The State of

Applicant Tracking
Systems 2020
SEPTEMBER 2020

Sponsored by:

www.hr.com | 877-472-6648
 CONTENTS
3 Executive Summary

7 How Has the Recruitment Function Been Coping in an Uncertain Era?

10 How Effective Is Talent Acquisition Today?

12 How Prevalent Are Applicant Tracking Systems?

16 What Are the Benefits of Using an ATS?

19 What Do ATS Do Well and Not So Well?

27 What Is the Candidate Experience Like?

In What Ways Do High-Performing and Lower-Performing TA

30 Organizations Differ?

38 What Are the Most Exciting Major Innovations of Today and Tomorrow?

41 Key Takeaways

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 Executive Summary About this Survey

The survey, called “State of

What a difference a year makes. In September 2019, the U.S.
Applicant Tracking Systems
unemployment rate stood at 3.7%, a mark that some economists 2020,” ran in September and
deem “full employment.” A year later, the U.S. September October of 2020. There were
unemployment rate was 7.9%. usable responses from 285 HR
and recruitment professionals.

This means, of course, that the circumstances surrounding last year’s The study was conducted
by HR.com through its HR
survey on applicant tracking systems (ATS) were dramatically different
Research Institute.
from this year’s. In light of the global pandemic and accompanying
The participants are HR
global recession, some recruitment professionals have been forced
professionals representing
to adopt modified recruitment approaches. These modifications often
a broad cross-section of
result in changes in the way ATS are leveraged as well. employers by number of
employees, ranging from small
HR.com’s HR Research Institute surveyed the human resources (HR) businesses with under 50
employees to enterprises with
community during the autumn of 2020 to learn the details of those
20,000 or more employees.
changes.

We’ve summarized the key findings below.

Key
Finding 1 Most organizations have an ATS and more are
considering one.
●● A substantial majority of HR professionals (73%) say their organizations
use an ATS. Thirty-five percent use at least one stand-alone solution
and 44% use a recruitment module that is part of a larger human capital
management system. Some organizations have both stand-alone
solutions and modules that are part of larger systems.

●● Large organizations (those with more than 1,000 employees) are most
likely to have an ATS, with 88% reporting they have at least one. What’s
more, large organizations are about as likely to use a point solution (49%)
as a system that is part of a larger HR technology platform (47%).

●● A majority (56%) of those without an ATS are either planning to acquire

one or considering it.

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 Key
Finding 2 The data suggests that firms that use an ATS have
advantages in the area of talent acquisition.
●● More than half (54%) of HR professionals say that talent acquisition in
their organizations is good or excellent.
●● Those organizations that say they’re good at talent acquisition (i.e., high-
performing TA organizations) use an ATS at a higher than average rate:
81%. In contrast, only 65% of those with lower-performing TA functions
use an ATS.
●● A majority of respondents describe their ATS as being essential for
adding/exporting candidate information (66%) and sending/organizing
messages to candidates (59%). Nearly half say essential capabilities
include scheduling/calendaring (49%) and providing access on mobile
devices (48%).
●● Managing the volume of applications is the most widely cited benefit of
using an ATS (71%) and reducing time-to-hire is the second most widely
cited benefit (60%).

Key
Finding 3 Despite the utility of ATS, many HR professionals still
say that, for now, their systems suffer from a number of
weaknesses.

●● Just 46% of respondents say their ATS is good or very good at

automatically matching candidates to the right job postings and only 47%
say they are good or very good at gathering and integrating employee
referrals. What they are best at, of course, is tracking candidates as they
move through the recruitment process (81%).
●● Integration with other technology systems remains a challenge in some
areas. Although there is fairly widespread integration with HRIS/HRMS,
assessments and E-verify, there is considerably less integration with
reference checking, candidate satisfaction data, and video interviewing
platforms.
●● Only a minority of participants agree that their ATS enables them to
locate internal talent (41%) or helps identify candidates who are passively
looking for jobs (40%).
●● When asked to identify what they like least about their ATS, the most
common response is that their system does not have enough of the
features users need (40%), followed by the complaint that their system
does not have good reporting/analytics functionality.
●● More than two-fifths (44%) say their ATS offers no way of gauging job
candidate experiences. Among those with systems that can gauge such
experience, 53% describe that experience as good or excellent.

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 Key
Finding 4 In terms of their ATS usage, organizations with high-
performing TA functions are overall more satisfied with
their ATS than lower-performing firms.
●● High-performing TA organizations get higher levels of performance from
their ATS across the board. One example is that 77% of high-performing
TA firms say their ATS is good at customizing the application process,
compared to just 34% of lower-performing TA firms. Another is that
high-performing TA organizations say their ATS offers candidates a
high-quality experience at a much higher rate than their lower-performing
counterparts do—77% to just 36%.

●● Why do high-performing TA firms provide a better overall candidate

experience? One key factor may be that they are more likely to gauge
the candidate experience. Among those that do measure employee
experience as well as candidate satisfaction data, high-performing TA
firms are considerably more likely to use candidate surveys and obtain
written feedback from candidates.

●● On a more basic level, only 51% of lower-performing TA organizations

say their ATS is easy to use whereas 86% of high-performing TA firms
say the same.

