The Pros and Cons of Smart Applicant Tracking Tools

Last Updated: December 16, 2021

There’s a growing number of people in HR that depend on “smart” applicant tracking systems (ATS). These tools vary slightly in the features they offer, but most of them aid HR departments in collecting applications. To learn more about ATS tools, keep reading.

As a human resources professional, you likely know that some of the most sought-after positions at companies can attract dozens or even hundreds of candidates.

Then, there’s the daunting task of narrowing down the field and keeping track of the statuses of all the people who apply. Due to these challenges, there’s a growing number of people in HR that depend on “smart” applicant tracking systems (ATSOpens a new window ).

Those tools vary slightly in the features they offer, but most of them aid HR departments in collecting applications, organizing them and applying filters based on an organization’s hiring needs.

What should you know before deciding to follow their lead and use one of them?

1. Pro: They Could Save Time

The findings of an SHRM reportOpens a new window revealed that the average time to fill a position is 42 days. Most ATS platforms allow you to specify the desire to single-out people with certain characteristics, such as being bilingual or having at least four years of experience in a senior programming position.

As such, you can let the technology highlight the most relevant candidates automatically, saving you time and opening your schedule for other duties.

2. Con: They Could Make You Miss Well-Qualified Applicants

Many of the most innovative smart tracking systems for applicants use artificial intelligence (AI). The algorithms look for designated keywords within applications and categorize them accordingly. However, there may be some cases where the content of the person’s application doesn’t precisely match what the algorithms seek, making the system bypass it.

Sometimes, that can happen due to the wording a person uses on an application or even acronyms. For example, maybe one of your preferences is that successful applications for a camp counselor position have at least two years of American Sign Language knowledge. If a person has a “Languages” subheading on their application and merely adds “ASL” to it, a human would likely grasp the meaning right away, but a machine may not.

3. Pro: They Might Cut Down on Hiring Discrimination

Data from 2015 shows that women experience a 20 percent wage gap compared to what men earn. Females are also at risk for other types of discrimination, such as preconceived notions about the work women “can” or “should” perform. Beyond gender-based discrimination, older members of the workforce or people with “ethnic-sounding names” could be at a disadvantage as well.

According to the results of one disheartening studyOpens a new window , black applicants who “whitened” their names received callbacks about submitted applications 21 percent of the time, while the percentage of people who heard back, but didn’t do anything to alter their names, was only 11.5.

However, when you use an intelligent ATS, there’s often the option to hide a person’s name so that HR professionals don’t see it before meeting the candidate, and the technology doesn’t take it into account either.

4. Con: Some ATS Tools Have Difficulty Reading Common Fonts

Numerous online resources for job seekers teach people how to optimize their applications to maximize the chances they get seen by real people and not just machines. Not surprisingly, using the right keywords is one tip. But you might be surprised to find that some ATS systems discard applications due to the fonts used in their creation.

More specifically, some offerings have trouble reading serif fonts such as Times New Roman. That’s a frequently used font, and applicants would have no way of knowing beforehand that they may need to make font adjustments because of ATS-related quirks.

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5. Pro: There Are Lots of Technology Options Available

Analysts say the applicant tracking system market is in a period of growth and that it could have a total worth of $1.81 billion by 2023Opens a new window . Companies know they have to continually diversify and enhance their ATS tech to keep up with demand.

Additionally, as more brands enter the ATS market and cater to the needs of their customers, you should find it’s easier than you may have expected to find choices that fit your budget and other requirements.

6. Con: User Mistakes Could Cause Frustrating Issues

Most of today’s leading ATS platforms are user-friendly and allow people to use them without going through extensive training first. But, when using any tech tool, it’s possible to make mistakes that negatively affect the results your system generates. Sometimes they happen if you’re just tired or working too hastily.

For example, perhaps you have a system that gives the freedom to type in any keywords as your desirable applicant traits. That scenario offers plenty of flexibility, but it’s easy to imagine what could happen if you misspell a word because of fatigue. Or, you could make a similar error by making an incorrect click or two with your mouse and adding an advantageous applicant characteristic to the group containing the elements you don’t want in potential new hires.

Remain Aware of the Positive and Negative Aspects

As this list shows, investing in an ATS system could bring you meaningful benefits, but it’s not a foolproof solution.

As a result, it’s crucial to stay mindful of the intended benefits as well as the possible pitfalls before deciding to make an ATS part of your hiring process.

Kayla Matthews
Kayla Matthews writes about cybersecurity, technology and data privacy for publications like InformationWeek, CloudTweaks and ITProPortal. To read more from Kayla, visit her blog.
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