11 Factors to Consider When Choosing an Applicant Tracking System

What is an Applicant Tracking System?

Before we dig into all the factors businesses exploring their Applicant Tracking System options need to consider, let’s ensure you have a clear Applicant Tracking System definition.

An Applicant Tracking System, also known as applicant tracking software, a hiring platform, hiring software, or recruitment software, is the core system HR and talent acquisition teams use to manage the end-to-end hiring process. It serves as the centralized database for all job candidate records and often integrates with other tools used in the hiring process, such as video interviewing software, talent assessments, background checks, e-signature solutions, and more.

The Primary ATS Factors and Features to Consider

Below are the top factors, features, and functionalities you want to consider when evaluating various ATS solutions and the vendors that offer them.

1. Identify Core Needs and Business Objectives

A crucial first step is to pinpoint the specific requirements that an ATS must meet to fulfill your business objectives. This requires understanding the hiring challenges your talent acquisition team and hiring managers face, and aligning the choice of ATS with your business goals. 

As Strazzulla points out, “It’s really important to understand what matters to the business, what the strategy of the business is going forward, and therefore, how does HR and TA support it?”

In other words, if your business strategy emphasizes rapid growth, an ATS with advanced sourcing tools might be a priority to attract top talent efficiently. Conversely, if employee retention is a bigger concern, then an ATS that supports robust onboarding features could be essential.

2. Consider Ease of Use and Integration

A common pain point on ATS software review sites is poor user experience, for the HR team, hiring manager, employees, and potential candidates. Selecting an intuitive system can significantly impact team adoption, hiring efficiency, and candidate engagement. 

Strazzulla highlights that the most common causes for organizations to switch their ATS system include poor customer service, an ATS software that is not intuitive and that their employees struggle to use the ATS. 

Evaluate whether the ATS integrates smoothly with your existing HR tech stack — such as payroll systems, performance management software, and interview scheduling tools. According to Strazzulla, integration specifics are crucial: “You need to get specifics because… you’re incentivized to get the deal done,” meaning sales representatives may oversell integration capabilities. 

Be sure to dig into the ease of using their software and ask how many clients are successfully using their specific integrations.

3. Budget and Total Cost of Ownership

Budget is a natural consideration, especially when companies often view HR tech as a cost center rather than a revenue driver. 

As Strazzulla notes, “Budget is always going to be a factor when it comes to HR and TA tech.” However, consider not only the upfront price but also the ATS’s long-term value to your organization including minimizing employee turnover by hiring the most qualified candidates.

Strazzulla advises companies to be aware of the total cost of ownership, including pricing structures and any hidden costs, such as additional fees for integrations, add-ons, or future scaling. Understanding the full pricing model will help prevent unexpected costs down the line.

4. Vendor Stability and Customer Support

An ATS is a long-term investment, so it’s essential to evaluate the vendor’s stability, reputation, and approach to customer support. 

Strazzulla discusses the importance of choosing an ATS vendor committed to evolving and enhancing its offering: “If somebody has… specifics around how it’s gonna be useful, that’s what I would look for.” 

Strong customer and tech support can ease the learning curve for your team and assist with any technical issues. Ask the vendor about their projected roadmap for updates and improvements, and look for those who have a track record of investing in their ATS product.

5. Customization and Flexibility

Every business has unique hiring processes, and an ATS should be flexible enough to accommodate them. When assessing an ATS, explore its ability for customization, including tailored workflows, and a branded candidate experience, and how easy it is to make these adjustments. 

Strazzulla cautions against being swayed by small, nonessential features: “If something’s going to ten times your productivity, you’ve got to walk away from the smaller features.” Focus on the most impactful tools and features, those that align directly with your team’s needs and will drive meaningful hiring results.

6. ATS Software Scalability

If your business is expanding, choose an ATS that can grow with you. Strazzulla notes that most businesses with under 1,000 employees seek all-in-one HR suites that include ATS functionality to simplify scaling and data analysis. 

