Here are the different pricing models you can expect to see from various Applicant Tracking Systems.  As most companies charge for value given to customers, it’s interesting to note how each vendor thinks their solution adds value.

• Hires/Job Postings/Applicants: We like charging based on how much you’re hiring because the value you get from an ATS is clearly more when you hire more (hiring 2 people next year?  You don’t need an ATS.  Quite the opposite for hiring 1,000).
• Employees: Some ATS’s will charge based on the number of employees you have.  We like this as it implies your employees will be more a part of your hiring practice (via referrals, social shares, etc).
• Seats: Some ATS’s charge based on the number of logins you need, which can make it a bit tricky when figuring out who needs admin access and how that will change over time.
• Features: Several ATS’s have launched modules which they believe are above and beyond the typical ATS, and so charge more for these.  This is usually a CRM, a more robust analytics package, onboarding, etc.

Pro Tip: Be aware that some ATS’s charge for integrations with solutions you may already use (recruitment marketing system, HRIS systems, etc) which can drastically increase your annual spend.

Here’s another pro tip: All of the prices you are originally quoted from a vendor are negotiable, especially if you are looking to sign a multi year contract.

ATS Pricing

If you’re looking to buy a new applicant tracking system, here are some broad guidelines on pricing so that you’ll know the rough range you can expect to pay based on the size of your organization.  It’s worth noting that these ranges are rough estimates.  There are free applicant tracking systems, and there are premium offerings.  This is a rough guideline for companies that aren't going for the cheapest, and also aren't going for the priciest ATS.

There are hundreds of applicant tracking systems out there, many of which simply have the basic features required for your HR team’s recruiting process.  However, the best applicant tracking systems will also have the bells and whistles that make switching to a new system worthwhile.  Here are some of the key features from the top ATS vendors:

• Video Interviewing: Video interviews have become a powerful way for recruiters to save time and get more information from a broader group of job seekers.  Look for solutions that either have a video interview module, or a deep connection with one of the top video interview platforms.
• Open APIs: The top applicant tracking systems now all come with robust APIs that allow other tools to build deep integrations.  This means your on-boarding, background screening, etc all integrate with your ATS.  This is a tough one to vet as most HR professionals are not technical in nature.  However, you can ask your other favorite vendors if they have integrations with a given system.  You can also look at how extensive the partner ecosystem is for an ATS you are considering.
• Sourcing: Many top ATS’s realize that their solution needs to be much more than simply a database full of job applicants.  It needs to help you actually get those applicants!  Look for recruiting software that will help you find and hire the best through chrome extensions that allow you to source, databases of candidates that you can query, and outreach tools that allow you to build sequences to engage the right candidates through email and texting.
• CRM: Candidate relationship management or CRM is a term that many recruiting teams throw around, although it seems that most times it’s mis-used.  Specifically when looking at applicant tracking systems, it’s important to understand how you can keep tabs on silver medalists, talent pools of more passive candidates, and generally speaking your entire job seeker ecosystem.  A CRM will let you set reminders to ping candidates in the future, email nurture talent pools, and have ways that your recruiters and sourcers can re-discover old candidates that may not be a good fit for an open role.
• Blind Screening: It’s hard to get most D&I initiatives off the ground without the ability to blind screen applicants.  Look for an ATS that will take out names, photos, addresses and allow your recruiters to screen without these biases. You may even find one that will allow you to evaluate the bias of individual job descriptions to allow for more equitable hiring.
• Employer Branding and Career Site: Modern applicant tracking systems are built with the candidate experience in mind, not just your recruiting process.  They will allow you to build and maintain a beautiful career site that showcases your employer brand.  They’ll also allow you to embed employer branding messaging and media into all candidate communication.
• Data and Analytics: While most ATS's will have some standard dashboards, it's important to align on the reporting you'll need for internal and external stakeholders and the analytics offered by any potential vendor. In the best case, you can export data via .csv or API to pull into your custom dashboard. However, not all companies have the ability to run this sort of analysis.  So, look for solutions that have analytics around time to fill, cost per hire, your best channels, conversion rates throughout your funnel (applicant to screen to interview to hire).
• Interview Scheduling: ATS software that is focused on recruitment automation will include scheduling for everything from phone screens to final round interviews.
• Offer Letters: Many ATS solutions will automate the distribution of offer letters to potential new hires so that your hiring team can
• Onboarding: While some ATS's are complimented by a full on suite of hr software (HRIS, performance, engagement, payroll, etc), at the very least many have employee onboarding capabilities to ensure a smooth handoff once someone is hired.

If you’re buying a new ATS, there is way too much information to keep track of.  You can use this organizer to  keep track of your notes on the various vendors, etc during your process.

Below is a spreadsheet complete with over 300 questions you can ask vendors while looking at a new ATS.  We also wanted to share some of the questions we think every recruiting team should be asking vendors while on demos:

• Is there a bi-directional API to share information between this system and my HRIS?
• How does this ATS help my recruiting efforts beyond capturing candidate information?  For example, will it allow me to pipeline candidates, source, boost referrals, etc?
• How does this system improve the candidate experience?
• What is your partner strategy, and do I have to pay to integrate my other recruiting tools?
• What metrics do you focus on to prove the effectiveness of this solution, and where can I see these in my analytics dashboard?
• Can I speak to my future customer service rep about implementation, and how exactly your organization will be involved?
• Walk me through the candidate experience.
• Can I store candidate profiles in this system in a way that is searchable for future candidate sourcing?
• Walk me through how recruiters post jobs, vet applicants, and leave feedback.
• How do employees outside of HR interact with this ATS?
• Do you have social recruiting capabilities?
• We use {{XYZ indispensable recruiting tool}}, how do you integrate with it?
• What is the onboarding process after we buy this solution (ask for specific steps and who in your org needs to be involved)?

For the next two weeks, you’ll get easy to digest emails related to:

• Staying organized when looking at applicant tracking systems
• Budgeting and ROI
• Key features of the best ATS’s
• Questions to ask on demos
• Security concerns
• Negotiating price

Sign up here:

What does ATS stand for?

ATS stands for Applicant Tracking System. 

What is an applicant tracking system?

An applicant tracking system is a software application designed to help HR teams organize recruitment and hiring data. 

Why do you need an applicant tracking system?

You need an applicant tracking system to easily manage large volumes of applicants and candidates, streamlining the recruitment process.

Why is an ATS used in recruitment? 

An ATS is used in recruitment to make the end-to-end process of hiring easier. Applicant tracking systems were originally made for large corporations that deal with thousands of job applications every week. Therefore having a software system automatically sort applicant information into a database and analyze the best candidates saves HR teams hours of work. 

How do applicant tracking systems work?

Applicant tracking systems work by acting as a liaison between an employer and an applicant. Once an application is submitted, the ATS stores the candidate’s work experience, education, contact information and other details into a database. HR teams use the database to review applications, communicate with applicants, schedule interviews and sometimes administer skills tests.

What companies use ATS?

Applicant tracking systems are now used by everyone from enterprise corporations to small businesses. Some larger companies that use an ATS include:

• Netflix
• Wayfair
• Nike
• Starbucks
• Airbnb
  

However, small companies will also find value in using an ATS.

What features do applicant tracking systems offer?

Applicant tracking systems offer any or all of the following:

• Career site
• Job board integration
• Application sorting
• Resume parsing
• Interview schedule
• Candidate messaging
• Chatbots
• Company profile
• Reporting and analytics
• Cloud storage
• Internal candidate portal
• Employee referral tool
• Search functionality
• Team collaboration
• Import/Export capabilities