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SEPTEMBER
2020
Sponsored by:
www.hr.com | 877-472-6648
The State of
Applicant Tracking
Systems 2020
2 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
CONTENTS
Executive Summary
3
How Has the Recruitment Function Been Coping in an Uncertain Era?
7
How Effective Is Talent Acquisition Today?
10
How Prevalent Are Applicant Tracking Systems?
12
What Are the Benefits of Using an ATS?
16
What Do ATS Do Well and Not So Well?
19
What Is the Candidate Experience Like?
27
In What Ways Do High-Performing and Lower-Performing TA
Organizations Differ?
30
What Are the Most Exciting Major Innovations of Today and Tomorrow?
38
Key Takeaways
41
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The State of Applicant Tracking Systems 2020
Executive Summary
What a difference a year makes. In September 2019, the U.S.
unemployment rate stood at 3.7%, a mark that some economists
deem “full employment.” A year later, the U.S. September
unemployment rate was 7.9%.
This means, of course, that the circumstances surrounding last year’s
survey on applicant tracking systems (ATS) were dramatically different
from this year’s. In light of the global pandemic and accompanying
global recession, some recruitment professionals have been forced
to adopt modified recruitment approaches. These modifications often
result in changes in the way ATS are leveraged as well.
HR.com’s HR Research Institute surveyed the human resources (HR)
community during the autumn of 2020 to learn the details of those
changes.
About this Survey
The survey, called “State of
Applicant Tracking Systems
2020,” ran in September and
October of 2020. There were
usable responses from 285 HR
and recruitment professionals.
The study was conducted
by HR.com through its HR
Research Institute.
The participants are HR
professionals representing
a broad cross-section of
employers by number of
employees, ranging from small
businesses with under 50
employees to enterprises with
20,000 or more employees.
We’ve summarized the key findings below.
Most organizations have an ATS and more are
considering one.
1
Key
Finding
●
● A substantial majority of HR professionals (73%) say their organizations
use an ATS. Thirty-five percent use at least one stand-alone solution
and 44% use a recruitment module that is part of a larger human capital
management system. Some organizations have both stand-alone
solutions and modules that are part of larger systems.
●
● 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 about as likely to use a point solution (49%)
as a system that is part of a larger HR technology platform (47%).
●
● A majority (56%) of those without an ATS are either planning to acquire
one or considering it.
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The State of Applicant Tracking Systems 2020
The data suggests that firms that use an ATS have
advantages in the area of talent acquisition.
2
Key
Finding
●
● More than half (54%) of HR professionals say that talent acquisition in
their organizations is good or excellent.
●
● Those organizations that say they’re good at talent acquisition (i.e., high-
performing TA organizations) use an ATS at a higher than average rate:
81%. In contrast, only 65% of those with lower-performing TA functions
use an ATS.
●
● A majority of respondents describe their ATS as being essential for
adding/exporting candidate information (66%) and sending/organizing
messages to candidates (59%). Nearly half say essential capabilities
include scheduling/calendaring (49%) and providing access on mobile
devices (48%).
●
● Managing the volume of applications is the most widely cited benefit of
using an ATS (71%) and reducing time-to-hire is the second most widely
cited benefit (60%).
Despite the utility of ATS, many HR professionals still
say that, for now, their systems suffer from a number of
weaknesses.
3
Key
Finding
●
● Just 46% of respondents say their ATS is good or very good at
automatically matching candidates to the right job postings and only 47%
say they are good or very good at gathering and integrating employee
referrals. What they are best at, of course, is tracking candidates as they
move through the recruitment process (81%).
●
● Integration with other technology systems remains a challenge in some
areas. Although there is fairly widespread integration with HRIS/HRMS,
assessments and E-verify, there is considerably less integration with
reference checking, candidate satisfaction data, and video interviewing
platforms.
●
● Only a minority of participants agree that their ATS enables them to
locate internal talent (41%) or helps identify candidates who are passively
looking for jobs (40%).
●
● When asked to identify what they like least about their ATS, the most
common response is that their system does not have enough of the
features users need (40%), followed by the complaint that their system
does not have good reporting/analytics functionality.
●
● More than two-fifths (44%) say their ATS offers no way of gauging job
candidate experiences. Among those with systems that can gauge such
experience, 53% describe that experience as good or excellent.
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The State of Applicant Tracking Systems 2020
In terms of their ATS usage, organizations with high-
performing TA functions are overall more satisfied with
their ATS than lower-performing firms.
Participants are excited about some recent
developments and are expecting advancements over the
next three to five years.
4
Key
Finding
5
Key
Finding
●
● High-performing TA organizations get higher levels of performance from
their ATS across the board. One example is that 77% of high-performing
TA firms say their ATS is good at customizing the application process,
compared to just 34% of lower-performing TA firms. Another is that
high-performing TA organizations say their ATS offers candidates a
high-quality experience at a much higher rate than their lower-performing
counterparts do—77% to just 36%.
●
● Why do high-performing TA firms provide a better overall candidate
experience? One key factor may be that they are more likely to gauge
the candidate experience. Among those that do measure employee
experience as well as candidate satisfaction data, high-performing TA
firms are considerably more likely to use candidate surveys and obtain
written feedback from candidates.
●
● On a more basic level, only 51% of lower-performing TA organizations
say their ATS is easy to use whereas 86% of high-performing TA firms
say the same.
●
● When responding to a question about which recent improvements
and innovations are most exciting, participants were most likely to
select:

 text messaging capability to improve candidate engagement

 integration with a new hire onboarding process

 improved capability to ‘autofill’ applications from candidates’
resumes and online social profiles

 integration with online social media sites
●
● When responding to a question about the most beneficial ATS
enhancements over the next three to five years, respondents were
most likely to select:

 greater personalization

 improved assessment and filtering tools

 ability to anonymize applicants and/or candidates to reduce the
potential for hiring bias
6 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
Most organizations have been adapting their technology
systems and recruitment processes to circumstances
associated with the Covid-19 pandemic:
6
Key
Finding
●
● Seventy-eight percent say they have taken talent acquisition
actions in response to the pandemic. Among these organizations:

 89% have adopted some form of video conferencing platform
with 60% saying they have begun doing more interviews
virtually

 56% have adopted some electronic signature application

 24% have implemented new technologies to handle remote
hiring issues
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The State of Applicant Tracking Systems 2020
How Has the Recruitment Function
Been Coping in an Uncertain Era?
Finding: Most employers began doing
more remote interviews in response to the
pandemic
In early 2020, the Covid-19 pandemic struck the world. Within a matter
of weeks, many business operations were disrupted as nations adopted
social distancing strategies in an effort to slow the spread of the
virus. Not only did this drive many businesses to adopt remote work
arrangements as never before, but it also changed talent acquisition
practices in many organizations.
Economic slowdowns accompanied the pandemic, which contributed
to less recruitment activity in some organizations. But even among
employers where recruitment efforts did not slow (or, indeed, ramped
up as in certain essential service industries such as healthcare),
organizations often adopted remote hiring strategies to maintain social
distancing.
In fact, “began doing more interviews virtually” is the clear strategy when
we asked survey participants, “Which of the following talent acquisition
actions has your organization taken as a result of the global pandemic
and related events?”
Although this is the most widely selected action, it is by no means the
only one. Less than a quarter of respondents (22%) say that they have
taken no talent acquisition actions in response to the pandemic.
Aside from conducting more virtual interviews, the next three most
commonly cited actions have been:
●
● implemented new technologies to handle remote hiring issues
●
● changed recruitment messaging
●
● adopted modified assessment processes
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The State of Applicant Tracking Systems 2020
Survey Question: Which of the following talent acquisition
actions has your organization taken as a result of the global
pandemic and related events? (select all that apply)
0 10 20 30 40 50 60
60%
24%
22%
20%
18%
14%
14%
11%
10%
6%
22%
Began doing more
interviews virtually
Implemented new technologies to
handle remote hiring issues
Changed recruitment messaging
Adopted modified
assessment processes
Adjusted talent pooling strategy
Began hiring more remote,
non-local candidates
Made adjustments to cope with
more applications
Reconfigured applicant tracking
systems (ATS) in some way
Started accepting more applications
from non-local applicants
Modified the candidate-
profile-building feature
We have taken no
particular actions
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The State of Applicant Tracking Systems 2020
Finding: Video conferencing platforms and
electronic signatures applications have
become more common
Among employers that have taken TA actions in response to the
pandemic, most have adopted video conferencing platforms and
electronic signature applications. This is expected, as these solution
technologies are fairly easy to implement and can be seen as “low
hanging fruit.” Meanwhile, nearly a fifth (17%) adopted a diversity and
inclusion solution that is intended to remove or reduce unintended bias
in the recruitment process.
