By HR Brew Staff
3 min read
Definition:
An applicant tracking system (ATS) is a software system that helps manage the entire hiring process, from when a job is posted to when an offer is sent.
When did the ATS originate?
It may be hard to imagine a time when computers weren’t used in hiring—but ancestors of the modern ATS are actually younger than most Gen Xers. The hiring process started becoming digitized in the late 1960s, with the introduction of computerized “job banks.” These primarily government-operated lists streamlined the process by compiling participating employers’ open positions and sending them to employment agencies that would respond with interested candidates’ information. Much of the matching process was still manual, though some experimental programs attempted referring applicants to openings via computer. With the rise of personal computers in the 1980s, the ability to post (and apply) to jobs digitally became more accessible. Employers could post job listings online, and job seekers could apply, or input their information into a company’s database for future openings. Both parties had to pay fees, though.
How has the ATS evolved?
The ATS as we know it today first emerged in the 1990s and 2000s, as the internet became more commonplace and employers and job seekers could more easily post or find open roles. These systems also started incorporating more sophisticated tools, including algorithmic job matching, candidate assessments, and automated communications. With the emergence of cloud technology came the rise of companies offering SaaS ATS products—including Greenhouse, Workday, and ADP—allowing employers to use more technology without building it in-house.
Does the ATS have any downsides?
This technology has never been without its flaws. Even with early ATS models, recruiters reported being overwhelmed by a high volume of applicants—most of whom did not qualify for their jobs. While HR experts have excitedly theorized about the impact artificial intelligence (AI) may have on the hiring process, the technology, so far, has created headaches for those using ATS software; applicants complain of automatic, algorithm-based rejections, while recruiters complain of being overwhelmed with applications and compliance nightmares, including those related to unseen biases.
Can you put ATS into context?
“Applicant tracking systems (ATS) used to source candidates are also highly imperfect and often gauge potential based on the number of keywords shared between candidates’ résumés and job descriptions,” HR Brew reported in 2022.
