Recruiting new employees can become an overwhelming and expensive process. An Applicant Tracking System / ATS is used by companies to automate recruitment and keep the costs significantly lower. 

But first, what is an applicant tracking system?
An applicant tracking system can be defined as a unified platform that helps you manage your entire hiring process from one place.

This includes attracting and sourcing the right candidates, evaluations and online assessment of shortlisted candidates, interview scheduling, offer management, and maintaining a talent pool—all with just one software. Is ATS just meant for the big corporates? No, ATS for startups and small businesses can prove to be extremely useful too.

Here are 10 key benefits of using an Applicant Tracking System (ATS):

Key benefits of ATS software Key benefits of ATS software

1. Streamlines recruiting:

Growing businesses often end up recruiting for multiple positions at the same time. The process can become chaotic very quickly in the absence of a good applicant tracking system. An ATS enables you to manage your entire hiring process, from start to finish, on a single platform, so you don’t waste time juggling between multiple spreadsheets and tools to gather basic information. 

Hiring at any stage of growth is crucial, and this process needs to be quick and accurate to minimize the losses that bad hiring decisions can cause. An ATS for small businesses helps achieve this easily by letting you manage job postings, interview scheduling, assessments, offer management, and onboarding all from the same place. 

2. Post jobs on multiple job boards:

Companies end up spending huge parts of their hiring budget on paid subscriptions to job boards like LinkedIn, Indeed, Monster, etc to make sure that they attract the best candidates. While it is easy to find better candidates through these popular job boards, it can become time-consuming and expensive to juggle multiple job boards—and the worst part is, there’s no tangible data that can tell you where your best candidates are coming from. 

Good ATS like Freshteam integrates with various job boards including LinkedIn, Indeed, and ZipRecruiter enabling companies to post jobs, and track applications through these boards from a single platform. The ATS also drastically reduces the cost of hiring as you now only need to pay for one ATS, and not 5 different job boards. Freshteam even allows you to post on multiple job boards for free.


3. Saves time by automating mundane tasks:

By using an applicant tracking system, you can focus more on tasks that truly require your attention rather than spending manual resources on routine, mundane tasks. Good ATS can save almost 50% of your time by automating these routine tasks. In doing so, your processes get more efficient and faster. 

With your applicant tracking system, you can automatically screen resumes and reject candidates based on custom requirements, and even automatically schedule online assessments and background checks—this ensures that your conditions are met precisely, and each stage is executed without delays and bottlenecks.


4. Builds your brand:

Whether you end up hiring a candidate or not, it’s crucial to make sure that they have a good experience while interacting with your organization in any manner. By using an ATS, you can ensure that your candidates are in the know about each stage of their interview process—and

transparency + communication are two of the most important factors for building a good brand reputation. 

Good ATS can help you automatically notify candidates as they move through different stages of the interview process—you can notify candidates about their selection or rejection, reasons, and feedback, without keeping them waiting and guessing. This makes sure that even the candidates you reject leave with a positive impression of your brand.

5. Manages talent database:


Job boards can give you access to a good selection of candidates who might be suitable for open roles in your organization, but one of the best sources of recruitment often lies neglected—your talent pool. While sourcing candidates, you’ll encounter some exceptional ones who are not an immediate fit. This collection of candidates makes up your talent pool, and with the help of an ATS, you can nurture them for a later role. 

Good ATS makes sure that you don’t lose the candidates that you don’t select—and it’s also a cost-effective way to fill the skill gaps in your organization. Talent pool management is fast becoming one of the best channels to hire from, and an ATS will maximize your ROI from this channel.

6. Promotes easy collaboration among the recruiting teams


ATS makes it possible to reduce the chaos that comes with hiring for multiple positions and teams. It enables you to add the respective hiring managers to each candidate’s profile and have the hiring team collaborate in a streamlined manner on a single platform. 

Everyone involved in the hiring process has access to the candidate’s interview transcript, assessment score, resume, information about their previous experience, and other information required to make the right hiring decisions together, quickly. 

7. Helps find the right candidates and filters out the candidates that don’t fit the role well


Every open role receives more applications than your HR team can handle and screening of these applications needs to be thorough yet quick so that the candidates are not lost to your competitors and peers. Rather than sacrificing one for the other, a good ATS enables you to be quick and thorough when you hire candidates 

A good applicant tracking system enables you to set custom criteria that automatically reject resumes—this can be the location of the candidate, age, visa requirements, years of experience, etc. Resumes that don’t match your criteria get automatically rejected for the role and get added to your talent pool so that only the right resumes reach your HR team. 

8. Centralizes candidate management and document tracking

Waste no more time looking for candidate information and documents. Find the entire candidate history captured in your ATS—Know their contact details, reporting chain, number of times they’ve applied previously, etc all in a single place. The ATS also enables you to have all onboarding documentation, and legal and company policy documents in a centralized, secure platform. 

This reduces the time spent looking for basic information, enables processes like onboarding and hiring to be much smoother, does not require unnecessary paperwork, and amplifies security all at once. 

9. Reduces cost per hire


Using an ATS reduces the overall cost per hire significantly—by almost 40%—as it impacts multiple aspects of the employee life cycle within the organization. 

An applicant tracking system reduces the cost of attracting the best candidates by integrating with multiple job boards. It also tells you which channel is giving you the best candidates so you can stop spending on expensive paid job postings. 

 It eliminates the need for external recruitment agencies by automatically parsing resumes and ensuring only the best candidates make it forward. Apart from this, the ATS makes the onboarding process much more thorough, and helps measure employee performance and engagement in real-time so that employee retention rates are much higher—this eliminates the need for the constant hunt for replacements that burn a hole in the hiring budgets of organizations. 

10. Generates key recruiting insights

The applicant tracking system provides you with detailed insights and reports that you need to make the right decisions at the right time. 

ATS gives you access to real-time reports like average time spent at each stage of interviews for different roles, the best source of hiring, number of candidates processed per week or month, interview metrics, trends of candidate rejection for each department, employee resignation patterns, etc. 

Each of these metrics helps you understand what processes are working and what aren’t so you can step in and take timely action. 

Still wondering if the benefits of ATS are worth the effort involved?

It’s true that choosing new software and getting started with it can be a huge shift in your routine and can be quite intimidating. But the best part is, there are so many affordable options of applicant tracking systems to choose from. Almost all of them come with 3-week free trials, they all have different pricing models for you to choose from based on your business requirements, and some of them have Free Forever pricing plans that are made for growing businesses. Take advantage of the free trials and make an informed decision by comparing different ATS options. 

The right ATS will save you time, effort, and plenty of money—not only in the long run but almost immediately. So give it a go! Why not start with Freshteam?