Up to 81% of recruiting teams reported that hiring is more difficult today than last year. With these challenges, ATS tools came with the promise of fixing hiring issues. However, many ATS platforms fall short of delivering on that promise.
First, what is an ATS?
An Applicant Tracking System (ATS) is a software solution to manage the hiring process. These systems help sort through resumes, keep track of candidates, and make the hiring process smoother (or at least they're supposed to).
ATS usage continues to grow, with 70% of large companies currently using an ATS and 20% of small and mid-sized businesses. This widespread adoption would lead you to believe hiring challenges are a thing of the past.
So, if ATS tools are supposed to solve hiring problems, why do we still face so many challenges?
That's why we're here today. We want to help you understand the common problems with ATS platforms. With the insight from this guide, you can make better choices when picking a tool that fits what you need.
Problem 1: Complexity and Steep Learning Curve
The first problem may prevent some hiring managers from using ATS platforms altogether. It is simply that many options are too complex.
Ease of use is often the top consideration when adopting any software. This rings especially true for ATS tools since hiring managers are not technical experts. An overly complicated system can quickly overwhelm non-tech-savvy users. If your hiring managers are still asking, "What is an applicant tracking system," they will not do well with complex setups.
Many ATS platforms cram in features to try to be everything to everyone—tracking candidates, managing job postings, analyzing data, and more. This pursuit of flexibility over simplicity leads to cluttered interfaces and tools irrelevant to many organizations.
Some ATS developers seem to sacrifice user-friendliness in favor of endless configuration and customization options. While that may appeal to some technologists, it leaves many hiring managers behind.
The Consequences of Complexity on the Hiring Process
Don't get us wrong; if you have a hiring team that can figure out all these complex features from day one, then great! However, problems arise when managers lack these skills. They're busy looking at resumes, talking to candidates, and conducting interviews. Spending hours learning a complicated system can slow things down.
Even setting up the ATS can cause delays. You might need to train your staff to use this new, complex system.
What to Look for in an ATS Platform
Complexity has its place when solving real problems. However, what makes a good ATS comes down to the interface. It must remain intuitive, allowing all users to navigate the software easily.
Seek out an ATS with customization options so you can tailor the platform to your processes without restricting hiring managers. Letting your team demo the system can help surface which option feels most natural.
For advanced features, make sure ample training resources and 24/7 customer support are available. The ATS should empower your team, not stand in their way.
Problem 2: Poor Integration with Other HR Tools
These days, the business world is all about connections. Your email might talk to your CRM, or your project tool might sync with your calendar. It makes life easier. The same idea applies to HR tools.
Because hiring does not happen in a vacuum, your ATS should integrate with other systems, such as background checks, job boards, payroll tools, and more. This will save time otherwise wasted on manual data entry.
When everything works together, it saves you time and effort. You don't have to type the same information into five different systems or jump between twelve tools to complete your work.
Here are some examples of how an ATS for small businesses can team up with other systems:
- HR Information System: Sync candidate data with your central database
- Recruitment Sites: Post openings through XML feeds
- Job Multi-poster: Publish to multiple sites at once
- Background Check: Initiate checks and retrieve results
- Video Interview Software: View and share interviews
- Payroll Provider: Share key details for new hires
The Consequences of Poor ATS Integration
The answer is pretty simple: your work gets more complicated when things don't connect.
Think of what happens when Sales fails to coordinate with Marketing - you create information silos. Similarly, HR cannot collaborate effectively across departments without an integrated ATS.
This leads to doing the same work twice and wasting time. For example, you might have to enter a new employee's information in your ATS and then enter it again in your payroll system. That's double the work and double the chance of making a mistake!
Speaking of mistakes, it's easy to make mistakes when copying information from one system to another. Maybe you typed in the wrong start date or mixed up two candidates' contact details. These little errors can cause big headaches down the road.
What to Look for in an ATS Platform
Applicant tracking system software offers various levels of integration. The most straightforward integrations are called "native integrations." These are built into the ATS and usually just need a few clicks to set up.
At the very least, an ATS should be able to connect easily with the most common HR tools. But what if you need something more specific? That's where APIs come in. An API allows for advanced custom integrations when you have unique needs. However, APIs require technical resources.