Survey Question: Aside from possible features included
with your ATS, what third-party recruitment-related solution
technologies has your organization adopted in response to
the Covid-19 pandemic, economic slowdowns and/or protest
movements?
0 20 40 60 80 100
89%
56%
17%
13%
Video conferencing
platform (e.g., Zoom)
Electronic signature
(e.g., DocuSign, Adobe)
Diversity and inclusion
solution to remove
unintended bias
Enhanced top-of-
funnel filtering and/or
matching tools
10 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
Finding: Slightly more than half of
respondents rate the overall effectiveness
of their TA efforts as good or excellent
A little more than half (54%) of HR professionals say their organization’s
current TA efforts are either excellent or good. This is not significantly
different from the 52% mark seen in 2019. On one hand, this indicates
that the overall quality of recruitment practices has only held steady.
On the other hand, it suggests that, taken as a whole, talent acquisition
professionals have generally been able to maintain their levels of
effectiveness even during a turbulent period. Perhaps we would be
seeing a larger increase had the Covid-19 pandemic not happened.
An era of labor uncertainty
Responding effectively in this period of uncertainty may be one reason
that the average cost to attract a job seeker and convert them into a
job applicant—aka, cost per applicant (CPA)—rose from about $12 in
January of 2020 to $19 by June. Another factor might be that many
people stopped seeking work during the initial period of urgency when
many households were striving to contend with an array of factors,
including childcare emergencies as schools and daycare centers closed.
As of this writing, the U.S. employment situation remains hard to predict.
Unemployment rates rose from 3.5% in February 2020 to 14.7% in April
and then back down to 8.4% within four months. Many jobs that require
an onsite presence have reportedly been going unfilled, perhaps due to
the potential danger from the Covid-19 virus. Moreover, many Americans
have been moving due to Covid-19, which can make filling certain jobs
more complicated. And, no one is sure what the next economic quarter
will bring.
How Effective Is Talent Acquisition
Today?
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The State of Applicant Tracking Systems 2020
However we view these shifting circumstances, it does not appear that
recruitment has suddenly become an easy task for most employers or
that most job applicants are having an easy time locating work.
In short, the U.S. job and labor markets remain in flux at the time of
this writing, and it is uncertain when they will become more predictable
again. In the meantime, HR professionals generally—and talent
acquisition experts more specifically—must stay agile and able to quickly
respond to new developments as they occur.
Survey Question: How would you rate the overall effectiveness
of talent acquisition/recruitment in your organization?
0 10 20 30 40 50
13%
41%
35%
7%
4%
Excellent
Good
Average
Below average
Far below average
Later in this report, we will use the answers to this question to analyze
differences between two survey cohorts:
●
● High-performing TA firms: These represent respondents who
indicate that their firms are good or excellent at talent acquisition/
recruitment.
●
● Lower-performing TA firms: These represent respondents who say
that their firms are average, below average, or far below average at
talent acquisition/recruitment.
12 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
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%).
How Prevalent Are Applicant
Tracking Systems?
Survey Question: Does your organization currently use one or
more applicant tracking systems (ATS)? (select all that apply)
44%
35%
27%
0 10 20 30 40 50
Yes, at least one
recruitment module of a
larger system/platform
(e.g., HRIS)
Yes, at least one
stand-alone (that is, point
solution) system
No
Editor’s Note: Some organizations use both stand-alone systems and systems that are a module of
a larger platform.
13 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
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)?
0 20 40 60 80 100
81%
65%
High-performing TA firms
Lower-performing TA firms
[Percent using an ATS]
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The State of Applicant Tracking Systems 2020
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?
0 10 20 30 40 50
40%
44%
9%
7%
No
We’re thinking about it
Yes, though more than a
year from now
Yes, within the next year
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The State of Applicant Tracking Systems 2020
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)
0 10 20 30 40 50
46%
29%
25%
25%
24%
20%
14%
7%
Cost or expense
Don't need one for
our purposes
Leadership will not commit
to investment in ATS
Don’t understand the
benefits of ATS for us
Recruitment is working
fine without one
Other projects/products are
a higher priority
Lack of internal skills to
effectively use one
Cannot find an ATS we like
16 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
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.
What Are the Benefits of Using an ATS?
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The State of Applicant Tracking Systems 2020
Survey Question: What are the top four benefits of using an ATS in
your organization? (choose up to four)
71%
60%
58%
39%
38%
35%
33%
29%
0 10 20 30 40 50 60 70 80
Manage volume of
applications/resumes
Reduce time to hire
Screen candidates better
Acquire better talent
acquisition metrics
Make better hires
Improve ability to assess
Optimize our recruiting spend
Do compliance reporting
18 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
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)
0 10 20 30 40 50 60 70 80
66%
59%
49%
48%
46%
44%
42%
40%
36%
39%
Easily add and export candidate
information (e.g., resumes)
Send and organize emails/
messages to candidates
Permit scheduling and calendaring
Provide access on mobile devices
Allow easy collaboration
among talent acquisition
team members
Integrate with other needed
systems and applications
Permit enhanced search and matching
Consolidate and show
authorized information on
a given candidate
Distribute job ads
Allow for employment branding
19 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
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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The State of Applicant Tracking Systems 2020
Survey Question: How good is your organization's ATS at the
following tasks?
81%
72%
66%
62%
62%
60%
60%
57%
47%
46%
0 20 40 60 80
33% 48%
31% 41%
33% 33%
34% 28%
34% 28%
34% 26%
34% 26%
32% 25%
26% 21%
28% 18%
Tracking candidates
as they move
through the process
Providing notifications
and alerts
Routing jobs and offers for
executive approval
Reporting mandatory
compliance data in a format that
is easy to understand
Giving the candidate a
high-quality experience
Customizing the application
process to specific needs
of different jobs
Building or incorporating
useful dashboards
Tracking key performance
indicators (e.g., quality of
hire, time to fill)
Gathering and integrating
employee referrals
Automatically matching
candidates to the right
job postings
Good Very good
[Percent responding very good and good only]
21 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
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?
88%
78%
72%
65%
64%
60%
48%
46%
41%
40%
Agree Strongly agree
0 20 40 60 80 100
58% 30%
48% 30%
45%
48%
27%
17%
37% 27%
40% 20%
36% 12%
31% 15%
26% 15%
29% 11%
It helps us stay organized
It saves us time
It is easy to use
It helps schedule and manage interviews
It provides a positive return on investment
It has good customer service/support
It results in higher application completion
It helps us understand how we
spend our recruitment budget
It enables us to locate internal talent
It helps us identify candidates who are
passively looking for jobs
22 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
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?
66%
35%
No
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.
23 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
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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The State of Applicant Tracking Systems 2020
Survey Question: How good is your organization's ATS at
integrating the following?
88%
79%
78%
77%
75%
75%
66%
66%
60%
56%
Fair Good This is already a built-in component
0 20 40 60 80 100
Human Resource Information System (or similar)
Assessments
E-Verify/determine eligibility to legally work
Social media applications
Workforce planning
Advanced sourcing tools
Video conferencing platform (e.g., Zoom)
Video interviewing platform
Candidate satisfaction data (e.g., net promoter score)
Automated reference checking
18% 42% 28%
20% 37% 22%
14% 38% 26%
20% 40% 17%
22% 32% 21%
19% 36% 20%
15% 38% 13%
16% 37% 13%
14% 34% 12%
13% 27% 16%
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The State of Applicant Tracking Systems 2020
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)?
21%
50%
6%
22%
2%
0 10 20 30 40 50
Very satisfied
Satisfied
Neutral
Dissatisfied
Very dissatisfied
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The State of Applicant Tracking Systems 2020
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)
40%
24%
22%
20%
17%
16%
16%
13
0 5 10 15 20 25 30 35 40
30%
It does not have enough of
the features that I need
It does not have good
reporting/analytics functionality
It can't be used to effectively
communicate with candidates
It provides a poor
candidate experience
It is buggy
It is too complicated
It is difficult to use
It has bad customer service
I like everything about our ATS
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The State of Applicant Tracking Systems 2020
Finding: Many have no way to gauge the
quality of the candidate experience
We asked participants how they measure whether candidates have
a positive experience when using their organization’s ATS. The most
common answer to this question is, “We have no way of gauging their
experience,” cited by 44%. As troubling as this appears, this actually
represents a modest improvement over 2019 (47%) and 2018 (52%).
