In this guide for Applicant Tracking Systems (ATS), you’ll learn everything – from choosing core features that suit you the most, to functionality and real business impact you’re aiming for – all updated for today’s hiring reality.
No matter the size of the organization, forward-thinking companies agree on one thing:
Employee experience matters – and it starts with how you treat people, even their joining.
There was a point when many startups were still relying on Google Sheets, inboxes, and manual follow-ups to manage hiring. When we spoke to early-stage founders and recruiters then, one challenge stood out clearly:
Recruitment tracking was broken, fragmented, and unscalable.
Fast forward to today, hiring has only become more competitive, more remote, and more candidate-driven. And the expectation is clear –no recruiter wants to (or should have to) manage hiring through spreadsheets anymore.
The good news?
A modern, user-friendly Applicant Tracking System (ATS) allows HR teams and recruiters to build a scalable hiring engine that saves time, reduces cost, and delivers a standout candidate experience.
This guide will walk you through:
- What an ATS really is (and what it isn’t)
- Why companies use ATS platforms today
- How ATS works behind the scenes
- Key features to look for in a modern ATS
- Business benefits of using an ATS
- How to choose the right ATS for your organization
Section 1: What Is an Applicant Tracking System?
It is no news that an applicant Tracking System (ATS) is a software designed to automate the hiring process. But how does a modern ATS helps HR managers, recruiters, and hiring teams:
- Sources candidates
- Screen applications
- Track progress across hiring stages
- Collaborate with interviewers
- Hire faster and more consistently
- Utilizes AI to make this entire process easier
An ATS takes care of repetitive, manual tasks so hiring teams can focus on people, not paperwork.
Section 2: Why Are Applicant Tracking Systems Used?
Hiring is time-sensitive.
While the average hiring cycle still spans 6-10 weeks, top candidates often remain available for less than 10 days.
Recruiters today face:
- Hundreds of applications per role
- Multiple stakeholders involved in decisions
- Pressure to move fast without compromising quality
This is where an ATS becomes essential.
Common hiring challenges an ATS solves:
- Sorting and filtering high volumes of resumes
- Eliminating manual spreadsheets and paperwork
- Increasing employee referrals
- Sending timely, personalized candidate communication
- Managing and updating career pages
- Posting jobs across multiple job boards
- Tracking hiring metrics and reports
- Building talent pools for future roles
- Structuring interviews and evaluations
- Running pre-screening questions or assessments
If you are currently facing any of these issues, a well-implemented ATS delivers immediate impact on hiring efficiency and candidate experience.
Section 3: How Does an Applicant Tracking System Work?
An ATS centralizes all candidate data in one system.
Here’s how it typically works:
- Candidates apply through job boards or the company career page
- The ATS parses resumes and creates structured candidate profiles
- Applications are matched against job requirements
- Recruiters review and move shortlisted candidates through stages
- Interviewers collaborate via notes, feedback, and scorecards
- Automated emails and reminders keep candidates informed
- Offers and onboarding workflows are triggered post-selection
Many modern ATS platforms also include:
This results in a transparent and trackable hiring process.
How an ATS optimizes the hiring process
The most effective way to think about recruitment is through a pipeline or funnel -similar to sales.
A typical hiring funnel looks like:
- Application
- Screening
- Phone interview
- Interviews
- Assignment / final round
- Offer letter
An ATS ensures:
- Every candidate is tracked
- Feedback is captured in one place
- No information is lost in emails
- Hiring teams stay aligned
This becomes especially critical when hiring at scale or across locations. ATS analytics also provide insights by role, location, and department – enabling data-driven hiring decisions.
Section 4: Key Features of an efficient ATS
Career Page
Create branded career pages where candidates can view and apply to open roles seamlessly.
Career pages deliver a consistent employer brand experience from first click to application.
Customizable Hiring Pipelines
Visualize hiring stages with role-specific workflows and board views.
Multi-Job Board Posting
Post jobs across platforms like LinkedIn, Indeed, and more – with a single click.
This helps in reducing manual posting time while maximizing candidate reach.
Resume Parsing & Screening
Automatically extract candidate details and filter applications based on criteria.
How it helps? Shortlist faster by focusing only on the most relevant profiles.
Interview Scheduling & Reminders
Calendar integrations, self-scheduling links, and automated reminders – this makes your job 10x easier.
Eliminate back-and-forth emails and reduce interview no-shows.
Automated Assessments
Send role-specific tests or assignments at different hiring stages.
Evaluate skills objectively before moving candidates forward.
Team Collaboration
Structured feedback, access controls, and shared evaluation notes – it gets as good as sounds.
Keep hiring decisions aligned across recruiters and interviewers.
Analytics & Reporting
Track key metrics such as time-to-hire, source of hire, drop-off stages, and hiring velocity.
Make data-driven improvements to your hiring process.
