What Is an Applicant Tracking System?
Ready to run background checks the modern way?
Key takeaways:
Applicant tracking systems (ATS) are key software for streamlining the hiring process, from sourcing to onboarding
ATS can integrate with background checks for a focus on compliance
Understanding ATS helps teams optimize job descriptions and candidate materials
Get started today and order your first background check
What is an applicant tracking system?
An applicant tracking system is a type of software that companies use to manage job recruitment and hiring. These programs come with a wide range of capabilities ranging from basic database functionality to a comprehensive suite of tools that help recruiters filter, manage, and analyze candidates.
Because a typical job opening attracts 250 resumes on average, using an ATS allows recruiters to quickly review a high volume of job materials. Once a company posts a job listing and the resumes start pouring in, the ATS compiles them in a database. The automated tracking system identifies keywords, skills, and qualifications that match the job description, and uses the information to rank and filter applications. The hiring manager receives a list of the most qualified candidates based on criteria they set in advance.
The ATS may also schedule interviews, automate communication, and integrate with other software programs, like payroll processing or third-party background check services. Once the company interviews candidates, the ATS can send rejection letters as well as job offers.
Why use an applicant tracking system?
An employer may use an ATS to simplify and speed up the hiring process. Here’s how this works:
Optimizing content visibility: An ATS system scans resumes for specific keywords and formatting, then filters candidates who are a good fit for the role. This takes tedious upfront work off the recruiter’s plate, allowing them to focus on strategic sourcing and engaging potential candidates.
Creating effective job descriptions: Some ATS solutions come with extra features, such as templates and analytics to write compelling job descriptions. These tools help employers draft job postings that attract candidates who fit the role.
Understanding the candidate journey: Companies that use automated tracking systems can see how candidates interact with the entire hiring process. This may help organizations spot bottlenecks and opportunities for improvement.
Informing hiring managers and recruiters: Automated communication helps decision-makers stay informed throughout the hiring process.
How ATS benefits recruiters and employers
For recruiters and employers, using an ATS provides many benefits, including:
Sourcing and attracting qualified candidates: Applicant tracking systems use AI-powered tools and machine learning to determine where to post job listings, identify the most relevant resumes, and even predict candidate performance. These features can simplify and shorten the hiring process and ensure employers hire the best candidates.
Increasing candidate engagement: Recruiters and hiring managers can use ATS software to communicate with candidates and reach out to employee referrals. Tools like automated updates and personalized messaging reduce response times and keep candidates engaged, so top talent doesn’t fall through the cracks.
Improving efficiency and lowering costs: Automating parts of the hiring process, such as scanning resumes and filtering suitable candidates, means recruiters spend less time on administrative tasks and can focus on more meaningful parts of the hiring process.
Remaining competitive: An ATS system can give your business a competitive advantage by making it easier and faster to recruit suitable candidates. These systems reduce time-to-hire, provide a more professional experience for candidates, and eliminate manual handoffs between systems.
Optimizing the onboarding process: Once a company engages with an employee, the applicant tracking system may move them seamlessly to a human resources information system (HRIS). The employee’s details, application materials, identification, and notes transfer over, saving employers time and effort.
How application tracking systems benefit candidates
Candidates benefit from application tracking systems, too. These HR solutions have a few different advantages:
Enhanced candidate experience: ATS software often provides a more user-friendly application process with clear instructions, simplified form filling, and the ability to save your progress and return later.
Greater efficiency in the hiring process: Prospective employees may receive quicker responses, reducing the frustrating “resume black hole” effect and potentially helping them get hired faster.
Access to growth opportunities: Once hired, existing employees can keep an eye out for internal roles using the ATS, applying for positions that may be a better fit than their current role.
How background checks work with applicant tracking systems
ATS software can integrate with third-party background check services, like Checkr. If a company decides to run a background check, it will often do so in the final stages of the hiring process. This ensures the company focuses its resources only on serious candidates who have made it through earlier screening stages.
The process may vary with each provider, but here’s an overview of how the process usually unfolds:
Employer requests consent: The ATS sends the candidate a disclosure about the background check and requests consent. This is a legal requirement. When Checkr works with ATS programs, it sends several forms, including the “Summary of Your Rights Under the Fair Credit Reporting Act,” the “Disclosure Regarding Background Investigation,” applicable state disclosures, and a consent form that’s signed by the employee.
Candidate submits information: The candidate logs in to a secure portal in the ATS to provide details such as birth date, email address, full name, phone number, and Social Security number. They may also need to provide information relevant to other screenings, such as drug testing, a criminal record check and a credit history check.
ATS transfers the information: The ATS sends the candidate’s information to the background check provider. While the screening is in process, automated notifications keep all parties informed of progress or any additional information needed.
Results review: After completing the background check, the provider sends results to the ATS. Hiring managers can review the results according to company policy and compliance guidelines.
Adverse action management: If the employer decides not to engage with the candidate based on information recorded in a background check, employers must follow the adverse action process. The ATS can facilitate communication during this phase.
Final hiring decision: Once the candidate signs the final job offer, they move to the onboarding phase within the ATS.
Documentation and compliance: The ATS maintains records of the entire process, including consent forms and results. This helps ensure compliance with retention requirements and provides audit trails if needed.
Run a background check with Checkr today
Employers can use an ATS to streamline the hiring process and keep all parties informed throughout. ATS software is especially important when recruiters expect a large number of job applicants and want to improve efficiency and lower costs.
By partnering with a trusted background check provider, like Checkr, employers can easily build a package that suits their company’s needs at any given time. This may include a comprehensive pre-employment background check, a drug test, and a credit check.
Checkr integrates with ATS software to facilitate a seamless hiring process. Get started today.
Disclaimer
The resources and information provided here are for educational and informational purposes only and do not constitute legal advice. Always consult your own counsel for up-to-date legal advice and guidance related to your practices, needs, and compliance with applicable laws.