Key
Finding 5 Participants are excited about some recent
developments and are expecting advancements over the
next three to five years.
●● When responding to a question about which recent improvements
and innovations are most exciting, participants were most likely to
select:
 text messaging capability to improve candidate engagement
 integration with a new hire onboarding process
 improved capability to ‘autofill’ applications from candidates’
resumes and online social profiles
 integration with online social media sites

●● When responding to a question about the most beneficial ATS

enhancements over the next three to five years, respondents were
most likely to select:
 greater personalization
 improved assessment and filtering tools
 ability to anonymize applicants and/or candidates to reduce the
potential for hiring bias

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 Key
Finding 6 Most organizations have been adapting their technology
systems and recruitment processes to circumstances
associated with the Covid-19 pandemic:
●● Seventy-eight percent say they have taken talent acquisition
actions in response to the pandemic. Among these organizations:

 89% have adopted some form of video conferencing platform

with 60% saying they have begun doing more interviews
virtually
 56% have adopted some electronic signature application
 24% have implemented new technologies to handle remote
hiring issues

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 How Has the Recruitment Function
Been Coping in an Uncertain Era?
Finding: Most employers began doing
more remote interviews in response to the
pandemic
In early 2020, the Covid-19 pandemic struck the world. Within a matter
of weeks, many business operations were disrupted as nations adopted
social distancing strategies in an effort to slow the spread of the
virus. Not only did this drive many businesses to adopt remote work
arrangements as never before, but it also changed talent acquisition
practices in many organizations.

Economic slowdowns accompanied the pandemic, which contributed

to less recruitment activity in some organizations. But even among
employers where recruitment efforts did not slow (or, indeed, ramped
up as in certain essential service industries such as healthcare),
organizations often adopted remote hiring strategies to maintain social
distancing.

In fact, “began doing more interviews virtually” is the clear strategy when
we asked survey participants, “Which of the following talent acquisition
actions has your organization taken as a result of the global pandemic
and related events?”

Although this is the most widely selected action, it is by no means the

only one. Less than a quarter of respondents (22%) say that they have
taken no talent acquisition actions in response to the pandemic.

Aside from conducting more virtual interviews, the next three most
commonly cited actions have been:

●● implemented new technologies to handle remote hiring issues

●● changed recruitment messaging
●● adopted modified assessment processes

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 Survey Question: Which of the following talent acquisition
actions has your organization taken as a result of the global
pandemic and related events? (select all that apply)

Began doing more

60%
interviews virtually

Implemented new technologies to

24%
handle remote hiring issues

Changed recruitment messaging 22%

Adopted modified 20%

assessment processes

Adjusted talent pooling strategy 18%

Began hiring more remote,

non-local candidates 14%

Made adjustments to cope with

14%
more applications

Reconfigured applicant tracking

11%
systems (ATS) in some way

Started accepting more applications

10%
from non-local applicants

Modified the candidate-

6%
profile-building feature

We have taken no
22%
particular actions

0 10 20 30 40 50 60

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 Finding: Video conferencing platforms and
electronic signatures applications have
become more common
Among employers that have taken TA actions in response to the
pandemic, most have adopted video conferencing platforms and
electronic signature applications. This is expected, as these solution
technologies are fairly easy to implement and can be seen as “low
hanging fruit.” Meanwhile, nearly a fifth (17%) adopted a diversity and
inclusion solution that is intended to remove or reduce unintended bias
in the recruitment process.

Survey Question: Aside from possible features included

with your ATS, what third-party recruitment-related solution
technologies has your organization adopted in response to
the Covid-19 pandemic, economic slowdowns and/or protest
movements?

Video conferencing
platform (e.g., Zoom)
89%

Electronic signature
(e.g., DocuSign, Adobe)
56%

Diversity and inclusion

solution to remove 17%
unintended bias

Enhanced top-of-
funnel filtering and/or 13%
matching tools

0 20 40 60 80 100

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 How Effective Is Talent Acquisition
Today?
Finding: Slightly more than half of
respondents rate the overall effectiveness
of their TA efforts as good or excellent

A little more than half (54%) of HR professionals say their organization’s

current TA efforts are either excellent or good. This is not significantly
different from the 52% mark seen in 2019. On one hand, this indicates
that the overall quality of recruitment practices has only held steady.
On the other hand, it suggests that, taken as a whole, talent acquisition
professionals have generally been able to maintain their levels of
effectiveness even during a turbulent period. Perhaps we would be
seeing a larger increase had the Covid-19 pandemic not happened.

An era of labor uncertainty

Responding effectively in this period of uncertainty may be one reason
that the average cost to attract a job seeker and convert them into a
job applicant—aka, cost per applicant (CPA)—rose from about $12 in
January of 2020 to $19 by June. Another factor might be that many
people stopped seeking work during the initial period of urgency when
many households were striving to contend with an array of factors,
including childcare emergencies as schools and daycare centers closed.

As of this writing, the U.S. employment situation remains hard to predict.

Unemployment rates rose from 3.5% in February 2020 to 14.7% in April
and then back down to 8.4% within four months. Many jobs that require
an onsite presence have reportedly been going unfilled, perhaps due to
the potential danger from the Covid-19 virus. Moreover, many Americans
have been moving due to Covid-19, which can make filling certain jobs
more complicated. And, no one is sure what the next economic quarter
will bring.

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 However we view these shifting circumstances, it does not appear that
recruitment has suddenly become an easy task for most employers or
that most job applicants are having an easy time locating work.

In short, the U.S. job and labor markets remain in flux at the time of
this writing, and it is uncertain when they will become more predictable
again. In the meantime, HR professionals generally—and talent
acquisition experts more specifically—must stay agile and able to quickly
respond to new developments as they occur.

