The State of Applicant Tracking Systems 2020 by EMP Trust Solutions - HTML preview

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How Prevalent Are Applicant

Tracking Systems?

Finding: Nearly three-quarters of

responding organization use an ATS

A majority (73%) of organizations now use an ATS, up from 64% in 2018.

Thirty-five percent use at least one stand-alone system and 44% use an ATS that is part of a larger HR technology platform. Of course, some organizations use both so there is some overlap between the two. These are typically larger organizations that have multiple strategic business units, some of which may have their own ATS.

Large organizations (those with more than 1,000 employees) are most likely to have an ATS, with 88% reporting they have at least one. What’s more, large organizations are also more likely than average to use a point solution (49%) compared to a system that is part of a larger HR

technology platform (47%).

Survey Question: Does your organization currently use one or more applicant tracking systems (ATS)? (select all that apply) Yes, at least one

recruitment module of a

44%

larger system/platform

(e.g., HRIS)

Yes, at least one

stand-alone (that is, point

35%

solution) system

No

27%

0

10

20

30

40

50

Editor’s Note: Some organizations use both stand-alone systems and systems that are a module of a larger platform.

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Finding: High-performing TA firms are more likely than other organizations to use an ATS

Among high-performing TA firms, 81% currently use an ATS, compared to just 65% of their lower-performing counterparts. The data does not prove a causal relationship between recruitment excellence and using an ATS, but it does suggest a correlation.

We interpret this to mean that, although higher ATS usage is correlated with higher TA performance, it does not guarantee it. To be successful, an ATS must be used well in conjunction with other talent acquisition best practices.

Survey Question: Does your organization currently use one or more application tracking systems (that is an ATS)?

[Percent using an ATS]

High-performing TA firms

81%

Lower-performing TA firms

65%

0

20

40

60

80

100

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Finding: Sixteen percent of firms without an ATS have definite plans to implement one in the next two years, and another 40% are considering implementing one in the future Among organizations that do not currently have an ATS, only 16% plan to implement one within the next year or more. This is a sharp decrease from 43% in 2019. We assume this is due to the Covid-19 pandemic and associated economic downturn.

However, there was a modest increase in the proportion saying they are

“thinking about” implementing one in the future, from 31% in 2019 to 40% in 2020. We interpret this to mean that many organizations would still like to implement an ATS in the future but, given today’s uncertain climate, have not formulated definite plans.

Survey Question: Do you plan to implement an ATS

in the future?

No

44%

We’re thinking about it

40%

Yes, though more than a

9%

year from now

Yes, within the next year

7%

0

10

20

30

40

50

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Finding: The primary barriers to further ATS

usage are cost and a perceived lack of need The most commonly reported barrier to ATS usage, cited by 46% of respondents, is cost/expense. No other single reason for not using an ATS was selected by even 30% of the participants. The second and third most commonly cited reasons are:

● don't need one for our purposes (29%)

● don’t understand the benefits of ATS for us (25%) We should note, however, that this varies by size of organization. Among large organizations, the top perceived barriers (cited by 60%) are that

“leadership will not commit to an investment in ATS.” This suggests that the perceived need may be there for some larger firms, but HR has not yet been able to convince leaders to invest in this area. In such cases, it may be incumbent on recruiters and HR practitioners to build stronger business cases for ATS use by illustrating the bottom line business benefits of ATS adoption.

Survey Question: What are the most important reasons your organization does not currently use an ATS? (select all that apply) Cost or expense

46%

Don't need one for

29%

our purposes

Leadership will not commit

25%

to investment in ATS

Don’t understand the

25%

benefits of ATS for us

Recruitment is working

24%

fine without one

Other projects/products are

20%

a higher priority

Lack of internal skills to

14%

effectively use one

Cannot find an ATS we like

7%

0

10

20

30

40

50

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What Are the Benefits of Using an ATS?

Finding: The most widely cited benefit of using an ATS is the ability to better manage the volume of applications/resumes

Of those with an ATS, 71% say the ability to manage the volume of applications and resumes is the primary benefit of using an ATS in their organization.

This will be an especially important benefit for organizations that are seeing more applicants per open position in a softer economy. In some organizations, there may also be fewer talent acquisition professionals on staff given recent downsizings. This potentially means fewer recruitment professionals handling a larger volume of applicants per open position so being able to efficiently manage applications is even more crucial now.

A related issue, and the second most commonly cited benefit at 60%, is the need to reduce time to hire. For organizations seeing more applicants per open position, it can be challenging to locate the best candidates and then get them through the interview and assessment process in a timely manner.

