Applicant Tracking Systems (ATS) have revolutionized the way companies manage their recruiting processes, particularly by optimizing the time spent on the initial candidate screening stage when faced with large volumes of applications.
However, despite their benefits in terms of efficiency and automation, these systems also have a number of limitations that can negatively impact the quality of talent selection.
On networks such as LinkedIn, it is common to find comments from candidates expressing frustration that their application was not even considered for the position they applied for and that they did not receive personalized feedback, even though they were considered as potential candidates.
In today’s article, we will analyze the aspects of this tool that negatively impact the selection process and how we can counteract its drawbacks to improve our competitiveness in today’s market.
What is an ATS?
An Applicant Tracking System is software designed to automate and simplify the recruiting process, and although it can have more functionality, this type of software is typically used to organize, filter and evaluate resumes, helping recruiters efficiently manage large volumes of candidates.
In this way, an ATS allows you to centralize information, track and manage communications with candidates, with the goal of improving the candidate experience while optimizing the recruiter’s time spent sourcing talent.
But all that glitters is not gold, because while ATS can be an ideal tool in certain cases, in many others it can miss talented candidates who could bring great value to the organization and perfectly align with the company’s culture and values. Just as we find it frustrating to interact with a chatbot when we’re trying to solve a problem, we can’t blindly rely on an automated system to identify the people who could really make a difference.
For this reason, we explore below the weaknesses of ATSs and the negative impact their use can have on the selection process.
Automated screening
One of the biggest problems with ATSs is their reliance on algorithms to filter and classify resumes. These systems use keywords to identify the most suitable candidates, but this approach can be too rigid and exclusionary.
Candidates who do not include exactly the expected keywords, despite being highly qualified or possessing transferable skills, may be eliminated from the process. This means that great talent may be overlooked simply because their resume does not “speak the language” of the ATS.
Lack of contextual assessment
ATSs focus on structured information and may not capture the full context of a candidate. For example, a professional with diverse experience or skills acquired outside of traditional roles may be dismissed if his or her resume does not follow a conventional format or if his or her skills are not labeled correctly.
This could be the case for a highly competent person in programming, for example, who did not attend college but has been programming since a very early age. This candidate would certainly be disqualified for the position, even though he/she is perfect for the job, because the filters require a college degree.
The lack of human evaluation in the early stages of the process can lead to the loss of candidates with potential who do not perfectly fit the predefined parameters.
Candidate experience and perception
It is well known that the on-boarding process begins at the very moment an applicant applies for a job, and this moment is often critical to increasing talent retention, achieving greater engagement and creating a positive impact on future employees.
Even if a candidate is not the ideal fit for the vacancy now, they may be in the future as they gain more experience. However, a bad experience in the selection process may discourage them from applying again later on, negatively affecting the perception of the employer brand and the on-boarding process in the long run.
For many candidates, the process of applying through an ATS can be daunting knowing that their resume may fall through the cracks without being reviewed by a person. In addition, many systems require candidates to manually enter information that is already on their resume, which can lead some to drop out of the selection process.
On the other hand, the lack of feedback and long waiting times during the process can impact as a negative experience, affecting the company’s reputation as an employer and diminishing its attractiveness.
Unintentional biases
Although ATSs are touted as objective tools, they can perpetuate unintentional biases, as the algorithms of these systems are designed based on historical data, which can reflect and amplify existing biases in the hiring process.
If an ATS has been configured with criteria that reflect discriminatory selection patterns, such as a preference for candidates from certain universities or specific experiences, these biases will be automatically perpetuated, reducing diversity and limiting inclusion in the workplace.
Limitations in soft skills assessment
ATSs are effective at assessing technical skills and keyword-based expertise, but have difficulty measuring soft skills such as communication, leadership, autonomy, or adaptability.
These skills are often best captured through human interaction and qualitative assessment, areas where ATS simply cannot provide an accurate assessment.
Conclusion
While ATSs can streamline selection processes, especially when managing large volumes of applications, they also have significant limitations that can affect the quality of talent selection.
For organizations to be truly competitive in today’s marketplace, it is important to complement the use of ATSs with more personalized human assessments and strategies that consider the full context of each candidate and provide a more comprehensive and rewarding experience.
For this reason, whether you are a company that is not getting the results you want from your recruitment process, or a candidate who is not getting through the automated filters of ATSs, we encourage you to contact Block&Capital.
With our personalized and strategic approach, we not only help companies find the right talent more effectively, but we also offer a human and close treatment to candidates, ensuring that each profile is fully evaluated.
We also have access to a wide network of technology talent and the ability to streamline the process by selecting those candidates who are compatible with the company’s culture, reducing the time and cost associated with recruitment.
At Block&Capital, we strive to create an environment where growth and success are accessible to all. If you’re ready to take your career to the next level, we encourage you to join us.
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