Survey Question: How would you rate the overall effectiveness

of talent acquisition/recruitment in your organization?

Excellent 13%

Good 41%

Average 35%

Below average 7%

Far below average 4%

0 10 20 30 40 50

Later in this report, we will use the answers to this question to analyze
differences between two survey cohorts:

●● High-performing TA firms: These represent respondents who

indicate that their firms are good or excellent at talent acquisition/
recruitment.

●● Lower-performing TA firms: These represent respondents who say

that their firms are average, below average, or far below average at
talent acquisition/recruitment.

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 How Prevalent Are Applicant
Tracking Systems?
Finding: Nearly three-quarters of
responding organization use an ATS
A majority (73%) of organizations now use an ATS, up from 64% in 2018.
Thirty-five percent use at least one stand-alone system and 44% use an
ATS that is part of a larger HR technology platform. Of course, some
organizations use both so there is some overlap between the two. These
are typically larger organizations that have multiple strategic business
units, some of which may have their own ATS.

Large organizations (those with more than 1,000 employees) are most
likely to have an ATS, with 88% reporting they have at least one. What’s
more, large organizations are also more likely than average to use a
point solution (49%) compared to a system that is part of a larger HR
technology platform (47%).

Survey Question: Does your organization currently use one or

more applicant tracking systems (ATS)? (select all that apply)

Yes, at least one

recruitment module of a
larger system/platform 44%
(e.g., HRIS)

Yes, at least one

stand-alone (that is, point 35%
solution) system

No 27%

0 10 20 30 40 50

Editor’s Note: Some organizations use both stand-alone systems and systems that are a module of
a larger platform.

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 Finding: High-performing TA firms are more
likely than other organizations to use an ATS
Among high-performing TA firms, 81% currently use an ATS, compared to
just 65% of their lower-performing counterparts. The data does not prove
a causal relationship between recruitment excellence and using an ATS,
but it does suggest a correlation.

We interpret this to mean that, although higher ATS usage is correlated

with higher TA performance, it does not guarantee it. To be successful,
an ATS must be used well in conjunction with other talent acquisition
best practices.

Survey Question: Does your organization currently use one or

more application tracking systems (that is an ATS)?

[Percent using an ATS]

High-performing TA firms

81%

Lower-performing TA firms

65%

0 20 40 60 80 100

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 Finding: Sixteen percent of firms without an
ATS have definite plans to implement one
in the next two years, and another 40% are
considering implementing one in the future
Among organizations that do not currently have an ATS, only 16% plan
to implement one within the next year or more. This is a sharp decrease
from 43% in 2019. We assume this is due to the Covid-19 pandemic and
associated economic downturn.

However, there was a modest increase in the proportion saying they are
“thinking about” implementing one in the future, from 31% in 2019 to
40% in 2020. We interpret this to mean that many organizations would
still like to implement an ATS in the future but, given today’s uncertain
climate, have not formulated definite plans.

Survey Question: Do you plan to implement an ATS

in the future?

No 44%

We’re thinking about it 40%

Yes, though more than a

year from now 9%

Yes, within the next year 7%

0 10 20 30 40 50

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 Finding: The primary barriers to further ATS
usage are cost and a perceived lack of need
The most commonly reported barrier to ATS usage, cited by 46% of
respondents, is cost/expense. No other single reason for not using an
ATS was selected by even 30% of the participants. The second and third
most commonly cited reasons are:

●● don't need one for our purposes (29%)

●● don’t understand the benefits of ATS for us (25%)

We should note, however, that this varies by size of organization. Among

large organizations, the top perceived barriers (cited by 60%) are that
“leadership will not commit to an investment in ATS.” This suggests that
the perceived need may be there for some larger firms, but HR has not
yet been able to convince leaders to invest in this area. In such cases, it
may be incumbent on recruiters and HR practitioners to build stronger
business cases for ATS use by illustrating the bottom line business
benefits of ATS adoption.

Survey Question: What are the most important reasons your

organization does not currently use an ATS? (select all that apply)

Cost or expense 46%

Don't need one for

our purposes 29%

Leadership will not commit

to investment in ATS
25%

Don’t understand the

benefits of ATS for us
25%

Recruitment is working
fine without one 24%

Other projects/products are

a higher priority
20%

Lack of internal skills to

effectively use one
14%

Cannot find an ATS we like 7%

0 10 20 30 40 50

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 What Are the Benefits of Using an ATS?
Finding: The most widely cited benefit of
using an ATS is the ability to better manage
the volume of applications/resumes
Of those with an ATS, 71% say the ability to manage the volume of
applications and resumes is the primary benefit of using an ATS in their
organization.

This will be an especially important benefit for organizations that are

seeing more applicants per open position in a softer economy. In some
organizations, there may also be fewer talent acquisition professionals
on staff given recent downsizings. This potentially means fewer
recruitment professionals handling a larger volume of applicants per
open position so being able to efficiently manage applications is even
more crucial now.

A related issue, and the second most commonly cited benefit at 60%, is
the need to reduce time to hire. For organizations seeing more applicants
per open position, it can be challenging to locate the best candidates and
then get them through the interview and assessment process in a timely
manner.

The third mostly widely cited issue is the ability to screen candidates
better (58%). Again, this ATS capability is especially important when
there are many applicants. We don’t think it is a coincidence that all three
of these areas are cited by more than half of respondents.