Among those that do measure such experience, their most widely-used
measurement tool is candidate surveys, closely followed by written
feedback from candidates. In the write-in portion of this question,
some respondents also mention directly asking candidates about their
experience.
Even among those that measure, they may not measure the experience
of every candidate. One participant specified, for example, that they
only seek feedback from candidates who made the first screening cut.
Someone who abandoned their application and a candidate who made
it through several screenings may have very different experiences and
pain points. Gathering data from all types of candidates can make these
systems more robust.
What Is the Candidate Experience Like?
Survey Question: How does your organization measure whether
candidates are having a positive experience using the ATS?
(select all that apply)
44%
31%
29%
26%
0 10 20 30 40 50
We have no way of gauging their experience
Candidate surveys
Written feedback from candidates
Abandonment rates
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The State of Applicant Tracking Systems 2020
Finding: About half believe the candidate
experience with their ATS is good or
excellent
Among the subgroup that can gauge candidate experience, 53% say
their ATS delivers a good or excellent candidate experience. Although
this sounds somewhat impressive, we should remember that this is only
a minority of all organizations with an ATS. Many do not measure the
candidate experience at all.
We believe it is important to both measure and, when possible, improve
the candidate experience. As the old adage says, “You only get one
chance to make a first impression.” The candidate experience with the
ATS often represents this one chance.
Survey Question: Based on feedback and/or usage data, how would
you describe the overall experience of applicants/candidates with your
ATS system?
15%
38%
40%
5%
2%
0 5 10 15 20 25 30 35 40
Excellent
Good
Average
Below average
Poor
29 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
Finding: Even with so many having no way
to measure the experience, a significant
majority have taken steps to improve the
candidate experience in the last two years
We asked respondents, “Has your organization embarked on a project
to improve the candidate experience in the last two years?” Sixty-nine
percent say they have done so, which is about the same as in 2019
(70%). Therefore, whether organizations are measuring the quality of the
candidate experience or not, most are involved in some effort to improve
it. This demonstrates the continued importance of candidate experience
in the minds of most recruitment and HR experts.
Survey Question: Has your organization embarked on a project to
improve the candidate experience in the last two years?
No
Yes
31%
69%
30 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
Finding: High-performing TA firms appear to
provide a better candidate experience
More than two-thirds of respondents from high-performing TA firms
(66%) say their organization provides a good or excellent candidate
experience. In contrast, just 24% of the lower-performing TA firms
say the same thing, albeit with none saying they provide an excellent
candidate experience.
Just as striking are the percentages of these cohorts saying they provide
a below average or poor experience. In high-performing TA organizations,
a scant 2% say they provide a below average experience and none of
them say the experience is poor. In the lower-performing TA firms, 18%
say their candidate experience is either below average or poor. These
findings are virtually unchanged from 2019.
In What Ways Do High-Performing and
Lower-Performing TA Organizations
Differ?
Survey Question: Based on feedback and/or usage data, how
would you describe the overall experience of applicants/candidates
with your ATS system?
66%
24%
Excellent
Good
0 10 20 30 40 50 60 70 80
21%
45%
24%
High-performing TA firms
Lower-performing TA firms
31 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
Finding: The ATS in high-performing TA firms
perform a variety of tasks at higher levels
than those in lower-performing TA firms
High-performing TA firms get higher levels of performance from their
ATS across the board. In what may help explain the different quality of
the candidate experience, 77% of high-performing TA firms say their ATS
is good at customizing the application process, compared to 34% of
lower-performing TA firms. High-performing TA firms also say their ATS
offers candidates a high-quality experience at a much higher rate than
lower-performing TA firms—77% to just 36%.
More than half of both cohorts say their ATS is good at tracking
candidates through the process. But that is only one of two tasks that
more than half of lower-performing TA firms say their ATS performs well,
along with “providing notifications and alerts.” Conversely, there are no
tasks that fewer than half of higher-performing TA firms say their ATS
performs well, with the lowest being automatically matching candidates
to the right job postings at 60%.
Just 63% of lower-performing TA firms say their ATS is good or very
good at tracking candidates compared with nearly all of high-performing
TA firms. Tracking candidates is the most basic function an ATS should
be able to do, yet more than a third of lower performers aren’t happy with
the most crucial of tasks.
32 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
Survey Question: How good is your organization's ATS
at the following tasks?
High-performing TA firms Lower-performing TA firms
0 20 40 60 80 100
91%
63%
81%
54%
77%
34%
77%
36%
75%
49%
75%
39%
71%
30%
71%
34%
60%
25%
Tracking candidates as they
move through the process
Providing notifications and alerts
Customizing the application
process to specific needs of
different jobs
Giving the candidate a
high-quality experience
Routing jobs and offers for
executive approval
Reporting mandatory compliance
data in a format that is easy to
understand
Building or incorporating
useful dashboards
Tracking key performance indicators (e.g.,
quality of hire, time to fill)
Automatically matching candidates to
the right job postings and alerting the
recruiter
[Percent responding good or very good]
33 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
Finding: High-performing TA firms make
greater use of their ATS capabilities
As we just saw, ATS in high-performing TA firms are more likely to
perform every task at a higher level than in lower-performing TA firms.
While we can’t say for certain the data are clearly related, 76% of higher-
performing TA firms say that they utilize “all or most” of the capabilities
of their ATS, compared to just 48% of lower-performing TA firms. It
seems fair to infer that the firms utilizing more of the capabilities of their
ATS would see better overall performance, and the data supports such
an inference.
Survey Question: Does your organization utilize all or
most of the capabilities of its ATS?
High-performing TA firms Lower-performing TA firms
0 10 20 30 40 50 60 70 80
76%
48%
Yes
34 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
Finding: High-performing TA firms gauge
the quality of the candidate experience
at much higher levels than their lower-
performing peers
Why do high-performing TA firms provide a better overall candidate
experience? One key factor may be that they bother to measure that
experience, with only 40% saying they have no way to gauge the
candidate experience. In contrast, 53% of lower-performing firms have
no way to gauge the candidate experience.
Among those that do measure employee experience, high-performing TA
firms are considerably more likely to use candidate surveys and obtain
written feedback from candidates.
Survey Question: How does your organization measure
whether candidates are having a positive experience
using the ATS? (select all that apply)
High-performing TA firms Lower-performing TA firms
40%
53%
33%
35%
17%
29%
19%
28%
0 10 20 30 40 50 60
We have no way of gauging
their experience
Candidate surveys
Written feedback from
candidates
Abandonment rates
35 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
Finding: High-performing TA firms are
almost twice as likely to say they are
satisfied or very satisfied with their ATS
High-performing TA firms are far more likely to be satisfied or very
satisfied with their ATS. Since these organizations are also far more
likely to utilize more capabilities of their ATS, they most likely have a
deeper understanding of the capabilities and how they can benefit their
organizational recruiting needs.
Survey Question: Overall, how satisfied are you with
your applicant tracking system (ATS)?
High-performing TA firms Lower-performing TA firms
0 20 40 60 80 100
86%
45%
41 pt. gap
[Percent responding satisfied and very satisfied]
36 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
Finding: Integrating advanced sourcing
tools and social media applications
represent the largest gaps between high-
performing and lower-performing TA firms
Just over half of high-performing TA firms (57%) integrate advanced
sourcing tools into their ATS, compared with just 31% of lower-
performing TA firms, a 26 percentage-point gap. The second largest gap
(at 20 percentage-points) is integrating social media applications.
High-performing TA firms are also more likely to integrate candidate
satisfaction data such as net promoter scores. This could be one of the
reasons why high-performing firms are more than twice as likely to say
they give candidates a high-quality experience.
Survey Question: How good is your organization's ATS
at integrating the following?
High-performing TA firms Lower-performing TA firms
57%
31%
56%
36%
49%
34%
46%
43%
29%
27%
0 10 20 30 40 50 60
26 pt. gap
20 pt. gap
15 pt. gap
17 pt. gap
16 pt. gap
Advanced sourcing tools
Social media applications
Video interviewing platform
Workforce planning
Candidate satisfaction data
(e.g., net promoter score)
[Percent responding good or this is already a built-in component]
37 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
Finding: Nearly half of lower-performing TA
firms feel their ATS is not easy to use
Just half (51%) of lower-performing TA firms agree or strongly agree that
their ATS is easy to use compared with 86% of high-performing TA firms.
Because of this, lower-performing TA firms are probably unable to use or
unaware of more advanced functionalities that their ATS is capable of.
