Applicant Tracking Systems Market Expected to Secure Notable Revenue Share during 2022-2030

Applicant Tracking Systems: How They Work and Why They Are Important

Applicant Tracking Systems, or ATS, are software programs used by many companies to manage their recruitment and hiring processes. They automate the screening and ranking of job applicants, making it easier for companies to process large numbers of applications quickly and efficiently. In this article, we will explore how ATS works, its benefits and drawbacks, and how job seekers can optimize their resumes for ATS.

Applicant Tracking Systems Market Size was valued at USD 2.3 billion in 2021. The applicant tracking systems market industry is projected to grow from USD 2.5 billion in 2022 to USD 3.8 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.54% during the forecast period (2022-2030)

How Applicant Tracking Systems Work

ATS uses a process called parsing to extract relevant information from resumes, cover letters, and job applications. The system then stores this information in a database, where it can be searched and sorted based on specific criteria. ATS also uses algorithms to screen and rank applicants based on factors such as skills, experience, education, and keywords.

One of the main benefits of an ATS is that it allows companies to quickly and efficiently process large numbers of applications. This is particularly useful for companies that receive high volumes of applications for each job opening or have a high turnover rate. ATS also enables companies to stay organized by keeping track of each applicant's status, progress, and communication with the company.

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Benefits of Applicant Tracking Systems

Streamlines the Recruitment Process: ATS automates the recruitment process, reducing the time and effort required to manage job applications. It can quickly sift through large volumes of resumes and rank applicants based on specific criteria, allowing companies to focus on the most qualified candidates.
Reduces Bias: Since ATS evaluates candidates based on objective criteria, it reduces the likelihood of unconscious bias during the recruitment process. For instance, it can eliminate the influence of factors such as gender, race, and age.
Improves Candidate Experience: ATS can improve the candidate experience by providing timely updates and notifications throughout the recruitment process. It can also auto-generate candidate feedback emails, saving recruiters time and effort.

Drawbacks of Applicant Tracking Systems

Can Screen Out Qualified Candidates: ATS relies heavily on keywords and specific criteria to evaluate candidates, which can screen out qualified candidates who don't have the exact experience or wording listed on their resume. This is why it's important for job seekers to optimize their resumes for ATS.
Lack of Personalization: ATS is an automated system, which can make the recruitment process feel impersonal and robotic. This can be a turn-off for candidates who want a more personalized experience.

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Key companies in the applicant tracking systems market includes