What is ATS? Recruiting Software Every Hiring Pro Needs

April 17, 2025
14
Min Read
Ann

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Ever wonder how recruiters sort through thousands of job applications for every single job posting? It would require thousands of manhours to read and evaluate each resume manually. That’s why most companies use an Applicant Tracking System (ATS), a software that automates the hiring process and makes it easier and faster for recruiters to find the best candidates. As recruitment becomes increasingly competitive and data-driven, knowing what is ATS functionality and how to leverage it effectively can give your organization a significant advantage. The right ATS implementation can transform your hiring process by eliminating manual administrative tasks, standardizing candidate evaluation, and providing valuable analytics on your recruitment funnel.

What Is an Applicant Tracking System (ATS)?

An Applicant Tracking System (ATS) is software that manages the recruitment and hiring process. It serves as a central database for job openings, candidate information, and hiring activities. Companies use an ATS to streamline their recruitment workflow, from posting job listings to screening resumes and tracking candidates through the hiring pipeline.

An ATS is a smart software that scans, scores, and ranks resumes based on how well they match the job and company requirements. It also helps recruiters manage and communicate with candidates through one easy-to-use platform. You can schedule interviews, sync calendars, and track candidate records with the ATS.

An ATS can make hiring a breeze for recruiters as well as candidates. It is useful for various hiring scenarios and needs, whether you are looking for diverse talent, seasonal staff, or remote workers, as it simplifies e-recruitment.

What Is the Difference Between an ATS and a CRM?

An ATS and a CRM are essential tools in business processes. They have distinct purposes and functions. An ATS is mainly used in recruitment. It simplifies and automates the early stages of hiring. Conversely, a CRM manages and analyzes customer interactions and data. Its aim is to improve customer service relationships and drive sales growth. Although both systems deal with data management, they are designed for different objectives.

ATS (Applicant Tracking System) CRM (Customer Relationship Management)
Primary focus Managing job applicants and hiring processes Managing customer relationships and sales pipelines
User base Primarily HR and recruitment teams Sales, marketing, and customer service teams
Main function Streamlining the hiring workflow Tracking customer interactions and sales opportunities
Relationship type Candidate-to-employer Business-to-customer
Timeline Usually shorter-term until hiring decision is made Ongoing relationship management throughout the customer lifecycle

How an Applicant Tracking System Works Behind the Scenes

An ATS is a complex software system that uses various technologies and algorithms to perform its functions. Knowing what to look for in an ATS is crucial for selecting the right one. Some of the key components of an ATS are:

The Database: This is where all the information about the candidates, jobs, hiring managers, and other relevant data are stored and organized. The database can be hosted on-premise or on the cloud, depending on the preferences and security needs of the organization.

The Parser: An applicant tracking system extracts relevant information from resumes, such as name, contact details, education, work history, skills, etc., and converts it into a standardized format that can be easily searched and analyzed by the ATS.

The Matching: This is a tool that compares the parsed resumes with the job requirements and the ideal candidate profile, using various criteria such as keywords, skills, experience level, location, etc., and assigns a score or rank to each candidate based on their fit.

AI / ML: An ATS uses Artificial Intelligence (AI) and machine learning (ML) to enhance its capabilities.  For example, AI/ML can help create dynamic candidate profiles based on their behavior and preferences; suggest relevant jobs or candidates based on  data enrichment; predict future outcomes such as hiring success or turnover; and provide insights and recommendations for improving the hiring process.

Collaboration and Activities: An ATS comes with a feature that enables seamless collaboration and activities between recruiters, candidates, and hiring managers via email or text messages. The communication tool can also automate certain tasks such as sending confirmations, reminders, feedback, and updates; scheduling interviews; generating reports; etc.

Integration: A fully featured ATS is able to integrate with other software systems or platforms that are used in the hiring process. For example, integration can enable posting jobs on multiple channels; syncing calendars with email providers; importing data from social media or professional networks; exporting data to payroll or HR systems; etc.

These components work together to create a smooth and efficient workflow for the hiring process. Depending on the features and functionalities of the ATS, it can also offer additional tools such as analytics, reporting, dashboards, alerts, notifications, etc.

