Are Applicant Tracking Systems Hurting Hiring?

Oct 22, 2024

by Deanna Parkton and Ed Hunter

In recent years, job seekers have grown increasingly frustrated with the modern job search process, with many claiming that it’s fundamentally broken. As companies rely more heavily on technology to manage applications, a crucial question arises: Have we sacrificed the human element in our pursuit of efficiency?

The Current Landscape

Job search has become a numbers game.  Online applications often generate hundreds of submissions for a single position. This high volume creates challenges for both job seekers and employers:

For Job Seekers:

  • Reviewing countless job descriptions
  • Tailoring resumes and cover letters for each application
  • Tracking numerous applications across different platforms
  • Networking while managing the application process
  • Frustration of being ghosted by the majority of applications

For Recruiters and HR Teams:

  • Sifting through hundreds of resumes
  • Conducting initial phone screenings
  • Coordinating interviews across multiple schedules
  • Acting as a liaison between hiring managers and candidates
  • Balancing efficiency with finding the right cultural fit

The Rise of Applicant Tracking Systems (ATS)

Applicant Tracking Systems were introduced to streamline the hiring process, but they’ve brought their own set of challenges:

  • Keyword Filtering: Many ATS rely heavily on keyword matching, potentially overlooking qualified candidates whose resumes don’t contain the exact phrases.
  • Lack of Context: ATS struggle to understand the nuances of a candidate’s experience, potentially discarding valuable applicants who don’t fit a rigid mold.
  • Standardization vs. Uniqueness: While ATS promote consistency in applications, they may inadvertently penalize candidates with unique backgrounds or non-traditional career paths.

The Human Cost

The increasing reliance on technology in hiring has significant emotional and psychological impacts on job seekers. With repeated rejections, often without feedback, job seekers can experience an increase of self-doubt and imposter syndrome. Candidates often feel that they are submitting applications into a void when responses are few and far between. Additionally, the opaque nature of ATS-driven processes can increase stress levels for job seekers.

Desperate for human connection, competitive advantage and any kind of feedback in the job search, job seekers are doing their best to reach out to recruiters and hiring managers. But this also creates an influx of messages and emails for recruiters.

Have things become too unbalanced in how we are approaching this sensitive process? 

Calls for Change

The frustration with current hiring practices isn’t new, but it has intensified in recent years. A 2021 Forbes article highlighted the brokenness of the traditional hiring system citing a Harvard Business report about the fact that AI systems used to screen job applicants are preventing approximately 27 million people from finding work. In 2023, another Forbes piece noted that “Hiring is all about humans, yet we’ve lost the human element in hiring.” With the job search feeling like a numbers game, eager candidates are applying to as many jobs as possible. Employers hope that their job postings are reaching the right candidates at the right time but it is a disjointed process that relies on a lot of luck and chance. 

Potential Solutions

  • Balance Technology and Human Touch: Use ATS for initial sorting but incorporate human review earlier in the process.
  • Improve Candidate Communication: Provide clearer feedback and status updates throughout the application process.
  • Skills-Based Assessments: Incorporate practical tests or project-based evaluations to complement resume screening.
  • AI-Driven Matching: Utilize more sophisticated AI to understand the context and potential of candidates beyond keyword matching.
  • Long-Term Talent Relationships: Develop candidate pools for future openings, maintaining engagement with promising applicants even when immediate fits aren’t available.

Looking Ahead

The evolution of hiring technology should focus on enhancing the human experience, not replacing it. Better use of tools like ATS can empower both recruiters and candidates, creating a more transparent, fair, and effective hiring process. By acknowledging the limitations of current systems and actively working to address them, companies can not only improve their hiring outcomes but also create a more positive experience for job seekers in an already stressful process. 

 

For more ideas on how you can strategize your work, consider working with a career coach. A coach can help you identify strategies to face challenges head on. Check out our executive coaching services and sign up for a free consultation here.

Deanna Parkton is a writer, career coach and educator with a passion for professional development and work wellness and happiness. With a focus on self-reflection, she works with individuals in their quest to reach their career goals as well as satisfaction in work-life balance. You can find more of her writing at workinglivingwell.com and she can be reached at workinglivingwell@gmail.com.

Ed Hunter is a Professional Career and Executive Coach and principal of Life in Progress Coaching. He is certified by the international Coaching Federation as a Professional Certified Coach.. He is also a Certified Executive and Leadership Development Coach.  Ed has coached over a thousand professionals to create authentic careers and balanced work lives, and has a special interest in career development for adults with Autism. To connect with Ed, schedule a free consultation here.