What Is an Applicant Tracking System (ATS)?

If you’ve ever applied for a job online, there’s a good chance you’ve interacted with an Applicant Tracking System, even if you didn’t realise it. You may have uploaded your CV, entered your work history, answered a few questions and received an automated email confirming that your application had been received. Behind the scenes, an ATS may have been helping the company organise that information. For businesses, applicant tracking systems can provide a central place to manage recruitment. For job seekers, they can influence how applications are collected, organised and moved through the hiring process.

But what exactly is an ATS, and why have these systems become such a common part of modern recruitment?

What Does ATS Stand For?

ATS stands for Applicant Tracking System. It is software designed to help businesses manage information about people who apply for jobs and organise different parts of the recruitment process. An ATS can collect applications, store candidate information and help hiring teams keep track of where applicants are in the recruitment process. Depending on the platform, it may also support job advertising, interview scheduling, candidate communication, reporting and other recruitment activities. Think of it as a digital workspace for recruitment. Instead of a company trying to manage hundreds of applications through separate emails, spreadsheets and folders, an ATS can bring much of that information together.

Why Were Applicant Tracking Systems Created?

Recruitment has changed significantly over the years. Before online applications became commonplace, businesses often dealt with printed CVs, paper application forms and physical files. As more people began applying for jobs online, the amount of information employers had to manage increased. A company advertising one position could potentially receive hundreds or even thousands of applications. Keeping track of all those candidates manually became increasingly difficult. Applicant tracking systems developed to help businesses store and organise candidate information digitally. Today, ATS platforms can do considerably more than simply store CVs. Modern systems can form part of a broader recruitment workflow, helping teams manage applications, interviews, candidate feedback and recruitment data.

How Does an Applicant Tracking System Work?

Although different ATS platforms work in different ways, the basic idea is relatively straightforward. Imagine a company is looking for a new marketing manager. The business creates the vacancy and publishes it online. Candidates then submit their applications. Rather than those applications simply arriving in someone’s inbox, the ATS can collect the information and create candidate records. The recruitment team can then work through the applications and move candidates through different stages.

A typical process might look something like this:

Job advertised → Application received → Application reviewed → Interview → Further assessment → Offer → Hired

The exact stages will depend on the company and the role. The important point is that the ATS gives the hiring team a structured way to manage the journey.

What Information Does an ATS Store?

An ATS can contain a significant amount of information about candidates.

Depending on the system and how the company uses it, this may include:

Name and contact details
CV or resume
Cover letter
Job applied for
Application date
Previous communication
Interview information
Interview feedback
Assessment results
Recruitment stage
Hiring outcome

Some systems can also keep information about where an applicant discovered the vacancy, such as a company’s careers page, a job board or another recruitment source. Because applicant tracking systems can contain personal information, businesses also need to consider appropriate data protection, security and access controls when using them.

What Happens to Your CV When You Apply Through an ATS?

This is something job seekers often wonder about. When you submit an application through a company’s recruitment system, your CV and other application information can be stored in the employer’s ATS. The recruitment team may then use the system to review your application and decide whether you should progress to the next stage. Some ATS platforms also extract information from CVs and application forms so that recruiters can search and organise candidate records more easily. This doesn’t mean that every ATS works in exactly the same way. Different systems have different features, and companies can configure their recruitment processes differently.

Does an ATS Automatically Reject Candidates?

This is one of the more common misconceptions about applicant tracking systems. An ATS is primarily a recruitment management system, but some platforms provide screening, filtering or other automated tools that can help recruiters manage applications. For example, a company may use specific application questions or criteria to help organise a large number of applications. However, the exact process depends on the ATS and the employer’s recruitment setup. It’s therefore better to think of an ATS as part of the hiring process, rather than assuming that every application is automatically accepted or rejected by software. Human recruiters and hiring managers can still play an important role in reviewing candidates and making hiring decisions.

What Is the Difference Between an ATS and Recruitment Software?

You may come across several different terms when researching recruitment technology.

These can include:

Applicant Tracking System
Recruitment software
Hiring software
Talent acquisition software
Recruiting platform

The terminology can sometimes be confusing because there isn’t always a clear dividing line between these categories. Some platforms focus primarily on tracking applicants, while others combine applicant tracking with sourcing, candidate relationship management, interview management, onboarding or wider HR functionality. In other words, ATS is generally used to describe software that helps manage applicants and the recruitment process, but individual platforms can offer a much wider range of features.

What Are the Benefits of an ATS for Businesses?

From an employer’s perspective, an ATS can help bring structure to recruitment. Instead of having candidate information spread across different systems, a hiring team can work from a central recruitment platform.

This can help with:

Organisation: Candidate information can be stored and categorised in one place.
Communication: Recruitment teams can manage candidate communication as part of the hiring workflow.
Collaboration: Recruiters, hiring managers and interviewers can work with the same candidate information.
Recruitment visibility: Teams can see which candidates are progressing and where applications are within the process.
Reporting: Some systems provide recruitment reports that help businesses understand their hiring activity and identify bottlenecks in the process.

The value of these features will depend on the company’s size, hiring volume and recruitment process.

Why Are ATS Platforms Useful for Remote Businesses?

This is where applicant tracking systems become particularly relevant to the Remote Working Nomads audience. Remote businesses may have hiring managers, recruiters and candidates working from completely different locations. There may not be a central office where everyone can simply walk over to discuss a candidate. Instead, recruitment needs to happen online. A central recruitment system can give a distributed hiring team somewhere to access candidate information, review applications and collaborate during the hiring process.

