What is an Applicant Tracking System (ATS)?

How Does an ATS Work?

An Applicant Tracking System (ATS) acts as a central hub for all hiring activities. It collects applications from multiple job sources, stores candidate data, and helps HR teams work together. It replaces manual work by giving you a structured, digital candidate tracking system that records every step.

An ATS usually:

• Posts jobs across platforms, then collect applications in one place
• Scans CVs to find job-specific information
• Scores or sorts applicants based on skills or keywords
• Helps schedule interviews and record hiring decisions
• Keeps hiring data organised for future reference

Key Features of an ATS

An applicant tracking system comes with a wide set of tools. These keep hiring organised for both recruiters and applicants. Below are the most common capabilities you will find:

• Resume parsing: The ATS reads CVs and extracts essential data like skills, experience, and contact details. This saves time spent manually reviewing each application.
• Automated screening and scoring: The ATS compares applications with hiring requirements. Scores help focus on the most relevant candidates first, improving ATS tracking quality.
• Job posting to multiple portals: Instead of uploading the same job on different websites, the ATS platform posts it everywhere together. Applications still come back to the same database.
• Candidate database management: Every applicant remains stored securely in the resume tracking system, even if they are not hired. You can search past applicants for future job openings.
• Interview scheduling: The ATS connects with calendars and email. This removes the usual back-and-forth with candidates while fixing interview timings.
• Workflow automation: Every stage from screening to offer follows a pre-set sequence. This keeps the hiring flow tidy and prevents missed steps.
• Reporting and analytics: You can view hiring timelines, conversion rates, and drop-off stages. These reports help you improve decisions and hiring quality over time.

Benefits of Using an ATS

Using an Applicant Tracking System (ATS) in your organisation creates clear hiring improvements. These advantages help both recruiters and candidates.

The points below connect directly to the need for faster and more dependable hiring:

• Faster hiring cycles: HR teams move applicants forward quickly because everything stays organised.
• Reduced manual workload for HR teams: Tasks like data entry, screening, emails, and follow-ups become automated.
• Better-quality candidate shortlisting: The ATS software scores applications more consistently than manual review.
• Improved candidate experience: Applicants receive timely updates and professional communication.
• Consistent and structured recruitment workflows: Every department follows the same hiring process, reducing confusion.
• Helps maintain compliance and documentation: Data, CVs, interview notes, and hiring decisions stay recorded properly.

Types of ATS

Different organisations need different hiring solutions. The category of applicant tracking system software you choose depends on the size of your company, data control needs, and hiring volume.

Here is how companies usually classify ATS systems:

• Cloud-based ATS: A cloud-based Applicant Tracking System is hosted online and accessed through a login. You pay for it as a subscription, which helps you manage costs as you grow. It does not require servers or heavy IT support, making it suitable for businesses that want quick setup and easy updates. Since access is possible from anywhere, recruiters in different locations can hire together without delays.
• On-premise ATS: This version is installed directly on your company’s internal servers and managed by your IT team. Organisations that deal with confidential data or strict compliance often choose this model. It offers deeper control over custom workflows, security settings, and backups. The initial cost is higher, but it gives full control over storage and data access.
• Enterprise ATS vs. SMB-focused ATS: Large organisations usually need an ATS with advanced automation, complex approval flows, and strong integration options with other systems. These enterprise-level tools support thousands of applicants at once. Small and medium-sized companies look for something simpler and easier to learn. These SMB-focused systems provide the core recruitment functions at a lower cost and help teams adopt technology quickly.
• Standalone vs integrated HR suites: A standalone applicant tracking software focuses only on recruitment tasks like sourcing, screening, and interviews. It suits companies that want to keep hiring separate from other HR activities. Integrated HR suites combine hiring with payroll, attendance, and workforce management in a single platform. This gives HR a single source of data from hiring to employee onboarding and performance tracking.

Why ATS Is Useful For Growing Organisations?