7 Common Features of ATS

1. Resume Parsing

At the core of any ATS is its resume parsing capability. This technology:

  • Automatically extracts and categorizes information from candidate resumes
  • Converts unstructured resume data into structured, searchable formats
  • Identifies key qualifications, skills, experience, and education
  • Standardizes information for consistent comparison across candidates
  • Reduces manual data entry, minimizing errors and saving recruiters valuable time

2. Advanced Search Capabilities

ATS platforms provide powerful search functionality that allows recruiters to:

  • Filter candidates based on specific criteria like skills, experience, education, or location
  • Use Boolean operators to create complex search queries
  • Save searches for future use
  • Implement semantic search to find conceptually similar terms
  • Create talent pools based on search results for future opportunities

3. Candidate Sourcing and Engagement

Modern ATS solutions extend beyond passive application processing to active talent acquisition:

  • Job board posting and distribution across multiple platforms
  • Social media integration for broader recruitment reach
  • Candidate relationship management (CRM) tools
  • Talent pool development and nurturing
  • Automated candidate engagement sequences
  • Career site management with customized application processes

4. Email Templates and Communication Tools

Effective communication is essential for successful recruitment. ATS platforms offer:

  • Customizable email templates for different stages of the hiring process
  • Automated messaging triggered by specific actions or timeframes
  • Mass communication capabilities for candidate updates
  • Interview scheduling tools with calendar integration
  • SMS and alternative communication channel options
  • Response tracking and analytics

5. Analytics and Reporting

Data-driven decision making is made possible through:

  • Real-time recruitment metrics and KPI dashboards
  • Time-to-hire and cost-per-hire calculations
  • Source effectiveness analysis
  • Diversity and inclusion monitoring
  • Custom report generation
  • Pipeline analytics to identify bottlenecks
  • Forecasting tools for future hiring needs

6. Collaboration Tools

ATS systems facilitate team-based hiring approaches through:

  • Centralized candidate evaluation and feedback mechanisms
  • Interview scorecards and standardized assessment tools
  • Mention functionality to tag team members
  • Shared notes and candidate documentation
  • Integrated video interviewing capabilities
  • Mobile access for on-the-go collaboration

7. Workflow Automation

Efficiency gains are achieved through automated processes:

  • Customizable recruitment workflows and approval chains
  • Automated candidate status updates
  • Pre-screening questionnaires and assessments
  • Interview scheduling and reminders
  • Offer letter generation and management
  • Onboarding process initiation
  • Compliance documentation handling

Why You Should Use It for Recruitment

An ATS can offer many benefits for recruiters, candidates, and organizations alike. Some of these benefits are:

1. Source and Attract Qualified Candidates

An ATS can help recruiters reach out to a larger pool of potential candidates across various platforms and channels. It can also help them create a strong employer brand by showcasing their culture, values, mission, vision, etc., and attracting candidates who share their vision.

Moreover, an ATS can help recruiters find passive candidates who are not actively looking for a job but may be interested in new opportunities. For example, an ATS can use AI/ML to analyze the online behavior and preferences of candidates and send them personalized messages or job recommendations based on their interests.

2. Increase Candidate Engagement

An ATS can help recruiters keep candidates engaged throughout the hiring process by providing them with timely and personalized communication. Additionally, it creates a positive candidate experience by making the application process easy and user-friendly; providing feedback and updates; respecting their time and privacy; and addressing their questions and concerns.

For example, an ATS can use communication tools to send automated messages to candidates at different stages of the hiring process, such as acknowledging their application, inviting them for an interview, informing them of the next steps, etc.

3. Improve Efficiency and Lower Costs

An ATS can help recruiters save time and money by automating manual and repetitive tasks such as posting jobs, screening resumes, scheduling interviews, etc. For more insights, read about how ATS benefits HR managers. It can also help them reduce errors and biases by using standardized and objective criteria to evaluate candidates. Many providers offer Free ATS Trials that allow recruiters to experience these benefits firsthand.

Furthermore, an ATS can help them optimize their hiring strategy by providing them with data and analytics on key metrics such as cost-per-hire, time-to-hire, quality-of-hire, etc. For example, an ATS can use parser tools to scan resumes quickly and accurately; matcher tools to filter out unqualified candidates; integration tools to post jobs on multiple platforms with one click; etc.

LEARN MORE: A Step-by-Step Guide To The Applicant Tracking System

4. Optimize the Onboarding Process

An ATS can help recruiters ensure a smooth transition for new hires from the hiring stage to the working stage. It can help them provide new hires with all the necessary information and documents they need to start working; introduce them to their team and manager; assign them tasks and goals; and monitor their progress and performance.

An ATS can also help recruiters retain new hires by providing them with feedback, recognition, and support. For example, an ATS can use integration tools to export data from the ATS to the payroll or HR system; communication tools to send welcome messages or surveys to new hires; analytics tools to track their performance or satisfaction; etc.

This software also offer other benefits such as improving compliance with legal regulations or industry standards; enhancing collaboration among recruiters and hiring managers; increasing diversity and inclusion in the hiring process; and supporting the organizational culture and values.

How Manatal Does it: An Example

When searching for a reliable recruitment solution, you may find the variety of Applicant Tracking Systems (ATS) overwhelming. Each ATS boasts unique features designed to optimize your hiring process. Choosing the best ATS for your organization’s needs can be a daunting task.