For example, a company could have:

Recruiter in South Africa → Hiring manager in the UK → Candidate in Portugal

Everyone may be working different hours and using different devices, but the recruitment process can still be managed through a shared online system. This is one reason recruitment technology can be particularly useful for remote-first businesses.

If you’re interested in the practical side of using an ATS as a growing remote business, we’ve also covered how small remote teams can simplify hiring with an Applicant Tracking System.

That guide looks specifically at how small remote teams can use an ATS as part of their hiring process.

Do All Businesses Need an ATS?

No. An applicant tracking system isn’t automatically necessary for every business. A freelancer hiring their first assistant, for example, may not need dedicated recruitment software. A small company that hires one person every couple of years may also be perfectly comfortable using email and a spreadsheet. The situation changes when recruitment becomes more regular. A growing company may have several vacancies open at the same time, multiple people involved in hiring and a large number of applications to manage. At that point, having a dedicated recruitment system may make more sense. The key is to look at the problem you’re trying to solve, rather than assuming that every business needs the same technology.

What Is the Difference Between an ATS and a Spreadsheet?

A spreadsheet can actually be a useful recruitment tool for a small business.

You could create columns for:

Candidate name
Position
Application date
Contact details
Interview date
Recruitment stage
Notes
Outcome

For a small number of candidates, this may be all you need. An ATS is different because it is specifically designed around recruitment. Rather than simply storing information in rows and columns, an ATS can connect different parts of the hiring process, such as applications, candidate profiles, interviews, communications and recruitment stages. As a business grows, that additional functionality can become more valuable.

What Should Job Seekers Know About ATS Platforms?

If you’re looking for a remote job, understanding ATS software can also be useful. The most important thing is not to assume that you need to write your CV purely for software. Your application still needs to make sense to a human being. However, it is sensible to make sure your CV clearly communicates your relevant experience and skills. For example, if a remote job description specifically asks for experience with project management software, digital marketing or customer relationship management, make sure your relevant experience is clearly described if you genuinely have it. Avoid filling your CV with keywords that don’t accurately describe your experience. A clear, relevant application is more useful than trying to manipulate an automated system.

Can an ATS Improve the Hiring Process?

Potentially, yes, but the software itself isn’t what makes a recruitment process effective. An ATS can provide structure and help teams manage information, but businesses still need a sensible hiring process.

That includes:

Writing clear job descriptions
Communicating with candidates
Setting realistic expectations
Using relevant selection criteria
Conducting useful interviews
Giving candidates timely updates
Protecting candidate information

Technology can support these activities, but it doesn’t replace good recruitment practices.

What Are Some Examples of ATS Platforms?

There are many applicant tracking systems available, ranging from relatively simple recruitment platforms to more comprehensive talent acquisition systems. Examples include Workable, Greenhouse and Lever. Workable describes its platform as a complete ATS covering areas including recruiting pipelines, sourcing, screening, interviews, offers and analytics. Greenhouse describes an ATS as a system that collects applications, stores applicant information and helps teams manage hiring workflows and candidate feedback. Lever combines applicant tracking with candidate relationship management, providing tools for managing recruitment and talent pipelines. These are simply examples rather than recommendations. Businesses should compare platforms based on their own recruitment requirements, budget and existing technology.

Is an ATS the Same as an HR System?

Not necessarily. An ATS is primarily concerned with recruitment. An HR system can cover a much wider range of activities, such as employee records, payroll, benefits, performance management, time off and other processes that happen after someone joins the company. Some modern platforms combine recruitment and wider HR functionality, while others specialise in particular parts of the employee lifecycle. This distinction is worth understanding when you’re researching workplace technology because an ATS may only represent one part of a company’s overall HR technology stack.

An Applicant Tracking System (ATS) is essentially a digital system for helping businesses organise and manage recruitment. It can collect applications, store candidate information and support different stages of the hiring process. For job seekers, an ATS may sit behind the application forms they use when applying for jobs online. For businesses, it can provide a central place to manage candidates and collaborate throughout recruitment. The technology has also become increasingly relevant to remote businesses, where recruitment teams and candidates may be spread across different countries and time zones. However, an ATS isn’t a requirement for every business. Whether a company needs one depends on its recruitment volume, team structure and the complexity of its hiring process.

FAQ

1. What is an Applicant Tracking System (ATS)?

An Applicant Tracking System (ATS) is software that helps businesses manage job applications and organise the recruitment process. It can collect applications, store candidate information, track recruitment stages, manage communication and support collaboration between hiring teams.

2. How does an ATS work?

An ATS collects and organises candidate information when someone applies for a job. Recruiters can then review applications, move candidates through different recruitment stages, schedule interviews and manage communication from within the system. The exact features and process vary between ATS platforms.

3. Does an ATS automatically reject CVs?

Not necessarily. Some ATS platforms provide screening, filtering or automated recruitment features, but how these tools are used depends on the employer and the system they have chosen. Recruiters and hiring managers can still be involved in reviewing applications and making hiring decisions.

4. Why do companies use an ATS?

Companies use ATS platforms to organise applications, manage candidate information and make recruitment easier to coordinate. An ATS can also help hiring teams collaborate, track candidates through different stages and reduce some repetitive administrative tasks.

5. Can an ATS help remote companies with hiring?

Yes. An ATS can be particularly useful for remote companies because recruiters, hiring managers and candidates may be working from different locations and time zones. A central online recruitment system can give distributed teams a shared place to manage applications and collaborate during the hiring process.

6. Do I need to worry about an ATS when applying for a job?

You don’t need to write your CV purely for an ATS. Instead, focus on creating a clear, relevant CV that accurately describes your experience and skills. Pay attention to the job description and clearly highlight relevant qualifications and experience without adding keywords or skills that don’t genuinely apply to you.