Applicant Tracking System (ATS)
An Applicant Tracking System (ATS) is a vital tool for recruitment today. It helps streamline, organise, and automate hiring processes. Companies, especially those with remote work or international operations, use ATS platforms to manage many applications and enhance candidate experience.
This glossary offers a full overview of what an ATS is, how it functions, and its importance for recruiters and candidates in the global job market.
What is an Applicant Tracking System (ATS)?
An Applicant Tracking System (ATS) is a cloud-based HR software. It helps manage the entire recruitment process. This includes posting job openings, receiving applications, tracking candidate progress, and making offers. The ATS acts as a central platform for all hiring activities.
It replaces scattered spreadsheets, manual communications, and disconnected recruitment methods. By using an integrated system, it ensures consistency, compliance, and data protection throughout the hiring journey.
How Does an Applicant Tracking System Work?
An ATS makes recruitment easier by automating key functions. It starts by posting job listings on job boards, internal portals, and social media. After receiving applications, the system screens resumes using keyword algorithms. These algorithms check qualifications and criteria from the job description.
Candidate data, like resumes, cover letters, communication logs, and interview notes, is stored in a central database. The platform also helps with interview scheduling by linking to calendars. It allows for synchronous communication between hiring team members. Recruiters can track each applicant's journey, leave feedback, rank candidates, and make hiring decisions, all from one interface.
Why Use an Applicant Tracking System?
The strategic value of an ATS lies in its ability to significantly improve efficiency, reduce costs, and ensure regulatory compliance. By automating repetitive tasks, it allows recruiters to focus on high-impact activities such as talent engagement and strategic workforce planning.
It also strengthens collaboration across departments by centralizing all applicant-related data and communications. The system supports consistent documentation, which is particularly useful in jurisdictions with stringent labor laws or non-discrimination testing requirements.
Benefits for Candidates and Recruiters
An effective ATS delivers mutual value for both employers and job seekers.
For recruiters, the system enhances operational efficiency by managing large application volumes, automating status updates, and identifying quality hires quickly. Many ATS platforms also offer HR analytics, enabling data-driven insights into time-to-hire, source effectiveness, and pipeline bottlenecks.
From the candidate’s perspective, the ATS ensures a smoother application experience. Job seekers receive timely communication, can track their status in real time, and are less likely to experience the “application black hole” that often plagues traditional hiring processes. As a result, candidate engagement and satisfaction improve significantly, reinforcing the employer brand.
How ATS Benefits Global Teams
For global companies managing recruitment across different countries or time zones, an ATS is essential. It standardises the recruitment process, ensuring every candidate is evaluated by the same criteria, no matter where they are.
In terms of global compliance, the ATS supports data protection policies and helps align hiring with local employment laws and cultural norms. Features like multilingual interfaces, time zone coordination, and role-based access control make collaboration in distributed companies much more efficient.
This alignment also aids in HR audit readiness. It helps maintain the integrity of internal hiring metrics, supports diversity initiatives, and improves DEIB (Diversity, Equity, Inclusion, Belonging) reporting.
Conclusion
An Applicant Tracking System (ATS) is now a key tool in today’s competitive hiring world. By combining automation, compliance, collaboration, and candidate care, the ATS helps companies attract and keep top talent globally.
For HR teams in remote-first companies, entering new markets, or handling high-volume hiring, a well-set-up ATS is essential. It forms the backbone of talent acquisition, ensuring recruitment practices are scalable, compliant, and fair.
For definitions of key HR and employment terms, visit the Rivermate Glossary.