Applicant tracking systems (ATS) refer to software solutions that assist recruiters and hiring managers in streamlining and automating parts of the hiring process.
The main goal of ATS software is to help you find and attract the best candidates. But how effective is ATS software today? What are the key trends and best practices to know?
Keep reading to unearth the most relevant and up-to-date ATS statistics and facts for 2023. These stats will give you an idea of how ATS can improve your hiring efficiency, quality, and diversity and how to avoid common pitfalls and challenges.
Whether you’re already using an ATS or considering investing in one, these stats will help you make informed decisions and get started on optimizing your hiring strategy.
Top ATS Statistics
Here’s a summary of the most pertinent stats we found:
- 75% of companies use an ATS to manage their hiring process.
- An ATS rejects 75% of applications, frequently including qualified individuals, due to mistakes like poor resume layout or keyword optimization before they reach a human recruiter.
- 94% of recruiters and hiring professionals say that using an ATS has positively impacted their hiring process.
- AI and automation help increase ATS outputs by up to 175%.
- 99% of the Fortune 500 companies, 89% of large organizations, and 35% of SMBs utilize an ATS to filter through resumes.
The State of Applicant Tracking Systems
Applicant tracking systems have been around since the 1990s, when large corporations mainly used them to manage high volumes of applications.
However, with the advancement of technology and the rise of online job boards, social media, and mobile devices, ATSs have evolved and become more accessible and affordable for small and medium-sized businesses.
Today, businesses across various sectors and regions widely use applicant tracking systems.
Over 99% of Fortune 500 companies use ATS software for recruitment. (Jobscan)
51% of companies plan to invest more in ATS solutions next year. (survey by Amazon)
What are the main advantages of adopting an ATS?
One of the most significant advantages ATS solutions offer is the time and money saved throughout the hiring process.
You can redirect your attention to more critical activities by automating repetitive operations like resume screening, candidate assessment, and interview scheduling.
Studies have also shown that recruiters who leverage ATS reports save an average of 20% on recruitment time. (Hirebee)
This means they can spend more time on strategic tasks like sourcing candidates, conducting interviews, and building relationships.
Research has also shown that installing an ATS has significantly decreased recruiters’ strain. (Springer)
Adopting an ATS solution allows recruiters to spend up to 20% less time on hiring. (study by the Journal of Business Economics).
When ATS was integrated into business operations, the cost of recruitment saw significant improvements. In its first six months, the USSD project in South Africa achieved remarkable results.
During an unexpected stress test, it processed 12,500 applications within one hour, successfully attracted 26,000 applicants, and made 79 hires through the USSD platform.
Moreover, processing time was reduced to less than one minute from the previous 2-3 weeks required for paper applications.
How much money do applicant tracking systems save?
When you’re saving time, you’re saving money, and an ATS can save you serious money by streamlining your hiring process.
A small company can save up to $10,000 using an applicant tracking system. (Glassdoor)
The average cost to hire a single employee in the United States ranges from $3,000 to $4,000 without using ATS software.
How much value do applicant tracking systems add?
Based on research and the daily experience of recruiters and HR professionals, top-quality candidates typically remain available in the job market for just ten days. (ERE)
Using ATS software to accelerate your recruitment process allows you to secure these exceptional candidates before other companies recruit them.
ATS Market Statistics
The applicant tracking systems market is growing rapidly and steadily.
The global ATS market size was valued at $2.14 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 6.2% from 2020 to 2030. (Grand View Research)
The main factors driving the growth of the ATS market are:
- The increasing demand for automation and efficiency in recruitment processes
- The rising adoption of cloud-based and mobile-based solutions
- The growing need for compliance with labor laws and regulations
- The expanding scope of applications and features of ATSs
Here are some more statistics that illustrate the trends and opportunities in the ATS market.
Which region has the largest share of the ATS market?
North America accounted for the largest share of the ATS market in 2021, with over 40% of the total ATS share.
This is due to the high penetration of technology, significant players’ presence, and the region’s stringent regulations.
Which sector has the highest demand for ATSs?
The same research findings show that the IT and telecom sector held a substantial share of 24% in the ATS market.
This dominance can be attributed to factors such as the sector’s high turnover rate, the competitive nature of the industry, and the continuous demand for skilled and talented professionals.
Which type of ATS is the most popular?
By 2030, the cloud-based ATS segment is projected to witness the most significant growth in terms of revenue.
This surge can be thanks to cloud-based solutions’ cost-effectiveness, scalability, and convenience, making them highly accessible to businesses.
How Small Businesses Are Using Applicant Tracking Systems
Small businesses need more assistance hiring due to their limited resources, short time-frames, and budget. They must also compete with larger companies for talent, especially in high-demand fields.
Small businesses are increasingly turning to ATS to help them overcome these obstacles and find the right fit for their teams.
How many small businesses use ATS?
35% of small businesses use some form of ATS to manage their hiring process. (survey by Jobscan)
The survey also found that the most common reasons for using ATS among small companies are to reduce time-to-hire, improve candidate quality, and simplify compliance.
How do small businesses benefit from ATS?
Employees are 69% more likely to stay with an organization for a longer time if they experience great onboarding. (SHRM)
Using an ATS can thus ensure not only employee retention, but also save time and money for small businesses in the long run.
Applicant Tracking Systems’ Recent Trends
As the hiring landscape evolves and becomes more competitive, so do the features and capabilities of ATS. Here are the latest ATS trends and innovations to be aware of.
How are AI and automation transforming ATS?
AI learns from data from more than 2.3 million job listings, 680 million individual profiles, 310 million resumes, 10 million job titles, and 1.3 billion competencies. (CareerBuilder)
The AI then helps recruiters produce job advertisements five times quicker. According to the firm, the platform delivers a candidate appeal score to assist recruiters in determining how effective a position would be in drawing candidates, increasing applications by 175%.
Recent AI techniques may forecast the wage range from a job ad that does not include salary data, giving applicants more interview weapons than recruiters intended.
How are mobile devices changing the way candidates apply for jobs?
67% of job applications were done on mobile devices last year, while only 51% of job applications were completed in 2019. (Appcast)
This increase points to the evolving techniques with which companies are recruiting for their positions and users adopting them.
How is ATS redefining HR data analytics and reporting?
ATS is capable of efficiently collecting candidate data, tracking time-to-fill metrics, and evaluating candidate quality. 39% of organizations also utilize it to gather user analytics data for further organizational improvement. (study by Oracle)
Plus, ATS fosters diversity tracking, supports data-driven decision-making, and enhances compliance and auditing processes, making it an indispensable tool for modern talent acquisition.
There’s no room for doubt that applicant tracking systems are essential tools for modern hiring. ATS can help level up your hiring process and improve your candidate quality and experience while reducing your hiring costs and time-to-hire.
Now, over to you. Armed with these critical ATS statistics and facts, it’s your turn to take advantage of them and make more informed decisions within your hiring process.
All the best with your hiring efforts!