Applicant Tracking Systems (ATS) are software solutions designed to electronically streamline the recruitment and hiring process. Almost every company on the Fortune 500 list uses ATS to speed up its entire hiring process. Despite their widespread adoption, many misconceptions exist about how these systems work and how they impact employers and job seekers.

Myths can prevent companies from fully taking advantage of ATS, while job seekers may inadvertently hurt their chances of getting hired.

This guide will debunk the most common misconceptions about the ATS and their power. We’ll list the most common ATS myths and explain why they’re actually myths and not real facts. In the end, we’ll look into some best practices for selecting and implementing an ATS.

Applicant Tracking Systems Myths

ATS is known for sifting resumes. The magical process goes like this: Companies target certain keywords, and only resumes from applicants that include those keywords make it through to the recruiters. Yes, an ATS does sift resumes, but there’s much more to it than simply arranging them by keyphrases (which would be incredibly easy to exploit). Just like this one, there are plenty of other facts about the tech that are merely conjectures. Let’s begin identifying and breaking down those ATS myths.

Myth 1: ATS Replaces Human Interaction in Recruitment

It’s a common misconception that Applicant Tracking Systems cut down on the personal touch in recruitment. In fact, ATS tools are specifically designed to automate repetitive tasks, such as sorting resumes. The concept behind an ATS is that it will allow HR reps to focus on candidates who are really qualified so they can treat those candidates accordingly. 

In essence, these systems still let HR reps handle the personal aspect of the hiring process, i.e., engaging with candidates. Many HR software are specifically designed so that HR teams can skip repetitive tasks and instead focus on candidate experience, even including an ATS function embedded in them.

Features like personalized communication templates and candidate profiles also allow for one-to-one interactions that complement the overall recruitment experience. Rather than replacing human interaction, ATS builds upon it.

Myth 2: All Applicant Tracking Software are the Same

There is a common myth that all ATS are identical. However, ATS solutions vary significantly to suit different industries, company sizes, and other specific needs. For instance, some ATS are built for large enterprises with complex hiring processes and offer advanced analytics and integration capabilities. Others are designed for startups and small businesses, with user-friendly interfaces and budget-friendly features.

Examples of ATS systems include Workday for large enterprises and Breezy HR for small to mid-sized businesses. Each one offers special features that align with their target users’ requirements.

Myth 3: ATS Only Benefits Large Companies

ATS isn’t only for large companies. Small businesses can also make great gains from adopting ATS software. Small businesses often face challenges like limited resources and intense competition for talent. An ATS can address these challenges with its automation tools. For instance, it can simplify job postings across multiple platforms, manage and track candidates through each stage of the recruitment process, and carry out candidate screening to ensure that only the most qualified applicants are considered.

Plus, if budget is what’s holding small businesses back, many ATS solutions are designed to be both affordable and scalable. For example, some solutions start with freemium models that start scaling up, and at the same time, the company needs to level up its recruitment efforts. These pricing structures make them accessible and make it easier to see a return on investment. Small businesses can save money and time by using ATS. It would be unfair if they couldn’t because of wrong guidance.

Myth 4: Implementing ATS is Complex and Expensive

Contrary to the belief that implementing an ATS is complex and costly, modern ATS solutions are intentionally made for easy accessibility and affordability. Many contemporary systems offer intuitive interfaces that simplify setup and integration, often with guided support and tutorials. 

Also, some ATS solutions have evolved along with the market and now offer their products in SaaS. This means that smaller companies that might have been held back from deploying an ATS because of infrastructure costs no longer have that limitation.

Some ATS solutions are one click away. Companies just need to sign up, start a free trial, and begin using the ATS—that’s it. 

The cost-effectiveness of an ATS becomes evident over time as it reduces manual labor, decreases the likelihood of hiring errors, and speeds up the recruitment process. But, even from day one, they’re not complex by any means.

Myth 5: ATS is Not Secure

A common concern regarding ATS is related to security measures. But this concern isn’t rooted in reality. Top ATS providers are held to rigorous security standards to protect sensitive data. These systems have robust encryption protocols, secure user authentication, and regular security audits to safeguard candidate information from unauthorized access or breaches.

Leading ATS solutions often hold key security certifications, such as ISO 27001 or SOC 2. These certifications prove that the ATS meets strict requirements for managing and securing personal data. It’s a matter of choosing a trusted provider. If it can scale up and is affordable, you can check if they have security measures in place. A provider that takes their solution seriously will probably have considered privacy.

Myth 6: ATS Will Force You to Overhaul Your HR Processes

The widespread misconception about ATS is that they require a complete overhaul of your existing HR processes. But that’s not the case. Modern ATS platforms can easily integrate with your current recruitment workflows or solutions rather than disrupt them.

These systems are built to complement your existing HR practices, as they can manage repetitive tasks and simplify candidate management. Instead of reinventing your processes, an ATS optimizes them. It organizes applications, tracks candidate progress, and helps with recruitment without demanding a drastic change in your team’s operations. These integrations are made possible through API-level connections with other HR software, such as HRIS, CRM systems, and compliance tools, which make it easier to transfer data and deal with all the necessary recruitment stages.

More than a dozen API-level integration types for ATS could even make the ATS almost invisible. When you implement and manage a new tool from an existing UI, it might go unnoticed—and still work. That’s how sophisticated these solutions have become.

