An applicant tracking system (ATS) is software that helps employers collect applications, organize candidate information, and manage hiring from job posting through interview and reporting. It is a shared workflow tool—not necessarily an AI resume-scanning system, and it does not replace the employer’s responsibility to make fair, accessible, and legally compliant decisions.
What is an applicant tracking system (ATS)?
An ATS stores job and applicant information in one place and helps a hiring team coordinate its work. Depending on the product, it may include or connect to job boards, assessments, interview tools, scheduling software, and HR systems. Features and workflows differ by vendor and configuration; the label “ATS” does not guarantee a standard set of capabilities. Greenhouse’s ATS glossary and Indeed’s overview describe common functions.
For a buyer, the useful question is not whether a system has the ATS label, but whether it supports the organization’s actual hiring process, applicant volume, users, and safeguards.
How does applicant tracking system software work?
A typical ATS workflow starts when a team opens a job requisition and prepares a posting. The employer configures application questions and hiring stages, publishes the role, and collects applications. Recruiters and hiring managers then review or sort candidates, move them through stages, coordinate interviews, record feedback, communicate with applicants, and use reports to examine the hiring funnel.
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- Set up the role: Define the job, application questions, and stages used to evaluate candidates.
- Post and collect: Publish the job and gather applications and candidate details in the system.
- Review and advance: Review applications, apply configured screening criteria, and move candidates through the workflow.
- Coordinate decisions: Schedule interviews, share feedback, and communicate with applicants.
- Report: Review pipeline information, such as candidate sources, stage progress, and bottlenecks, if the product supports those reports.
Implementations vary. For example, Keldair’s posting instructions describe one vendor’s use of job templates, posting sources, and optional EEO/OFCCP information. That is an example of a particular system, not a universal ATS design.
What does an ATS do?
At its core, an ATS centralizes candidate records and hiring activity so a team can manage applications consistently. Common capabilities include:
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- Collecting applications and storing candidate information.
- Organizing candidates by job and hiring stage.
- Sharing feedback and coordinating recruiter, interviewer, and hiring-manager handoffs.
- Communicating with candidates and coordinating interviews.
- Sorting or screening applications using configured questions or criteria.
- Reporting on hiring pipeline activity, where supported.
Screening is not the same as final decision-making. Some systems help organize applications without making an autonomous hiring decision; other workflows include configured filters or automation. Indeed describes screening questions and sorting criteria while noting that people make hiring decisions. Employers should establish what the specific product and their own configuration actually do.
How should I choose an ATS?
Compare products against the hiring work the team needs to do, not an assumed universal feature list. Ask vendors to demonstrate the real workflow using representative roles, users, and handoffs.
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| Evaluation area | Questions to ask |
|---|---|
| Workflow and volume | Does it fit the number and types of roles, hiring stages, and handoffs your team uses? |
| Screening configuration | Can you define job-related criteria and review exceptions without relying on brittle rules? |
| Usability and adoption | Can recruiters, hiring managers, and interviewers use the workflow consistently? What training is included? |
| Integrations | Does it connect to the job boards, scheduling, video interviewing, assessments, and HR systems you need? |
| Reporting | Can it report on pipeline conversion, time in stage, applicant source, and bottlenecks without extensive manual cleanup? |
| Deployment and support | What is included in setup, data migration, job-board connections, training, and ongoing support? |
| Data governance and security | What access controls, audit trails, storage practices, retention settings, and protections apply to candidate data? |
| Accessibility and oversight | Can applicants use the process with assistive technology, request accommodations, and understand how they are evaluated? How are automated criteria reviewed? |
Ask for concrete answers about configuration and implementation rather than relying on broad product claims. Greenhouse President and Co-founder Jon Stross advises ATS buyers to “truly understand what you’re trying to accomplish and find a system that will enable it.” Greenhouse’s glossary attributes that recommendation to Stross.
How can screening rules create hiring risks?
Knockout questions, keywords, certifications, and other qualifications can help teams sort applications, but a rigid rule can also filter out a qualified applicant. In testimony at a 2023 EEOC hearing, ReNika Moore described these types of ATS screening and warned about that risk. Her statement is testimony, not an EEOC finding. Moore’s testimony also repeats a Fortune 500 ATS-use figure attributed through a footnote; it should not be treated as a statistic independently established by the EEOC.
Employers can reduce avoidable screening problems by documenting why criteria relate to the job, testing how the configured process works, reviewing outcomes, retaining meaningful human review, and providing a usable accommodation path. The cited disability guidance supports safeguards for accessibility and disability discrimination; it is not a complete audit method for every kind of algorithmic bias.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What accessibility safeguards should employers consider?
U.S. Department of Justice guidance says employers should examine hiring technologies before use and regularly while in use to assess whether they screen out people with disabilities who can perform essential job functions with or without accommodation. Tests should measure job-relevant skills rather than disability-related sensory, manual, or speaking limitations. Employers must provide reasonable accommodations during hiring unless doing so would create undue hardship. Practical steps include making instructions for requesting accommodations accessible. See ADA.gov’s hiring technology guidance.
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- Check that application and assessment steps work with assistive technology.
- Confirm that assessments measure skills needed for the job rather than unrelated abilities.
- Provide an accessible, clear way to request an accommodation.
- Review the process before launch and periodically during use.
What legal duties remain when an ATS is used?
Using software does not transfer an employer’s legal responsibility for employment decisions. Employers using applicant background information must comply with federal nondiscrimination laws. If an employer obtains a background report from a company that compiles such reports, the Fair Credit Reporting Act (FCRA) procedures apply, including steps before and after an adverse decision. Federal employment-record retention requirements also apply, with rules that vary for some employers and circumstances. State and local requirements may add obligations, so this federal overview is not a complete legal answer for every employer. See the EEOC and FTC guidance on background checks.
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