More concerning is that fewer than half of respondents at lower-
performing TA firms feel their ATS provides a positive return on
investment (ROI). The cost per applicant at these organizations might
be higher than at those that do believe the ROI of their ATS investment
is positive. Again, this is potentially because these organizations are not
maximizing the available capabilities, or simply lack such capabilities.
Survey Question: To what extent do you agree with the
following statements for the ATS in your organization?
86%
51%
78%
44%
High-performing TA firms Lower-performing TA firms
0 20 40 60 80 100
35 pt. gap
34 pt. gap
It is easy to use
It provides a positive
return on investment
[Percent responding agree or strongly agree]
38 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
What Are the Most Exciting Major
Innovations of Today and Tomorrow?
Finding: Participants are most likely to cite
text messaging capability as an exciting
new improvement and innovation
This year’s respondents are most likely to choose “text messaging
capability to improve candidate engagement” and “integration with new
hire onboarding process” as examples of exciting improvements and
innovations (cited by 56% in both cases).
The movement of text messaging to the top response is an interesting
development. In 2019, 51% of participants cited text messaging as
an important development, but it was only the fourth most commonly
chosen item. However, this year we asked the question a little differently,
referring to “excitement” rather than “importance.”
What makes this capability so exciting? It allows recruitment professionals
to engage in one of the most effective means of candidate communication.
According to Aman Brar, CEO of Canvas, “Texting...is different. A job
candidate can respond in less than 1 minute without disrupting his or her
day. It’s fast, obscure, and doesn’t pull the candidate away from current
work. With robust recruiting platforms, the average time to screen a
candidate is just 4.4 minutes.”1
Of course, because it is such an intimate
form of communication, text messaging brings its own challenges and
recruitment professionals must use it with care.
As for integration with onboarding, this is probably viewed with
1
	 Brar, Aman. 5 Ways Text Interviews Will Surprise You. Undercover Recruiter. Retrieved from https://theundercoverrecruiter.com/text-interviews/
39 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
excitement because it, among other things, makes the onboarding
process more seamless. One of the chief complaints about current
ATS is their inability to integrate effectively with other key systems or
applications. This is slowly changing as vendors respond to user needs.
Two other exciting innovations mentioned by more than half of
participating HR professionals include “improved capability to ‘autofill’
application from candidates’ resumes and online social profiles” and
“integration with online social media sites such as LinkedIn.”
Survey Question: What recent improvements and innovations
in ATS excite you most? (select all that apply)
0 10 20 30 40 50 60
56%
56%
52%
52%
46%
45%
44%
23%
41%
Text messaging capability to
improve candidate engagement
Integration with new hire
onboarding process
Improved capability to “autofill”
application from candidates’
resumes and online social profiles
Integration with online social
media sites such as LinkedIn
Ability to better communicate with
candidates who do not complete
applications
Ability to monitor
diversity in hiring
Mobile ATS features
Use of artificial intelligence
to improve screening of
candidates
Emergence of
recruitment marketing
technologies
40 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
Finding: In the next three to five years,
participants say they expect to see greater
personalization and improved assessment
Internet users encounter an astounding amount of highly personalized
online experiences every day, so it makes sense that applicants expect
to see similar levels of personalized content and information in their job
search and application process. Sixty percent of HR and recruitment
professionals say greater personalization will be among the most
beneficial ATS enhancements over the next three to five years.
The second most widely cited near-future enhancement is “improved
assessment and filtering tools.” When they work well, such tools
can boost the productivity of talent acquisition professionals by
automatically filtering out less qualified candidates. However, there is
also a danger that the wrong kind of assessments or filters could have
an adverse impact on people based on their ethnicity, age, sexuality,
gender, etc. To help prevent bias from creeping into the recruitment
process, more recruitment professionals are seeking to “anonymize
applicants and/or candidates (to reduce the potential for bias).” This is
seen as a beneficial possibility by 48% of respondents.
Survey Question: What do you believe will be the most
beneficial ATS enhancements over the next three to five years?
(select all that apply)
0 10 20 30 40 50 60
60%
58%
48%
47%
25%
46%
Greater personalization
Improved assessment
and filtering tools
Ability to anonymize applicants
and/or candidates (to reduce the
potential for bias)
More flexible reporting capability
Integration of features that
harness artificial
intelligence capabilities
Appending data with current
publicly available data
41 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
Key Takeaways
Maximize the features and functionality of your ATS. Your TA
professionals need to keep learning, develop new skills, and adopt
a continuous learning and improvement approach. The data in the
report shows that high-performing TA organizations tend to get
greater use out of their ATS across the board. So, commit to a process
of continuous learning and improvement with your ATS. Conduct
continuous training. Engage more deeply with your ATS vendor to keep
abreast of enhancements, changes, best practices and tips. Find user
communities that have the same ATS program and then learn from
others in those communities.
1
Key
Takeaway
Gather data on the candidate experience. This can include
application completion rates (the rate at which people who start your
online application actually complete it) and the rate at which applications
are completed without errors. It can also include items such as the top
sources of quality candidates and good hires. Did they find you through
social media? Did they use a job board, and if so which ones? You can
also survey applicants and candidates, and you might even gather
feedback through candidate interviews. The data you gather in each
area can serve as a starting point from which you can benchmark the
organization’s progress.
2
Key
Takeaway
Find ways to improve the candidate experience. Once you collect
candidate experience data, seek ways to leverage it to improve the
candidate experience. In some cases, this means improving existing
processes and technologies. One important factor to evaluate thoroughly
and objectively is your online application process. Candidates get
frustrated with the length of applications, so make sure you are asking
for just the key information you need to successfully complete a first
stage screening. Use your ATS to track the amount of time it takes from
start to finish and watch those application abandonment rates! If your
candidates are dropping off at specific places, make adjustments.
3
Key
Takeaway
42 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
Find passive job seekers. Many of the very best candidates are not
actively pursuing new jobs. This is an area where most ATS and TA
operations may be improved. The best candidates are likely on LinkedIn,
use Twitter and enjoy Facebook. LinkedIn in particular can be a valuable
platform for searching for hard-to-find skills or qualifications. But you
won’t find these candidates unless you are actively engaged on the
platform. Be ready and able to attract the attention of top candidates.
Think like the marketing department! Publish engaging content to create
leads (meaning qualified applicants). Some ATS have the capability to
effectively download social media profiles into your system. Consider
running key word searches on those profiles. When you find matches,
you may want to send those people direct messages with a link to your
online application or a job posting and encourage them to apply.
4
Key
Takeaway
Pay close attention to reporting functionality in ATS. When making
purchasing decisions or deciding whether or not to update a current
system, make sure you examine reporting capabilities. It’s also a good
idea to reach out to your current ATS customer success team. Ask
questions about both current and future reporting capabilities, and make
sure you are using all of the data reporting tools at your disposal.
5
Key
Takeaway
Examine integration capabilities. Based on this research, it’s important to
consider the integration capabilities of any ATS when making renewal,
purchasing or implementation decisions. For instance, your organization
may use an automated drug screening and reporting tool. Test whether
your ATS can integrate with these tools so results can be attached to
candidate records in real time.
6
Key
Takeaway
Look for systems that help meet strategic and not just tactical needs.
Strategic talent acquisition goals may include improved quality of
hires, greater employee retention, greater engagement with passive
job candidates, and acceleration of the organizational learning curve
for newly hired employees. For example, let’s assume the organization
needs to hire skilled employees in a specific job category to meet
strategic corporate goals. This may require improved candidate
screening and improved matching of resumes and qualifications to job
openings. With these two specific features in mind, you can evaluate ATS
capabilities and, if they are not satisfactory, look for ways of upgrading
the current system or seeking new systems that meet organizational
needs better.
7
Key
Takeaway
43 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
Understand how talent acquisition is changing due to the Covid-19
pandemic. Recruiting and talent acquisition have been deeply affected in
some areas. Ensure your ATS can adapt to the changing trends such as
video-interviewing capabilities and compliance checks of more non-local
candidates. Moreover, stay agile and resilient. Recruitment professionals
cannot be sure how things will change from quarter to quarter these
days. They need to be prepared for multiple contingencies and react
quickly to these changes as they occur.
Leverage internal candidate capabilities when it is to your advantage.
Recruiters sometimes fail to look internally for candidates for open
positions. Part of the issue is that many recruitment technologies are
not designed for this purpose. Consider implementing processes and
systems that seek inward as well as outward for good candidates. This
often requires good internal communication as well as a database that
allows recruiters to identify internal skill sets.
