Why do Companies Use Applicant Tracking Systems?

Applicant Tracking System,

If you submit your resume to a mid-sized to a large company, there is a very good chance they are using what is known as an applicant tracking system. Why do companies use applicant tracking systems? There are various reasons, but the main reason is to find qualified candidates to fill an open position quickly. Let’s take a closer look at how an applicant tracking system (ATS) works.

Keep It Simple

When you apply for a job online, your contact information, experience, educational background, resume, and cover letter are uploaded into an ATS database. The data can then be conveyed from one part of the system to another as your application moves through the hiring process.

An ATS lets recruiters review your application, send you automated messages letting you know your application was received, and let you submit online tests. ATS let hiring managers schedule interviews and send rejection letters. It also allows human resources departments to use the same information to put you on the payroll once you’re hired. So it’s quite simple, ATS streamline the application and hiring process for employers.

The numbers of applicants to a single job can run in the hundreds or thousands depending on their size and where they are recruiting. An ATS sorts through all those applications in less time than a team of human resources employees could. Read on.

Streamlining the Process

Using an ATS saves time and money for the companies that use them. When your resume is uploaded and classified in a database, it makes it easily available and searchable for recruiters and hiring managers. Because information is automatically collected and organized digitally, companies don’t have to pay for employees to sort and file paper applications.

Some ATS can also save you time. Many employers use systems that allow you to upload your vital data, work history, education, and references directly to your profile on sites like, Indeed, ZipRecruiter and LinkedIn. While you should customize your application materials for different positions, being able to forego the tiresome process of retyping your data for every application saves you time.

ATS Allows Companies to See Where Their Recruiting Works

ATS let companies track where you found the job posting, regardless of whether it’s from a job board, straight from a company website, through a referral, or somewhere else. This data can be valuable information that lets employers focus their recruiting on the areas they are the most successful while scaling back in the areas that show few results.

What an ATS Can’t Achieve

Many human resources professionals dislike ATS for one simple reason; ATS don’t understand intangibles. When an ATS scans your resume, it may fail to see what a human could because it only focuses on the keywords it has been assigned. That is why it is so important to be sure your resume has the right keywords to give you a greater chance of being interviewed.

To Sum Up

When you submit your resume, there is a high chance of it being scanned by an ATS, or it could wind up directly in a hiring manager’s email. In either case, it’s good policy to make sure your resume is the best it can be.