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 Survey Question: What are the top four benefits of using an ATS in
your organization? (choose up to four)

Manage volume of
71%
applications/resumes

Reduce time to hire 60%

Screen candidates better 58%

Acquire better talent

39%
acquisition metrics

Make better hires 38%

Improve ability to assess 35%

Optimize our recruiting spend 33%

Do compliance reporting 29%

0 10 20 30 40 50 60 70 80

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 Finding: Organizational and collaboration
capabilities are most essential in ATS
We asked about which five ATS capabilities are most essential
for organizations. Three of the top five relate to organizational
capabilities such as adding/exporting candidate information (66%),
sending/organizing messages to candidates (59%) and scheduling/
calendaring (49%).

The other two items relate to collaboration among TA team members

(46%), which might also be viewed as an organizational capability, and
lastly, providing access on mobile devices (48%). Providing mobile
ATS access has, of course, been a long-term goal of recruitment
professionals, who want candidates to be able to apply to positions
from the convenience of their own mobile devices. However, the issue
seems to have taken on new urgency in the current era of widespread
remote work.

Survey Question: Of the following capabilities, which five do you

consider most essential for your organization's ATS? (select up to five)

Easily add and export candidate

66%
information (e.g., resumes)

Send and organize emails/

59%
messages to candidates

Permit scheduling and calendaring 49%

Provide access on mobile devices 48%

Allow easy collaboration

among talent acquisition 46%
team members

Integrate with other needed

systems and applications
44%

Permit enhanced search and matching 42%

Consolidate and show

authorized information on 40%
a given candidate

Distribute job ads 39%

Allow for employment branding 36%

0 10 20 30 40 50 60 70 80

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 What Do ATS Do Well and Not So Well?
Finding: ATS perform three tasks
especially well
We asked participants how well their organization’s ATS perform a
variety of tasks. The three tasks most commonly cited are:

●● tracking candidates as they move through the recruitment process

●● providing notification and alerts
●● routing jobs and offers for executive approval

These are crucial tasks. Of course, tracking is what ATS should do

well, since the systems were designed for this and the word “tracking”
is in the name of these systems. Tracking helps recruitment experts
to follow candidate movement through stages such as assessments
and screenings so they can bring the most qualified candidates to the
forefront more quickly. Notifications and alerts can be viewed as integral
to such tracking and can increase and automate efficiency. Routing jobs
and offers for executive approval is, of course, also key to the process.

Survey participants are less likely to be enthused about the ability of their
ATS to gather and integrate employee referrals or automatically match
candidates to the right job postings.

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 Survey Question: How good is your organization's ATS at the
following tasks?

[Percent responding very good and good only]

Tracking candidates
as they move 33% 48% 81%
through the process

Providing notifications
31% 41% 72%
and alerts

Routing jobs and offers for

33% 33% 66%
executive approval

Reporting mandatory
compliance data in a format that 34% 28% 62%
is easy to understand

Giving the candidate a

34% 28% 62%
high-quality experience

Customizing the application

process to specific needs 34% 26% 60%
of different jobs

Building or incorporating
34% 26% 60%
useful dashboards

Tracking key performance

indicators (e.g., quality of 32% 25% 57%
hire, time to fill)

Gathering and integrating

26% 21% 47%
employee referrals

Automatically matching
candidates to the right 28% 18% 46%
job postings

0 20 40 60 80

Good Very good

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 Finding: A majority say their ATS helps
organize the recruiting process and saves
them time
Most HR professionals agree that their ATS helps them stay organized
(88%) and save time (78%), which is an increase from the data gathered
in 2019 (75% and 70% respectively). This supports the previous finding
that organizational capabilities represent the core strength of ATS.

Perhaps even more encouraging, 72% say their systems are easy to use
(unchanged from 2019). High ease-of-use scores are always a good sign
for powerful and potentially complex technologies.

The characteristic least commonly selected, however, is the ability to

“locate internal talent” (just 41%). This jibes with the previous finding
about how ATS do not tend to be good at gathering and integrating
employee referrals.

Survey Question: To what extent do you agree with the following

statements for the ATS in your organization?

It helps us stay organized 58% 30% 88%

It saves us time 48% 30% 78%

It is easy to use 45% 27% 72%

It helps schedule and manage interviews 48% 17% 65%

It provides a positive return on investment 37% 27% 64%

It has good customer service/support 40% 20% 60%

It results in higher application completion 36% 12% 48%

It helps us understand how we

spend our recruitment budget 31% 15% 46%

It enables us to locate internal talent 26% 15% 41%

It helps us identify candidates who are

passively looking for jobs 29% 11% 40%

0 20 40 60 80 100

Agree Strongly agree

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 Finding: Most respondents say they make
use of all or most of their ATS functionality
We asked participants whether they make full use of the features and
functionality of their ATS. About two-thirds (66%) say they do, whereas
35% say they do not.

Although this 66% proportion is higher than in previous versions of this

survey, it still indicates that many HR and/or recruitment professionals
do not get the most out of their ATS, either because they do not need all
the functionality or because they are not knowledgeable enough about
how to leverage it well. We believe organizations should at least be
aware of the full capabilities of their systems, even if they don’t always
use them.

Survey Question: Does your organization utilize all or most of the

capabilities of its ATS?

35%
No
66%
Yes

Editor’s Note: This does not include the 11% that say they don’t know whether or not most
capabilities are used. Numbers do not add up to 100% due to rounding.

