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What is a recruitment ATS: 5 functionalities

What is a recruitment ATS: 5 functionalities

By Clara Cera

Published: 30 April 2025

If you don't know what an ATS in recruitment is, your company is not yet digitised and you are missing out on valuable opportunities to optimise resources and attract candidates.

In an increasingly connected world, trying to escape digitalisation is not a good alternative. And no, neither is it a good alternative for the HR department or, for that matter, for recruitment and selection.

So the time has come to take the leap and we are here to accompany you in this process. What is an ATS and what benefits can it bring to your company?

Let's find out!

Definition of ATS in recruitment

An ATS or Applicant Tracking System is a software that optimises recruitment processes. In other words, it is a tool that facilitates the recruitment of human capital by automating tasks and centralising information.

🇪🇸 In Spanish, ATS is known as Sistema de seguimiento de candidatos.

💡 Let's remember: recruitment can be internal or external.

What is the principle of an ATS?

The principle of ATS tools is simple: they are based on finding the perfect candidate by filtering information.

This is how it works:

  1. Keywords are defined for each job offer, focusing on skills and competencies.
  2. These keywords are searched for in the CVs received.

In this way, the HR professional can locate CVs that match the vacancy without having to read all the applications received (many of which may be inappropriate). A considerable time-saver!

Which companies need an ATS?

Tools that allow you to be more competitive and manage your business more efficiently and effectively, such as an ATS, should be a priority for all companies. However, it is true that some organisations have a greater need for Applicant Tracking Systems than others. This is the case for companies:

  • Large companies,
  • in constant search of talent,
  • that receive a large number of responses to their offers.

The more recruitment processes you have open, the more complicated it will be to manage the applications. Having a tracking system helps you to do this in an organised way. Don't let anything slip through the cracks!

5 Functionalities of an ATS

More and more companies are relying on this type of tool due to its variety of functionalities adapted to the needs of each company. Although we have already highlighted some of them indirectly, let's take a closer look at the most important ones!

1. Information filtering

With this functionality, the match is assured! 💘

CV screening is one of the most interesting features of ATS software. As we have seen, this feature allows you to quickly find the ideal candidate among all the profiles received.

In this way, the HR department can focus on other more interesting tasks such as, for example, its employer branding strategy, which is beneficial both for employees and for attracting future talent.

☝️ With the ATS system, forget about duplicate CVs.

2. Personalisation of responses

Applicant tracking programmes are also focused on improving communication between employer and candidate. This is thanks, in large part, to the automation of messages to:

  • Schedule interviews,
  • reporting on the status of the application.

In short, another opportunity to reaffirm your employer brand and improve the candidate experience.

3. CV storage

While collecting and filtering information, an ATS creates a database of candidates that can be very useful for future vacancies. Sorted according to different competencies, training and skills, it allows you to shorten new recruitment processes by being able to go directly to profiles that:

  • fit the vacancy,
  • are interested in working for the company.

More resource savings!

4. Analysis generation

What else? Well, an ATS also provides analysis and data specific to recruitment processes such as:

  • The number of applications received at each recruitment source,
  • the number of candidates for each stage of the process.

This data allows you to detect the most noticeable channels and focus your efforts on them.

5. Calculation of indicators

Finally, and in relation to the reports provided, ATS is able to evaluate indicators such as return on investment (ROI). This type of indicator allows you to know the profitability of recruitment processes. It takes into account factors such as:

  • The time invested in the process,
  • the total cost of recruitment,
  • the cost per candidate recruited.

ATS: advantages and disadvantages

Applicant tracking software has many advantages and a few disadvantages that you should consider when choosing your ideal programme.

Advantages of ATS software

ATS allows you to:

  1. Automate tasks.
  2. Manage your selection processes in a more agile way.
  3. Optimise time.
  4. Reduce costs.
  5. Avoid common mistakes.
  6. Respect data protection (RGPD).
  7. Improve communication.
  8. Work on your employer brand.

Disadvantages of ATS software

As with everything in life, not everything is 100% black and 100% white. When implementing an ATS programme in your company, you should also take into account the position of the candidate.

In that sense, such tools can make the process of applying for a vacancy longer, slower or more cumbersome. Candidates will therefore be forced to make their CV ATS, i.e. to optimise it according to different keywords.

This may cause them to become dissatisfied and drop out of the process, as they may feel that the effort is not worth it and that there are too many factors working against them.

Choose a software that benefits both parties:

  • Company,
  • candidates.

[Bonus] 3 useful HR tools.

Finally, it should be noted that the world of tools designed for the digitisation and optimisation of the HR department does not begin and end with ATS software.

Thus, there are many other programmes that can be of use to you depending on your wishes and needs. For example:

  • HRIS software, designed to centralise all the information and management of the HR department: recruitment, payroll, communications, etc.
  • LMS (Learning Management System) software, designed to manage online training programmes for employees.
  • HDM software, designed for good management of human talent skills.

Article translated from Spanish