8
9
Key
Takeaway
Key
Takeaway
44 www.hr.com | 877-472-6648 | copyright © HR.com 2020
The State of Applicant Tracking Systems 2020
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and tracks trends in human resources to help more than 1.75 million HR
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Over the past few years, the HR Research Institute has produced over 100
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of HR professionals. Each research report highlights current HR trends,
benchmarks and industry best practices. HR Research Institute reports
and infographics are available online, and always free. Visit hr.com/
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The State of Applicant Tracking Systems 2020.pdf

  • 1. SEPTEMBER 2020 Sponsored by: www.hr.com | 877-472-6648 The State of Applicant Tracking Systems 2020
  • 2. 2 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 CONTENTS Executive Summary 3 How Has the Recruitment Function Been Coping in an Uncertain Era? 7 How Effective Is Talent Acquisition Today? 10 How Prevalent Are Applicant Tracking Systems? 12 What Are the Benefits of Using an ATS? 16 What Do ATS Do Well and Not So Well? 19 What Is the Candidate Experience Like? 27 In What Ways Do High-Performing and Lower-Performing TA Organizations Differ? 30 What Are the Most Exciting Major Innovations of Today and Tomorrow? 38 Key Takeaways 41
  • 3. 3 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Executive Summary What a difference a year makes. In September 2019, the U.S. unemployment rate stood at 3.7%, a mark that some economists deem “full employment.” A year later, the U.S. September unemployment rate was 7.9%. This means, of course, that the circumstances surrounding last year’s survey on applicant tracking systems (ATS) were dramatically different from this year’s. In light of the global pandemic and accompanying global recession, some recruitment professionals have been forced to adopt modified recruitment approaches. These modifications often result in changes in the way ATS are leveraged as well. HR.com’s HR Research Institute surveyed the human resources (HR) community during the autumn of 2020 to learn the details of those changes. About this Survey The survey, called “State of Applicant Tracking Systems 2020,” ran in September and October of 2020. There were usable responses from 285 HR and recruitment professionals. The study was conducted by HR.com through its HR Research Institute. The participants are HR professionals representing a broad cross-section of employers by number of employees, ranging from small businesses with under 50 employees to enterprises with 20,000 or more employees. We’ve summarized the key findings below. Most organizations have an ATS and more are considering one. 1 Key Finding ● ● A substantial majority of HR professionals (73%) say their organizations use an ATS. Thirty-five percent use at least one stand-alone solution and 44% use a recruitment module that is part of a larger human capital management system. Some organizations have both stand-alone solutions and modules that are part of larger systems. ● ● 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 about as likely to use a point solution (49%) as a system that is part of a larger HR technology platform (47%). ● ● A majority (56%) of those without an ATS are either planning to acquire one or considering it.
  • 4. 4 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 The data suggests that firms that use an ATS have advantages in the area of talent acquisition. 2 Key Finding ● ● More than half (54%) of HR professionals say that talent acquisition in their organizations is good or excellent. ● ● Those organizations that say they’re good at talent acquisition (i.e., high- performing TA organizations) use an ATS at a higher than average rate: 81%. In contrast, only 65% of those with lower-performing TA functions use an ATS. ● ● A majority of respondents describe their ATS as being essential for adding/exporting candidate information (66%) and sending/organizing messages to candidates (59%). Nearly half say essential capabilities include scheduling/calendaring (49%) and providing access on mobile devices (48%). ● ● Managing the volume of applications is the most widely cited benefit of using an ATS (71%) and reducing time-to-hire is the second most widely cited benefit (60%). Despite the utility of ATS, many HR professionals still say that, for now, their systems suffer from a number of weaknesses. 3 Key Finding ● ● Just 46% of respondents say their ATS is good or very good at automatically matching candidates to the right job postings and only 47% say they are good or very good at gathering and integrating employee referrals. What they are best at, of course, is tracking candidates as they move through the recruitment process (81%). ● ● Integration with other technology systems remains a challenge in some areas. Although there is fairly widespread integration with HRIS/HRMS, assessments and E-verify, there is considerably less integration with reference checking, candidate satisfaction data, and video interviewing platforms. ● ● Only a minority of participants agree that their ATS enables them to locate internal talent (41%) or helps identify candidates who are passively looking for jobs (40%). ● ● When asked to identify what they like least about their ATS, the most common response is that their system does not have enough of the features users need (40%), followed by the complaint that their system does not have good reporting/analytics functionality. ● ● More than two-fifths (44%) say their ATS offers no way of gauging job candidate experiences. Among those with systems that can gauge such experience, 53% describe that experience as good or excellent.
  • 5. 5 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 In terms of their ATS usage, organizations with high- performing TA functions are overall more satisfied with their ATS than lower-performing firms. Participants are excited about some recent developments and are expecting advancements over the next three to five years. 4 Key Finding 5 Key Finding ● ● High-performing TA organizations get higher levels of performance from their ATS across the board. One example is that 77% of high-performing TA firms say their ATS is good at customizing the application process, compared to just 34% of lower-performing TA firms. Another is that high-performing TA organizations say their ATS offers candidates a high-quality experience at a much higher rate than their lower-performing counterparts do—77% to just 36%. ● ● Why do high-performing TA firms provide a better overall candidate experience? One key factor may be that they are more likely to gauge the candidate experience. Among those that do measure employee experience as well as candidate satisfaction data, high-performing TA firms are considerably more likely to use candidate surveys and obtain written feedback from candidates. ● ● On a more basic level, only 51% of lower-performing TA organizations say their ATS is easy to use whereas 86% of high-performing TA firms say the same. ● ● When responding to a question about which recent improvements and innovations are most exciting, participants were most likely to select: text messaging capability to improve candidate engagement integration with a new hire onboarding process improved capability to ‘autofill’ applications from candidates’ resumes and online social profiles integration with online social media sites ● ● When responding to a question about the most beneficial ATS enhancements over the next three to five years, respondents were most likely to select: greater personalization improved assessment and filtering tools ability to anonymize applicants and/or candidates to reduce the potential for hiring bias
  • 6. 6 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Most organizations have been adapting their technology systems and recruitment processes to circumstances associated with the Covid-19 pandemic: 6 Key Finding ● ● Seventy-eight percent say they have taken talent acquisition actions in response to the pandemic. Among these organizations: 89% have adopted some form of video conferencing platform with 60% saying they have begun doing more interviews virtually 56% have adopted some electronic signature application 24% have implemented new technologies to handle remote hiring issues
  • 7. 7 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 How Has the Recruitment Function Been Coping in an Uncertain Era? Finding: Most employers began doing more remote interviews in response to the pandemic In early 2020, the Covid-19 pandemic struck the world. Within a matter of weeks, many business operations were disrupted as nations adopted social distancing strategies in an effort to slow the spread of the virus. Not only did this drive many businesses to adopt remote work arrangements as never before, but it also changed talent acquisition practices in many organizations. Economic slowdowns accompanied the pandemic, which contributed to less recruitment activity in some organizations. But even among employers where recruitment efforts did not slow (or, indeed, ramped up as in certain essential service industries such as healthcare), organizations often adopted remote hiring strategies to maintain social distancing. In fact, “began doing more interviews virtually” is the clear strategy when we asked survey participants, “Which of the following talent acquisition actions has your organization taken as a result of the global pandemic and related events?” Although this is the most widely selected action, it is by no means the only one. Less than a quarter of respondents (22%) say that they have taken no talent acquisition actions in response to the pandemic. Aside from conducting more virtual interviews, the next three most commonly cited actions have been: ● ● implemented new technologies to handle remote hiring issues ● ● changed recruitment messaging ● ● adopted modified assessment processes
  • 8. 8 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Survey Question: Which of the following talent acquisition actions has your organization taken as a result of the global pandemic and related events? (select all that apply) 0 10 20 30 40 50 60 60% 24% 22% 20% 18% 14% 14% 11% 10% 6% 22% Began doing more interviews virtually Implemented new technologies to handle remote hiring issues Changed recruitment messaging Adopted modified assessment processes Adjusted talent pooling strategy Began hiring more remote, non-local candidates Made adjustments to cope with more applications Reconfigured applicant tracking systems (ATS) in some way Started accepting more applications from non-local applicants Modified the candidate- profile-building feature We have taken no particular actions
  • 9. 9 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Finding: Video conferencing platforms and electronic signatures applications have become more common Among employers that have taken TA actions in response to the pandemic, most have adopted video conferencing platforms and electronic signature applications. This is expected, as these solution technologies are fairly easy to implement and can be seen as “low hanging fruit.” Meanwhile, nearly a fifth (17%) adopted a diversity and inclusion solution that is intended to remove or reduce unintended bias in the recruitment process. Survey Question: Aside from possible features included with your ATS, what third-party recruitment-related solution technologies has your organization adopted in response to the Covid-19 pandemic, economic slowdowns and/or protest movements? 0 20 40 60 80 100 89% 56% 17% 13% Video conferencing platform (e.g., Zoom) Electronic signature (e.g., DocuSign, Adobe) Diversity and inclusion solution to remove unintended bias Enhanced top-of- funnel filtering and/or matching tools
  • 10. 10 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Finding: Slightly more than half of respondents rate the overall effectiveness of their TA efforts as good or excellent A little more than half (54%) of HR professionals say their organization’s current TA efforts are either excellent or good. This is not significantly different from the 52% mark seen in 2019. On one hand, this indicates that the overall quality of recruitment practices has only held steady. On the other hand, it suggests that, taken as a whole, talent acquisition professionals have generally been able to maintain their levels of effectiveness even during a turbulent period. Perhaps we would be seeing a larger increase had the Covid-19 pandemic not happened. An era of labor uncertainty Responding effectively in this period of uncertainty may be one reason that the average cost to attract a job seeker and convert them into a job applicant—aka, cost per applicant (CPA)—rose from about $12 in January of 2020 to $19 by June. Another factor might be that many people stopped seeking work during the initial period of urgency when many households were striving to contend with an array of factors, including childcare emergencies as schools and daycare centers closed. As of this writing, the U.S. employment situation remains hard to predict. Unemployment rates rose from 3.5% in February 2020 to 14.7% in April and then back down to 8.4% within four months. Many jobs that require an onsite presence have reportedly been going unfilled, perhaps due to the potential danger from the Covid-19 virus. Moreover, many Americans have been moving due to Covid-19, which can make filling certain jobs more complicated. And, no one is sure what the next economic quarter will bring. How Effective Is Talent Acquisition Today?