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 Finding: ATS could be better at integrating
with other systems
We live in a world where applications must increasingly communicate
and integrate with other applications. ATS have a mixed record in this area.

Among participants who know how well their ATS integrate with other
applications, three integrations are most commonly cited:

●● HRIS (or similar)

 integration is good or fair with these platforms (60%)
 there is a built-in component relationship (28%)
 the rest say integration is poor

●● Assessments
 integration is good or fair (57%)
 they are a built-in component (22%)
 the rest say integration is poor

●● E-verify (which determines a candidate’s eligibility to legally work)

 integration is good or fair (42%)
 this is a built-in component (27%)
 the rest say integration is poor

Greater integration with other components can often bring strategic

advantages. For instance, workforce planning is a process by which
organizations prepare employees, managers and organizational
structures for success in the future. Having an ATS that integrates with
workforce planning applications might help employers to better identify
internal candidates and match the skills and experience of external
candidates to specific internal needs.

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 Survey Question: How good is your organization's ATS at
integrating the following?

Human Resource Information System (or similar)

18% 42% 28% 88%

Assessments
20% 37% 22% 79%

E-Verify/determine eligibility to legally work

14% 38% 26% 78%

Social media applications

20% 40% 17% 77%

Workforce planning
22% 32% 21% 75%

Advanced sourcing tools

19% 36% 20% 75%

Video conferencing platform (e.g., Zoom)

15% 38% 13% 66%

Video interviewing platform

16% 37% 13% 66%

Candidate satisfaction data (e.g., net promoter score)

14% 34% 12% 60%

Automated reference checking

13% 27% 16% 56%

0 20 40 60 80 100

Fair Good This is already a built-in component

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 Finding: Most (71%) are satisfied with their
ATS, but there is still considerable room for
improvement
A majority (71%) say they are satisfied with their current ATS, up from
61% in 2019. This still leaves, however, 29% who are not satisfied at all,
implying there’s much room for improvement. Moreover, only about a
fifth (21%) are very satisfied.

This study suggests that there is fairly widespread (if tepid) satisfaction
as well as considerable dissatisfaction. On one hand, ATS bring various
benefits such ease of use as well as the ability to save time and stay
organized. On the other hand, there are still concerns about areas such
as integration with other systems, the inability to find internal talent, or
problems reaching passive job seekers.

Survey Question: Overall, how satisfied are you with your applicant
tracking system (ATS)?

Very satisfied 21%

Satisfied 50%

Neutral 22%

Dissatisfied 6%

Very dissatisfied 2%

0 10 20 30 40 50

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 Finding: A lack of ATS features is the most
problematic aspect for HR professionals
About two-fifths (40%) of the participants say their ATS does not have
enough of the features they need, the most widely cited weakness of today’s
systems (and also the most widely reported weakness in 2019 at 47%).

The second most widely cited weakness in this year’s (24%) and also
the 2019 survey (37%) is an absence of high quality report/analytics
functionality. It is, of course, difficult to make good decisions without
good data, so this could be an area where ATS vendors could improve in
the future.

Most respondents are dissatisfied with some aspect of their systems,

with only 30% saying they “like everything about our ATS.”

Survey Question: What do you like least about your ATS?

(select all that apply)

It does not have enough of

40%
the features that I need

It does not have good

24%
reporting/analytics functionality

It can't be used to effectively

22%
communicate with candidates

It provides a poor
20%
candidate experience

It is buggy 17%

It is too complicated 16%

It is difficult to use 16%

It has bad customer service 13

I like everything about our ATS 30%

0 5 10 15 20 25 30 35 40

26 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 What Is the Candidate Experience Like?
Finding: Many have no way to gauge the
quality of the candidate experience
We asked participants how they measure whether candidates have
a positive experience when using their organization’s ATS. The most
common answer to this question is, “We have no way of gauging their
experience,” cited by 44%. As troubling as this appears, this actually
represents a modest improvement over 2019 (47%) and 2018 (52%).

Among those that do measure such experience, their most widely-used

measurement tool is candidate surveys, closely followed by written
feedback from candidates. In the write-in portion of this question,
some respondents also mention directly asking candidates about their
experience.

Even among those that measure, they may not measure the experience
of every candidate. One participant specified, for example, that they
only seek feedback from candidates who made the first screening cut.
Someone who abandoned their application and a candidate who made
it through several screenings may have very different experiences and
pain points. Gathering data from all types of candidates can make these
systems more robust.

Survey Question: How does your organization measure whether

candidates are having a positive experience using the ATS?
(select all that apply)

We have no way of gauging their experience 44%

Candidate surveys 31%

Written feedback from candidates 29%

Abandonment rates 26%

0 10 20 30 40 50

27 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 Finding: About half believe the candidate
experience with their ATS is good or
excellent
Among the subgroup that can gauge candidate experience, 53% say
their ATS delivers a good or excellent candidate experience. Although
this sounds somewhat impressive, we should remember that this is only
a minority of all organizations with an ATS. Many do not measure the
candidate experience at all.

We believe it is important to both measure and, when possible, improve

the candidate experience. As the old adage says, “You only get one
chance to make a first impression.” The candidate experience with the
ATS often represents this one chance.

Survey Question: Based on feedback and/or usage data, how would

you describe the overall experience of applicants/candidates with your
ATS system?

