How Do Applicant Tracking Systems Work?

What Is an Applicant Tracking System?

Applicant tracking systems are databases or other software systems that store and retrieve job information, and identify and match applicants to the specific positions in an organization. This information is usually entered by human resource departments or recruitment contractors. Applicants are using found by searching for key words or phrases in their cover letter and résumé. Job applications usually are kept on file anywhere from three months to two years, depending on the company's preferences.

Benefits of Applicant Tracking Systems

Many applicant tracking systems provide added functionality and use the information in the database to generate customized letters, including invitations for interviews, regret letters and job descriptions for successful candidates. Some systems feature standardized scoring, which actually selects the best person for the job.

Saved Resources

Applicant tracking system can reduce recruitment time, which is also called time to hire, the cost of the hiring process, or cost per hire, and increase the probability of finding the right candidate for the job. The system makes it possible to bypass some of the steps in the recruitment process, since recruiters don't have to start from start from scratch by advertising a position and screening new applications, because applicant information is stored in the database. Applicant tracking systems give recruiters a larger pool of potential employees to draw from, since applications are retained.