What is an applicant tracking system (ATS)?
Quick answer
An applicant tracking system, or ATS, is software that collects job applications in one place and tracks each candidate through the hiring steps, from application to screening, interviews, references and offer. It keeps notes, messages and decisions attached to the right person and job.
Last updated
Updated · By Robert Breen
Why it matters for a small business
Without an ATS, hiring lives in inboxes and spreadsheets. Resumes get lost, two interviewers send conflicting notes and nobody remembers who promised a candidate a call back. An ATS gives each role a pipeline, so you can see how many people are at each stage and who is waiting on whom.
It also supports fairness and records. When every candidate is judged against the same must-haves, with notes saved in the same place, you can explain a decision later. Be careful with automated filters, though. Software that ranks or rejects applicants can carry bias or miss good people, so a person should review the results. Employment rules vary, and HR or an employment attorney can advise.
What an ATS tracks at each hiring stage
| Stage | What the ATS records |
|---|---|
| Applied | The resume, application answers and where the candidate found the job |
| Screened | Resume screening notes and the phone screen result |
| Interviewing | The schedule, each interview scorecard and the debrief |
| Offer | References, the offer letter, approvals and the candidate's answer |
| Closed | Hired or not selected, with the reason and the date |
In a real lesson: Turn an Interview Debrief into a Scorecard and a Candidate Follow-Up (Recruiting & HR)
The Interview Debrief to Scorecard lesson works on one slice of what an ATS holds. Hannah, the HR manager at Willow Bend Physical Therapy, a made-up clinic, pastes a debrief transcript for Kira Delgado, who interviewed for Front Desk Lead.
ChatGPT turns it into a summary scoring Kira Strong, Partial or Not discussed on each of four must-haves, with a quote as evidence, plus decisions and an action items table. It is told to ignore anything not related to the job, such as family details. The lesson does not use an ATS; everything happens in Google Docs, ChatGPT and Gmail. But a scorecard like this is exactly what you would paste into a candidate's ATS record.
Try this lesson free or read the step-by-step guide.
Common confusions
ATS vs CRM
A CRM tracks customers and sales. An ATS tracks job candidates. Some recruiting teams use CRM-style tools to keep in touch with possible hires before a role opens.
ATS vs HRIS
An ATS covers hiring, up to the offer. A human resources information system holds employee records afterward, such as payroll details and time off.
Tips
- Write the must-haves for the role before posting it, and score every candidate on the same list.
- Keep notes factual and job-related. Assume a candidate could one day ask to see them.
- Do not let software auto-reject people without a human check.
- Track time to hire so candidates are not left waiting.
Related terms
More Business terms
Where you use it: free lessons
- Turn an Interview Debrief into a Scorecard and a Candidate Follow-Up (Recruiting & HR) (ChatGPT, 9 min)
- Summarize a Meeting Transcript with ChatGPT (ChatGPT, 9 min)
Prompt templates that use it
Frequently asked questions
- What does ATS stand for?
- ATS stands for applicant tracking system: the software employers use to post jobs, collect applications and move candidates through hiring. "ATS system" is a common way of saying the same thing.
- What is an ATS-friendly resume?
- One the software can read cleanly: a simple layout, standard headings such as Experience and Education, and plain text rather than images or text boxes, so the details land in the right fields.
- Does a small business need an ATS?
- Not at first. A shared sheet with a stage column works for a few hires a year. An ATS earns its cost once you hire often or across several roles.
- Is it legal to use an ATS to screen applicants?
- Rules vary by location and are changing. Ask HR or an employment attorney before relying on automated screening.