When your business expands, hiring demands rise quickly. An Applicant Tracking System (ATS) helps manage this growth without adding too much workload.

These points are directly linked to how companies scale recruitment:

• Scaling recruitment without expanding HR team size: Automated tasks allow the same team to handle more job roles.
• Standardising hiring across departments: Multiple interviewers follow the same selection rules, improving consistency.
• Reducing bias through structured evaluation: Applications are compared using equal metrics and job-focused skills.
• Improved collaboration between recruiters and hiring managers: Everyone sees the same applicant details and status updates in real-time.

Common Challenges HR Teams Face Without An ATS

Without ATS human resources technology, hiring becomes difficult to track and often slows down. Recruiters juggle multiple sources and documents, which leads to errors.

The issues below come from manual recruitment in Indian workplaces:

• Lost or misplaced applications: Emails and spreadsheets cannot store large volumes neatly.
• Manual resume screening errors: Important applicants can be missed when scanning CVs one by one.
• Slow turnaround times: Delayed communication causes candidates to accept offers elsewhere.
• Poor communication with candidates: Applicants do not know where they stand in the process.
• Lack of hiring metrics and insights: No clear data on hiring success or problem areas.

How To Choose the Right ATS For Your Organisation?

Selecting the right applicant tracking system depends on your hiring goals. A well-matched solution supports recruiters without unnecessary complications.

The factors below help you choose a smart option for your business:

• Evaluate hiring volume and needs: High-volume recruitment may require advanced candidate tracking software and automation rules.
• Check integration capabilities: It should connect with existing tools like HRMS, payroll, email, and assessment tools.
• Look for scalability and custom workflows: Your hiring steps should adjust when you introduce new roles or departments.
• Assess UI/UX for both recruiters and candidates: Clear navigation reduces training time and improves usage from day one.
• Consider data security and compliance features: Safeguard applicant information, especially while storing and accessing data.
• Compare pricing models: Some ATS software solutions charge per recruiter, while others charge per job opening.

Implementation Best Practices

Even the best Applicant Tracking System (ATS) needs correct setup and user training. Proper rollout helps your team rely fully on the tool.

The measures below help you use the ATS successfully:

• Train HR and hiring managers thoroughly: Everyone should know how to use the new system with confidence.
• Migrate candidate data properly: Past applicants must be moved cleanly into the new database.
• Create custom workflows based on roles: Different departments can follow slightly different steps as needed.
• Set up templates for JDs, emails, and scorecards: These templates save time and keep communication consistent.
• Support team-wide adoption: Encourage every user to shift fully to the new system instead of old methods.

ATS and Legal/Compliance Requirements

Every organisation must treat applicant data seriously. An ATS tracking system records hiring actions, which helps support fair and lawful hiring.

The points below relate to compliance needs in India:

• Maintaining candidate data security: Systems protect personal information from misuse or unauthorised access.
• Fair hiring practices: Structured scoring helps reduce biased decisions.
• Documenting hiring decisions: If any dispute arises, the ATS has records of every step.
• GDPR and local compliance considerations: Companies must respect data rights when handling applicant details.

Future Trends In ATS Technology

The future of applicant tracking programmes focuses on sharper decision support and better candidate interaction across platforms.

Progress in hiring software is moving in these directions:

• AI ATS for smarter screening: Artificial intelligence helps find skills more accurately in applications.
• Mobile-friendly job applications: More candidates will apply from smartphones.
• Candidate relationship management systems: Nurturing potential future hires from a single database.
• Integration with attendance tracking systems: Better links between hiring and job performance records once people join.
• More data privacy controls: Stronger permissions for who can view and use applicant information.

Conclusion

An Applicant Tracking System (ATS) brings structure, speed, and clarity to the entire recruitment journey. From sourcing candidates to final hiring decisions, it streamlines every step while reducing manual effort and improving collaboration. As hiring becomes more competitive and data-driven, adopting the right ATS helps organisations scale confidently, maintain compliance, and deliver a better experience to both recruiters and candidates.