managers. Tailor it to their specific roles and responsibilities within the platform.
• Software Champions: Identify and train “software champions” across departments. These enthusiastic users can provide peer-to-peer support and address initial questions. 
• Leadership Communication: Ensure strong leadership buy-in and communication about the benefits of the new ATS. This sets the tone for user adoption.
• Ongoing Support: Offer ongoing support resources like help documentation and readily available technical assistance.

Measuring Success and ROI

• Track Key Metrics: Monitor key metrics aligned with your initial goals. This could include time-to-hire, quality of hire, application completion rates and user satisfaction with the ATS.
• Regular Reviews: Conduct regular reviews to assess progress and identify areas for improvement.
• Calculate ROI: While ROI can be multifaceted, consider factors like cost savings from reduced manual tasks, improved hiring efficiency and increased quality of hires.

Trends and Considerations

Like all tech, recruitment tech is constantly evolving—and it should! Staying ahead of the curve can give you a significant competitive advantage. 

In this section, we’ll explore the exciting trends and considerations that are shaping the future of applicant tracking.

AI and Automation

• Advanced Screening: AI will become more sophisticated in screening resumes, identifying relevant skills and experience, reducing bias and flagging top candidates.
• Predictive Analytics: Machine learning will analyze past hiring data to predict hiring success and recommend ideal candidate profiles.
• Conversational AI: Chatbots powered by AI could handle initial candidate interactions, answer frequently asked questions and schedule interviews, improving efficiency.

BUYING TREND: According to a LinkedIn Talent Solutions study, only 27% of talent professionals surveyed currently use or experiment with Generative AI. However, 62% expressed optimism about AI’s impact on recruitment, and the number of recruiters who added AI skills to their profiles jumped 14% last year. AI-powered tools to automate tasks like screening resumes, scheduling interviews and suggesting potential candidates will become integrated into forward-thinking ATS platforms.

Mobile Optimization and Candidate Experience

• Mobile-First Design: As more job seekers apply via mobile devices, ATS will prioritize mobile-friendliness, ensuring a seamless application process.
• Candidate Engagement Tools: Features like in-app communication and progress updates will enhance the candidate experience and build employer brand.
• Personalized Communication: ATS may personalize communication with candidates based on their application stage and interests.

DEIB and Sustainability

• Shop Minority-owned Products: Prioritize shopping from minority-owned companies to foster economic diversity and empower underrepresented business owners.
• Bias Reduction Tools: Use AI tools that minimize unconscious bias during resume screening and candidate evaluation, including using language processing to detect and suggest neutral wording.
• Inclusive Candidate Experience: Ensure the ATS accommodates all users, including those with disabilities, ensuring accessibility standards are met.
• Analytics for DEIB: Use reporting tools to track diversity metrics, allowing for ongoing assessment and improvement of your DEIB efforts.
• Shop with Sustainability in Mind: Choose companies committed to sustainability, focusing on eco-friendly business practices and reducing the carbon footprint of their operations and software solutions.

BUYING TRENDS: According to DOIT Software, 89% of U.S. companies either had a DEI strategy or planned to implement one in 2023. Further, 76% of job seekers consider a diverse workforce important when evaluating companies and job offers. This underscores the importance of choosing an ATS that keeps DEIB at the forefront.

Data Privacy and Security Concerns

• Compliance with Regulations: ATS providers will need to ensure compliance with evolving data privacy regulations like GDPR and CCPA.
• Data Security Measures: Robust security protocols are essential to safeguard sensitive candidate information.
• Transparency and Control: Candidates will demand transparency about how their data is used and have control over their information within the ATS.

Conclusion

Selecting the right Applicant Tracking System (ATS) is crucial for optimizing your recruitment process and ensuring that it aligns perfectly with your organization’s needs. The right ATS not only enhances the efficiency of your hiring process but also improves the overall candidate experience, which can significantly impact your employer brand. 

Therefore, taking the time to carefully assess your specific requirements and how different ATS features meet those needs is essential.

As you navigate the diverse options available in the ATS market, it is important to continue your research and evaluation. Explore different systems, take advantage of demos, and read up on user reviews to understand the strengths and limitations of each option. 

Remember, the goal is to find an ATS that not only fits your current needs but also has the flexibility to grow with your organization. By meticulously comparing features, integration capabilities and support services, you can make a well-informed decision that will benefit your team and candidates alike. 

This careful selection process will ensure that you invest in a system that truly enhances your recruitment efforts and contributes to the long-term success of your organization.