AvatarPrashant Shringarpure | March 30, 2020

Big companies have big manpower requirements. As a result, the HR department is always busy searching for new talent. Therefore, these days big companies are utilising Applicant Tracking System or ATS to reduce time and cost to hire.

Your bogged down HR team will thank you a hundred times for giving them an ATS as it will help them be more efficient and productive. However, just like any other technology, ATS has its own benefits and drawbacks.

If you are in two minds about whether to set up ATS in your company or not, a look at its advantages and disadvantages can help you make an informed decision.

Advantages of Applicant Tracking System

Implementing an ATS can automate your recruitment processes which can help you save cost, reduce time and effort, and build a strong talent pipeline.

Reduce the time consumed in filtering CVs

Today, it has become so easy to advertise your job openings that your advertisements reach more people than ever before through multiple platforms. Naturally, a large number of applicants send their applications and CVs after finding your ads. This makes shortlisting the most relevant candidate profiles a challenging task.

But, if you have an Applicant Tracking System in place, it can evaluate a large number of CVs quickly for you. Consequently, the HR team does not require piling up CVs first and then shortlisting relevant ones for several weeks. ATS are generally configured to either accept or reject CVs immediately after the system receives them.

Pool-in CVs for future requirements

Another useful property that the ATS possess is that they create a repository of rejected candidate profiles and alert the recruiters for a match when a relevant job opening comes up.

Hence, instead of sourcing candidates, your HR persons can simply contact the candidates to ask if they are interested in the opportunity or not.

Reduce time and cost

An Applicant Tracking System is designed to automate HR processes. Through automation, it reduces paperwork for your HR people. The overall improvement in efficiency and productivity reduces the cost of the entire department while allowing people to allocate their time in other important tasks.

Automatic job posting

Often candidates find a job posting one a company’s website, but when they apply for the position, they find out that the position has already been filled. Similarly, a new opportunity may be posted on a portal so late that the company loses some great candidates.

Application Tracking Systems solve this problem by automatically posting and removing redundant ones in a timely fashion.

Disadvantages of Applicant Tracking System

In the end, ATS is just a piece of technology. It can certainly do things faster than humans but lacks in making smart judgements about the candidates’ suitability for specified jobs.

Miss out candidates with great potential

ATS measures CVs based on certain pre-defined parameters and looks for specified keywords in the CVs. Hence, if a potentially great candidate is applying for a position for which he has no prior experience, the ATS will reject him. Similarly, it may reject applications where the applicant has handled many different roles during his entire career.

Sometimes unreliable

ATS has its limitations when it comes to reading CVs. If a candidate’s CV is in a format that is not understood by the ATS, it will reject his application. Sometimes, it may read candidate’s CV inaccurately, and you may lose a great candidate without even interviewing him.

Monotonous Communication

Application Tracking Systems often have most processes automated that provide same and monotonous communication to the candidates. This gives a strong feeling of machine evaluating application versus human being. It’s important to have personalised communication with each (relevant) candidate to offer consistent employer branding experience. 

We hope that this article will help you make an informed decision regarding implementing ATS in your organisation. For more informative articles like these, you can subscribe to our weekly newsletter.