Manatal distinguishes itself in this crowded field. It is a premier AI recruitment software that speeds up candidate sourcing and hiring. The software is tailored for HR teams, recruitment agencies, and headhunters aiming to simplify their hiring processes.

Using a robust ATS like Manatal allows you to utilize its advanced features. This can make hiring processes easier, faster, and more effective for all parties involved.

Initiate a 14-day free trial with Manatal and discover how it can enhance your recruitment efforts with ease.

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How Manatal ATS Uses AI

Driven by AI, Manatal's applicant tracking system automates the process and allows you to get things done with just a few clicks. Once you have job advertisements ready, Manatal can help you share the ads across 2500+ channels, including Indeed, LinkedIn, Monster, CareerJet, JobStreet, and more, within just one click.

And to help ensure that you’re filling open roles with the right talent without any bias, Manatal’s AI Recommendations scans job descriptions and quickly extracts the key skills and requirements. Then it cross-references the result with your talent pool based on skills, experiences, and education to identify candidates who fit the position best, regarding their gender and ethnicity.

Recruitment Management

For recruiters, juggling between the hiring managers and candidates is one of recruiters’ greatest challenges. Without proper management, all parties could end up with a bumpy experience. With recruitment management systems to streamline your hiring like Manatal, that will no longer be an issue.. You can easily track and manage your customers or hiring manager from the prospecting stage to closing. You can also collaborate with your customers, grant them access to candidates’ data to leave their thoughts on individuals they would like to know more about, and keep them in the loop 24/7 with Manatal’s messaging function.

Reporting & Analytics

Last but not least, the most essential process at the end of every hiring campaign is to look back at your performance and pinpoint the mistakes to come up with a stronger strategy. With Manatal’s Reports & Analytics feature, you can have full visibility on every key metric of your recruitment, track where things have gone right, see who in your team has made mistakes, and find a proper solution for your next campaign.

LEARN MORE: Manatal’s Reports & Analytics

Conclusion

An efficient tool is a must in the overheated war for talent such as today. And an Applicant Tracking System is a powerful tool that can come in and help recruiters and HR professionals manage the hiring process from end to end.

The ability to help them source and attract qualified candidates; increase candidate engagement; improve efficiency and lower costs, optimize the onboarding process, improve the quality and quantity of their talent pool, makes ATS and essential too for every recruiter and HR professional.

Frequently Asked Questions

Q: What metrics should recruiters track in an ATS to measure hiring success?

A: Recruiters should track key metrics in an Applicant Tracking System (ATS) such as time-to-hire, quality of hire, and cost per hire to measure hiring success.

  • Time-to-hire measures the duration from job posting to offer acceptance, showing how efficient the recruitment process is.
  • Quality of hire evaluates the long-term performance and retention of new hires, ensuring the right talent is selected.
  • Cost per hire assesses financial efficiency by calculating the total recruitment expenses divided by the number of hires. By leveraging an ATS, recruiters can automate data collection for these metrics, gaining real-time insights to optimize their hiring strategies.
Q: How can an ATS reduce time-to-hire, and what specific features contribute to this?

A: An ATS reduces time-to-hire by automating repetitive tasks and streamlining workflows, making the hiring process faster and more efficient.

  • Automated resume screening quickly filters candidates based on predefined criteria, cutting down on manual review time.
  • Centralized communication tools allow recruiters to manage all candidate interactions in one place, avoiding delays from scattered emails.
  • Interview scheduling integrations simplify coordination by syncing with calendars and reducing back-and-forth communication.

These features minimize manual effort, enabling recruiters to focus on critical decision-making and speeding up the overall hiring timeline.

Q: What are some emerging trends in ATS technology that recruiters should watch for in the future?

A: Emerging trends in ATS technology include AI-driven candidate matching, which uses algorithms to quickly and accurately identify top candidates based on job requirements. Predictive analytics helps forecast hiring needs and candidate success using historical data, improving decision-making. Integration with other HR tools, like onboarding and performance management systems, creates a seamless HR ecosystem for better efficiency. Additionally, mobile-friendly interfaces and chatbots for candidate engagement enhance accessibility and communication, making recruitment more responsive and modern. These advancements are set to make hiring smarter and more data-driven.

Q: How does an ATS like Manatal support small businesses compared to large enterprises?

A:An ATS like Manatal supports small businesses with an affordable, easy-to-use platform that includes essential features like job posting, candidate tracking, and basic reporting, allowing them to manage recruitment without needing significant resources. For large enterprises, Manatal offers advanced customization, complex workflows, and integrations with enterprise systems, accommodating high-volume hiring and global operations. While small businesses benefit from its simplicity and cost-effectiveness, large enterprises leverage its scalability and robust functionality. Manatal’s flexibility ensures it meets the unique needs and scale of both types of organizations effectively.