If all else fails, tools like Zapier can help connect different systems.
Problem 3: Negative Candidate Experience
At the end of the day, the whole point of using an ATS is to hire the best people for your company. But if your ATS makes life hard for job seekers, they might decide not to apply at all. Or worse, they might turn down your job offer because the application process left a bad taste in their mouth.
So even if your ATS has all the bells and whistles you could want, it doesn't mean much if it's a pain for candidates to use.
One of the biggest reasons for a bad candidate experience is a confusing application process. Maybe the instructions are unclear, the system keeps timing out, or it asks for the same information repeatedly. It's enough to make anyone want to give up!
Another big problem is the lack of communication. If your ATS doesn't make it easy for you to keep candidates in the loop, they might feel left in the dark. They might wonder if their application was received, if they're still being considered, or if the position has already been filled. Without updates, candidates might think your company doesn't value their time or that they didn't get the job, so they move on to other opportunities.
To top it off, if your ATS isn't mobile-friendly, you're missing the boat. These days, people do everything on their phones – including job hunting. If candidates can't easily apply from their smartphone, they might not apply.
The Consequences of Negative Candidate Experiences
In a recent survey by HR.com, 22% of people said their ATS can't be used effectively to talk to candidates. That's more than 1 in 5 companies struggling to communicate with potential hires! Think about how that affects the application process. You have to step outside your ATS to reach candidates, which can lead to a disorganized and clunky experience.
This ties back to our earlier point about integration. Too many different tools and touchpoints can lead to inconsistencies and inefficiencies.
But the problems don't stop there. A negative candidate experience can harm your company's reputation. If someone has a bad experience applying to your company, they might share it with their friends or leave a negative review on job sites. This can scare away top talent and might even turn off potential customers.
What to Look for in an ATS Platform
When you're comparing the various applicant tracking system software, keep an eye out for these important features:
- User-Friendly Interface: The system should be easy for candidates to navigate. They should be able to create an account, upload their resume, and apply for jobs without scratching their heads in confusion.
- Mobile-Friendly: Make sure the ATS works well on smartphones and tablets. The application process should be as smooth on a mobile device as on a computer.
- Integration Capabilities: Look for an ATS for small businesses that can connect with your email system or other communication tools.
- Customization Options: You should be able to tailor the application process to fit your company's needs.
Problem 4: Limited Customization Options
That brings us to our next problem: limited customization options.
Every company does hiring differently. One might prioritize job posting and applicant tracking because it is only looking for a limited number of specific candidates. Another might prioritize onboarding and analytics because it is hiring in large numbers and needs to optimize its processes.
No matter which camp you fall into, your ATS should be flexible enough to meet your specific needs. If everything is pre-set and you can't adjust the system to fit your unique process, it's going to limit your ability to find the best people for the job.
The Consequences of Having Limited Customization Options
Imagine you're hiring for a creative position, and you want candidates to submit a portfolio along with their resume. But your ATS only allows for resume uploads. Now you're stuck either asking candidates to somehow squeeze their portfolio into their resume (not ideal) or managing portfolios separately from your ATS (also not ideal). It's a hassle for you and for the candidates.
As you can see, this leads to frustrations and inefficiencies for HR teams. You end up spending more time trying to work around your ATS's limitations instead of focusing on finding great candidates. As we talked about earlier, this can also lead to a negative candidate experience.
What to Look for in an ATS Platform
Unfortunately, many ATS platforms offer a one-size-fits-all solution with limited customization options. What you really need is the ability to customize your workflows. Much like you can automate marketing workflows. Look for an ATS that lets you choose which stages are included in your hiring process, what kind of files and information are accepted, and how each stage is evaluated.
Also, look for an ATS with a user-friendly interface that makes it easy to add or remove stages as needed. You shouldn't need to be a tech expert to adjust your hiring process.
Another thing to consider is scalability. It's great if the ATS allows you to be flexible with your workflows, but it also needs to be able to grow with your company. As you hire more people or expand into new areas, your ATS should be able to keep up.