Excellent 15%

Good 38%

Average 40%

Below average 5%

Poor 2%

0 5 10 15 20 25 30 35 40

28 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 Finding: Even with so many having no way
to measure the experience, a significant
majority have taken steps to improve the
candidate experience in the last two years
We asked respondents, “Has your organization embarked on a project
to improve the candidate experience in the last two years?” Sixty-nine
percent say they have done so, which is about the same as in 2019
(70%). Therefore, whether organizations are measuring the quality of the
candidate experience or not, most are involved in some effort to improve
it. This demonstrates the continued importance of candidate experience
in the minds of most recruitment and HR experts.

Survey Question: Has your organization embarked on a project to

improve the candidate experience in the last two years?

31%
No

69%
Yes

29 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 In What Ways Do High-Performing and
Lower-Performing TA Organizations
Differ?
Finding: High-performing TA firms appear to
provide a better candidate experience
More than two-thirds of respondents from high-performing TA firms
(66%) say their organization provides a good or excellent candidate
experience. In contrast, just 24% of the lower-performing TA firms
say the same thing, albeit with none saying they provide an excellent
candidate experience.

Just as striking are the percentages of these cohorts saying they provide
a below average or poor experience. In high-performing TA organizations,
a scant 2% say they provide a below average experience and none of
them say the experience is poor. In the lower-performing TA firms, 18%
say their candidate experience is either below average or poor. These
findings are virtually unchanged from 2019.

Survey Question: Based on feedback and/or usage data, how

would you describe the overall experience of applicants/candidates
with your ATS system?

High-performing TA firms 45% 21% 66%

Lower-performing TA firms 24% 24%

0 10 20 30 40 50 60 70 80

Good Excellent

30 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 Finding: The ATS in high-performing TA firms
perform a variety of tasks at higher levels
than those in lower-performing TA firms
High-performing TA firms get higher levels of performance from their
ATS across the board. In what may help explain the different quality of
the candidate experience, 77% of high-performing TA firms say their ATS
is good at customizing the application process, compared to 34% of
lower-performing TA firms. High-performing TA firms also say their ATS
offers candidates a high-quality experience at a much higher rate than
lower-performing TA firms—77% to just 36%.

More than half of both cohorts say their ATS is good at tracking
candidates through the process. But that is only one of two tasks that
more than half of lower-performing TA firms say their ATS performs well,
along with “providing notifications and alerts.” Conversely, there are no
tasks that fewer than half of higher-performing TA firms say their ATS
performs well, with the lowest being automatically matching candidates
to the right job postings at 60%.

Just 63% of lower-performing TA firms say their ATS is good or very

good at tracking candidates compared with nearly all of high-performing
TA firms. Tracking candidates is the most basic function an ATS should
be able to do, yet more than a third of lower performers aren’t happy with
the most crucial of tasks.

31 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 Survey Question: How good is your organization's ATS
at the following tasks?

[Percent responding good or very good]

Tracking candidates as they 91%

move through the process 63%

Providing notifications and alerts 81%

54%

Customizing the application 77%

process to specific needs of
different jobs 34%

Giving the candidate a 77%

high-quality experience 36%

Routing jobs and offers for 75%

executive approval 49%

Reporting mandatory compliance 75%

data in a format that is easy to
understand 39%

Building or incorporating 71%

useful dashboards 30%

Tracking key performance indicators (e.g., 71%

quality of hire, time to fill) 34%

Automatically matching candidates to 60%

the right job postings and alerting the
recruiter 25%

0 20 40 60 80 100

High-performing TA firms Lower-performing TA firms

32 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 Finding: High-performing TA firms make
greater use of their ATS capabilities
As we just saw, ATS in high-performing TA firms are more likely to
perform every task at a higher level than in lower-performing TA firms.
While we can’t say for certain the data are clearly related, 76% of higher-
performing TA firms say that they utilize “all or most” of the capabilities
of their ATS, compared to just 48% of lower-performing TA firms. It
seems fair to infer that the firms utilizing more of the capabilities of their
ATS would see better overall performance, and the data supports such
an inference.

Survey Question: Does your organization utilize all or

most of the capabilities of its ATS?

76%
Yes
48%

0 10 20 30 40 50 60 70 80

High-performing TA firms Lower-performing TA firms

33 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 Finding: High-performing TA firms gauge
the quality of the candidate experience
at much higher levels than their lower-
performing peers
Why do high-performing TA firms provide a better overall candidate
experience? One key factor may be that they bother to measure that
experience, with only 40% saying they have no way to gauge the
candidate experience. In contrast, 53% of lower-performing firms have
no way to gauge the candidate experience.

Among those that do measure employee experience, high-performing TA

firms are considerably more likely to use candidate surveys and obtain
written feedback from candidates.

Survey Question: How does your organization measure

whether candidates are having a positive experience
using the ATS? (select all that apply)

40%
We have no way of gauging
their experience 53%

33%
Candidate surveys
28%

35%
Written feedback from
candidates 17%

29%
Abandonment rates
19%

0 10 20 30 40 50 60

High-performing TA firms Lower-performing TA firms

34 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 Finding: High-performing TA firms are
almost twice as likely to say they are
satisfied or very satisfied with their ATS
High-performing TA firms are far more likely to be satisfied or very
satisfied with their ATS. Since these organizations are also far more
likely to utilize more capabilities of their ATS, they most likely have a
deeper understanding of the capabilities and how they can benefit their
organizational recruiting needs.

Survey Question: Overall, how satisfied are you with

your applicant tracking system (ATS)?

