The modern recruiting process comes with specific challenges for job seekers. One of the main ones is dealing with ATS software. In this article, you’ll find all the necessary information about applicant tracking systems, how they work, and how to optimize a resume for them.
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Let’s start with the ATS meaning. ATS software stands for applicant tracking system. It is a program designed to streamline the recruitment process. Job seekers might not even realize how often they encounter applicant tracking systems in the hiring process. Here are some eye-opening statistics on the usage of such software.
Here comes the central conflict of interest. Qualified candidates often want to communicate with hiring managers instead of being filtered by an algorithm. However, major companies work with ATS software because it makes talent acquisition faster, cheaper, and more efficient. There are no signs of ATS slowing down, as hiring stakeholders view it as highly beneficial. The global market for such programs will be worth $3.2 billion by 2026. Currently, it grows in CAGR at a 6.7% rate. These algorithms are highly beneficial for employers as they allow management job applications quickly and with minimal human involvement. Recruitment software is especially crucial for large companies as they deal with hundreds of applications for all job postings. If you have ever applied for a job online, chances are you’ve encountered an applicant tracking system already. Such algorithms screen resumes and evaluate them according to set requirements. They filter out the resumes they deem unsuitable for job descriptions, automatically disqualifying many job seekers.
Not all algorithms are created the same. In the field of recruitment process, there are three main types of applicant tracking system software, namely:
It organizes, tracks, and stores job descriptions, applications, and candidate information. Such programs are usually integrated with other company systems to ensure smooth data transition. Some of the most popular applicant-tracking software titles are Bullhorn, Greenhouse, and SmartRecruiters.
Such programs do only two things – resume parsing and data extraction. For instance, potential candidates can upload their resumes in different formats and via different channels. Resume parsing allows extracting exact data from various formats for easy processing.
These are advanced programs that do screening, parsing, analyzing, and evaluation. They use Machine Learning and AI to find keywords, phrases, and pre-determined criteria in resumes.
Most applicant tracking systems work following the same logic. It can be broken down into several steps. However, the exact protocols depend on the software, integrations, and the company’s interests. An applicant tracking system does the following:
Some applicant tracking systems can also set interview dates and do other automation on the recruiting and hiring process.
Automated job posting and resume processing makes recruiting teams much more efficient. Imagine you are a recruitment manager in a huge company that attracts a lot of talent. You create a job description and post it. In a couple of hours, you get hundreds of applications. Realistically, it is impossible to process them all manually to find the top candidates quickly. A lot of times, people might apply for job postings they are not qualified for. They can do it on a whim or to try it out. After all, you never know what job seekers might think. But on the recruitment side, it is a considerable workload. Applicant tracking software can do it for the recruiting team by screening, parsing, and sorting. Automated systems follow the set guidelines and filter out all unsuitable documents. If a resume matches all the essential requirements, it gets on top with a high ranking. You’ve got yourself a qualified candidate you want to interview. Now, you do not waste your time on irrelevant resumes and can move your recruitment strategy forward.
Applicant tracking systems have filtering systems to analyze and evaluate resumes. The flexibility depends on the exact software. But usually, recruiters can set specific keywords and phrases for job openings. The applicant tracking system will sort resumes according to those words and phrases. The idea is to quickly find the most qualified candidates. Usually, the same keywords are used in the job description. It is also beneficial for the hiring process from the talent’s perspective. For instance, if you are qualified and suitable for the position, you do not have to wait until hiring teams deal with hundreds of other applications. If ATS systems rank your resume high, you get through a hiring funnel extremely fast. You do not need to worry about your documents being lost. Overall, ATS resume scanners increase candidate experience and allow for the attraction of better candidates. However, the main issue is resume optimization for such software. Because the algorithm needs to correctly read and identify your qualifications, if it cannot do that, your candidate journey might end immediately.
Applicant tracking systems offer significant benefits for the hiring process.
It is one of the ways to streamline the process and make things faster. The software also uses SEO to make the posts on job sites appear on top. Regarding candidate relationship management, such software allows the use of multiple sources of talent acquisition and automated interview scheduling.
The best applicant tracking system allows us to easily find the best candidates based on their experiences, skills, and competencies.
Recruiting teams get insights into the most efficient communication channels and reports on job market trends and seekers. ATS optimized resume system ensures teams can correctly create a job description and find prospective employees.
Recruiting software ensures managers can engage with top talent quickly and effectively. Most prospective employees do not have to wait after answering a job opening. It means that the company won’t lose talent to other competitors.
Artificial intelligence and advanced features allow us to integrate ATS systems with other companies’ programs. It included CRM, talent databases, and communication channels. Overall, human resources teams hugely benefit from such programs. They handle repetitive tasks, enhance candidate relationship management, and make the hiring process quick. At the same time, there are some downsides to ATS programs as well, namely:
Automatic interview scheduling is excellent, as well as reporting and analysis. However, there is no perfect technology to solve all the issues of recruiting processes. ATS can filter resumes based on keywords and disregard critical skills if they are not mentioned in an initial job description. In terms of job hunting, it is also a problem. Applicants must adjust their resumes to open positions so that the algorithm can properly parse them and extract data. It adds more hustle to the candidate experience, for sure. However, it is a necessary step.
When hiring candidates using ATS, recruiting teams often make similar mistakes.
The description has to be tailored to the exact position and role. Otherwise, recruiters end up with a generic text that is too broad for proper candidate selection. Ultimately, you might receive hundreds of irrelevant applications because job ads were not specific enough. Always add specific details about the role, technologies, certifications, skills, and company expectations.
It is a common mistake with any software. Regular and proper updates ensure the optimal functioning of a program. Updates fix bugs, introduces new features, and addresses potential security issues. You might miss an enhanced parsing or optimized filtering system if you skip an update.
These are candidates that didn’t actively apply for a job. But they might possess crucial skills and experience. It is essential to look through the database of previous applications and source information from open sources like LinkedIn.
Recruiting teams can integrate ATS with a job board, social media, video interviewing software, and even background screening solutions. Integrations allow better data processing, individual approach, and enhanced candidate experience.
Whether you apply on branded career sites or career boards, you will most likely encounter an ATS in your job hunting. Professionals must update and adjust their documents for such algorithms. Otherwise, you won’t get a fair chance in the hiring process. Here are some of the best tips for doing so:
Overall, it is better to use clear wording and traditional style. Be precise with your skills, competencies, and keywords. Make sure your resume aligns with the job description.