The third mostly widely cited issue is the ability to screen candidates better (58%). Again, this ATS capability is especially important when there are many applicants. We don’t think it is a coincidence that all three of these areas are cited by more than half of respondents.

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Survey Question: What are the top four benefits of using an ATS in your organization? (choose up to four)

Manage volume of

71%

applications/resumes

Reduce time to hire

60%

Screen candidates better

58%

Acquire better talent

39%

acquisition metrics

Make better hires

38%

Improve ability to assess

35%

Optimize our recruiting spend

33%

Do compliance reporting

29%

0

10

20

30

40

50

60

70

80

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Finding: Organizational and collaboration capabilities are most essential in ATS

We asked about which five ATS capabilities are most essential for organizations. Three of the top five relate to organizational capabilities such as adding/exporting candidate information (66%), sending/organizing messages to candidates (59%) and scheduling/

calendaring (49%).

The other two items relate to collaboration among TA team members (46%), which might also be viewed as an organizational capability, and lastly, providing access on mobile devices (48%). Providing mobile ATS access has, of course, been a long-term goal of recruitment professionals, who want candidates to be able to apply to positions from the convenience of their own mobile devices. However, the issue seems to have taken on new urgency in the current era of widespread remote work.

Survey Question: Of the following capabilities, which five do you consider most essential for your organization's ATS? (select up to five) Easily add and export candidate

66%

information (e.g., resumes)

Send and organize emails/

59%

messages to candidates

Permit scheduling and calendaring

49%

Provide access on mobile devices

48%

Allow easy collaboration

among talent acquisition

46%

team members

Integrate with other needed

44%

systems and applications

Permit enhanced search and matching

42%

Consolidate and show

authorized information on

40%

a given candidate

Distribute job ads

39%

Allow for employment branding

36%

0

10

20

30

40

50

60

70

80

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What Do ATS Do Well and Not So Well?

Finding: ATS perform three tasks

especially well

We asked participants how well their organization’s ATS perform a variety of tasks. The three tasks most commonly cited are:

● tracking candidates as they move through the recruitment process

● providing notification and alerts

● routing jobs and offers for executive approval These are crucial tasks. Of course, tracking is what ATS should do well, since the systems were designed for this and the word “tracking”

is in the name of these systems. Tracking helps recruitment experts to follow candidate movement through stages such as assessments and screenings so they can bring the most qualified candidates to the forefront more quickly. Notifications and alerts can be viewed as integral to such tracking and can increase and automate efficiency. Routing jobs and offers for executive approval is, of course, also key to the process.

Survey participants are less likely to be enthused about the ability of their ATS to gather and integrate employee referrals or automatically match candidates to the right job postings.

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Survey Question: How good is your organization's ATS at the following tasks?

[Percent responding very good and good only]

Tracking candidates

as they move

33%

48%

81%

through the process

Providing notifications

31%

41%

72%

and alerts

Routing jobs and offers for

33%

33%

66%

executive approval

Reporting mandatory

compliance data in a format that

34%

28%

62%

is easy to understand

Giving the candidate a

34%

28%

62%

high-quality experience

Customizing the application

process to specific needs

34%

26%

60%

of different jobs

Building or incorporating

34%

26%

60%

useful dashboards

Tracking key performance

indicators (e.g., quality of

32%

25%

57%

hire, time to fill)

Gathering and integrating

26%

21%

47%

employee referrals

Automatically matching

candidates to the right

28%

18%

46%

job postings

0

20

40

60

80

Good

Very good

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Finding: A majority say their ATS helps organize the recruiting process and saves them time

Most HR professionals agree that their ATS helps them stay organized (88%) and save time (78%), which is an increase from the data gathered in 2019 (75% and 70% respectively). This supports the previous finding that organizational capabilities represent the core strength of ATS.

Perhaps even more encouraging, 72% say their systems are easy to use (unchanged from 2019). High ease-of-use scores are always a good sign for powerful and potentially complex technologies.

The characteristic least commonly selected, however, is the ability to

“locate internal talent” (just 41%). This jibes with the previous finding about how ATS do not tend to be good at gathering and integrating employee referrals.

Survey Question: To what extent do you agree with the following statements for the ATS in your organization?