  • 11. 11 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 However we view these shifting circumstances, it does not appear that recruitment has suddenly become an easy task for most employers or that most job applicants are having an easy time locating work. In short, the U.S. job and labor markets remain in flux at the time of this writing, and it is uncertain when they will become more predictable again. In the meantime, HR professionals generally—and talent acquisition experts more specifically—must stay agile and able to quickly respond to new developments as they occur. Survey Question: How would you rate the overall effectiveness of talent acquisition/recruitment in your organization? 0 10 20 30 40 50 13% 41% 35% 7% 4% Excellent Good Average Below average Far below average Later in this report, we will use the answers to this question to analyze differences between two survey cohorts: ● ● High-performing TA firms: These represent respondents who indicate that their firms are good or excellent at talent acquisition/ recruitment. ● ● Lower-performing TA firms: These represent respondents who say that their firms are average, below average, or far below average at talent acquisition/recruitment.
  • 12. 12 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 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%). How Prevalent Are Applicant Tracking Systems? Survey Question: Does your organization currently use one or more applicant tracking systems (ATS)? (select all that apply) 44% 35% 27% 0 10 20 30 40 50 Yes, at least one recruitment module of a larger system/platform (e.g., HRIS) Yes, at least one stand-alone (that is, point solution) system No Editor’s Note: Some organizations use both stand-alone systems and systems that are a module of a larger platform.
  • 13. 13 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 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)? 0 20 40 60 80 100 81% 65% High-performing TA firms Lower-performing TA firms [Percent using an ATS]
  • 14. 14 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 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? 0 10 20 30 40 50 40% 44% 9% 7% No We’re thinking about it Yes, though more than a year from now Yes, within the next year
  • 15. 15 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 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) 0 10 20 30 40 50 46% 29% 25% 25% 24% 20% 14% 7% Cost or expense Don't need one for our purposes Leadership will not commit to investment in ATS Don’t understand the benefits of ATS for us Recruitment is working fine without one Other projects/products are a higher priority Lack of internal skills to effectively use one Cannot find an ATS we like
  • 16. 16 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 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. What Are the Benefits of Using an ATS?
  • 17. 17 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Survey Question: What are the top four benefits of using an ATS in your organization? (choose up to four) 71% 60% 58% 39% 38% 35% 33% 29% 0 10 20 30 40 50 60 70 80 Manage volume of applications/resumes Reduce time to hire Screen candidates better Acquire better talent acquisition metrics Make better hires Improve ability to assess Optimize our recruiting spend Do compliance reporting
  • 18. 18 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 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) 0 10 20 30 40 50 60 70 80 66% 59% 49% 48% 46% 44% 42% 40% 36% 39% Easily add and export candidate information (e.g., resumes) Send and organize emails/ messages to candidates Permit scheduling and calendaring Provide access on mobile devices Allow easy collaboration among talent acquisition team members Integrate with other needed systems and applications Permit enhanced search and matching Consolidate and show authorized information on a given candidate Distribute job ads Allow for employment branding
  • 19. 19 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 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.
  • 20. 20 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Survey Question: How good is your organization's ATS at the following tasks? 81% 72% 66% 62% 62% 60% 60% 57% 47% 46% 0 20 40 60 80 33% 48% 31% 41% 33% 33% 34% 28% 34% 28% 34% 26% 34% 26% 32% 25% 26% 21% 28% 18% Tracking candidates as they move through the process Providing notifications and alerts Routing jobs and offers for executive approval Reporting mandatory compliance data in a format that is easy to understand Giving the candidate a high-quality experience Customizing the application process to specific needs of different jobs Building or incorporating useful dashboards Tracking key performance indicators (e.g., quality of hire, time to fill) Gathering and integrating employee referrals Automatically matching candidates to the right job postings Good Very good [Percent responding very good and good only]
  • 21. 21 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 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? 88% 78% 72% 65% 64% 60% 48% 46% 41% 40% Agree Strongly agree 0 20 40 60 80 100 58% 30% 48% 30% 45% 48% 27% 17% 37% 27% 40% 20% 36% 12% 31% 15% 26% 15% 29% 11% It helps us stay organized It saves us time It is easy to use It helps schedule and manage interviews It provides a positive return on investment It has good customer service/support It results in higher application completion It helps us understand how we spend our recruitment budget It enables us to locate internal talent It helps us identify candidates who are passively looking for jobs
  • 22. 22 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 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? 66% 35% No 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.
  • 23. 23 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 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.