With most companies’ goal being continued growth, you want to ensure you select a system that can handle future needs as your organization expands, without the need for frequent costly upgrades or system overhauls. 

An ATS that can handle a larger volume of job postings and applications, and provides more advanced reporting and analytics as you scale will save you the hassle of switching systems down the line. 

7. Data Security and Compliance

Given the sensitive nature of recruitment software data, ATS platforms must meet rigorous data security and compliance standards, any that do not should immediately be considered a red flag. Compliance with data privacy laws such as GDPR is crucial if you operate in regions where such regulations apply. 

Confirm that the ATS provider has security certifications and maintains strict data protection protocols. This factor not only protects private candidate information but also shields your company from potential legal and financial risks.

8. Reporting and Analytics

The best Applicant Tracking Systems will offer robust reporting capabilities to help HR teams track and optimize the recruitment process. 

Strazzulla mentions that companies are looking for solutions that allow for better data analysis, “having that unification allows for more accurate data as well.” This functionality helps measure essential metrics, like time-to-hire, cost-per-hire, and the effectiveness of candidate sourcing, which are essential for making data-driven improvements in your recruiting process. 

Advanced analytical reporting and tools can also help predict future hiring needs and enhance talent acquisition strategic planning.

9. Artificial Intelligence (AI) and Automation Capabilities

Many modern Applicant Tracking Systems are beginning to integrate AI for functions such as talent sourcing, candidate matching, and even interview scheduling. 

Can AI features streamline time-consuming manual tasks, potentially increasing your hiring efficiency? Absolutely, but they pose their risks as well, if not managed properly.

Strazzulla emphasizes the importance of understanding how a vendor applies AI: “The conversation’s going to continuously evolve and… the best practices here are going to come out.” 

When evaluating AI features, focus on their practical applications and how they align with your hiring needs rather than simply choosing a system because it boasts “AI.” Also, inquire about the vendor’s plans for AI development to ensure the ATS will remain innovative as AI technology advances.

10. Evaluate a Vendor’s Vision and Roadmap

When you’re planning for a long-term investment, it’s essential to select a vendor with a clear vision and commitment to continuous improvement. 

Strazzulla advises buyers to assess a vendor’s future outlook on AI and other innovations: “how that company thinks about utilizing this technology going forward and… the value that you’re going to get out of it.” If the vendor lacks a forward-thinking approach, it may struggle to meet your evolving needs, leaving you looking for a new ATS sooner than expected.

11. Consider Onboarding, Implementation, and Training

A successful ATS transition involves a smooth implementation process and sufficient training for your team. Some talent acquisition vendors offer comprehensive onboarding support, while others may provide limited resources. 

Consider how much time and effort your team can commit to learning the new system, and whether the vendor’s training offerings and transition timeline align with your needs. Remember that the implementation phase is an investment in your ATS’s future effectiveness, so it’s crucial to budget time for it properly.

Final Thoughts

Selecting an ATS is a complex process, but by assessing your company’s unique needs and carefully vetting potential vendors, you can make a choice that supports efficient, scalable hiring and aligns with your broader business goals. 

As Strazzulla emphasizes, organizations need to be thorough and forward-thinking in their hiring process, saying, “You’re going to spend so many cycles on this. You’ve got to talk to the right vendors… It can have a huge impact on your company, your career, and your employee health.” 

Following these steps can help your business secure an ATS that meets both immediate needs and future goals, setting the stage for successful, strategic talent acquisition.

Unlock Hiring Efficiency with Spark Hire’s ATS

Spark Hire offers a comprehensive and flexible Applicant Tracking System for small and medium-sized organizations that dream about hiring better as a team. 

Over 700 organizations use our ATS to support a wide range of hiring processes, leaning on our top-tier customization options, robust reporting and analytics, AI assistant, flexible workflow builder, and industry-leading customer service to achieve more efficient hiring and team engagement. 

Ready to learn how Spark Hire can help elevate your hiring process and scale your business? Book a demo today!