Learn what an ATS is and how it works for job applications. Discover how widespread ATS usage is in today’s recruitment process.
Table of Contents
What is ATS?
- An Applicant Tracking System (ATS) is a software tool that companies use to streamline their hiring process.
- It helps automate the collection, sorting, and ranking of resumes, making it easier for recruiters to find the best candidates.
- ATS is more than just a database; it scans resumes for relevant information, compares it to the job description, and ranks the candidates accordingly.
- In today’s job market, understanding how an ATS works is crucial for any job seeker.
- The system plays a critical role in how companies evaluate applicants, especially in larger organizations with high volumes of applicants.
How does ATS Work?
Here’s an overview of how an ATS typically works in the recruitment process:
- Job Posting: The company posts a job opening either on its own website or through job boards.
- Resume Submission: Applicants submit their resumes through the company’s online portal or a job board.
- Resume Parsing: The ATS scans the resumes and extracts key data such as contact information, experience, and education.
- Keyword Matching: The system checks for keywords from the job description to assess if the resume fits the job requirements.
- Ranking: The ATS assigns a ranking to each resume based on how well it matches the criteria.
- Human Review: The resumes that rank the highest are then reviewed by a human recruiter for the next steps.
How widespread is ATS use?
ATS is a dominant tool in the hiring process across various industries, with many companies relying heavily on it to filter and sort applications.
Here are some of the latest statistics on how widely ATS is used:
- Usage in Fortune 500 Companies:
- According to Jobscan, over 98% of Fortune 500 companies use ATS to filter through job applicants. This shows how important it is to understand how ATS works, especially for job seekers targeting large companies.
- Global Use of ATS:
- In a survey by Recruiting Daily, it was found that over 75% of recruiters globally use some form of ATS to help manage their recruitment process. This number has increased over the past decade as companies look for more efficient ways to handle the large volume of job applications.
- Impact on Resume Visibility:
- Glassdoor reported that up to 75% of resumes submitted online are never seen by human recruiters because they don’t make it past the ATS. This shows the critical need for job applicants to ensure their resumes are ATS-friendly, or they risk being overlooked entirely.
- ATS in Small to Medium Businesses (SMBs):
- While larger corporations dominate ATS use, 54% of small and medium-sized businesses are also adopting ATS solutions, according to a 2023 report from Business News Daily. This is a significant increase from previous years, as smaller companies realize the value of automation in recruitment.
- ATS Market Growth:
- The global ATS market size is expected to grow at a compound annual growth rate (CAGR) of 7.7% from 2023 to 2030, according to a report from Grand View Research. This growth reflects the increasing adoption of ATS by companies of all sizes and across various industries.
- ATS Use in Different Regions:
- According to a 2022 survey by SHRM (Society for Human Resource Management), 79% of recruiters in North America and 70% of recruiters in Europe and Asia reported using ATS to screen resumes. The trend of adopting ATS is growing across different regions, as more companies look for ways to automate and streamline their hiring processes.
Why is ATS important?
Given these statistics, it’s clear that ATS is an essential tool in today’s recruitment landscape. Companies rely on these systems to handle large volumes of applications efficiently, ensuring that only the most qualified candidates are moved forward. Without an ATS, many companies would struggle to keep up with the demands of modern recruitment, especially for roles that attract hundreds or even thousands of applicants.
For job seekers, understanding the role of ATS is crucial. Since ATS filters applications based on specific criteria, it’s important to ensure your resume is optimized to meet the system’s requirements.
Conclusion
If you’re applying for jobs, ensuring that your resume is ATS-friendly is the first step in getting your application noticed by recruiters. Don’t let your resume get lost in the system optimize it to ensure it stands out.
If you are sturggling to make your CV upto a standard, let us help you.