Q: How does Manatal’s candidate sourcing feature differ from standard job board integrations?

A: Manatal’s candidate sourcing feature stands out by using AI to proactively source candidates from diverse channels like social media, professional networks, and internal databases, rather than just relying on applicants from job boards. This builds a wider, more diverse talent pool, including passive candidates who aren’t actively applying. It also includes automated outreach and engagement tools to streamline communication and boost efficiency. In contrast, standard job board integrations depend on candidates submitting applications directly, limiting reach to active job seekers. Manatal’s approach is more dynamic and expansive, enhancing talent acquisition.

Ann Schumann

As a former recruiter turned content writer, Ann specializes in creating engaging content. With a passion for the recruitment industry, she helps businesses streamline hiring and attract top talent using innovative solutions.

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Bill Twinning
Talent Resources & Development Director - Charoen Pokphand Group
Manatal is the best ATS we worked with. Simplicity, efficiency and the latest technologies combined make it an indispensable tool for any large-scale HR team. Since its adoption, we've seen a huge increase across all our key recruitment metrics. To summarize, it is a must-have.
Dina Demajo
Senior Talent Acquisition - Manpower Group
Manpower has been using Manatal and we couldn't be happier as a team with the services this platform has provided. The application is extremely user-friendly and very well equipped with all the useful functions one would require for successful recruitment. The support team is also excellent with very fast response time.
Ahmed Firdaus
Director - MRI Network, Executive Search Firm
I've been using Manatal for the past couple of months and the platform is excellent, user-friendly and it has helped me a lot in my recruitment process, operation and database management. I'm very happy with their great support. Whenever I ask something they come back to me within minutes.
Edmund Yeo
Human Resources Manager - Oakwood
Manatal is a sophisticated, easy-to-use, mobile-friendly, and cloud-based applicant tracking system that helps companies achieve digitalization and seamless integration to LinkedIn and other job boards. The team at Manatal is very supportive, helpful, prompt in their replies and we were pleased to see that the support they offer exceeded our expectations.
Maxime Ferreira
International Director - JB Hired
Manatal has been at the core of our agency's expansion. Using it has greatly improved and simplified our recruitment processes. Incredibly easy and intuitive to use, customizable to a tee, and offers top-tier live support. Our recruiters love it. A must-have for all recruitment agencies. Definitely recommend!
Ngoc-Thinh Tran
HR Manager, Talent Sourcing & Acquisition - Suntory PepsiCo Beverage
I am using Manatal for talent sourcing and it is the best platform ever. I am so impressed, the Manatal team did an excellent job. This is so awesome I am recommending the solution to all recruiters I know.
Bill Twinning
Talent Resources & Development Director - Charoen Pokphand Group
Manatal is the best ATS we worked with. Simplicity, efficiency and the latest technologies combined make it an indispensable tool for any large-scale HR team. Since its adoption, we've seen a huge increase across all our key recruitment metrics. To summarize. it is a must-have.
Ahmed Firdaus
Director - MRINetwork, Executive Search Firm
I've been using Manatal for the past couple of months and the platform is excellent, user-friendly and it has helped me a lot in my recruitment process, operation and database management. I'm very happy with their great support. Whenever I ask something they come back to me within minutes.
Dina Demajo
Senior Talent Acquisition - Manpower Group
Manpower has been using Manatal and we couldn't be happier as a team with the services this platform has provided. The application is extremely user-friendly and very well equipped with all the useful functions one would require for successful recruitment. The support team is also excellent with very fast response time.
Kevin Martin
Human Resources Manager - Oakwood
Manatal is a sophisticated, easy-to-use, mobile-friendly, and cloud-based applicant tracking system that helps companies achieve digitalization and seamless integration to LinkedIn and other job boards. The team at Manatal is very supportive, helpful, prompt in their replies and we were pleased to see that the support they offer exceeded our expectations.
Maxime Ferreira
International Director - JB Hired
Manatal has been at the core of our agency's expansion. Using it has greatly improved and simplified our recruitment processes. Incredibly easy and intuitive to use, customizable to a tee, and offers top-tier live support. Our recruiters love it. A must-have for all recruitment agencies. Definitely recommend!
Ngoc-Thinh Tran
HR Manager, Talent Sourcing & Acquisition - Suntory PepsiCo Beverage
I am using Manatal for talent sourcing and it is the best platform ever. I am so impressed, the Manatal team did an excellent job. This is so awesome I am recommending the solution to all recruiters I know.

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