You've probably heard the acronym ATS thrown around in recruitment circles, but what does it actually mean? ATS stands for Applicant Tracking System, often referred to as a recruitment system or candidate management system. It's a piece of software that helps companies manage and streamline the entire recruitment process, from posting a job ad to hiring a candidate.
But not all ATSs are created equal, and the myths surrounding them - especially about CV customization - are many. Let's clarify the concepts.
Why do companies use an ATS?
At its core, it's about managing large volumes of applications and data in a structured way. The benefits of using an ATS include:
- Efficiency: Automates many manual steps like receiving and sorting applications.
- Overview: Gathers all candidate information and communication in one place.
- Collaboration: Facilitates collaboration between recruiters and hiring managers.
- Candidate experience: Enables faster feedback and a more professional process (if used correctly!).
- Compliance: Helps to comply with laws and regulations (e.g. GDPR).
- Talent pool: Builds a database of potential candidates for future needs.
Common features of a traditional ATS
Most ATSs offer basic functions such as:
- Posting job ads to various channels.
- Receiving and storing applications (often CVs and cover letters).
- A searchable candidate database.
- Tools to filter and rank candidates (often based on CV scanning).
- Communication templates to contact candidates.
- Scheduling of interviews.
- Reporting and analysis.
The myth of the 'ATS-compliant CV' - what is it really?
Many candidates worry that their CVs need to be 'ATS-friendly' to avoid being selected by a robot. This comes from the fact that older, more basic ATSs often use CV parsing - they scan the CV for specific keywords that match the job ad.
The limitations of CV parsing alone:
- Missing potential: Candidates with the right skills but who used the "wrong" words or have an unusual CV layout may be wrongly selected out.
- Bias risk: Focusing on keywords may inadvertently reward certain ways of expressing oneself.
- Superficial matching: Having the right keywords does not necessarily mean having the actual skills.
Higher's different approach:
While Higher can handle resumes, our process does not rely primarily on resume parsing for initial selection. We believe in measuring actual competencies first:
- Competency questions and tests: Candidates answer relevant questions and possibly take tests that directly measure the competencies required for the role.
- Objective selection: The system selects based on the results of these objective measurements.
- CV later (if needed): The CV can be requested later in the process for the most qualified candidates, as a complement rather than the primary source for selection.
This leads to a more fair, unbiased and accurate selection based on what the candidate actually knows, not just how well their CV matches certain keywords. So, instead of just focusing on an "ATS-compliant CV", the focus should be on clearly demonstrating their skills.
The modern recruitment tool: More than just an ATS
Today's best recruitment tools go far beyond basic ATS functions. They are strategic platforms for the entire talent acquisition process.
That's how Higher positions itself:
Higher is a modern recruitment tool and advanced ATS solution that combines efficient candidate management with a focus on quality and experience:
- Skills-based at the core: The entire flow is designed to identify the right skills.
- Integrated tests and video: Smooth tools for deeper insights early in the process.
- AI-driven insights: Features that help create relevant selection questions(read more in our post on AI in recruitment!).
- Ease of use: Intuitive for both recruiters and candidates (mobile-friendly!).
- Employer branding support: Helps create a positive candidate experience that strengthens your brand.
- Flexibility: Adaptable to different industries.
Choosing the right system for you
When evaluating ATS or recruitment tools, keep in mind:
- Your specific needs and processes.
- Which features are most important (tests, video, automation?).
- Ease of use for all users.
- Integration possibilities with other systems.
- Support and onboarding.
- Pricing model.
Summary: ATS is necessary, but choose modern
An Applicant Tracking System is virtually indispensable for effective recruitment today. But don't stare blindly at traditional CV parsing. The best recruitment tool for modern companies is the one that, like Higher, helps you make better, more objective and skills-based hiring decisions - while giving your candidates a first-class experience.
Curious about a recruitment system that focuses on skills over CV?
Discover how Higher can transform your recruitment process. Start a free trial or book a demo!
Frequently asked questions about ATS
What does ATS stand for?
ATS stands for Applicant Tracking System, which is commonly referred to as a recruitment system or candidate management system. It is a software to manage and streamline recruitment processes.
How does an ATS work?
An ATS collects and organizes candidate applications. Many older systems scan (parse) CVs by keywords to rank candidates. Modern systems like Higher focus more on measuring actual competencies through questions and tests for more objective selection.
Does my CV need to be "ATS friendly"?
While some ATSs focus on CV parsing, systems (like Higher) that prioritize competency-based questions and tests over the CV are becoming more common. The key is to clearly demonstrate your skills throughout the application, not just using the right keywords in the CV.
Is Higher an ATS?
Yes, Higher is a modern recruitment tool and an advanced ATS solution. It includes basic ATS features but adds value through a focus on competency-based recruitment, integrated tests, video presentations and AI-powered insights for more accurate and unbiased selection.
What is the difference between an ATS and a CRM?
An ATS (Applicant Tracking System) is focused on managing the active recruitment process for specific job openings. A CRM (Customer Relationship Management) system in recruitment (sometimes called Candidate Relationship Management) focuses more on building and maintaining relationships with potential candidates (talent pools) over time, regardless of whether there is an active opening.
Author: Nicklas Wikblad
Reviewer: Moa Jacobsson
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