Applicant tracking system

What it means

An ATS, applicant tracking system, is recruitment management software. It collects applications from the website and job boards, sorts CVs, tracks where each candidate stands, schedules interviews and stores communication.

Modern systems can score CVs automatically against keywords or criteria, and some use artificial intelligence. They are often linked to an HRIS so a hired candidate's data flow into personnel records without retyping.

Small firms can use simple cloud ATS tools, while large companies have them as part of full HR suites. The benefit is overview and a faster recruitment process.

How it works in practice

When introducing an ATS, retention periods for candidate data and automatic deletion must be set. Rejected candidates' data may be kept longer only with consent, for example for future roles.

The system acts as a data processor, so a processing agreement with the provider is needed and the data location must be checked. With a cloud outside the EU, international transfer rules apply.

ATS fees are operating costs, spread over time for annual subscriptions. The system also helps prove that selection was fair and based on the same criteria for all.

What to watch out for

Automatic rejection of candidates is profiling, and the GDPR gives people the right not to be subject to solely automated decisions with significant effects. A human should always review the outcome.

AI systems for selecting employees are classed as high-risk under the AI Act. Companies using them must meet stricter transparency and oversight requirements.