  • 24. 24 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Survey Question: How good is your organization's ATS at integrating the following? 88% 79% 78% 77% 75% 75% 66% 66% 60% 56% Fair Good This is already a built-in component 0 20 40 60 80 100 Human Resource Information System (or similar) Assessments E-Verify/determine eligibility to legally work Social media applications Workforce planning Advanced sourcing tools Video conferencing platform (e.g., Zoom) Video interviewing platform Candidate satisfaction data (e.g., net promoter score) Automated reference checking 18% 42% 28% 20% 37% 22% 14% 38% 26% 20% 40% 17% 22% 32% 21% 19% 36% 20% 15% 38% 13% 16% 37% 13% 14% 34% 12% 13% 27% 16%
  • 25. 25 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 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)? 21% 50% 6% 22% 2% 0 10 20 30 40 50 Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied
  • 26. 26 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 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) 40% 24% 22% 20% 17% 16% 16% 13 0 5 10 15 20 25 30 35 40 30% It does not have enough of the features that I need It does not have good reporting/analytics functionality It can't be used to effectively communicate with candidates It provides a poor candidate experience It is buggy It is too complicated It is difficult to use It has bad customer service I like everything about our ATS
  • 27. 27 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Finding: Many have no way to gauge the quality of the candidate experience We asked participants how they measure whether candidates have a positive experience when using their organization’s ATS. The most common answer to this question is, “We have no way of gauging their experience,” cited by 44%. As troubling as this appears, this actually represents a modest improvement over 2019 (47%) and 2018 (52%). Among those that do measure such experience, their most widely-used measurement tool is candidate surveys, closely followed by written feedback from candidates. In the write-in portion of this question, some respondents also mention directly asking candidates about their experience. Even among those that measure, they may not measure the experience of every candidate. One participant specified, for example, that they only seek feedback from candidates who made the first screening cut. Someone who abandoned their application and a candidate who made it through several screenings may have very different experiences and pain points. Gathering data from all types of candidates can make these systems more robust. What Is the Candidate Experience Like? Survey Question: How does your organization measure whether candidates are having a positive experience using the ATS? (select all that apply) 44% 31% 29% 26% 0 10 20 30 40 50 We have no way of gauging their experience Candidate surveys Written feedback from candidates Abandonment rates
  • 28. 28 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Finding: About half believe the candidate experience with their ATS is good or excellent Among the subgroup that can gauge candidate experience, 53% say their ATS delivers a good or excellent candidate experience. Although this sounds somewhat impressive, we should remember that this is only a minority of all organizations with an ATS. Many do not measure the candidate experience at all. We believe it is important to both measure and, when possible, improve the candidate experience. As the old adage says, “You only get one chance to make a first impression.” The candidate experience with the ATS often represents this one chance. Survey Question: Based on feedback and/or usage data, how would you describe the overall experience of applicants/candidates with your ATS system? 15% 38% 40% 5% 2% 0 5 10 15 20 25 30 35 40 Excellent Good Average Below average Poor
  • 29. 29 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Finding: Even with so many having no way to measure the experience, a significant majority have taken steps to improve the candidate experience in the last two years We asked respondents, “Has your organization embarked on a project to improve the candidate experience in the last two years?” Sixty-nine percent say they have done so, which is about the same as in 2019 (70%). Therefore, whether organizations are measuring the quality of the candidate experience or not, most are involved in some effort to improve it. This demonstrates the continued importance of candidate experience in the minds of most recruitment and HR experts. Survey Question: Has your organization embarked on a project to improve the candidate experience in the last two years? No Yes 31% 69%
  • 30. 30 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Finding: High-performing TA firms appear to provide a better candidate experience More than two-thirds of respondents from high-performing TA firms (66%) say their organization provides a good or excellent candidate experience. In contrast, just 24% of the lower-performing TA firms say the same thing, albeit with none saying they provide an excellent candidate experience. Just as striking are the percentages of these cohorts saying they provide a below average or poor experience. In high-performing TA organizations, a scant 2% say they provide a below average experience and none of them say the experience is poor. In the lower-performing TA firms, 18% say their candidate experience is either below average or poor. These findings are virtually unchanged from 2019. In What Ways Do High-Performing and Lower-Performing TA Organizations Differ? Survey Question: Based on feedback and/or usage data, how would you describe the overall experience of applicants/candidates with your ATS system? 66% 24% Excellent Good 0 10 20 30 40 50 60 70 80 21% 45% 24% High-performing TA firms Lower-performing TA firms
  • 31. 31 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Finding: The ATS in high-performing TA firms perform a variety of tasks at higher levels than those in lower-performing TA firms High-performing TA firms get higher levels of performance from their ATS across the board. In what may help explain the different quality of the candidate experience, 77% of high-performing TA firms say their ATS is good at customizing the application process, compared to 34% of lower-performing TA firms. High-performing TA firms also say their ATS offers candidates a high-quality experience at a much higher rate than lower-performing TA firms—77% to just 36%. More than half of both cohorts say their ATS is good at tracking candidates through the process. But that is only one of two tasks that more than half of lower-performing TA firms say their ATS performs well, along with “providing notifications and alerts.” Conversely, there are no tasks that fewer than half of higher-performing TA firms say their ATS performs well, with the lowest being automatically matching candidates to the right job postings at 60%. Just 63% of lower-performing TA firms say their ATS is good or very good at tracking candidates compared with nearly all of high-performing TA firms. Tracking candidates is the most basic function an ATS should be able to do, yet more than a third of lower performers aren’t happy with the most crucial of tasks.
  • 32. 32 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Survey Question: How good is your organization's ATS at the following tasks? High-performing TA firms Lower-performing TA firms 0 20 40 60 80 100 91% 63% 81% 54% 77% 34% 77% 36% 75% 49% 75% 39% 71% 30% 71% 34% 60% 25% Tracking candidates as they move through the process Providing notifications and alerts Customizing the application process to specific needs of different jobs Giving the candidate a high-quality experience Routing jobs and offers for executive approval Reporting mandatory compliance data in a format that is easy to understand Building or incorporating useful dashboards Tracking key performance indicators (e.g., quality of hire, time to fill) Automatically matching candidates to the right job postings and alerting the recruiter [Percent responding good or very good]
  • 33. 33 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Finding: High-performing TA firms make greater use of their ATS capabilities As we just saw, ATS in high-performing TA firms are more likely to perform every task at a higher level than in lower-performing TA firms. While we can’t say for certain the data are clearly related, 76% of higher- performing TA firms say that they utilize “all or most” of the capabilities of their ATS, compared to just 48% of lower-performing TA firms. It seems fair to infer that the firms utilizing more of the capabilities of their ATS would see better overall performance, and the data supports such an inference. Survey Question: Does your organization utilize all or most of the capabilities of its ATS? High-performing TA firms Lower-performing TA firms 0 10 20 30 40 50 60 70 80 76% 48% Yes
  • 34. 34 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Finding: High-performing TA firms gauge the quality of the candidate experience at much higher levels than their lower- performing peers Why do high-performing TA firms provide a better overall candidate experience? One key factor may be that they bother to measure that experience, with only 40% saying they have no way to gauge the candidate experience. In contrast, 53% of lower-performing firms have no way to gauge the candidate experience. Among those that do measure employee experience, high-performing TA firms are considerably more likely to use candidate surveys and obtain written feedback from candidates. Survey Question: How does your organization measure whether candidates are having a positive experience using the ATS? (select all that apply) High-performing TA firms Lower-performing TA firms 40% 53% 33% 35% 17% 29% 19% 28% 0 10 20 30 40 50 60 We have no way of gauging their experience Candidate surveys Written feedback from candidates Abandonment rates
  • 35. 35 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Finding: High-performing TA firms are almost twice as likely to say they are satisfied or very satisfied with their ATS High-performing TA firms are far more likely to be satisfied or very satisfied with their ATS. Since these organizations are also far more likely to utilize more capabilities of their ATS, they most likely have a deeper understanding of the capabilities and how they can benefit their organizational recruiting needs. Survey Question: Overall, how satisfied are you with your applicant tracking system (ATS)? High-performing TA firms Lower-performing TA firms 0 20 40 60 80 100 86% 45% 41 pt. gap [Percent responding satisfied and very satisfied]
  • 36. 36 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Finding: Integrating advanced sourcing tools and social media applications represent the largest gaps between high- performing and lower-performing TA firms Just over half of high-performing TA firms (57%) integrate advanced sourcing tools into their ATS, compared with just 31% of lower- performing TA firms, a 26 percentage-point gap. The second largest gap (at 20 percentage-points) is integrating social media applications. High-performing TA firms are also more likely to integrate candidate satisfaction data such as net promoter scores. This could be one of the reasons why high-performing firms are more than twice as likely to say they give candidates a high-quality experience. Survey Question: How good is your organization's ATS at integrating the following? High-performing TA firms Lower-performing TA firms 57% 31% 56% 36% 49% 34% 46% 43% 29% 27% 0 10 20 30 40 50 60 26 pt. gap 20 pt. gap 15 pt. gap 17 pt. gap 16 pt. gap Advanced sourcing tools Social media applications Video interviewing platform Workforce planning Candidate satisfaction data (e.g., net promoter score) [Percent responding good or this is already a built-in component]
  • 37. 37 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Finding: Nearly half of lower-performing TA firms feel their ATS is not easy to use Just half (51%) of lower-performing TA firms agree or strongly agree that their ATS is easy to use compared with 86% of high-performing TA firms. Because of this, lower-performing TA firms are probably unable to use or unaware of more advanced functionalities that their ATS is capable of. More concerning is that fewer than half of respondents at lower- performing TA firms feel their ATS provides a positive return on investment (ROI). The cost per applicant at these organizations might be higher than at those that do believe the ROI of their ATS investment is positive. Again, this is potentially because these organizations are not maximizing the available capabilities, or simply lack such capabilities. Survey Question: To what extent do you agree with the following statements for the ATS in your organization? 86% 51% 78% 44% High-performing TA firms Lower-performing TA firms 0 20 40 60 80 100 35 pt. gap 34 pt. gap It is easy to use It provides a positive return on investment [Percent responding agree or strongly agree]
