An applicant tracking system (ATS) is software that helps companies streamline and automate their recruitment processes and workflows. This is done by collecting, organizing, and analyzing information about applicants. Ultimately, this system can ensure that they have the best candidates for their job postings.
There are different ATS systems available, and picking the wrong one can hinder the work of hiring managers and recruitment teams. In addition, the return on investment (ROI) might be lower than expected, which is not ideal if the ATS is costly.
This guide will explore several types of ATS grouped by deployment model, company size, and functionality. Then, we will discuss how to ensure you pick the best one for your hiring needs.
Types of ATS
A wide range of applicant tracking systems are available. Let’s explore each of them below.
By Deployment Model
The deployment model of an applicant tracking system is how the provider hosts and manages it for organizations and determines how it is accessed, updated, and maintained.
On-Premise ATS
An on-premises ATS is hosted and managed by the organization after it acquires it from the provider. It is installed on the organization’s servers, meaning that it is responsible for ATS management, updates, and security.
An organization will use this type of ATS deployment if it wants to keep ideal candidate data on its internal servers while implementing strict access control and security measures. It might also prefer on-premise deployment to ensure that the software seamlessly integrates with its legacy systems and can be customized to its recruiting process needs.
Examples of on-premises ATS include Oracle Taleo Enterprise, iCIMS Talent Platform, and Jobvite.
On-Premise ATS Pros
Enhanced data security and control.
Not dependent on the uptime of external servers.
Greater customization to suit specific needs.
Not reliant on an internet connection.
Controlling updates ensures minimal disruption.
On-premise ATS Cons
The upfront costs are usually high.
Requires in-house experts to manage, update, and maintain the system.
Limited remote access.
Cloud-Based ATS
A cloud-based ATS is hosted on external servers by a third-party provider. The organization accesses it remotely, with the provider handling everything on the backend, including updates, maintenance, and data security.
Organizations usually use a cloud-based ATS when they don’t have the resources to install an on-premise ATS. They might also use one if their recruiters need remote access to candidate data and the ability to manage the hiring process from anywhere.
It is also ideal in scenarios requiring collaborative hiring. It allows the hiring team to share real-time information and feedback on potential candidates.
Examples of cloud-based ATS include Greenhouse, Workable, SmartRecruiters, Lever, and BambooHR.
Cloud-based ATS Pros
Data can be accessed anywhere, anytime.
Automatic updates.
Integrates with existing HR tools.
Cloud-based solutions are usually more scalable.
Cheaper to set up than an on-premises ATS.
Cloud-based ATS Cons
Less control of the data and security (it’s in the hands of the provider).
Dependent on the internet.
Limited customization.
Hybrid ATS
A hybrid ATS brings the benefits of both an on-premise and a cloud-based ATS—the best of both worlds—to the hiring pipeline. This is usually done by splitting data management between internal and external servers. That way, some of it can be accessed remotely.
A hybrid ATS helps when companies gradually transition from an on-premise deployment to a cloud-based solution. It also helps organizations meet their compliance needs. Sometimes, regulators require that certain data be kept on-premises (the other data can be accessed on the cloud).
Furthermore, organizations with multiple locations can use a hybrid ATS to run their hiring operations independently while keeping data centralized.
Examples of hybrid ATS solutions are SAP SuccessFactors, Oracle HCM Cloud, and ADP Workforce Now.
Hybrid ATS Pros
A blend of on-premise control and cloud-based scalability.
Remote access and collaboration.
Flexible data storage and management.
Ability to create customizable workflows.
Hybrid ATS Cons
Setting up a hybrid ATS can be complex.
Costs can be higher than pure on-premise or cloud-based solutions.
Open-source ATS
An open-source ATS’s code is hosted publicly (e.g., on GitHub, GitLab, or Codeberg). This allows companies to download and modify it to suit their needs. Thus, businesses can virtually create their own tailored solution instead of customizing proprietary ATS in a limited manner.
A company will use an open-source ATS when off-the-shelf solutions don’t need a particular requirement or feature. An open-source ATS is also used by organizations that want greater control of their data and the ability to modify the system as needs change.
Companies also prefer open-source ATS because they are technically free—there are no lock-in or subscription fees to worry about.
Examples of open-source ATS include OpenCATS, OrangeHRM, and CandidATS.
Open-source ATS Pros
Greater flexibility, customization, and control of functionality.
More cost-effective compared to proprietary solutions.
Eliminates licensing fees.
Usually, it has great community support.
Can adapt the system to meet various compliance requirements.
Open-source ATS Cons
Requires a team of in-house developers.
Might run into implementation and integration challenges.
Lack of premium support.
By Company Size
ATS classified by company size are those tailored to the needs and scalability of different-sized organizations, from small businesses to large enterprises.
Enterprise ATS
An enterprise applicant tracking system has various key features that make large-scale recruitment smoother, especially for scaling businesses. This usually involves allowing enterprises to handle a high volume of applications and automating repetitive recruitment tasks (sorting applicants, scheduling interviews, and notifying candidates).
