Glossary

What is Recruitment Software?

Recruitment Software - also often called as applicant tracking system (ATS) - is a tool that enables companies to electronically handle their recruitment needs. Both large enterprises and smaller companies use recruitment software, but vary in functionality and features depending on the needs of the company. Recruitment software is very similar to customer relationship management (CRM) systems, but is designed specifically for recruitment tracking purposes.

The stages of the recruitment process include: job analysis and developing a person description; the sourcing of candidates by networking, advertising, or other search methods; matching candidates to job requirements and screening individuals using tests (skills or character assessment); assessment of candidates' motivations and their fit with organizational requirements by interviewing and other assessment techniques. The recruitment process also includes the making and finalizing of job offers and the induction and onboarding of new employees.

Almost all companies use some kind of applicant tracking system or recruitment software to handle job applications and to manage candidates and résumés. Smaller businesses use email and/or excel to manage this, but most companies use a dedicated ATS for recruitment. In large enterprises, recruitment software may be offered as one of the numerous modules of a complex human resources suite or Human Resource Information System (HRIS). The older recruitment software are typically installed within the company premises and have a one-time installation cost. In recent years, the ATS is expanding into small and medium enterprises through software as a service (SaaS). With SaaS, companies can now pay for recruitment software on a pay-as-you-go basis. This has been influential in increasing the penetration of ATS in smaller companies.

The primary job of recruitment software is collecting all the information about a company's recruitment efforts in a database. Applicant Tracking Systems are designed to add structure to the process and handling of resumes and applicant data. Applicant data is usually collected from the company’s website or by mail.