It helps us stay organized

58%

30%

88%

It saves us time

48%

30%

78%

It is easy to use

45%

27%

72%

It helps schedule and manage interviews 48%

17%

65%

It provides a positive return on investment 37%

27%

64%

It has good customer service/support

40%

20%

60%

It results in higher application completion 36%

12%

48%

It helps us understand how we

31%

15%

46%

spend our recruitment budget

It enables us to locate internal talent 26%

15%

41%

It helps us identify candidates who are 29%

11%

40%

passively looking for jobs

0

20

40

60

80

100

Agree

Strongly agree

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Finding: Most respondents say they make use of all or most of their ATS functionality We asked participants whether they make full use of the features and functionality of their ATS. About two-thirds (66%) say they do, whereas 35% say they do not.

Although this 66% proportion is higher than in previous versions of this survey, it still indicates that many HR and/or recruitment professionals do not get the most out of their ATS, either because they do not need all the functionality or because they are not knowledgeable enough about how to leverage it well. We believe organizations should at least be aware of the full capabilities of their systems, even if they don’t always use them.

Survey Question: Does your organization utilize all or most of the capabilities of its ATS?

35%

No

66%

Yes

Editor’s Note: This does not include the 11% that say they don’t know whether or not most capabilities are used. Numbers do not add up to 100% due to rounding.

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Finding: ATS could be better at integrating with other systems

We live in a world where applications must increasingly communicate and integrate with other applications. ATS have a mixed record in this area.

Among participants who know how well their ATS integrate with other applications, three integrations are most commonly cited:

● HRIS (or similar)

integration is good or fair with these platforms (60%) there is a built-in component relationship (28%) the rest say integration is poor

● Assessments

integration is good or fair (57%)

they are a built-in component (22%)

the rest say integration is poor

● E-verify (which determines a candidate’s eligibility to legally work) integration is good or fair (42%)

this is a built-in component (27%)

the rest say integration is poor

Greater integration with other components can often bring strategic advantages. For instance, workforce planning is a process by which organizations prepare employees, managers and organizational structures for success in the future. Having an ATS that integrates with workforce planning applications might help employers to better identify internal candidates and match the skills and experience of external candidates to specific internal needs.

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Survey Question: How good is your organization's ATS at integrating the following?

Human Resource Information System (or similar) 18%

42%

28%

88%

Assessments

20%

37%

22%

79%

E-Verify/determine eligibility to legally work 14%

38%

26%

78%

Social media applications

20%

40%

17%

77%

Workforce planning

22%

32%

21%

75%

Advanced sourcing tools

19%

36%

20%

75%

Video conferencing platform (e.g., Zoom) 15%

38%

13%

66%

Video interviewing platform

16%

37%

13%

66%

Candidate satisfaction data (e.g., net promoter score) 14%

34%

12% 60%

Automated reference checking

13%

27%

16%

56%

0

20

40

60

80

100

Fair

Good

This is already a built-in component

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Finding: Most (71%) are satisfied with their ATS, but there is still considerable room for improvement

A majority (71%) say they are satisfied with their current ATS, up from 61% in 2019. This still leaves, however, 29% who are not satisfied at all, implying there’s much room for improvement. Moreover, only about a fifth (21%) are very satisfied.

This study suggests that there is fairly widespread (if tepid) satisfaction as well as considerable dissatisfaction. On one hand, ATS bring various benefits such ease of use as well as the ability to save time and stay organized. On the other hand, there are still concerns about areas such as integration with other systems, the inability to find internal talent, or problems reaching passive job seekers.

Survey Question: Overall, how satisfied are you with your applicant tracking system (ATS)?

Very satisfied

21%

Satisfied

50%

Neutral

22%

Dissatisfied

6%

Very dissatisfied

2%

0

10

20

30

40

50

25

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Finding: A lack of ATS features is the most problematic aspect for HR professionals About two-fifths (40%) of the participants say their ATS does not have enough of the features they need, the most widely cited weakness of today’s systems (and also the most widely reported weakness in 2019 at 47%).

The second most widely cited weakness in this year’s (24%) and also the 2019 survey (37%) is an absence of high quality report/analytics functionality. It is, of course, difficult to make good decisions without good data, so this could be an area where ATS vendors could improve in the future.

Most respondents are dissatisfied with some aspect of their systems, with only 30% saying they “like everything about our ATS.”

Survey Question: What do you like least about your ATS?

(select all that apply)

It does not have enough of

40%

the features that I need

It does not have good

24%

reporting/analytics functionality

It can't be used to effectively

22%

communicate with candidates

It provides a poor

20%

candidate experience

It is buggy

17%

It is too complicated

16%

It is difficult to use

16%

It has bad customer service