Applicant Tracking Systems Software: A Buyer's Guide for Growing Businesses

Manually sifting through hundreds of resumes, tracking candidate progress in spreadsheets, and scheduling countless interviews can quickly overwhelm any hiring team. If your recruitment process feels chaotic and inefficient, you're not alone. The solution for modern businesses is dedicated applicant tracking systems software, a tool designed to automate, centralize, and streamline every step of the hiring process, from posting a job to making an offer.

This guide is designed to walk you through everything you need to know before choosing a platform. We'll cover essential features, the real-world benefits, how these systems work, and compare some of the top options on the market. By the end, you'll have a clear framework for selecting the right recruitment tracking system to help your business grow.

What You'll Learn

• What an ATS Does: An applicant tracking system automates and organizes recruitment tasks, creating a central database for all candidate information and hiring activities.
• Essential Features: Key features to look for include automated job posting, resume parsing, customizable hiring workflows, candidate communication tools, and detailed analytics.
• Core Benefits: Using an ATS leads to a significantly faster time-to-hire, an improved experience for candidates, better collaboration among hiring teams, and stronger compliance.
• How to Choose: The best ATS for your company depends on your size, hiring volume, budget, and need for integration with other HR software like payroll and HRIS.

An Overview of Applicant Tracking Systems (ATS)

At its core, an applicant tracking system (or ATS) is a software application that manages the recruiting and hiring process electronically. Think of it as a CRM (Customer Relationship Management) system, but for candidates instead of customers. It provides a single, centralized location for your team to manage job postings, view applicant information, and track each candidate's journey through the hiring pipeline.

Initially, these systems were simple digital databases designed to help large corporations manage the high volume of paper resumes they received. Today, modern ATS software is far more advanced. It uses artificial intelligence (AI) and automation to handle repetitive tasks, helping recruiters focus on what matters most: finding and engaging with the best talent.

From small startups to global enterprises, companies of all sizes use these platforms. Recruiters rely on them to manage their daily workflow, hiring managers use them to review candidates and provide feedback, and HR leaders use the data they generate to make strategic decisions about talent acquisition.

Key Features to Look for in Applicant Tracking Software

Not all applicant tracking software is created equal. When evaluating options, it's crucial to look for a core set of features that will deliver the most impact on your hiring efficiency. Focusing on these functions will ensure you choose a system that solves real problems for your team.

Job Posting and Syndication

Manually posting a job opening to multiple job boards is time-consuming. A quality ATS allows you to write a job description once and automatically distribute it to dozens of free and paid job boards (like LinkedIn, Indeed, and Glassdoor) with a single click. This feature dramatically expands your reach and saves hours of administrative work.

Resume Parsing and Candidate Profiles

A system's ability to automatically scan, or "parse," resumes is fundamental. When a candidate applies, the software should instantly extract key information—like contact details, work history, skills, and education—and use it to create a standardized, searchable candidate profile. This eliminates manual data entry and makes it easy to find qualified applicants in your database.

Workflow Automation and Stage Management

Every company has a unique hiring process. Your ATS should allow you to create custom hiring pipelines with distinct stages (e.g., Applied, Phone Screen, Interview, Offer). The software can then automate actions as candidates move between stages, such as sending rejection emails or notifying the next interviewer, ensuring no one falls through the cracks.

Candidate Communication and Scheduling

Constant back-and-forth emails to schedule interviews is a major bottleneck. Look for an ATS with built-in email templates and scheduling tools that sync with your team's calendars. This allows candidates to self-schedule interviews based on your availability, creating a much smoother experience for everyone involved.

Reporting and Analytics

How can you improve what you don't measure? A strong recruitment tracking system provides actionable insights into your hiring process. Key reports to look for include time-to-fill, cost-per-hire, source of hire (which job boards are most effective), and pipeline health. This data helps you identify bottlenecks and optimize your strategy.

Collaboration Tools for Hiring Teams

Hiring is a team sport. The software should make it easy for recruiters, hiring managers, and interviewers to collaborate. Features like internal notes, candidate ratings, and shared scorecards ensure that all feedback is centralized and accessible, leading to more objective and informed decisions.

The Tangible Benefits of Using a Recruitment Tracking System

Implementing an ATS is more than just a process improvement; it's a strategic investment that delivers measurable returns across the business. By moving away from spreadsheets and email inboxes, you unlock significant advantages that impact your bottom line and ability to attract top talent.

Drastically Improved Hiring Efficiency

This is the most immediate benefit. By automating tasks like job posting, resume screening, and communication, an ATS frees up your recruitment team from low-value administrative work. According to industry data, companies using an ATS can reduce their time-to-hire by as much as 30%. This means critical roles get filled faster, reducing productivity gaps and keeping projects on track.

