The Benefits of an Applicant Tracking System for Business

The business landscape that we are observing today is characterized by fierce competitiveness and increasing tech-savviness. Amid this competition, attracting and selecting the right talent can be a daunting task for business. Finding, vetting, and onboarding the ideal talent necessitates businesses to be proactive in their approach in choosing the top-notch talent that aligns with their organizational goals and objectives. With the surge in the number of job applicants, manually managing the entire recruitment process can be overwhelming, time-consuming, and prone to errors. This is where an Applicant Tracking System (ATS) steps in as a cure-all, revolutionizing the way businesses approach talent acquisition. In this comprehensive guide, we will take you through the eight substantial benefits that an ATS offers to businesses, exploring each advantage in depth.

Exploring the power of Application Tracking System

Application tracking system has come as a boon amid the energy-draining rigmarole of candidate finding, vetting, and onboarding. It helps automate the process by saving valuable time and energy along with enabling one to choose the best fit out there. Some of the invaluable benefits of an application system are comprehensively explored below:

Enhanced Time-to-Hire Efficiency

To begin with, one of the most significant benefits of an ATS is its ability to drastically reduce the time it takes to fill a position with the best resource. Traditionally, it takes a significant amount of time for the HR personnel to sift through stacks of resumes, trying to identify the best-fit candidates. However, with ATS at your disposal, it automates this process, enabling recruiters to quickly screen, filter, and rank applicants based on predetermined criteria.

Consider a scenario where a retail company needs to hire seasonal staff on urgent basis to meet holiday demand. Without an ATS, the hiring team would be inundated with resumes, leading to potential delays in staffing the stores. However, with an ATS in place this painstaking labor can be avoided as the system can automatically parse and analyze resumes, presenting the most qualified candidates to the hiring manager within no time. This efficiency can be the defining difference between seizing a timely opportunity and losing it to the competition.

Improved Candidate Quality

It needs to be emphasized that recruiting isn’t just about filling positions; it’s about finding the right people who align with the company’s values, culture, and goals. This task is commensurately done through ATS for it plays a pivotal role in helping businesses identify high-quality candidates by enabling advanced keyword searches, custom filtering, and even AI-driven matching.

Consider a tech startup looking for a software developer who is skilled in coding as well as a cultural fit for the company’s collaborative work environment. An ATS is designed such that it can help to prioritize applicants who possess the desired technical skills as well as those who have indicated teamwork and innovation in their application materials. This ensures that the company fills the position with the resource with ideal skill sets and who contributes positively to the team dynamic.

Streamlined Communication

There is no denying the fact that communication is the cornerstone of successful recruitment. It helps in ensuring a long-term easy-goingness for both the parties – employee and employers. An ATS, in this regard, seamlessly provides a centralized platform that facilitates smooth communication among all stakeholders involved in the hiring process, from HR managers to interviewers and candidates.

Now, imagine a multinational corporation searching for a senior executive and the hiring process involves multiple rounds of interviews with executives located in different time zones. In absence of an ATS, coordinating these interviews, sharing feedback, and scheduling follow-up discussions can become a logistical nightmare. However, with ATS at work, interview schedules can be seamlessly managed, and feedback can be instantly recorded and shared, ensuring a transparent, efficient, and productive process.

Comprehensive Data Analytics

The efficaciousness of data-driven decision-making in this time and age cannot be emphasized enough and an ATS, in this regard, acts as a goldmine of insights for HR and recruitment teams. The affordability provided by ATS of tracking key metrics such as source effectiveness, time-to-fill, and candidate conversion rates enables businesses to gain valuable insights into their recruitment strategies’ strengths and weaknesses.

Let’s consider a healthcare institution that is expanding and needs to hire nursing staff across different departments. Through the ATS analytics dashboard, the HR team can analyze which recruitment channels have yielded the most successful hires and if they find that referrals from existing nurses have consistently resulted in high-quality candidates, they can invest more in employee referral programs. The efficacy of this data-driven approach ensures efficient allocation of resources for maximum recruitment impact.

