Using A Modern ATS vs. Modern Hiring Software

Author Nico Roberts Date Apr 15 2019

Hiring the right candidates helps your business to remain competitive and ensures that you are successful. Businesses have traditionally used applicant tracking systems (ATS) to manage their recruitment. However, as recruitment needs are driven by factors, like the on-demand economy and gig economy apps, businesses need to adopt new modern hiring tools to efficiently manage recruitment while giving their candidates the best experience. Previously, most businesses that needed to handle large amounts of applications would use a modern ATS.  Now, companies are increasingly looking for modern solutions to streamline their hiring and onboarding processes.

So, how do you decide which is better for your business? Here is a breakdown of modern ATS vs. modern hiring software to determine which one is right for your business.

What is a modern ATS?

A modern ATS is a tracking system that allows businesses to handle their recruitment needs electronically. It consists of a centralized database to monitor candidates and their progress during the hiring process. Using an ATS, your business can filter candidates based on different criteria, such as qualifications and experience.

Below are the main features of a modern ATS:

Posting job openings with a modern ATS

You can use your modern ATS to post your vacancies to free job boards to source the right candidates. Ideally, your modern ATS should help you to sort out candidates who are unsuitable by using automation based on criteria that you have selected beforehand.

Adding resumes with your modern ATS

With a modern ATS, you can automatically add and store resumes instead of importing them manually. Importing resumes into your ATS provides the convenience of handling all of your applications in one place. This is more efficient than accepting applications by email. An advantage of adding resumes to a modern ATS is that it sorts out duplicate applications and candidates to save you time.

Sorting out resumes with your ATS hiring software

A modern ATS can also sort out resumes, which is also known as resume parsing. This allows the ATS to analyze the information contained in the resume to select candidates who will proceed to the next stage of the recruitment process. When used correctly, the parsing feature can save you time compared to reviewing resumes manually or using a spreadsheet.

Tracking candidates with a modern ATS

Your ATS helps you to manage your talent pipeline and quickly separates applicants who are suitable for the role. You can also indicate which applicants will be considered in the future. This helps to ensure that your talent pipeline is continually updated with potential employees.

Modern hiring and recruiting software

Modern hiring software is different from an ATS because it is suitable for the whole recruitment lifecycle and candidate relationship management (CRM) – from sourcing candidates to onboarding new hires. Therefore, modern hiring software includes features such as communication hubs, interview scheduling and integration with other recruitment tools and apps that are vital for a smooth hiring process. Additionally, modern hiring software also includes full ATS features.

The following features are included in most modern hiring software and CRM:

Sourcing applicants using modern CRM for recruiting

Just like an ATS, modern hiring software and CRMs for recruiring can source candidates from free job boards. This makes handling applications from different job boards simple and easy. There are some modern hiring software that have extra features to make sourcing applicants easier and more efficient.

For example, Fountain’s Boost feature provides you with the convenience to source as many candidates as you need with just a single click of a button. With Boost, you simply let us know how many candidates you need and we will post your vacancy to the relevant job boards. There are times when free job boards will not produce the candidates you need. In these cases, you just let us know your budget and we will post your vacancies to paid platforms.

Try Fountain’s Boost today to experience sourcing quality candidates with the click of a button.

Mobile-first application for hiring

Modern hiring software is built for a complete mobile experience. It is highly likely that your candidates will be applying for jobs using their mobile devices. In fact, on demand jobs, which is one of the fastest growing categories, are characterized by candidates completing application forms instead of submitting a resume. This means that application forms need to be precise and to the point. With Fountain, our whole recruiting system is designed with the mobile experience in mind.

[Want some tips on how to get better results from your applications? Download our free 5 Ways To Improve Your Application Performance ebook today.

Scheduling interviews with modern recruiting software

Modern hiring software gives you the capability to keep in touch with your applicants at every step of the hiring process. Scheduling interviews no longer requires you to go back and forth via email with an applicant. Instead, say bye to emails and start using SMS messaging to ensure that you can communicate with your candidates even if they have a weak Wi-Fi signal (or no signal at all).

Candidates are contacted with the details of their interview. They then click on a link to confirm attendance. Fountain’s scheduling toolkit automatically updates your calendar with details of the interview. To ensure that the candidates continue to have a professional experience of your business, they will receive an SMS message to confirm the detail of the interview.

Advanced screening techniques are used in modern recruiting software

With a modern ATS, you can eliminate candidates by using prompts to separate those who will progress to the next stage. However, a candidate may have submitted a good application but you might still like to find out more before inviting them for a face-to-face interview. Fountain’s modern recruiting software provides an additional layer of candidate screening without using extra resources.

Video interviews allow your candidates to record themselves, so that you can have a clearer idea of how they communicate. This pre-screening feature allows you to save time and resources because you will only book face-to-face interviews for the most suitable candidates.