Problem 5: Data Security and Privacy Concerns
This is a problem that hiring managers and project managers often overlook. After all, it's not like you're asking candidates for their credit card numbers. Yet, candidate data is still sensitive and needs to be protected.
When candidates apply for a job, they trust you with their personal information. This could include their full name, address, phone number, work history, and sometimes even their social security number.
The Consequences of Weak Data and Privacy
The consequences of poor data security can be far-reaching and can hurt both the candidates and your company.
First off, there's the ethical side of things. How would you feel if all your candidates' personal info leaked out and led to cases of fraud or identity theft? These people trusted your company and don't deserve to have their information misused just because they applied for a job.
For your company, the consequences could be disastrous. If word gets out that your ATS platform has been hacked, it could seriously damage your reputation. People might not want to apply for jobs with you anymore. Even your current employees and clients might lose trust in the company.
Lastly, let's not forget about the legal issues. If sensitive information like social security numbers or bank details are leaked, you could end up in legal trouble. You might face lawsuits and have to pay to compensate the affected candidates. That's a financial hit and a PR nightmare all rolled into one.
What to Look for in an ATS Platform
Now, you don't need to be a cybersecurity expert to choose a secure ATS platform. There are some basic features that the best applicant tracking systems should have.
First and foremost, look for proper data encryption. If you're unsure about the security features, look for GDPR-compliant systems. GDPR is a set of data privacy rules from the European Union. If an ATS follows these rules, they're serious about protecting personal information.
Also, make sure that the platform has strong access controls. Only the right people in your company should be able to see sensitive candidate information.
Problem 6: Limited Reporting and Analytics
We all know that in business, data is worth more than gold. It's what helps you understand your customers and make smart choices that lead to growth. The same is true when it comes to hiring.
It's crucial to be able to track important metrics that affect how, who, where, and when you hire. Sometimes, the ATS just doesn't have a way to pull reports. In other cases, the information is there, but it's hard to get to, or you can't export it to examine it more closely.
And maybe worst of all, sometimes the data isn't even accurate or complete. This makes it impossible to make good decisions because you're working with bad information.
The Consequences of Limited Reporting and Analytics
First and foremost, without good data, it becomes more challenging for HR teams to understand what's working and what's not in their hiring process.
Let's say you're paying for one job posting site and using another one for free. Without good reporting, you might not be able to tell which site is giving you better results in terms of the quality and quantity of candidates. You could be throwing money away on the paid site if the free one is actually working better!
This shows how limited reporting and analytics can lead to unnecessary expenses for the company and overall poor decision-making. You can't track your return on investment or justify why you're spending money on certain things.
What to Look for in an ATS Platform
The specific data you'll want will depend on your organization. However, if the ATS you're looking at can't track at least these five key performance indicators (KPIs), you might want to think twice:
- Hire rate: Tells you what percentage of your applicants actually end up getting hired. It can help you see if you're attracting the right candidates or if your hiring process is too strict.
- Stage conversions: Shows you how many candidates make it from one stage of your hiring process to the next. It can help you spot bottlenecks or stages where you're losing good candidates.
- Time to hire: Measures how long it takes from when a candidate applies to when they accept a job offer. Faster isn't always better, but it's important to know your timeline.
- Cost per hire: Tells you how much money you're spending to fill each position. It includes things like job board fees, time spent interviewing, and any other related costs.
- Source effectiveness: Shows you which sources (like job boards, employee referrals, or social media) are giving you the best candidates. It helps you focus your efforts and budget on what's working best.
Conclusion
Don't let all these common problems scare you off. It's not all doom and gloom in the world of ATS. Some ATS companies have really taken these issues to heart and are working hard to improve their systems.
What it all comes down to is choices. There are many ATS platforms out there, and it's up to you to pick the best one for your company. Do your homework, ask for demos and references, and ensure the platform you choose avoids the problems we've discussed today.
Just to recap, here are the six main challenges we looked at:
- Complexity and steep learning curves
- Poor integration with other HR tools
- Negative candidate experiences
- Limited customization options
- Data security and privacy concerns
- Limited reporting and analytics
By keeping these in mind, you'll be well-equipped to find the best applicant tracking system that makes the hiring process easier instead of more difficult.
