Is it really Worth the Investment to Adopt an Applicant Tracking System?
An applicant tracking system (ATS) is a software application that helps organizations manage the recruitment process, including job postings, applications, resumes, and candidate tracking. The cost of adopting an ATS can vary depending on the specific features and capabilities of the system, as well as the size of your organization and the number of users who will be accessing the system.
In general, ATSs are likely to cost more upfront than not using an ATS. However, the cost of not using an ATS can be much higher in the long run, as it can lead to an inefficient and ineffective recruitment process. ATSs can help organizations save time and money by automating many of the manual tasks associated with recruitment, such as posting job ads, sorting and filtering resumes, scheduling interviews, and tracking candidates. In addition, an ATS can help organizations make better hiring decisions by providing a central repository for all job-related information, such as job descriptions, applicant qualifications, and interview notes.
It's important to carefully evaluate the costs and benefits of an ATS before making a decision about whether or not to adopt one. Some factors to consider when assessing the cost of an ATS include the initial purchase price, ongoing maintenance and support costs, integration with other systems, and training costs for users.
There are several factors that can influence the cost of adopting an applicant tracking system (ATS). These include:
Initial purchase price: The initial purchase price of an ATS will depend on the specific system you choose and the features and capabilities it offers. Some ATSs are available for a one-time purchase, while others are available on a subscription basis.
Ongoing maintenance and support costs: Many ATSs require ongoing maintenance and support in order to keep the system running smoothly. These costs can include technical support, software updates, and data backups.
Integration with other systems: If you want to integrate your ATS with other systems, such as your human resources management system or payroll software, this may require additional costs.
Training costs: It's important to provide training to users of the ATS to ensure they are able to effectively use the system. Training costs can include the cost of training materials and the time and resources required to deliver the training.
In addition to these costs, it's also important to consider the potential benefits of an ATS when evaluating the cost of adoption. These benefits can include improved efficiency and productivity, better hiring decisions, and cost savings through automation of manual tasks.
The cost of an applicant tracking system (ATS) can vary depending on the specific features and capabilities of the system. Here are a few factors that may influence the cost of an ATS:
Number of users: Some ATSs charge based on the number of users who will be accessing the system. More users may result in a higher cost.
Customization: Customization options, such as the ability to tailor the system to your organization's specific needs or to integrate with other systems, may cost more.
Advanced features: ATSs may offer a range of advanced features, such as artificial intelligence-powered resume parsing, candidate assessment tools, and onboarding capabilities. These types of features may come at an additional cost.
Training and support: Some ATSs offer training and support services, which may be included in the price of the system or may be offered as an additional cost.
Deployment model: ATSs may be available for purchase as a one-time cost, or they may be offered on a subscription basis. Subscription-based ATSs may have a lower upfront cost, but may require ongoing payments.
It's important to carefully evaluate the features and capabilities of an ATS and how they align with your organization's needs and budget before making a decision.
Here are a few examples of popular applicant tracking systems (ATS) and their price points:
Lever (https://www.lever.co/) - Lever offers a subscription-based ATS starting at $10,000 per year. This price includes an unlimited number of users and access to all of Lever's features and capabilities.
Jobvite (https://www.jobvite.com/) - Jobvite offers a subscription-based ATS with pricing starting at $5,000 per year. The price includes an unlimited number of users and access to all of Jobvite's features and capabilities.
iCIMS (https://www.icims.com/) - iCIMS offers a subscription-based ATS with pricing starting at $3,500 per year. The price includes an unlimited number of users and access to all of iCIMS's features and capabilities.
JazzHR (https://www.jazzhr.com/) - JazzHR offers a subscription-based ATS starting at $39 per month. The price includes an unlimited number of users and access to all of JazzHR's features and capabilities.
Recruitee (https://www.recruitee.com/) - Recruitee offers a subscription-based ATS starting at $50 per month. The price includes an unlimited number of users and access to all of Recruitee's features and capabilities.
It's important to note that these are just a few examples of ATSs and their pricing, and the actual cost of an ATS may vary depending on the specific features and capabilities you need. It's recommended to do your own research and compare different ATSs to find the one that best meets your organization's needs and budget.
Here are several potential drawbacks to not investing in an applicant tracking system (ATS):
Inefficient and ineffective recruitment process: Without an ATS, the recruitment process can be time-consuming and prone to errors. It may be more difficult to keep track of job postings, resumes, and candidate information, and to communicate with candidates and other stakeholders.
Difficulty tracking and managing candidates: An ATS provides a central repository for all job-related information, making it easier to track and manage candidates. Without an ATS, it can be more difficult to keep track of which candidates have applied for which jobs and to follow up with them.
Lack of reporting and analytics: Many ATSs provide valuable reporting and analytics tools that can help organizations understand the effectiveness of their recruitment efforts. Without an ATS, it may be more difficult to track and analyze key metrics such as time-to-hire and cost-per-hire.
Missed opportunities: Without an ATS, it may be more difficult to identify and attract top talent. An ATS can help organizations post job ads in a wider range of places, and can make it easier to track and follow up with qualified candidates.
Legal risks: Without an ATS, it may be more difficult to ensure that your organization is complying with relevant laws and regulations related to recruitment, such as equal opportunity laws. An ATS can help organizations maintain accurate records and demonstrate compliance if necessary.
There are a few key resources that may be needed to adopt an applicant tracking system (ATS):
Time: Implementing an ATS can be a time-consuming process, especially if you are integrating the system with other systems or customizing it to meet the specific needs of your organization.
Personnel: You may need to allocate personnel to manage the implementation and ongoing maintenance of the ATS, including training users, troubleshooting issues, and maintaining data integrity.
Funding: There will likely be upfront costs associated with purchasing and implementing an ATS, as well as ongoing costs for maintenance and support. It's important to budget for these costs and to carefully evaluate the return on investment of the ATS.
Training: Providing training to users of the ATS is essential to ensure that they are able to effectively use the system. This may require the development of training materials and the allocation of time and resources to deliver the training.
Overall, It's important to carefully evaluate the resources needed to adopt an ATS and to ensure that you have the necessary time, personnel, funding, and training in place before moving forward with the implementation process.
All of this knowledge may be hard to grasp initially, and as a business owner, or a company employee, you might still be confused as to what kind of ATS to really invest in. Which is why, we have also looked into some comparison websites of the available Applicant Tracking Systems that are out there so that you can really distinguish the differentiating factors in your decision making process.
In general, it can be worth the investment to adopt an applicant tracking system (ATS) for organizations that want to streamline and improve their recruitment process. An ATS can help organizations save time and money by automating many of the manual tasks associated with recruitment, such as posting job ads, sorting and filtering resumes, scheduling interviews, and tracking candidates. It can also help organizations make better hiring decisions by providing a central repository for all job-related information, such as job descriptions, applicant qualifications, and interview notes.
However, it's important to carefully evaluate the costs and benefits of an ATS before making a decision about whether or not to adopt one. Some factors to consider when assessing the cost of an ATS include the initial purchase price, ongoing maintenance and support costs, integration with other systems, and training costs for users. It may also be helpful to compare different ATSs to determine which one best meets your organization's needs and budget.
Although a very recent product within the Applicant tracking ecosystem, The Flatwork can be an excellent alternative to the current ATSs that are out there due its price point and the great features it has to offer.
The Successful Adaptation of Applicant Tracking Systems in Human Resources