[Percent responding satisfied and very satisfied]

86%

41 pt. gap
45%

0 20 40 60 80 100

High-performing TA firms Lower-performing TA firms

35 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 Finding: Integrating advanced sourcing
tools and social media applications
represent the largest gaps between high-
performing and lower-performing TA firms
Just over half of high-performing TA firms (57%) integrate advanced
sourcing tools into their ATS, compared with just 31% of lower-
performing TA firms, a 26 percentage-point gap. The second largest gap
(at 20 percentage-points) is integrating social media applications.

High-performing TA firms are also more likely to integrate candidate

satisfaction data such as net promoter scores. This could be one of the
reasons why high-performing firms are more than twice as likely to say
they give candidates a high-quality experience.

Survey Question: How good is your organization's ATS

at integrating the following?

[Percent responding good or this is already a built-in component]

57%
Advanced sourcing tools
26 pt. gap 31%

56%
Social media applications
20 pt. gap 36%

49%
Video interviewing platform
15 pt. gap 34%

46%
Workforce planning
17 pt. gap 29%

43%
Candidate satisfaction data
(e.g., net promoter score) 16 pt. gap 27%

0 10 20 30 40 50 60

High-performing TA firms Lower-performing TA firms

36 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 Finding: Nearly half of lower-performing TA
firms feel their ATS is not easy to use
Just half (51%) of lower-performing TA firms agree or strongly agree that
their ATS is easy to use compared with 86% of high-performing TA firms.
Because of this, lower-performing TA firms are probably unable to use or
unaware of more advanced functionalities that their ATS is capable of.

More concerning is that fewer than half of respondents at lower-

performing TA firms feel their ATS provides a positive return on
investment (ROI). The cost per applicant at these organizations might
be higher than at those that do believe the ROI of their ATS investment
is positive. Again, this is potentially because these organizations are not
maximizing the available capabilities, or simply lack such capabilities.

Survey Question: To what extent do you agree with the

following statements for the ATS in your organization?

[Percent responding agree or strongly agree]

86%
It is easy to use
35 pt. gap 51%

78%
It provides a positive
return on investment 34 pt. gap 44%

0 20 40 60 80 100

High-performing TA firms Lower-performing TA firms

37 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 What Are the Most Exciting Major
Innovations of Today and Tomorrow?
Finding: Participants are most likely to cite
text messaging capability as an exciting
new improvement and innovation
This year’s respondents are most likely to choose “text messaging
capability to improve candidate engagement” and “integration with new
hire onboarding process” as examples of exciting improvements and
innovations (cited by 56% in both cases).

The movement of text messaging to the top response is an interesting

development. In 2019, 51% of participants cited text messaging as
an important development, but it was only the fourth most commonly
chosen item. However, this year we asked the question a little differently,
referring to “excitement” rather than “importance.”

What makes this capability so exciting? It allows recruitment professionals

to engage in one of the most effective means of candidate communication.
According to Aman Brar, CEO of Canvas, “Texting...is different. A job
candidate can respond in less than 1 minute without disrupting his or her
day. It’s fast, obscure, and doesn’t pull the candidate away from current
work. With robust recruiting platforms, the average time to screen a
candidate is just 4.4 minutes.”1 Of course, because it is such an intimate
form of communication, text messaging brings its own challenges and
recruitment professionals must use it with care.

As for integration with onboarding, this is probably viewed with

1
Brar, Aman. 5 Ways Text Interviews Will Surprise You. Undercover Recruiter. Retrieved from https://theundercoverrecruiter.com/text-interviews/

38 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 excitement because it, among other things, makes the onboarding
process more seamless. One of the chief complaints about current
ATS is their inability to integrate effectively with other key systems or
applications. This is slowly changing as vendors respond to user needs.

Two other exciting innovations mentioned by more than half of

participating HR professionals include “improved capability to ‘autofill’
application from candidates’ resumes and online social profiles” and
“integration with online social media sites such as LinkedIn.”

Survey Question: What recent improvements and innovations

in ATS excite you most? (select all that apply)

Text messaging capability to

improve candidate engagement 56%

Integration with new hire

onboarding process 56%

Improved capability to “autofill”

application from candidates’ 52%
resumes and online social profiles

Integration with online social

media sites such as LinkedIn 52%

Ability to better communicate with

candidates who do not complete 46%
applications

Ability to monitor
diversity in hiring 45%

Mobile ATS features 44%

Use of artificial intelligence

to improve screening of 41%
candidates

Emergence of
recruitment marketing 23%
technologies

0 10 20 30 40 50 60

39 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 Finding: In the next three to five years,
participants say they expect to see greater
personalization and improved assessment
Internet users encounter an astounding amount of highly personalized
online experiences every day, so it makes sense that applicants expect
to see similar levels of personalized content and information in their job
search and application process. Sixty percent of HR and recruitment
professionals say greater personalization will be among the most
beneficial ATS enhancements over the next three to five years.

The second most widely cited near-future enhancement is “improved

assessment and filtering tools.” When they work well, such tools
can boost the productivity of talent acquisition professionals by
automatically filtering out less qualified candidates. However, there is
also a danger that the wrong kind of assessments or filters could have
an adverse impact on people based on their ethnicity, age, sexuality,
gender, etc. To help prevent bias from creeping into the recruitment
process, more recruitment professionals are seeking to “anonymize
applicants and/or candidates (to reduce the potential for bias).” This is
seen as a beneficial possibility by 48% of respondents.

