Could Standalone Applicant Tracking Systems Become Obsolete?
Throughout my HR career I often wondered why my colleagues and I were using a standalone, specialist recruitment software (commonly referred to as an “Applicant Tracking System”) rather than a recruitment module within our HRIS. It did not make sense to me for many reasons, including the efficiency of the end-to-end process if an applicant ended up being hired, and the high cost in terms of running two systems and potentially an integration between them.
In this article I will explain why it does not make sense to use a standalone ATS if you can manage the recruitment process just as well in an HRIS.
WHAT TYPE OF FUNCTIONALITY DOES A MATURE ATS OFFER?
A mature ATS enables an organisation to manage all steps of the recruitment process in the platform. Here are some examples of the functionality needed by most organisations:
- Create a job vacancy using a database of job descriptions
- Job vacancy approval workflows that include relevant information for budgeting
- Posting jobs on their careers page and on external websites
- Advertising the same vacancy in different locations
- A quick and easy process for candidates to apply to vacancies
- A way to manage spontaneous job applications
- Ability to assign an existing job application to a different job opening
- Ability to invite an applicant in the database to a new job opening
- Customisable folders / categories for managing the job application workflow
- CV filtering tools
- CV database management
- Interview questionnaires
- Ability to identify job applications originating from an employee referral
- Bulk downloading of CVs
- Email templates and bulk email management
- Capturing interview feedback and ratings
- Assigning applicants to talent pools
- Calendar management for scheduling interview slots
- Automated notifications at different steps of the process
- Onboarding tools for converting a candidate into an employee
- Data protection compliance in all jurisdictions.
IF THE ATS OFFERS SUCH A COMPLETE SET OF FUNCTIONALITIES, WHY DOES IT MATTER IF IT IS A STANDALONE SOLUTION?
There are several disadvantages of a standalone ATS versus an ATS built into an HRIS. Here are the 5 main ones:
- Dual data entry: Unless the ATS is integrated with the HRIS, the organisational data in the ATS must be kept up to date manually, i.e., dual data entry. Examples are the lists of employing entities, departments, cost centres, recruitment managers, managers, email addresses, job descriptions, etc.
- Integrations: The best way to avoid the inefficiencies associated with point 1 is to build an integration between the ATS and the HRIS. However, this is expensive to implement, the integration must be maintained, and the integration may not offer a real-time synchronisation of data. Integrations also break occasionally and need to be fixed.
- Onboarding: Once a preferred candidate has been selected and accepted the offer, they need to be onboarded into the HRIS. Whilst an integration between the ATS and HRIS may help with certain aspects, it is very unlikely that the ATS will enable you to manage all steps of the onboarding process, e.g., transfer documents and signed forms into the new hire’s employee profile, share information with the IT department, complete any compliance processes, etc.
- Costs: Implementing and running both an ATS and an HRIS is likely to be more expensive than managing the entire employee lifecycle (including recruitment) in one system.
- Data protection: Storing employee data and job applicant data in the same platform means that you only have to manage the security of one system.
In my opinion, these downsides of a standalone ATS are so significant that even if an HRIS is only able to offer 80% of the functionalities of a standalone ATS it may be worth making compromises. And we should never forget that the most important user experience in the recruitment process is not that of HR or the hiring manager, but of the applicant (I would be hesitant to make compromises in this regard).
SO WHY DON’T ALL ORGANISATIONS MANAGE RECRUITMENT IN AN HRIS?
The primary reason is that most HRISs do not offer the functionality required. In other words, an ATS typically offers much more complete and powerful functionality. As such, HR departments may have little choice but to use the HRIS for all processes apart from recruitment (this is also often also the case for training or Learning Management Systems).
ISN’T AN ATS TOO EXPENSIVE FOR MANY ORGANISATIONS?
The price of an ATS varies but it is true that they may be prohibitively expensive or not represent good value for money for some small and medium-sized organisations. This may either be because they do not have the budget or because their recruitment volumes are too low to justify the investment.
AT RISK OF BECOMING OBSOLETE?
From the point of view of an HR and technology professional, in the year 2024 there should be no technological rationale for the continued dependence on the standalone ATS. An HRIS should be able to offer recruitment functionality that is equivalent to that offered by a mature ATS. While 2023 has seen a widespread fascination with the possibilities of artificial intelligence, paradoxically, most organisations do not even have an HRIS with an in-built ATS, which is clearly a lot more basic than deploying AI. (Incidentally, certain ATS solutions leverage AI, especially in assessing applicants for potential suitability, but this practice is not without its share of controversy).
At PeopleWeek, we’ve developed a solution. We now offer clients the option of a comprehensive ATS called the “Recruitment Plus” module, or a streamlined version called the “Recruitment” module. Both modules are available at a significantly lower cost than a standalone ATS and offer the advantages of being part of a “one stop shop” solution covering the entire employee lifecycle.
PeopleWeek hopes that our all-in-one approach to HR and recruitment software may inspire other HRIS solutions. As this approach becomes commonplace, it could result in the traditional ATS becoming obsolete.