Enhanced Candidate Experience

A slow, disorganized, and unresponsive hiring process is a major turn-off for top candidates. An ATS ensures timely and consistent communication, from an initial application confirmation to final status updates. Features like self-scheduling and a branded careers page create a professional and positive impression, which is crucial for protecting your employer brand.

Better Hiring Decisions with Data

Gut feelings can only get you so far. An ATS provides the objective data needed to make smarter hiring decisions. By tracking which sources deliver the best candidates or identifying stages where applicants drop off, you can refine your strategy based on evidence, not assumptions. This data-driven approach leads to higher-quality hires who are more likely to succeed in their roles.

Ensured Compliance and Centralized Record-Keeping

Staying compliant with hiring regulations (like EEO and GDPR) is complex. An ATS helps by standardizing the collection of applicant data and providing a secure, centralized record of all hiring activities. This creates a clear audit trail and ensures that your process is fair and consistent, significantly reducing legal risks.

How Applicant Tracking Systems Improve Recruitment Efficiency

While the general benefits are clear, it's helpful to understand the specific ways an ATS makes your recruitment process more efficient. The impact is felt daily, transforming a reactive, chaotic function into a proactive, strategic operation.

First, it eliminates the black hole of applications. Instead of resumes being lost in an inbox, every application is captured, parsed, and stored in a searchable talent pool. This means that even if a candidate isn't a fit for the current role, you can easily find their profile for a future opening, saving you the cost and effort of sourcing from scratch.

Second, it streamlines collaboration. Without an ATS, feedback is scattered across emails, chat messages, and meeting notes. A recruitment tracking system centralizes all comments, ratings, and interview scorecards in one place. A hiring manager can log in, see exactly where a candidate is in the process, and review all feedback instantly, eliminating endless follow-up emails and meetings.

Pro Tip: Configure automated alerts in your ATS to notify hiring managers when they have a new candidate to review or feedback to submit. This simple step can dramatically reduce delays in the hiring pipeline and keep the process moving forward.

Finally, it provides a single source of truth. Questions like, "How many candidates are in the final interview stage?" or "Which recruiter is managing this opening?" are answered in seconds. This visibility allows everyone on the hiring team to be aligned and enables HR leaders to accurately forecast hiring timelines and resource needs.

Comparative Analysis: Top ATS Software for 2025

Choosing the right ATS depends heavily on your company's specific needs, size, and budget. Below is a comparison of some of the best applicant tracking software options available, each excelling in a different area.

Feature	Workable	BambooHR	Recruitee	Manatal
Best For	All-in-one hiring	Integrated HR & ATS	Collaborative hiring	AI-powered sourcing
Job Syndication	200+ job boards	Good (integrated with major boards)	2,900+ job boards	Excellent (includes social media)
AI Features	AI-powered sourcing & screening	Basic automation	AI candidate recommendations	Advanced AI sourcing & enrichment
HRIS Integration	Integrates with many	Built-in HRIS	Integrates with many	Integrates with many
Pricing Model	Pay-per-job or Annual	Included in HRIS suite	Per-user/month	Per-user/month

1. Workable: Best for All-in-One Functionality

Workable is a powerful and popular ATS known for its user-friendly interface and comprehensive feature set. It excels at getting your job openings in front of a massive audience with one-click posting to over 200 job boards. Its AI-powered candidate sourcing and screening tools help you quickly identify top talent from a large applicant pool.

Workable also offers robust tools for every stage of the hiring process, including customizable interview kits, advanced reporting, and seamless integrations with calendars and email. It's a fantastic choice for companies that want a dedicated, best-in-class recruiting tool that can handle significant hiring volume.

Pros:

• Extensive job board network for maximum visibility.
• Intuitive interface that's easy for the whole team to learn.
• Strong reporting and analytics capabilities.

Cons:

• Can be more expensive than other options, especially for smaller businesses.
• Some advanced features are only available on higher-tier plans.

2. BambooHR: Best for Integrated HR and Hiring

For businesses looking for more than just a standalone recruiting tool, BambooHR is a leading choice. It's a full Human Resource Information System (HRIS) that includes a capable and well-integrated applicant tracking system. This means your hiring process flows directly into onboarding, payroll, and employee record management without any manual data transfer.

The ATS within BambooHR covers all the essentials: job posting, candidate management, collaborative feedback, and offer letter generation. It's the ideal solution for small to mid-sized businesses that want to manage the entire employee lifecycle in a single platform, simplifying their HR tech stack.

Pros:

• Seamless integration between hiring, onboarding, and core HR functions.
• Simplifies your HR technology into one system.
• Excellent customer support and ease of use.