  • 38. 38 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 What Are the Most Exciting Major Innovations of Today and Tomorrow? Finding: Participants are most likely to cite text messaging capability as an exciting new improvement and innovation This year’s respondents are most likely to choose “text messaging capability to improve candidate engagement” and “integration with new hire onboarding process” as examples of exciting improvements and innovations (cited by 56% in both cases). The movement of text messaging to the top response is an interesting development. In 2019, 51% of participants cited text messaging as an important development, but it was only the fourth most commonly chosen item. However, this year we asked the question a little differently, referring to “excitement” rather than “importance.” What makes this capability so exciting? It allows recruitment professionals to engage in one of the most effective means of candidate communication. According to Aman Brar, CEO of Canvas, “Texting...is different. A job candidate can respond in less than 1 minute without disrupting his or her day. It’s fast, obscure, and doesn’t pull the candidate away from current work. With robust recruiting platforms, the average time to screen a candidate is just 4.4 minutes.”1 Of course, because it is such an intimate form of communication, text messaging brings its own challenges and recruitment professionals must use it with care. As for integration with onboarding, this is probably viewed with 1 Brar, Aman. 5 Ways Text Interviews Will Surprise You. Undercover Recruiter. Retrieved from https://theundercoverrecruiter.com/text-interviews/
  • 39. 39 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 excitement because it, among other things, makes the onboarding process more seamless. One of the chief complaints about current ATS is their inability to integrate effectively with other key systems or applications. This is slowly changing as vendors respond to user needs. Two other exciting innovations mentioned by more than half of participating HR professionals include “improved capability to ‘autofill’ application from candidates’ resumes and online social profiles” and “integration with online social media sites such as LinkedIn.” Survey Question: What recent improvements and innovations in ATS excite you most? (select all that apply) 0 10 20 30 40 50 60 56% 56% 52% 52% 46% 45% 44% 23% 41% Text messaging capability to improve candidate engagement Integration with new hire onboarding process Improved capability to “autofill” application from candidates’ resumes and online social profiles Integration with online social media sites such as LinkedIn Ability to better communicate with candidates who do not complete applications Ability to monitor diversity in hiring Mobile ATS features Use of artificial intelligence to improve screening of candidates Emergence of recruitment marketing technologies
  • 40. 40 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Finding: In the next three to five years, participants say they expect to see greater personalization and improved assessment Internet users encounter an astounding amount of highly personalized online experiences every day, so it makes sense that applicants expect to see similar levels of personalized content and information in their job search and application process. Sixty percent of HR and recruitment professionals say greater personalization will be among the most beneficial ATS enhancements over the next three to five years. The second most widely cited near-future enhancement is “improved assessment and filtering tools.” When they work well, such tools can boost the productivity of talent acquisition professionals by automatically filtering out less qualified candidates. However, there is also a danger that the wrong kind of assessments or filters could have an adverse impact on people based on their ethnicity, age, sexuality, gender, etc. To help prevent bias from creeping into the recruitment process, more recruitment professionals are seeking to “anonymize applicants and/or candidates (to reduce the potential for bias).” This is seen as a beneficial possibility by 48% of respondents. Survey Question: What do you believe will be the most beneficial ATS enhancements over the next three to five years? (select all that apply) 0 10 20 30 40 50 60 60% 58% 48% 47% 25% 46% Greater personalization Improved assessment and filtering tools Ability to anonymize applicants and/or candidates (to reduce the potential for bias) More flexible reporting capability Integration of features that harness artificial intelligence capabilities Appending data with current publicly available data
  • 41. 41 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Key Takeaways Maximize the features and functionality of your ATS. Your TA professionals need to keep learning, develop new skills, and adopt a continuous learning and improvement approach. The data in the report shows that high-performing TA organizations tend to get greater use out of their ATS across the board. So, commit to a process of continuous learning and improvement with your ATS. Conduct continuous training. Engage more deeply with your ATS vendor to keep abreast of enhancements, changes, best practices and tips. Find user communities that have the same ATS program and then learn from others in those communities. 1 Key Takeaway Gather data on the candidate experience. This can include application completion rates (the rate at which people who start your online application actually complete it) and the rate at which applications are completed without errors. It can also include items such as the top sources of quality candidates and good hires. Did they find you through social media? Did they use a job board, and if so which ones? You can also survey applicants and candidates, and you might even gather feedback through candidate interviews. The data you gather in each area can serve as a starting point from which you can benchmark the organization’s progress. 2 Key Takeaway Find ways to improve the candidate experience. Once you collect candidate experience data, seek ways to leverage it to improve the candidate experience. In some cases, this means improving existing processes and technologies. One important factor to evaluate thoroughly and objectively is your online application process. Candidates get frustrated with the length of applications, so make sure you are asking for just the key information you need to successfully complete a first stage screening. Use your ATS to track the amount of time it takes from start to finish and watch those application abandonment rates! If your candidates are dropping off at specific places, make adjustments. 3 Key Takeaway
  • 42. 42 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Find passive job seekers. Many of the very best candidates are not actively pursuing new jobs. This is an area where most ATS and TA operations may be improved. The best candidates are likely on LinkedIn, use Twitter and enjoy Facebook. LinkedIn in particular can be a valuable platform for searching for hard-to-find skills or qualifications. But you won’t find these candidates unless you are actively engaged on the platform. Be ready and able to attract the attention of top candidates. Think like the marketing department! Publish engaging content to create leads (meaning qualified applicants). Some ATS have the capability to effectively download social media profiles into your system. Consider running key word searches on those profiles. When you find matches, you may want to send those people direct messages with a link to your online application or a job posting and encourage them to apply. 4 Key Takeaway Pay close attention to reporting functionality in ATS. When making purchasing decisions or deciding whether or not to update a current system, make sure you examine reporting capabilities. It’s also a good idea to reach out to your current ATS customer success team. Ask questions about both current and future reporting capabilities, and make sure you are using all of the data reporting tools at your disposal. 5 Key Takeaway Examine integration capabilities. Based on this research, it’s important to consider the integration capabilities of any ATS when making renewal, purchasing or implementation decisions. For instance, your organization may use an automated drug screening and reporting tool. Test whether your ATS can integrate with these tools so results can be attached to candidate records in real time. 6 Key Takeaway Look for systems that help meet strategic and not just tactical needs. Strategic talent acquisition goals may include improved quality of hires, greater employee retention, greater engagement with passive job candidates, and acceleration of the organizational learning curve for newly hired employees. For example, let’s assume the organization needs to hire skilled employees in a specific job category to meet strategic corporate goals. This may require improved candidate screening and improved matching of resumes and qualifications to job openings. With these two specific features in mind, you can evaluate ATS capabilities and, if they are not satisfactory, look for ways of upgrading the current system or seeking new systems that meet organizational needs better. 7 Key Takeaway
  • 43. 43 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 Understand how talent acquisition is changing due to the Covid-19 pandemic. Recruiting and talent acquisition have been deeply affected in some areas. Ensure your ATS can adapt to the changing trends such as video-interviewing capabilities and compliance checks of more non-local candidates. Moreover, stay agile and resilient. Recruitment professionals cannot be sure how things will change from quarter to quarter these days. They need to be prepared for multiple contingencies and react quickly to these changes as they occur. Leverage internal candidate capabilities when it is to your advantage. Recruiters sometimes fail to look internally for candidates for open positions. Part of the issue is that many recruitment technologies are not designed for this purpose. Consider implementing processes and systems that seek inward as well as outward for good candidates. This often requires good internal communication as well as a database that allows recruiters to identify internal skill sets. 8 9 Key Takeaway Key Takeaway
  • 44. 44 www.hr.com | 877-472-6648 | copyright © HR.com 2020 The State of Applicant Tracking Systems 2020 About HR.com and the HR Research Institute The HR Research Institute helps you keep your finger on the pulse of HR! Powered by HR.com, the world’s largest community of Human Resources professionals, the HR Research Institute benchmarks best practices and tracks trends in human resources to help more than 1.75 million HR professionals (that many people can’t be wrong!). Companies are backing up their strategic decisions with informed and insightful HR.com research references! Over the past few years, the HR Research Institute has produced over 100 leading-edge primary research and state of the industry research reports, along with corresponding infographics, based on surveys of thousands of HR professionals. Each research report highlights current HR trends, benchmarks and industry best practices. HR Research Institute reports and infographics are available online, and always free. Visit hr.com/ featuredresearch to maximize your HR potential. #hrresearchinstitute About EMP Trust EMP Trust HR provides human capital management (HCM) and talent management solutions and services for a global workforce. Our secure solutions help companies recruit and hire talent, complete new hire onboarding with electronic forms, and comply with DHS/USCIS regulations. We provide Human Resources solutions and services for electronic form I-9, E-Verify, HR Onboarding, and provide tools for workforce management to maximize employee efficiency and improve your business processes. We are a United States Corporation incorporated in Maryland as a Limited Liability Corporation in 2009.