What it means
An ATS is the system of record for hiring. It parses resumes into searchable profiles, tracks each candidate by stage, and keeps notes, scorecards and messages in one place. It differs from a recruiting CRM, which nurtures prospects who have not applied yet. Many HR suites include an ATS module, while standalone products focus only on hiring.
Why it matters when you buy software
Applicant tracking is often priced by job slots, users or employee count, so plan limits decide the real cost. Buyers should check job posting limits, job board integrations, reporting, and whether interview scheduling and offer letters sit in a higher tier. Security terms such as SSO and data retention also vary by plan.
How it works in practice
A candidate applies through a careers page or job board. The ATS parses the resume, applies any knockout questions and places the candidate in the first stage of a pipeline. Recruiters and hiring managers review, comment and move candidates forward until an offer is sent or the application is closed.
See also: Benefits administration, Employer of record and the glossary index.