Hiring can be chaotic — especially without the right tools. That’s where an applicant tracking system (ATS) comes in. But not all systems are created equal.
A great applicant tracking system doesn’t just store résumés. It helps you attract better candidates, streamline communication, track referrals, and make smarter hiring decisions — without the mess of spreadsheets or lost emails.
Whether you’re hiring your first employee or managing a high-volume operation, the right ATS can be a game-changer for your business. In this post, we’ll break down exactly what to look for in an applicant tracking system — and how to choose one that actually works for your team.
What Is an Applicant Tracking System?
An applicant tracking system is software that helps businesses manage every part of the hiring process — from job postings to candidate communication to final offers. At its core, an ATS keeps all your hiring data organized in one place so you can move faster and make better decisions.
Modern applicant tracking systems go far beyond collecting résumés. They allow you to:
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Post jobs to multiple boards with one click
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Automatically screen and sort applicants
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Track interview progress and team feedback
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Identify top referral sources
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Stay compliant with hiring regulations
If you’re still juggling email threads, spreadsheets, and disconnected tools, it’s likely costing you great candidates and a lot of time.
Want to see how this looks in action? Refered’s ATS brings everything together (job posts, referrals, automation, and tracking) all in one simple platform.
Key Features of a Great Applicant Tracking System
Not all applicant tracking systems are created equal. A great ATS should do more than store résumés—it should actively improve your hiring process. If you’re evaluating different options, look for these essential features.
First, a great ATS should support automated job posting. You should be able to publish your open roles to multiple job boards with a single click. This saves time and ensures consistent branding across platforms. Refered, for example, lets you blast jobs out instantly, saving hours of manual posting.
Second, you need referral tracking built in. Employee referrals are consistently rated as one of the most effective sources of quality hires. A strong ATS should help you promote referrals, track who referred whom, and report on which sources bring in the best candidates.
Third, the system should offer collaborative tools like shared candidate notes, interview feedback forms, and status updates. These features make it easier for hiring managers and teams to stay aligned.
Fourth, a great ATS should come with automated follow-ups and notifications to keep candidates engaged and informed. When communication falls through, applicants move on. Smart automation helps prevent that.
Finally, your ATS should provide reporting and analytics that help you understand what’s working and what isn’t. Look for insights on time-to-hire, referral performance, source effectiveness, and applicant drop-off rates.
For more on improving your hiring ROI, SHRM gives insight on recruiting metrics offers a helpful breakdown of what to track.
What to Avoid When Choosing an Applicant Tracking System
While many applicant tracking systems promise to streamline your hiring, some can actually create more problems than they solve. Knowing what to avoid can save your team time, money, and frustration.
One major red flag is a clunky, outdated user interface. If it’s hard to navigate or confusing for your team, it won’t get used—no matter how many features it claims to have. A modern ATS should be intuitive, clean, and easy to learn without hours of training.
Be cautious of systems that require heavy customization just to get started. While some level of flexibility is useful, you shouldn’t have to hire a consultant or IT specialist to launch your hiring process. Look for platforms that work well out of the box but still offer the ability to scale as your needs grow.
Another issue is limited integrations. If your ATS can’t connect with job boards, payroll providers, or your internal tools, it creates extra manual work and opens the door to errors. This is one of the reasons Refered integrates directly with platforms like Paychex—to help you tie hiring to the rest of your operations.
Also, watch out for lack of support or long response times from the vendor. During busy hiring seasons, delays in tech support can grind your process to a halt. Make sure any provider you choose is responsive and offers real help when you need it.
Finally, beware of hidden fees or pricing that doesn’t scale. Some ATS platforms charge extra for basic features like reporting, additional users, or integrations. Transparency is key—always ask for a full breakdown of what’s included in the pricing.
How to Choose the Right Applicant Tracking System for Your Business
Choosing the right applicant tracking system starts with understanding your specific hiring needs. A small business hiring a few roles per year will need different tools than a franchise with dozens of openings across multiple locations. Start by listing out your hiring challenges—then look for an ATS that directly addresses them.
Consider how many team members will be involved in hiring. If multiple managers or departments are reviewing candidates, look for a system with strong collaboration features like shared notes, customizable workflows, and status visibility.
Think about your referral strategy. If referrals are a core part of your hiring, make sure the ATS supports tracking and rewarding them effectively. Platforms like Refered are designed around referral-first recruiting, combining ATS tools with built-in referral tracking and automated job distribution.
Evaluate the reporting features. Can the system give you actionable insights into your time-to-hire, source performance, and referral conversion rates? Data matters—especially if you’re trying to improve hiring efficiency or justify your recruitment spend.
Ease of use is also critical. Look for demos, free trials, or customer reviews that speak to the user experience. If it takes hours of training to get started, your team might not stick with it.
Lastly, make sure the system can grow with you. Whether you’re opening new locations or planning to scale hiring, your ATS should offer flexible pricing and easy feature upgrades without requiring a full migration later.
Need help deciding? This external guide from SHRM gives a helpful breakdown of ATS selection criteria for different business sizes and industries.
Conclusion: The Right Applicant Tracking System Can Transform Your Hiring
A great applicant tracking system isn’t just a hiring tool — it’s a competitive advantage. It helps you post jobs faster, track referrals more effectively, improve candidate communication, and make smarter hiring decisions with less effort.
But not all ATS platforms are built the same. The best ones are easy to use, scalable, packed with useful features, and designed to make life easier for both hiring managers and applicants. Whether you’re running a single location or managing a multi-site franchise, choosing the right system can reduce your time-to-hire, improve retention, and give you a clearer view of what’s really working.
If you’re ready to see what a modern ATS looks like in action, Refered offers a referral-first platform that brings everything together—job boards, automation, referrals, and tracking — all in one simple system.