Survey Question: What do you believe will be the most

beneficial ATS enhancements over the next three to five years?
(select all that apply)

Greater personalization 60%

Improved assessment
and filtering tools 58%
Ability to anonymize applicants
and/or candidates (to reduce the 48%
potential for bias)

More flexible reporting capability 47%

Integration of features that

harness artificial 46%
intelligence capabilities

Appending data with current

publicly available data 25%

0 10 20 30 40 50 60

40 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 Key Takeaways

1
Maximize the features and functionality of your ATS. Your TA
Key professionals need to keep learning, develop new skills, and adopt
Takeaway a continuous learning and improvement approach. The data in the
report shows that high-performing TA organizations tend to get
greater use out of their ATS across the board. So, commit to a process
of continuous learning and improvement with your ATS. Conduct
continuous training. Engage more deeply with your ATS vendor to keep
abreast of enhancements, changes, best practices and tips. Find user
communities that have the same ATS program and then learn from
others in those communities.

2
Gather data on the candidate experience. This can include
Key application completion rates (the rate at which people who start your
Takeaway online application actually complete it) and the rate at which applications
are completed without errors. It can also include items such as the top
sources of quality candidates and good hires. Did they find you through
social media? Did they use a job board, and if so which ones? You can
also survey applicants and candidates, and you might even gather
feedback through candidate interviews. The data you gather in each
area can serve as a starting point from which you can benchmark the
organization’s progress.

3
Find ways to improve the candidate experience. Once you collect
Key candidate experience data, seek ways to leverage it to improve the
Takeaway candidate experience. In some cases, this means improving existing
processes and technologies. One important factor to evaluate thoroughly
and objectively is your online application process. Candidates get
frustrated with the length of applications, so make sure you are asking
for just the key information you need to successfully complete a first
stage screening. Use your ATS to track the amount of time it takes from
start to finish and watch those application abandonment rates! If your
candidates are dropping off at specific places, make adjustments.

41 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 4
Find passive job seekers. Many of the very best candidates are not
Key actively pursuing new jobs. This is an area where most ATS and TA
Takeaway operations may be improved. The best candidates are likely on LinkedIn,
use Twitter and enjoy Facebook. LinkedIn in particular can be a valuable
platform for searching for hard-to-find skills or qualifications. But you
won’t find these candidates unless you are actively engaged on the
platform. Be ready and able to attract the attention of top candidates.
Think like the marketing department! Publish engaging content to create
leads (meaning qualified applicants). Some ATS have the capability to
effectively download social media profiles into your system. Consider
running key word searches on those profiles. When you find matches,
you may want to send those people direct messages with a link to your
online application or a job posting and encourage them to apply.

5
Pay close attention to reporting functionality in ATS. When making
Key purchasing decisions or deciding whether or not to update a current
Takeaway system, make sure you examine reporting capabilities. It’s also a good
idea to reach out to your current ATS customer success team. Ask
questions about both current and future reporting capabilities, and make
sure you are using all of the data reporting tools at your disposal.

6
Examine integration capabilities. Based on this research, it’s important to
Key consider the integration capabilities of any ATS when making renewal,
Takeaway purchasing or implementation decisions. For instance, your organization
may use an automated drug screening and reporting tool. Test whether
your ATS can integrate with these tools so results can be attached to
candidate records in real time.

7
Look for systems that help meet strategic and not just tactical needs.
Key Strategic talent acquisition goals may include improved quality of
Takeaway hires, greater employee retention, greater engagement with passive
job candidates, and acceleration of the organizational learning curve
for newly hired employees. For example, let’s assume the organization
needs to hire skilled employees in a specific job category to meet
strategic corporate goals. This may require improved candidate
screening and improved matching of resumes and qualifications to job
openings. With these two specific features in mind, you can evaluate ATS
capabilities and, if they are not satisfactory, look for ways of upgrading
the current system or seeking new systems that meet organizational
needs better.

42 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 8
Understand how talent acquisition is changing due to the Covid-19
Key pandemic. Recruiting and talent acquisition have been deeply affected in
Takeaway some areas. Ensure your ATS can adapt to the changing trends such as
video-interviewing capabilities and compliance checks of more non-local
candidates. Moreover, stay agile and resilient. Recruitment professionals
cannot be sure how things will change from quarter to quarter these
days. They need to be prepared for multiple contingencies and react
quickly to these changes as they occur.

9
Leverage internal candidate capabilities when it is to your advantage.
Key Recruiters sometimes fail to look internally for candidates for open
Takeaway positions. Part of the issue is that many recruitment technologies are
not designed for this purpose. Consider implementing processes and
systems that seek inward as well as outward for good candidates. This
often requires good internal communication as well as a database that
allows recruiters to identify internal skill sets.

43 The State of Applicant Tracking Systems 2020 www.hr.com | 877-472-6648 | copyright © HR.com 2020
 About EMP Trust

EMP Trust HR provides human capital management (HCM) and

talent management solutions and services for a global workforce. Our
secure solutions help companies recruit and hire talent, complete new hire
onboarding with electronic forms, and comply with DHS/USCIS regulations.

We provide Human Resources solutions and services for electronic form

I-9, E-Verify, HR Onboarding, and provide tools for workforce management
to maximize employee efficiency and improve your business processes.

We are a United States Corporation incorporated in Maryland as a Limited

Liability Corporation in 2009.

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