Increased Diversity and Inclusion

Diversity and inclusion are fast becoming the must-have principles in every workplace and are crucial to foster innovation and drive business success. But human bias is the primary factor that can hamper or jeopardize these principles. An ATS, however, can play a pivotal role in reducing unconscious bias by standardizing the evaluation process and ensuring fair treatment of all candidates. This standardization helps a great deal in getting away with human biasness and undue discrimination.

To understand more clearly, imagine a financial services company committed to building a diverse workforce. Without an ATS, the likelihood is much higher that hiring managers might unknowingly favor candidates who share similar backgrounds. However, with ATS in place, it can anonymize candidate information during the initial screening phase, focusing solely on qualifications and skills. Therefore, promoting diversity and transparency by preventing unconscious biases from influencing the selection process.

Better Compliance Management

The need to stay compliant with ever-evolving labor laws and regulations is immensely crucial for businesses. A slight discrepancy in meeting the labor laws and regulations can have a devasting effect on the company, not only hampering current standing but also it may reverse the past gains. Particularly, failure to adhere to Equal Employment Opportunity Commission (EEOC) guidelines and other legal requirements can result in costly lawsuits and damage to a company’s reputation.

Let’s consider a manufacturing company aiming to expand its operations to new regions with each jurisdiction having different hiring regulations and reporting requirements. In this scenario, an ATS can automate compliance by ensuring that required documentation is collected from candidates, helping HR teams stay up to date with legal obligations. This proactiveness helps reduce the risk of non-compliance and associated penalties.

Cost Savings

An ATS helps you save much of your money associated with the hiring process that otherwise could drain your pocket. Recruitment basically is an investment, but it shouldn’t break the bank. Traditional methods put a significant hole in your pocket because of their myriad expenses such as job postings, administrative tasks, and manual data entry. Leveraging an ATS you can certainly save a significant amount of money and divert these miscellaneous expenses towards other core aspects of your business.

For a clearer understanding, imagine a retail chain aiming to open several new stores. Without an ATS, they would need to post job openings on various platforms, each with its associated fees along with the administrative overhead of managing applications and scheduling interviews. With ATS job postings can be managed with ease from a single platform, and the automated screening process reduces the need for manual intervention, leading to substantial cost savings.

Seamless Onboarding Integration

Finally, the journey of a successful candidate doesn’t end with a job offer; it continues with a smooth onboarding process. Unlike the traditional process, integrating an ATS with onboarding systems ensures a seamless transition from recruitment to employment. The seamlessness and ease with which ATS pulls through the onboarding process is what makes it worthwhile and certainly an effective catalyst that helps your business ensure easy-goingness in every aspect of its recruitment.

For a more practical understanding, consider a technology company that has just hired a software engineer. Without integration between the ATS and the onboarding system, the HR team would need to manually transfer candidate data and documents that is prone to different errors and delays. However, with integration, the information of candidate seamlessly flows from the recruitment phase to the onboarding phase, effortlessly minimizing administrative overhead and ensuring a positive candidate experience from start to finish.


In sum, an Applicant Tracking System (ATS) is not merely a tool, rather it is an incredible strategic asset that empowers businesses to recruit inclusively, effectively, and efficiently. From enhancing time-to-hire efficiency, streamlining communication, improving candidate quality, providing comprehensive analytics, promoting diversity, cutting costs, ensuring compliance and facilitating seamless onboarding, an ATS-driven recruitment process is a sure guarantor of success in the modern business landscape.

In face of the evolving needs of the modern day, businesses that embrace the capabilities of an ATS position themselves for success in attracting, onboarding, and retaining the best talent. Given the competitive advantage of top-notch talent, leveraging the power of an ATS is a smart and efficacious investment that pays dividends in the form of a skilled, engaged, and diverse workforce.

We at Enwage believe in equipping our clients with the modern-day workforce tools and strategies in order to propel them to new heights of success. Contact us for more information as to how we may help you with our diverse set of services.

Enwage: Your Next-Door HR Partner!

Your journey to HR excellence begins with Enwage’s innovative solutions, paving the way for a brighter future.