Cons:

• The ATS features may not be as deep or specialized as standalone tools like Workable.
• You must purchase the entire HRIS suite to get the ATS.

3. Recruitee: Best for Collaborative Hiring

Recruitee is designed from the ground up to make hiring a team effort. Its platform excels at facilitating collaboration among recruiters, hiring managers, and executives. Features like shared team inboxes, easy interview scheduling, and customizable evaluation forms ensure everyone involved in the hiring process is on the same page.

Beyond its collaborative features, Recruitee offers powerful automation, a vast network of job boards, and a branded careers site editor. It's a highly flexible and scalable solution that's great for fast-growing companies that need to build a structured and collaborative hiring machine.

Pros:

• Outstanding tools for team collaboration and communication.
• Highly customizable pipelines and workflows.
• Strong employer branding features.

Cons:

• The interface can have a steeper learning curve compared to simpler tools.
• Reporting features could be more robust on lower-tier plans.

4. Manatal: Best for AI-Powered Sourcing

Manatal stands out for its advanced use of Artificial Intelligence to supercharge the sourcing and screening process. The platform's AI engine can recommend the best candidates from your existing talent pool for new openings and automatically enrich candidate profiles with data from social media networks like LinkedIn.

This makes Manatal particularly powerful for recruitment agencies and corporate teams that need to proactively source passive candidates. It combines the core functionalities of an ATS with the intelligence of a recruitment CRM, helping you build and nurture a strong talent pipeline. Visit their site for the latest pricing information.

Pros:

• Powerful AI for candidate matching and data enrichment.
• Includes CRM features for managing long-term candidate relationships.
• Competitive pricing for its feature set.

Cons:

• The user interface is functional but may feel less modern than some competitors.
• Best suited for teams focused heavily on proactive sourcing.

Integrating Your ATS with Other HR Technologies

An ATS becomes even more powerful when it connects with the other tools in your HR technology stack. A well-integrated system creates a seamless flow of data, eliminates duplicate entry, and provides a holistic view of your people operations. When choosing an ATS, always evaluate its integration capabilities.

Key integrations to look for include connections with your HRIS (Human Resource Information System) and payroll platforms. When you hire a candidate in your ATS, their data should automatically transfer to your core HR system to kick off onboarding and payroll. Platforms like Deel and Oyster HR are examples of global HR platforms that often combine these functions, making integration a core part of their value.

Other critical integrations include background check services, skills assessment tools, and calendar/email clients (like Google Workspace or Office 365). The goal is to create an ecosystem where your tools talk to each other, automating the workflow from the first application to the first day on the job.

Peeking Under the Hood: Understanding ATS Algorithms and Candidate Rankings

Many job seekers view ATS algorithms as a mysterious black box that arbitrarily rejects resumes. In reality, these algorithms are tools designed to help recruiters manage volume by identifying the most relevant applications. Understanding how they work can help both companies configure them properly and candidates optimize their resumes.

At its most basic level, an ATS works by keyword matching. The software scans a resume for specific keywords and phrases that are present in the job description. These can include job titles, skills (e.g., "project management," "Java"), qualifications (e.g., "CPA"), and industry-specific terminology. Resumes with a higher match score for these keywords are typically ranked higher for the recruiter to review.

Modern systems go beyond simple keyword counting. They use semantic analysis to understand the context of words. For example, the system can understand that "managed a team" is related to "leadership experience." Many platforms also use "knockout questions" in the application form. If a candidate answers a critical question incorrectly (e.g., "Do you have a valid nursing license?"), their application may be automatically filtered out.

For candidates, this means it's crucial to tailor your resume to each job application. Use the same language and keywords found in the job description, avoid complex formatting like tables or images that can confuse the parser, and use standard section headings like "Work Experience" and "Education."

A Step-by-Step Guide to Implementing an ATS

Successfully implementing an ATS involves more than just buying software. A thoughtful rollout process is key to ensuring your team adopts the new tool and you get the full return on your investment.

1. Define Your Hiring Needs and Goals: Before you even look at vendors, map out your current hiring process. Identify the biggest pain points and bottlenecks. Are you struggling with high application volume? Is scheduling a nightmare? Your goals will determine which features are most important.

2. Get Buy-In from Stakeholders: Involve recruiters, hiring managers, and IT in the selection process. Demonstrating how the ATS will make their jobs easier is crucial for adoption. Run demos with key users and gather their feedback before making a final decision.

3. Data Migration and Setup: Work with your chosen vendor to migrate existing candidate data from spreadsheets or a previous system. This is also the time to configure your custom hiring pipelines, email templates, and user permissions within the new software.

4. Train Your Team: Don't just send a login link and hope for the best. Conduct formal training sessions for everyone who will use the system. Focus on real-world workflows and highlight the features that solve their specific problems. Provide documentation and ongoing support.

