Are you pro-technology because you feel that it makes your life easier?
(I'm going to assume that most people in 2020 would respond affirmatively.)
Now, do you want a computer to be the ultimate decider as to whether you get a job?
That is a big leap to make and for the most part, we are not there yet. However, companies like Amazon are heading in that direction!
This article discusses recruiting automation technology, known as Applicant Tracking Systems (ATS). Based on conversations I have had with recruiters from top consulting firms, personal experience and further research, I have identified benefits and challenges to using ATS technology.
While companies have found automation to be a useful tool in managing high candidate volumes, Applicant Tracking Systems are flawed in ways that ultimately lead companies to miss out on qualified candidates.
After reading this post, you should have an understanding of:
The benefits offered by using an ATS
The challenges presented by the technology
Action items to combat those challenges moving forward
First, what exactly is an Applicant Tracking System? It is a software or cloud-based system that electronically analyzes resumes in order to streamline the recruitment process. Below are the functions an ATS can perform or facilitate:
According to Jobscan and CareerArc Data from 2018, 98% of Fortune 500 companies and 40% of all companies use this technology. Some larger companies, such as Google, Apple, Facebook and Amazon, have their own proprietary software for recruiting. Many companies use third-party platforms. You may have heard of some of the most popular ones: Taleo, Bamboo, Greenhouse and iCims, to name a few.
ATS technology is gaining popularity, for companies of all sizes. Let's have a look at why that is:
The key benefits of using an ATS are that it:
Saves money and resources
Is an organization and retention tool that keeps resumes on file for future job openings
Keeps you Competitive: Given that many other companies are using this technology to evaluate a high volume of candidates, it is important not to fall behind the curve and stay competitive with the use of HR automation technology.
Saves time
Provides you with data that can help measure the performance and effectiveness of the recruiting process
Essentially, this is technology making HR’s life easier. However, there can be challenges when using an ATS.
The ATS is less helpful without buy-in from every employee involved in recruiting to ensure the system is used properly, end-to-end. If data entry is piecemeal, it can further complicate coordination in recruiting efforts. Additionally, employees need the knowledge and capabilities to use the technology effectively.
The critical problem with relying on an ATS too heavily is that the technology is unreliable, and recruiters end up missing out on qualified candidates for their hiring managers. Here are three examples:
1. Some systems use character limits for application questions that prevent the candidate from accurately communicating their qualifications.
2. The ATS cannot always translate formatting components such as fonts, margin sizes, and file types, and will reject applications because of this.
3. The word-matching used to scan resumes is imperfect. To illustrate this, I have a story for you...
Jobscan.com has a tool that lets you input a resume and job posting and then uses technology similar to popular ATS platforms to output a percentage match that an ATS would identify you as for that job.
I entered my own resume and the job listing for my own job, Accounting & Benefits Manager (HR Generalist) into Jobscan. For reference, I performed this particular job for 3 years with positive performance reviews each year and excellent recommendations from my supervisor for future opportunities. The Jobscan tool identified me as a 26% match. For my own job.
Jobscan used word-matching for skills that it deemed significant from the job description, as an ATS would. It only identified me as having 8/30 skills. Knowing what I know about the job, the skills it chose were not representative of the essential job tasks and skills or weighted correctly.
Another example of the challenges presented by this technology is evident in a Reuter’s story about Amazon from 2018. That year, Amazon had to discontinue an ATS tool because it had learned from seeing more male resumes, due to the nature of the male-dominated tech industry, to downgrade resumes with the word “women’s” in them. *It is important to note that AI and Machine Learning, which were being used by Amazon in this case, are distinct from the process automation that most ATS systems use.
It is clear that there is much room for improvement in ATS technology. Given that many organizations need to use an ATS to be able to manage the high volume of applications they receive, what can we do to combat these challenges?
First, take care to refine your job descriptions and job postings to ensure that they include only the essential skills and qualifications for the position and any formatting requirements for your specific ATS system.
Second, periodically monitor rejected applications to assess possible shortfalls in your ATS system.
Third, if using a proprietary system, work together with your IT department to refine the algorithm that matches candidate skills.
In closing, ATS systems are useful tools for talent acquisition at organizations of all missions and sizes. Just remember not to rely too heavily on the ATS and to keep humans involved in the process to ensure that your company is not missing out on top talent.
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