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Applicant Tracking System (ATS)

Category: HR Glossary
Date Published: February 25, 2026
Written By: Michael van Niekerk
 

What is an Applicant Tracking System (ATS)?

An Applicant Tracking System (ATS) is software designed to help employers collect, organise, and manage job applications during recruitment. It automates sorting resumes and communicating with candidates, simplifying how recruiters find the best fit. ATS plays a key role in the recruitment and selection phase of the employee lifecycle. This technology supports HR teams and can integrate into services, like those offered by Legends EOR, to enhance hiring efficiency and compliance.

How an ATS Works in Practice

Job vacancies are posted through the ATS to multiple platforms, allowing wide exposure. Candidates submit their applications directly or via connected job boards. The system scans resumes for relevant keywords, ranks candidates, and helps recruiters shortlist for interviews. Communication templates simplify keeping candidates informed throughout the process.

Benefits of Using an ATS

Using an ATS saves time by automating repetitive recruitment tasks and improves the candidate experience through timely updates. It ensures consistency and fairness in evaluating applicants and provides data insights to help improve hiring decisions. These benefits support scalable and compliant recruitment practices.

Limitations and Risks

Over-reliance on keyword matching can cause qualified candidates to be overlooked. Poorly configured systems may introduce bias or exclude diverse applicants. Data security risks exist if personal information is not handled properly. Effective use of an ATS requires training for HR staff and hiring managers.

Interested in finding out more?

FAQs

The main purpose of an ATS is to help employers efficiently manage the entire recruitment process by organising applications, sorting candidates, and streamlining communication.
No, an ATS supports the recruitment process by filtering candidates, but final hiring decisions require human judgment to consider qualities beyond the system's criteria.
An ATS helps maintain accurate records, supports fair hiring practices, and protects applicant data, which assists employers in complying with employment laws.
Yes, there are ATS options suitable for businesses of all sizes, helping small businesses save time and improve their recruitment efficiency.
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