Onboarding Tools
Support smooth handoff from hiring to onboarding with documents, resources, and workflows.
Ensure new hires are productive from day one.
Section 5: Benefits of using an ATS
According to Capterra, 94% of recruiters say ATS has improved their hiring process.
An ATS directly impacts:
- Time‑to‑hire
- Cost‑per‑hire
- Quality of hire
Key benefits include:
1/ Faster Hiring: Automates resume screening, scheduling, and communication.
2/ Improved Candidate Experience: Consistent, timely communication and a professional hiring journey.
3/ Lower Hiring Costs: Reduced dependency on job boards and manual effort.
4/ Stronger Employer Branding: Branded career pages and measurable candidate engagement.
5/ Better Hiring Decisions: Data‑driven insights instead of gut‑based hiring.
Section 6: How to Choose the Right Applicant Tracking System
Step 1: Identify what your hiring goals are
Ask questions such as:
- Hiring volume and growth plans
- Number of stakeholders involved
- Use of referrals and assessments
- Reporting and compliance needs
Step 2: Research ATS Providers
Evaluate providers based on:
- Product usability
- Customer base (SMBs vs enterprises)
- Case studies and testimonials
- Frequency of product updates
Step 3: Take a Demo
During demos, focus on:
- Ease of use
- Hiring manager adoption
- Customization vs complexity
- Support and onboarding
The right ATS should feel intuitive – not overwhelming.
Section 7: What AI Means in the Context of an ATS
When vendors talk about “AI-powered ATS,” they’re usually referring to machine learning models layered on top of traditional ATS workflows. The goal is to help HR teams process large volumes of applications faster and surface relevant information more efficiently.
AI in ATS is not a single feature. It shows up in specific use cases across the hiring process.
Common Ways AI Is Used in ATS Today
1. Resume Parsing and Data Extraction
AI helps convert resumes into structured candidate profiles by:
- Identifying skills, job titles, education, and experience
- Handling different resume formats more accurately
- Reducing manual data cleanup for HR teams
This improves searchability but still depends on how well the ATS is configured.
2. Candidate Matching and Ranking
Some ATS platforms use AI to:
- Compare resumes against job descriptions
- Suggest candidates who may be a close fit
- Rank profiles based on relevance signals
Important caveat: these rankings are assistive, not definitive. HR teams should treat them as a starting point, not a final decision.
3. Screening Support
AI may assist with:
- Flagging applications that meet baseline requirements
- Highlighting gaps or inconsistencies
- Suggesting follow-up questions for recruiters
Good systems support human review instead of auto-rejecting candidates without visibility.
4. Job Description Optimization
AI tools are increasingly used to:
- Identify biased or exclusionary language
- Suggest clearer role requirements
- Improve readability and candidate reach
This can improve applicant quality before resumes even enter the ATS.
5. Candidate Communication
Some ATS platforms use AI to:
- Automate status updates
- Draft interview or rejection messages
- Improve response time to candidates
This helps scale communication but still requires human oversight to maintain tone and empathy.
Things to be careful about while using an ATS with AI
From an HR and compliance perspective, AI must be:
- Explainable
- Auditable
- Consistently reviewed
HR teams should always be able to answer:
- Why a candidate was screened out
- What criteria were applied
- Whether decisions can be overridden
AI should support fair hiring, not obscure it.
Bonus 1: Well-Known Applicant Tracking System (ATS) Platforms
Some of the most widely used ATS platforms across startups, mid-sized companies, and enterprises include:
Darwinbox – An India-first HR tech platform offering ATS as part of a broader HCM suite, with strong localization and regional compliance support.
Workday Recruiting – Best suited for large enterprises with complex, global hiring needs and deep HR system integrations.
SAP SuccessFactors Recruiting – A strong choice for enterprises already using SAP, especially those with compliance-heavy hiring processes.
Oracle Taleo – Commonly used by large, legacy enterprises managing high-volume and long-cycle recruitment.
iCIMS – Well-suited for mid-to-large organizations that require customization, detailed reporting, and scalability.
Zoho Recruit – A cost-effective option for small businesses, startups, and staffing agencies, particularly popular in India.
Bonus 2: ATS Buyer’s Checklist
Use this checklist before making a decision:
- Is it easily fitting our company size and hiring needs?
- Is it easy to use for recruiters and hiring managers?
- Does it offer a strong candidate experience?
- Do they provide live, customizable reports?
- Do they have transparent pricing or are there any hidden T&Cs?
- Is the customer support responsive enough?
- Is it working well with our existing career site?
Frequently Asked Questions
1. How much does an ATS cost?
The pricing models for each ATS include per‑user, per‑job, per‑module, or free‑forever plans.
2. How do I find the best ATS?
The best way to find the best ATS is to compare features, reviews, demos, and most importantly, the support quality. Choose the one that supports your hiring requirements.