Applicant Tracking System

(ATS)

Glossary of HR Terms Applicant Tracking System (ATS)

What is an ATS?

An Applicant Tracking System (ATS) is a software application that automates and manages the recruitment and hiring process. It helps HR teams and recruiters collect, organize, and evaluate job applications, ensuring a more efficient hiring workflow from posting job ads to onboarding new hires.

Why it matters

Recruiting is one of the most time-intensive HR functions. An ATS improves efficiency by automating repetitive tasks, ensuring compliance with hiring laws, and providing analytics to improve decision-making. It also creates a more seamless experience for candidates, which is critical for employer branding and attracting top talent. 

Where it fits in the HR stack

The ATS belongs to the talent acquisition and recruiting layer of the HR stack. It integrates with job boards (e.g., Indeed, LinkedIn), HRIS platforms (to sync employee data), and other tools like video interviewing or assessment platforms to streamline the end-to-end hiring journey. 

Common use cases

  • Posting job openings directly to multiple job boards.
  • Parsing resumes and screening applicants automatically.
  • Managing candidate pipelines and communication.
  • Coordinating interviews with hiring managers and teams.
  • Tracking recruiting metrics like time-to-hire, cost-per-hire, and source effectiveness.

Examples of companies that use an ATS

  • Startups and SMBs often use user-friendly ATS platforms like Greenhouse, Lever, Paylocity, Ashby, or Workable to scale their recruiting efforts.
  • Large enterprises such as Google, Amazon, and Deloitte use enterprise-grade solutions like Taleo (Oracle), iCIMS, SAP SuccessFactors, or Workday Recruiting to manage thousands of applicants globally.
  • Staffing agencies use ATS software to handle high-volume recruiting across multiple clients.

FAQ

No. While large enterprises rely on ATS software for high-volume hiring, small and midsize companies also benefit. Modern ATS platforms are scalable and designed for businesses of all sizes.

Yes. Most ATS platforms integrate with job boards, HRIS, payroll, background check services, and communication platforms like Slack or Microsoft Teams.

Not directly. Candidates typically experience a branded careers page or application form that connects to the ATS, but the software itself runs in the background.

Common challenges include resume parsing errors (missing keywords may disqualify strong candidates), potential bias in algorithms, and a sometimes impersonal candidate experience if communication isn’t managed thoughtfully.

Costs vary widely. SMB-focused ATS tools may start at a few hundred dollars per month, while enterprise systems can run into tens of thousands annually depending on features, integrations, and user licenses.