Startups are fast-paced, and hiring the right talent can be a challenge. An Applicant Tracking System (ATS) is often the go-to solution. A study found that 99% of Fortune 500 companies and 63% of businesses in Germany, the UK, and the U.S. utilize ATS in their hiring processes.
It speeds up recruitment by automating the process, but is it enough? As ATS evolves, there are risks of relying too heavily on it. Startups need to find a balance between technology and human expertise for the best results.
More Than Just a Resume Filter
Today’s ATS is smarter than it used to be. It helps companies manage applications, screen resumes, and schedule interviews automatically. The main appeal is efficiency. ATS can scan through hundreds of applications in minutes, something a human recruiter would take hours to do. But while it’s great for processing volume, it doesn’t always spot the best talent. It relies on keyword matching, which can sometimes cause it to miss out on great candidates whose resumes don’t fit a specific template.
In fact, a Harvard Business School study found that ATS can inadvertently screen out qualified candidates. This happens because the system is designed to prioritize certain keywords or rigid criteria, which might not always align with the true potential of a candidate.
The Risks of Relying Only on ATS
ATS are not always perfect. While they streamline the process, they can sometimes reject candidates who would be a great fit. For instance, 75% of resumes are rejected by ATS before a human even looks at them (Source: Andrew Fennell’s article in Standout CV in Jan 2023). That’s a huge risk for startups if they rely solely on ATS to fill in top talent quickly.
There are also biases in ATS. Systems have been known to unfairly screen out diverse candidates. For example, Amazon’s ATS was found to undervalue female candidates simply because of how the algorithms were set (Forbes). This can lead to a lack of diversity and missed opportunities for hiring exceptional talent.
So, how is ATS Evolving?
In spite of the certain flaws in the system, the future of ATS is promising. Advanced systems are addressing some of these risks by improving candidate experience and adding special bias detection. They’re integrating Artificial Intelligence to reduce human error and help with proactive sourcing in the following areas.
Bias Detection
Newer systems aim to detect and eliminate bias in job descriptions and candidate screening. This helps create a fairer recruitment process. For example, Greenhouse and Lever provide strong support for DE&I and passive talent nurturing.
Candidate Experience
ATS will improve communication with candidates, reducing the frustration of “black hole” applications. Automated updates and faster interview scheduling will make the process more engaging.
AI-Driven Sourcing
ATS will go beyond waiting for candidates to apply. AI will actively search for potential hires, scanning platforms like LinkedIn and even social media.
Why Do You Still Need Human Recruiters?
Even with advanced ATS features, there’s no replacing the human touch. Recruiters bring intuition and cultural insight that ATS can’t. While ATS can quickly sort through resumes, human recruiters can spot red flags and recognize potential that the system might miss.
A balanced approach works best. Use ATS for efficiency, but keep recruiters involved in the decision-making process. They can build relationships with candidates, which is especially important in startups where cultural fit is key.
Conclusion: The Hybrid Model: ATS + Human Expertise
For startups, combining ATS with human expertise is the smartest move. Here’s why:
Speed and Quality
ATS can handle the heavy lifting by processing applications quickly. But human recruiters can focus on finding the right fit, ensuring the candidates align with your company’s values.
Tailored Approach
Startups have unique needs. Human recruiters can adjust hiring strategies on the go, something ATS can’t do without significant input.
Building Relationships
Candidates want to feel valued. While ATS can automate some parts of the process, human recruiters build trust and rapport with top talent, making them more likely to accept offers.
If your startup is growing, don’t rely solely on technology. Use ATS to handle the volume, but keep human recruiters involved to ensure you’re bringing in the right talent to help your business thrive.
How TalentGate Solutions Can Help
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