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Applicant Tracking System Software – A Guide For New-Age Hiring

Did you know that in the current job market, on average, 118 people apply for a single job? These numbers would be much higher for larger global corporations. Thus, sifting resumes, managing the hiring pipeline, and finally onboarding can become challenging!


In the modern business world, finding and keeping the right talent is a top priority. Applicant Tracking System (ATS) software is a key tool for this challenge. It helps businesses manage the hiring process from start to finish. 


This guide will take you through everything you need about Applicant Tracking Software. We’ll start with how it works. Then, we’ll talk about why it’s so important. Finally, we’ll look at the good and the bad of using Applicant Tracking System software. If you want to improve your hiring process, this guide is for you. 


Let’s dive into how ATS software can help modern businesses like yours.

Understanding How Applicant Tracking System Software Works

So, first things first: what is an Applicant Tracking System in HR? At its core, ATS software simplifies the recruitment process. Here’s a step-by-step breakdown of how it functions, making it easier for businesses to navigate hiring challenges.

Step 1

Firstly, when a job opening is posted, Applicant Tracking System software begins its work. It collects applications from various sources. This includes job boards, company websites, and email submissions. By consolidating these applications in one place, it saves time right from the start.

Step 2

Next, the Applicant Tracking System software sorts through the resumes. It scans for specific keywords related to the job. Keywords might include skills, experiences, or educational qualifications. This step ensures that only the most relevant applications move forward in the process.

Step 3

Then, the employee tracking system ranks the candidates. It prioritises applications based on how well they match the job criteria. This feature helps hiring managers quickly identify the top candidates without manually reviewing each resume.

And Some More

Additionally, ATS can also manage communications with candidates. It sends automated emails to acknowledge receipt of applications. Furthermore, it can notify candidates about their application status. This keeps applicants informed and engaged throughout the process.


Moreover, Applicant Tracking System software can streamline interview scheduling for selected candidates. It may integrate with calendars to find suitable times for both interviewers and candidates. This feature alleviates the administrative strain on HR departments.


ATS also provides valuable analytics. It tracks metrics such as the number of applicants, sources of the best candidates, and time-to-hire. These insights help businesses refine their recruitment strategies over time.


In essence, ATS software acts as a bridge between employers and potential employees. It selects, organises, and simplifies the recruiting process. Doing so ensures that businesses can focus on evaluating the best candidates. All the while, it maintains a positive experience for job seekers. This balance is crucial for attracting and retaining top talent in a competitive job market.

7 Benefits of Using ATS Tools for Recruitment

Applicant Tracking System tools have transformed recruitment. They offer a multitude of benefits that streamline the hiring process. So, let’s delve into seven key advantages:

Efficiency in Handling Applications

First off, Applicant Tracking System software tools greatly speed up the review of applications. By automating the initial screening, they save precious hours. So, this means HR teams can focus on engaging with top candidates sooner.

Enhanced Candidate Quality

Next, ATS helps improve the quality of candidates who reach the interview stage. So, matching resumes with job requirements ensures only the most suitable applicants are considered. This precision elevates the overall talent pool.

Reduced Hiring Costs

The efficiency provided by ATS tools leads to reduced hiring costs. 86% of HR experts agree that using ATS greatly accelerates the hiring process. Companies can allocate resources more effectively by shortening the hiring time and minimising manual tasks. So, needless to say, this cost-saving is significant over time.

Improved Candidate Experience

Applicant Tracking System software tools contribute to a better candidate experience. Automated communications keep applicants informed and engaged. So, this transparency and timeliness can enhance the company’s reputation among potential employees.

Streamlined Communication

Communication between HR, hiring managers, and candidates is smoother with ATS. Centralising messages and updates eliminates confusion. Therefore, this clear, organised approach ensures everyone stays on the same page.

Compliance with Regulations

ATS tools also assist in maintaining compliance with employment laws and regulations. They can be configured to ensure fair hiring practises are followed. So, this eliminates or lessens the risk of legal issues.

Valuable Insights and Reporting

Lastly, ATS tools offer valuable insights through reporting features. Companies can track metrics such as source effectiveness, time-to-hire, and candidate engagement. These analytics support strategic decisions to optimise future recruitment efforts.


In short, Applicant Tracking System software tools make recruitment easier and more effective. By integrating ATS into their recruitment strategy, businesses can navigate the hiring process more successfully, ensuring they attract and retain the best talent.

Who Should Use an HR Recruiting Software?

Applicant Tracking Systems are versatile tools that can benefit various organisations. Understanding who can gain the most from implementing an ATS can help businesses make informed decisions. Around the world, 75% of recruiters use an applicant tracking system.


Here are the key groups that should consider using ATS:

Growing Businesses

If your business is expanding quickly, an Applicant Tracking System software can greatly help. It manages the influx of applications, ensuring you don’t miss out on great candidates.

High Volume Recruiters

An ATS is essential for companies that hire many people at once, like in retail or customer service. It simplifies sorting through lots of applications, saving you time.

HR Teams Seeking Efficiency

HR departments looking to streamline their work will find ATS tools very useful. These systems handle the routine tasks, allowing HR staff to focus on more strategic aspects of hiring.

Improving Candidate Experience

Companies that want to improve the application process for candidates should use an Applicant Tracking System software. It automates updates and feedback, keeping candidates in the loop.

Recruitment Strategy Enhancement

If your goal is to refine how you hire, ATS provides the data you need. It tracks the success of your postings and helps identify areas for improvement.

Compliance-Conscious Organisations

For businesses in industries with strict hiring regulations, an ATS ensures that your recruitment process complies with the law, reducing the risk of legal issues.

Small to Medium Enterprises (SMEs)

Small and medium-sized businesses also benefit from ATS. There are scalable solutions that fit smaller budgets but still provide the advantage of streamlining the recruitment process.

How 6 Pence Helps

Integrating an ATS can significantly enhance your recruitment process, making it more efficient and effective. However, managing an ATS and ensuring it aligns with your broader HR strategy can be a complex task. This is where 6 Pence steps in to bridge the gap.


While Applicant Tracking System software focuses on streamlining the recruitment process, 6 Pence offers comprehensive Staff Outsourcing and Payroll Outsourcing services that take your HR management to the next level. Our services are designed to alleviate the administrative burden on your team, allowing you to focus on strategic growth and core business activities.


Located in Dubai, Oman, Iraq, and Bahrain, we’re equipped to support your business across the Middle East. For more details on how 6 Pence can support your business needs and help optimise your operations, please contact us.

Frequently Asked Questions

How does an ATS work? 

An Applicant Tracking System software automates the recruitment process. It collects applications; filters resume based on keywords, ranks candidates, and helps with scheduling interviews. This system streamlines hiring by managing large volumes of applications efficiently.

What is the importance of ATS? 

ATS is important because it makes hiring faster, more organised, and fair. It helps businesses manage applications effectively, ensuring no potential candidate is overlooked. Additionally, it supports compliance with hiring regulations.

What are the advantages and disadvantages of ATS?

ATS speeds up the hiring process, improves candidate quality, reduces administrative workload, and enhances data management. It also ensures a fair and unbiased recruitment process.


But then there’s a risk of overlooking qualified candidates if their resumes don’t precisely match keyword criteria. It can also depersonalise the recruitment process, making it feel less engaging for candidates.


Also Read: 7 Trends in Human Resource Management For 2024


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