Integration with apps and other recruiting tools

Modern recruiting software provides the capability of integrating with relevant software and apps for a complete recruitment experience. For example, Fountain integrates with signature vendors and learning management systems. So, if you are wondering how to carry out a background check for potential employees, modern hiring software will make this part of the normal recruitment process.

Smarter communication with modern recruiting

Do you wish you could say bye to emails when communicating with candidates? Using modern hiring software is all about smart hiring. This includes engaging candidates in smarter ways including sending SMS messages to acknowledge receipt of the application. During the recruitment process, you can continue to send SMS messages or choose email if you prefer. Given that most people have mobile phones but not necessarily an internet connection, sending SMS messages is a smart way of reaching your candidates. With Fountain, you have the capability of sending bulk SMS messages to remind your candidates of importance issues, like uploading documents or attending events.

Improve collaboration with modern recruiting software

Modern hiring software facilitates better teamwork because different users can be given various levels of access to contribute to the hiring process. With Fountain, you can customize different levels of your hiring process for employees to access on a need to know basis. Our modern recruiting software enables you to manage candidates and clients with simple-to-use workflows to ensure that every job opening is separate. This enables your team to collaborate more effectively in a timely manner. Modern hiring software ensures that everyone who is involved in the hiring process is kept up-to-date. Therefore, mistakes, like double-booking interviews, are a thing of the past.

Better business decision-making compared to a modern ATS

Modern hiring software provides data to empower your business to make smarter hiring decisions compared to using an ATS. Analytics go beyond basic information about how many applicants applied and how many were successful. With Fountain, you have access to meaningful information during different phases of your hiring process. For example, you can find out how recruitment is affecting your bottom line with our cost-per-hire data.

You can also determine the following using Fountain’s Analytics:

  • The drop-off rate of candidates.
  • The channel that has the highest volumes of successful candidates.
  • The best days and times of the week for optimal interview attendance.
  • The amount of time it takes for candidates to go through your hiring funnel for different types of roles.

Which is better for your business – ATS vs modern recruiting software?

Using the best recruiting tool to streamline your hiring process will make a big difference to every aspect of your business. It is often recommended that small businesses use an ATS and larger companies should use modern hiring software. However modern hiring software is suitable for businesses of all sizes. This is because, no matter how many staff your company employs, you will be concerned with how to reduce the time to hire.

Here are some hiring issues and problems that can be solved by using modern hiring software instead of ATS:

Bottlenecks from modern ATS

Using an ATS increases the likelihood of bottlenecks in the hiring process. For example, applications can be stuck in hiring managers’ inboxes for lengthy periods, which negatively affects time-to-hire metrics. Modern hiring software provides a seamless workflow that notifies hiring personnel about what needs to be done and when. This not only creates a better hiring system for your team but also results in a better candidate experience.

Manual and inefficient hiring processes from ATS

Manual and repetitive tasks take up several hours of a recruiter’s time. A modern ATS can only automate a few tasks in the hiring process. However, modern hiring software can automate a wide range of tasks, like generating pre-interview screening questions and providing feedback. Automation can make the difference in terms of your hiring managers being able to handle a handful of applications and managing thousands.

[Read the Turas Group’s case study for a practical example of how Fountain’s modern hiring software has enabled a recruiter to manage nearly 2,000 candidates without compromising on quality.]

Hiring software that cannot keep pace

A traditional ATS will make it difficult for your business to keep up with the demands of hiring more staff. Even a modern ATS that can only handle hiring a few employees can result in confusion as your hiring needs grow and become more complex. Your hiring tool of choice must not only be able to keep pace with an increase in candidates, but it must also be equipped to source candidates in modern ways. For example, customizing the application process according to the worker classification, whether it is an employee or a contract worker.

Lack of business insight

As ATS analytics can be limited, you will be unable to take full advantage of this data to make important business decisions. Since labor costs are one of the biggest business expenses, your hiring software must be capable of providing you with a thorough and comprehensive analytics function so you can make the best financial forecasting decisions.

Conclusion: Modern ATS vs hiring software

An ATS has benefits for your business if you want to perform basic hiring functions. However, with modern hiring recruitment software, not only do you get a full ATS function but you also receive features to improve all stages of your hiring process.

Fountain’s modern hiring software uses cutting-edge artificial intelligence and automation to provide a solution for modern day hiring concerns. For example, a contingent workforce that needs to be hired quickly but also experiences high turnover rates. Our hiring software allows your company to hire as many workers as required in the shortest time frame.

If you want to improve your hiring process by using the latest technology, without compromising on your candidate’s experience, get started with Fountain today.


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About the Author

Chief Business Officer

Nico Roberts

Nico Roberts is the CBO (and employee #3) at Fountain. He has worked with many global Fortune 1000 companies, helping them standardize and scale their high volume operations and hiring practices.