Selecting the Right Applicant Tracking System: A 2025 Buyer’s Guide for Employers

Applicant tracking systems have evolved from niche tools to indispensable infrastructure. Today, 75% of companies use an ATS to manage hiring, and 94% of recruiters say the software has a positive impact on their process¹. Adoption is nearly universal among large firms, over 98% of Fortune 500 companies use ATS software, and 89% of large organizations employ ATS platforms, compared with 35% of small and mid‑sized businesses¹. Analysts project the global ATS market, valued at $2.9 billion in 2024, will reach $6.3 billion by 2033⁵. Because so many vendors now offer ATS solutions, selecting the right platform requires careful planning.

This buyer’s guide outlines the steps for evaluating ATS platforms and provides data‑backed criteria to help you make an informed choice.

Assess your hiring needs

Before shopping for software, analyze your organization’s recruitment volume, complexity and industry requirements. High‑growth startups and seasonal employers need robust automation to handle surges of applications. Conversely, companies with lower volume may prioritize ease of use over advanced features. Consider:

• Hiring frequency and roles: How many positions do you fill each month? Do you recruit hourly workers, executives or specialized talent?
• Industry and compliance: Regulated industries (e.g., healthcare, finance) may require features like document retention, audit logs or EEO reporting.
• Geographic scope: Multinational firms need multi‑currency support and compliance with local privacy laws.

Understanding your workflow will narrow the field and inform your budget.

Evaluate core features

Effective ATS platforms share several fundamental capabilities:

1. Resume parsing and keyword matching

The system should accurately extract candidate information and match it to job requirements. Look for platforms that support semantic analysis and synonym recognition to avoid missing candidates who use different terminology. Poor parsing is one reason why approximately 75% of applications are rejected by ATS software¹; robust parsing reduces this risk.

2. Automation of repetitive tasks

Automation drives the time savings that 86% of ATS users experience². Features like interview scheduling, automated email updates and workflow triggers can shorten the hiring cycle. Research shows that ATS adoption can make hiring up to 60 % faster² and save small businesses up to $10,000 in recruitment costs¹.

3. Integration with existing systems

A good ATS should integrate with your HRIS, payroll, assessment and onboarding tools. According to market surveys, 51% of companies plan to invest more in ATS technology next year¹, and many are seeking platforms that unify data across the employee lifecycle. Integration minimizes duplicate data entry and ensures a seamless experience.

4. Analytics and reporting

Data is only useful if it informs decisions. Look for dashboards that track key metrics: time‑to‑fill, source of hire, offer acceptance rates, diversity metrics and candidate experience. Some systems also offer predictive analytics to forecast hiring needs.

5. Candidate experience

A clunky application process drives talent away. Ensure the ATS provides a mobile‑friendly application portal, automated status updates and personalized communication. With 40% of companies using AI chatbots to engage candidates³, conversational interfaces are becoming standard.

6. AI and fairness features

AI can enhance sourcing and screening but may introduce bias. Studies show that 9% of companies say AI always produces biased recommendations and 24% say it often does³. When evaluating AI features, ask vendors how they audit algorithms, mitigate bias and provide transparency. Look for configurable scoring models and anonymization options.

7. Configurability and scalability

As your organization grows, your ATS should adapt. Choose a platform with customizable workflows, role‑based permissions and modular add‑ons. Verify that the vendor’s infrastructure can handle increased volume without degradation.

Questions to ask vendors

When you demo a platform, inquire about:

• Implementation timeline and support: How long will it take to roll out? What training resources are provided?
• Data privacy and compliance: Does the system comply with GDPR, CCPA and EEOC requirements?
• Customization options: Can you adjust scoring weights or create custom fields without coding?
• Integration roadmap: Which third‑party tools does the ATS integrate with? Is there an open API?
• AI transparency: How does the vendor audit algorithms for bias? Can you see which factors influence candidate scores?
• Cost structure: What are the licensing, implementation and maintenance fees? Are there charges per user or per hire?

Consider total cost of ownership

Price encompasses more than subscription fees. Factor in implementation, training, customization and ongoing support. Remember that a well‑chosen ATS can save money: one study found that using an ATS reduces recruitment costs for small businesses by up to $10,000¹, and recruiters who leverage ATS reports save about 20% of their time¹. Weigh the long‑term benefits of efficiency and quality of hire against the upfront investment.

Conclusion

Selecting the right ATS is a strategic decision that affects your company’s ability to attract, evaluate and retain talent. By assessing your needs, focusing on core features, scrutinizing AI capabilities and evaluating total cost, you can find a system that improves hiring outcomes. As ATS adoption continues to grow and AI becomes integral to recruiting, choosing a flexible, transparent and user‑friendly platform will set your organization up for success.

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Looking to streamline your hiring process? Use Cirby.ai’s ATS buyer’s checklist to compare vendors, identify must‑have features and choose the right platform for your team.

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