Myth 7: ATS Automatically Rejects Candidates Based on Keywords Alone

“The ATS automatically rejects candidates based solely on keyword matches” is possibly the most widespread explanation of what an ATS is or does. It’s also simply not true. While keywords play a role in ATS screening, they are not the only factor determining a candidate’s suitability.

If correctly used, ATS systems leverage various parameters, including skills, experience, and qualifications. Human recruiters have control over the criteria set within the ATS, which allows them to define what makes a candidate a good fit for a role. This means that while keywords are important for filtering resumes, the system can also consider other elements such as work history, education, and relevant experiences. This ensures that candidates are evaluated on a holistic view of their qualifications instead of dismissed based on a single and arbitrary aspect set by an ATS bot.

This myth is very widespread because there have been workarounds to it. An ATS that bases its very existence around this illusory premise—that it exists to simply sift through resumes based on a keyword—would be highly exploitable by keyword stuffing. Keyword stuffing, which exists in many internet realms, including SEO, is the practice of adding keywords to a piece of content so a search engine or system picks them up. In the case of career development, a programmer who might be an expert in Java might start adding buzzwords like blockchain engineer, machine learning architect, or large-language model expert just to ensure their resume is not left out of the contest.

Myth 8: ATS Eliminates Bias in Hiring

ATS systems completely eliminate bias in hiring, which is another belief that requires an explanation. ATS can help mitigate some forms of bias, but they are not a quick fix to all problems. These systems can standardize the initial stages of the recruitment process so that all job candidates are assessed based on the same criteria. This, of course, doesn’t automatically guarantee a bias-free hiring process.

Bias can still enter the system through the criteria and keywords set by recruiters, as well as through the application questions. If these are based on biased assumptions or incomplete requirements, the ATS will obviously reflect those biases. In other words, while ATS can support fairer practices through consistent evaluation criteria, human oversight remains vital for avoiding prejudices and biases.

Myth 9: ATS Cannot Handle Creative Resumes

Many people believe that a certain ATS might struggle with creative resumes and make unique designs automatically disqualified. Naturally, this is also unsubstantiated. Modern ATS are evolving and can process various resume formats, including those with distinctive designs. Traditional ATS might have difficulty with intricate designs, but many contemporary systems can handle well-structured creative resumes if they follow certain guidelines.

HR departments should explain to job seekers that, to ensure they have an ATS-compatible resume, it’s important to use standard file types, ideally .pdf, and avoid unusual formats that might confuse the system. Keeping the design simple is also a must. Creativity matters, but it shouldn’t overwhelm the text. Clear headings and consistent fonts help maintain readability so that both the software and real-life hiring managers can scan your resume.

HR reps should explain to job seekers that they should prioritize content. They should ensure their essential skills, experiences, and accomplishments are easily identifiable and prominently placed at the top of their resumes. Avoid using images, graphics, or text boxes for key information. Instead, rely on standard bullet points and headings to spell out qualifications clearly.

Human resources representatives should also warn job seekers about ATS simulators. Many online tools supposedly score or rank resumes and tell how ATS-friendly they are. However, plenty of tool vendors have a financial incentive to offer a low score so they can sell resume services.

Best Practices for Companies When Choosing and Implementing an ATS

A few key steps can make all the difference when choosing and implementing an applicant tracking system (ATS). Start with a needs assessment to determine your hiring challenges and what you want from the ATS. This understanding will help you choose a system that matches your organization’s goals.

Next, do your market research and check out several ATS options. Look for features like user-friendly interfaces, integration capabilities, and data analytics. Keep in mind that a system that easily connects with your existing HR processes can save you a lot of time and unnecessary work. You might want to start with a vendor with a SaaS offering so you don’t have to deploy the tool somewhere in your tech stack.

Customization is very important, too. Adjusting the ATS to your specific needs will make it more effective for your recruitment process. This might involve customizing workflows or integrating tools that match your hiring criteria. Also, some ATS systems come with a customized Careers page. Running a Careers page that can be integrated into a tailored ATS filtering is an excellent first step toward a good hiring experience.

Further, equipping your recruitment team with the right skills to use the ATS effectively can improve both satisfaction and performance. A well-trained team will make the most of the system’s features, from screening resumes to analyzing data. Truth be told, an ill-prepared team will probably run an ATS so badly that it will start substantiating the surrounding myths.

As a company, you should prepare yourself for year-round fine-tuning. As a hiring brand, you should regularly review and upgrade your ATS based on user feedback and performance metrics. If you can match the hiring metrics with the onboarding and performance metrics, you might be into something.

How ATS Systems Can Help Recruiters and Job Seekers?

An ATS sifts resumes, yes—but it does so much more. A good ATS system, even a SaaS one, can help recruiters review and process candidates in one click. Properly configured systems can keep track of job openings, where people are applying, and how many you’ve looked at. With a full picture of the most popular and hardest-to-fill jobs, companies can plan ahead. Unfortunately, Applicant Tracking Systems have become known more for their myths than their eye-opening features.

Considering ATS are ubiquitous in giant companies, debunking these myths about Applicant Tracking Systems is necessary for employers and job seekers. However, the ATS is no longer limited to large businesses or tech companies. Many ATS vendors offer easy-entry solutions that small companies with bare-bones recruiting teams can access. Plus, knowing how to build their resumes for ATS can significantly improve job seekers’ chances of landing interviews. Understanding the system will make job hunters feel more confident when applying for a job application—and they’ll have solid reasons for it.

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