5. Launch and Gather Feedback: Roll out the ATS for new job openings. After a few weeks, survey your team to see what's working and what isn't. Use this feedback to make adjustments to your workflows and provide additional training where needed.

Common Challenges and Limitations of Applicant Tracking Systems

While incredibly beneficial, an applicant tracking system is not a silver bullet. It's important to be aware of the potential challenges and limitations to use the tool effectively and ethically.

One of the biggest risks is over-reliance on automation, which can lead to losing the human touch. If a system is configured to be too aggressive with its filtering, you might accidentally screen out qualified candidates who have unconventional backgrounds or resumes. It's critical to remember that the ATS is a tool to assist recruiters, not replace their judgment.

There is also a growing concern about the potential for bias in AI algorithms. If an algorithm is trained on historical hiring data from a company with a non-diverse workforce, it could learn to perpetuate those same biases. Reputable ATS vendors are actively working to mitigate this, but it's essential for companies to audit their processes and ensure their use of AI promotes fair hiring practices.

Finally, implementation and user adoption can be significant hurdles. If the system is complex and the team isn't properly trained, they may revert to old habits, rendering the software useless. A successful implementation requires a strong change management plan and ongoing support.

The Future of Applicant Tracking System Software

The world of recruitment technology is constantly evolving, and the ATS is at the center of this transformation. Several key trends are shaping the future of these platforms.

Artificial intelligence will become even more integrated. We'll see more predictive analytics that can suggest which candidates are most likely to be successful hires based on historical performance data. AI will also play a larger role in candidate engagement, using chatbots to answer applicant questions and keep them informed throughout the process.

There will be a greater convergence of ATS and Candidate Relationship Management (CRM) functionalities. The focus will shift from simply processing applications to proactively building and nurturing talent pipelines. This means more tools for sourcing passive candidates, running email marketing campaigns, and maintaining long-term relationships with potential future hires.

Finally, features that support Diversity, Equity, and Inclusion (DEI) will become standard. This includes tools for anonymizing resumes to reduce unconscious bias, analytics to track diversity in the hiring pipeline, and integrations with platforms that connect employers with underrepresented talent pools.

Frequently Asked Questions (FAQ)

What applicant tracking system is the best?

There's no single "best" ATS for everyone. The best system for you depends entirely on your needs. For all-in-one recruiting power, Workable is a top contender. For businesses wanting a single platform for all HR functions, BambooHR is an excellent choice. The key is to evaluate options based on your company size, hiring volume, budget, and integration requirements.

How much does an ATS usually cost?

ATS pricing varies widely. Some models charge per user per month (e.g., $50-$150 per recruiter). Others charge based on the number of active jobs or the size of the company. All-in-one HRIS platforms like BambooHR bundle the ATS cost into the overall suite price. Expect to pay anywhere from a few hundred to several thousand dollars per month depending on the platform and your scale.

Is there a free ATS?

Yes, some ATS providers offer free plans, but they are typically very limited. They might restrict you to one active job posting or a small number of candidates. These can be a good starting point for very small businesses or for testing a platform's interface. However, most growing companies will quickly need the features available in a paid plan.

Can an ATS reject my resume?

An ATS itself doesn't "reject" a resume in the way a human does. However, it can be configured to automatically filter out or rank applications low based on certain criteria. This is most often done through "knockout questions" (e.g., if you answer "no" to a required qualification) or a low keyword match score against the job description. A human recruiter almost always has the ability to review all applications, including those that were filtered.

How do I ATS proof my resume?

To optimize your resume for an ATS, focus on clarity and relevance. Use a clean, simple format without tables, columns, or graphics. Tailor your resume for each application by incorporating keywords and phrases directly from the job description. Use standard font and section headings (e.g., "Work Experience"). Finally, save and submit your resume as a .docx or .pdf file, as these are the most easily parsed formats.

Final Thoughts: Choosing the Right Recruitment Tool for Your Team

Selecting and implementing applicant tracking systems software is a transformative step for any growing business. By moving away from manual, disorganized processes, you empower your team to hire faster, smarter, and more strategically. The right platform not only saves time and money but also enhances your employer brand and helps you secure the top talent needed to achieve your goals.

When making your decision, focus on your core challenges. Do you need to expand your reach. Improve team collaboration. Or integrate hiring with your broader HR ecosystem.

Answering these questions will guide you to the solution that best fits your unique needs.

If you're looking for a powerful, dedicated recruiting platform with extensive reach, explore what Workable has to offer. For businesses that prefer a single, unified system for all HR needs, BambooHR is an excellent choice to consider for streamlining your entire employee lifecycle.