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Glossary: HR & Recruiting Definitions

What is an Applicant Tracking System (ATS)?

An Applicant Tracking System, or ATS, is digital software that assists in the recruiting and hiring process. The main functionality of an ATS is to collect, sort, and filter applicants who submit their job applications and resumes via an online form. Other features of an ATS tool include tracking an applicant through the hiring pipeline and automating tasks.

How do applicant tracking systems work?

Applicant Tracking Systems collect and store applicant resumes and other information in a database that can be viewed, searched, and sorted on demand. They also help employers track the different sources of candidate applications, thus determining which job posting platforms are most successful.

Some ATS tools offer an automatic ranking feature that automatically compares applicants’ resumes to the job description. This helps speed up the process as whoever is in charge of hiring can choose to only review applications identified as a high match. Additionally, an ATS can act as a Candidate Relationship Management tool, providing an overview of the entire application journey and automating tasks like candidate communication and interview scheduling.

How does an ATS improve recruiting and hiring for SMBs? 

ATS platforms are not just for large enterprises posting many job vacancies and managing a high volume of applicants. ATS software is also advantageous to Small and Medium-sized Businesses as it can improve the efficiency of recruiting efforts, making it faster and easier to hire. Here are some of the benefits of using an ATS: 

  • Streamlines processes: Efficient management of recruiting activities like job postings, screening, and candidate communication
  • Improves organization: All resumes and job applications are collected and kept in one place
  • Saves time: The candidate pool is narrowed-down faster as qualified candidates get highlighted and unqualified candidates filtered out
  • Better evaluation: Tracking applicants provides a clearer picture of your overall process and insights into what areas need improvement.
  • Seamless onboarding: With all pertinent information already in one place, it is easy to transfer candidate data to an employee profile once hired

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