Enterprise ATS usually has robust compliance support. These give organizations the tools to meet legal and regulatory requirements, data protection laws, and industry standards.
An enterprise ATS also offers extensive customization to meet complex needs and workflows. This also involves integrating dozens of apps and services, including job board integration, communication apps, HR systems, video conferencing tools, e-signature platforms, cloud storage solutions, and background check services.
Furthermore, an enterprise ATS also has robust analytics that provides detailed insights. Organizations can use them to dive deeper into their recruitment KPIs (e.g., time to hire, cost per hire, and offer acceptance rate) and then make data-driven decisions to improve the candidate experience.
Examples of popular enterprise ATSs include ZOHO Recruit, Workable, Greenhouse, BambooHR, and ClearCompany.
Small Business ATS
A small business ATS focuses on the core features of job recruitment, including job listings, resume tracking, screening candidate profiles, and application management. The interface is user-friendly and intuitive since it doesn’t handle complex recruitment tasks.
It can also adapt to the needs of hiring managers and small recruitment teams without requiring extensive customization.
For a small business, ATS sticks to the essential functions, and the cost is lower. It is also faster to set up, requires minimal maintenance, and makes it easier for providers to offer personalized support.
However, when opting for this type of recruitment process, applicant tracking systems, knowing that they don’t particularly scale well with growing needs, can help temper expectations.
Furthermore, small business ATS usually have basic integration support. You might need to integrate several advanced tools found in full-featured ATSs, such as enterprise resource planning (ERP), customer relationship management (CRM), and learning management systems (LMS).
Examples of popular small business ATS include Pinpoint, Jobvite, and Breezy HR.
By Functionality
An ATS can also be categorized by its functionality (specific features and capabilities).
Full-Featured ATS
A full-featured ATS is a recruitment system that boasts a comprehensive set of features for the entire recruitment process (end-to-end recruitment). You’re looking at sourcing and posting jobs, screening and tracking qualified candidates, candidate communication and collaboration, onboarding, compliance, and more.
It also provides organizations with detailed analytics to help them improve recruitment and retention rates. These insights, sometimes powered by artificial intelligence, can also help enhance candidate engagement and experience.
Integrations are also at the heart of a full-featured ATS, as it can integrate with broader organizational HR systems. These include payroll and performance management.
Large enterprises, growing companies, and companies with complex hiring processes or high turnover rates can benefit from a full-featured ATS. Organizations looking for a centralized solution to manage their HR processes and find suitable candidates can also benefit from an ATS.
Standalone ATS
A standalone ATS only tracks and manages the recruitment process. It is independent of other HR systems and doesn’t integrate with them. It also focuses on simplicity, with a streamlined and user-friendly interface for its core functions.
A standalone ATS is suitable for small-to-medium enterprises (SMEs), recruitment agencies, startups, retail chains, and NGOs.
Industry-Specific ATS
An industry-specific ATS streamlines the recruitment process and provides specialized functionalities (e.g., job posting, resume screening, and candidate management) for a particular industry.
For instance, MedRecruit is a tailored ATS for the medical industry, allowing recruiters in that sector to hire health professionals. BirdDogHR, on the other hand, focuses on skilled trades, such as construction, manufacturing, and engineering.
Through compliance tracking, these systems ensure all potential hires have the right regulatory documentation (e.g., certificates and licenses) and training.
Integrated ATS
An integrated ATS integrates with other HR apps and systems, such as payroll, onboarding process, and background checking, to enhance recruitment. It’s part of the larger HR tech stack, ensuring that processes are streamlined and efficient and that data flows back and forth seamlessly between it and the HR systems.
It can also pull analytics from other integrated systems, giving recruiters a broader view of their recruitment metrics. Furthermore, it enhances communication and collaboration between HR and other departments.
It suits businesses that require end-to-end HR solutions, such as large enterprises, healthcare organizations, educational institutions, and technology firms.
How Do I Know Which ATS Model is Right for My Business?
If a business wants to find the perfect ATS for its recruitment, it needs to consider the following:
- Hiring needs: Your hiring needs include the volume of applicants, the size of the team, and workflow requirements. For instance, if you’re engaging in high-volume hiring, you might want a system with automated resume screening and compliance tracking.
- Budget: Pick an ATS that suits your budget but has a good return on investment (ROI). If you have a big budget, you can afford an ATS with comprehensive and advanced features. For a small budget, you might choose a cost-effective ATS with only the essentials.
- Scalability: If you have a growing business, you need to look for an ATS that will scale with that growth. That way, it can adapt to your business needs as they change.
- Analytics: A good ATS should provide detailed analytics, whether it is through customizable reports or dashboards. That way, you can analyze important hiring metrics and trends, allowing you to ascertain insights to help you make informed hiring decisions.
- Data security and compliance: An ATS should have robust data security measures and comply with relevant regulations. This ensures that information about candidates is safe and that the entire hiring process meets legal requirements.
- Customer support: Make sure the types of ATS you’re looking at have excellent customer or community support. This includes AI chatbots, responsive help desks, comprehensive documentation, an FAQ section, and user forums, communities, or accounts on social media platforms.