ATS Benefits: How ATS Improves Time, Cost and Quality of Hire

Applicant Tracking System (ATS) is a software program designed to automate, simplify and fasten the entire recruiting process. Vast benefits of using an Applicant Tracking System are best demonstrated by its ability to improve the three most important hiring metrics: time-to-hire, cost-per-hire and quality-of-hire.


What is an Applicant Tracking System

An Applicant Tracking System (ATS) is a software program or tool designed to automate, streamline and improve the hiring process.

Applicant Tracking System offers a wide range of solutions for different hiring challenges, from sourcing to testing and selecting the best candidates.

Applicant Tracking System provides an automated way for HR professionals to simplify and fasten the entire recruiting process, from receiving applications to hiring employees.

Features and benefits of an ATS

So, what exactly can an ATS do for you?

A modern and well-designed Applicant Tracking System can help you achieve recruiting goals and overcome challenges by offering the following features:

Get a more extensive checklist of all the features a modern recruiting software should have

Using all these Applicant Tracking System features provides numerous benefits, including:

The use of the Applicant Tracking System has been proven to advance the most important hiring metrics: time-to-hire, cost-per-hire and quality-of-hire.

ATS benefit #1: Shorter time-to-hire

What is time-to-hire?

One of the most important metrics for recruitment is time-to-hire. Time-to-hire is the total time spent to fill an open job position.

Time-to-hire calculation includes different activities like creating a job posting, job posting promotion, sourcing, interviewing and finally hiring candidates.

This key recruitment metric shows the efficiency of the recruitment process and provides insight into the difficulty of filling a certain job position.

How does an ATS improve time-to-hire?

According to research, 86% of recruiting professionals say that using an ATS has helped them hire faster.


With the Applicant Tracking System, tasks that previously required many hours of work can now be executed very quickly and easily - or sometimes even done automatically. Some of these tasks include: resume parsing, disqualifications of non-qualified applicants, interview scheduling, and email automation.

Applicant Tracking System also saves time by building talent pools, which can be used to find perfect candidates for your future roles and job openings.

ATS benefit #2: Lower cost-per-hire

What is cost-per-hire?

The second most important recruitment metric is cost-per-hire. Cost-per-hire is the total amount of monetary investment needed to recruit new employees.

Cost-per-hire is calculated based on different variables, including recruiter salaries, employee referral bonuses, job advertising costs, travel and relocation costs, etc.

This recruitment metric shows the cost-effectiveness of the recruitment process and helps you allocate your hiring budget based on insights about the most and least expensive job positions.

How does an ATS improve cost-per-hire?

Since time is money, Applicant Tracking System saves money simply by saving your precious time. With many administrative recruiting tasks being automated, you need fewer human hours to fill a position, which makes your hiring strategy more productive and cost-efficient.

Also, building and maintaining a talent pool can do wonders for your cost per hire. Imagine having a perfect job candidate every time when a new position opens!

In addition, having insights into which source of hire is bringing you the best new hires (a feature that ATS offers), can help you eliminate unnecessary expenses. For example, if you know that referred candidates are your best new hires, there is no need for spending hundreds or even thousands of dollars on job boards.

ATS benefit #3: Better quality-of-hire

What is quality-of-hire?

Another crucial recruitment metric is the quality of hire. Quality of hire is the total value that new employees bring to a company with their performance.

Cost-per-hire is calculated based on different variables, including performance reviews, ramp-up time, turnover and retention rates, hiring manager satisfaction etc.

This recruitment metric shows the effectiveness of the recruitment process and measures your assessment accuracy.

How does an ATS improve the quality of hire?

Research shows that 78% of recruiters who use an ATS have improved the quality of candidates they hire.


According to research and every recruiter and HR professional everyday work experience, high-quality candidates stay available on the market for 10 days only!
By speeding up your recruitment process you can get those top candidates before they get snatched up by another company.

Also, by sending automated emails which ensure regular and timely communication with your candidates you can significantly improve your candidate engagement and candidate experience.

According to different research and studies (CareerBuilder Survey, 2013; 2014, 2015 and 2016 Candidate Experience Reports etc.), candidates who had a positive candidate experience in your recruiting process will more likely accept your job offer, reapply in the future and refer other high-quality candidates to your company.

Should I invest in Applicant Tracking System?

To make this decision easier, get our ultimate guide for buying an ATS

As you can see, Applicant Tracking Systems offer many different solutions for various recruiting goals and challenges.

Therefore, buying the right one is not an easy task.

If you are planning on investing in a new recruiting tool, you should start by identifying your recruiting goals and challenges.

What are your most pressing recruiting challenges?
Do they include any of the following recruiting challenges

If so, you could definitely benefit from investing in a modern and well-designed Applicant Tracking System.

The applicant tracking system will make your hiring strategy more productive and cost-efficient by helping you organize and track applications, manage talent pools and streamline your selection process.

Interested in learning more?

Check out the extensive list of solutions offered by Applicant Tracking Systems.

Ready to improve your hiring efficiency with a new ATS?
Our tool helps you optimize your recruitment process from start to finish! Find and attract more qualified candidates and improve candidate experience in every stage of the recruitment process. Book a call with one of our product specialists to learn more!
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The Ultimate Guide for Buying an Applicant Tracking System (ATS)

The Ultimate Guide for Buying an Applicant Tracking System (ATS)

Buying an ATS for the first time or switching to a new solution? This guide is all you need to choose the Applicant Tracking System that suits your hiring needs!
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