What is an applicant tracking system (ATS)?

An applicant tracking system (ATS) is software that helps businesses manage the entire hiring process—from posting jobs and collecting applications to reviewing resumes and communicating with candidates. It acts as a centralized hub for organizing recruitment, making it easier for employers to stay on top of hiring tasks, track applicant progress, and make better hiring decisions.

Small business owners don’t need complex or expensive HR software to benefit from an ATS. Tools like Homebase offer built-in applicant tracking features that are simple to use, designed for hourly teams, and help you get from job post to new hire faster and with less manual work.

Why small businesses need an ATS

Hiring is one of the most important—and time-consuming—parts of running a business. Without a system in place, it’s easy to lose track of applicants, forget to follow up, or waste time sifting through unqualified resumes.

An ATS helps solve these challenges by:

• Keeping all applicant data organized in one place
  
• Automating repetitive tasks like messaging and status updates
  
• Making it easy to compare candidates side-by-side
  
• Reducing hiring time and improving communication
  
• Improving the candidate experience
  

For small teams, this means less stress, fewer missed opportunities, and faster staffing when you need it most.

Key features of an ATS

While different systems offer different tools, most applicant tracking systems include the following core features:

1. Job posting and syndication

An ATS lets you create job postings and push them to multiple job boards (like Indeed or ZipRecruiter) with one click, saving time and increasing your reach.

2. Resume collection and screening

Instead of sorting through emails or printed resumes, applicants apply directly through the system. You can quickly scan or filter applications based on experience, keywords, or qualifications.

3. Candidate status tracking

Move applicants through each stage of your hiring process—like "reviewing," "interview scheduled," or "offer sent"—so you always know where each candidate stands.

4. Team collaboration

Hiring managers or supervisors can leave notes, rate applicants, or assign tasks within the system to keep everyone aligned on the decision.

5. Candidate messaging

Many ATS platforms include messaging tools so you can contact applicants directly through the system, send interview invites, or confirm next steps—all in one place.

Benefits of using an ATS

Even for small businesses with just a few roles to fill, an ATS delivers significant value:

• Saves time by automating admin work
  
• Reduces errors by standardizing workflows
  
• Improves hiring quality with consistent evaluation criteria
  
• Keeps you organized during busy periods
  
• Enhances professionalism in candidate communication
  
• Supports compliance by storing hiring records securely

When to invest in an ATS

If your business is growing or you hire regularly for hourly roles, investing in an ATS can save you time and reduce turnover. Here are signs it’s time to use one:

• You’re losing track of applicants or missing messages
  
• You need to fill multiple roles quickly
  
• Your hiring process feels disorganized
  
• You want to reduce hiring bias and standardize evaluations
  
• You’re spending hours each week managing job posts and follow-ups
  

Even if you hire infrequently, an ATS can help make each hiring round more efficient and less stressful.

Common mistakes to avoid

While an ATS can streamline hiring, it won’t fix everything unless used properly. Watch out for these common pitfalls:

• Overcomplicating the system – Choose a tool that fits your needs without unnecessary bells and whistles
  
• Ignoring the candidate experience – Automated systems shouldn’t feel cold or impersonal—balance speed with human interaction
  
• Failing to customize workflows – Tailor the process to fit how your business actually hires
  
• Not training your team – Make sure everyone involved in hiring knows how to use the system
  

Keep it simple, consistent, and aligned with your business goals.

How to choose the right ATS for your small business

When selecting an applicant tracking system, consider the following:

• Ease of use – It should be intuitive enough for you and your team to use without extra training
  
• Integration – Look for systems that work with your job boards, scheduling tools, and payroll systems
  
• Affordability – Many platforms offer plans built for small business budgets or even free versions
  
• Scalability – Choose a tool that can grow with your hiring needs
  
• Support – Look for platforms that offer help when you need it—especially during your first few hiring cycles
  

Prioritize tools that align with your hiring volume, team structure, and time constraints.

How Homebase helps with applicant tracking

Homebase offers an all-in-one hiring and onboarding solution that includes a built-in applicant tracking system designed specifically for small businesses and hourly teams.

With Homebase, you can:

• Post jobs to top boards with one click
  
• Create custom job descriptions and application forms
  
• Track applicants through every hiring stage
  
• Rate and comment on candidates with your team
  
• Send messages and schedule interviews from one dashboard
  
• Onboard new hires with built-in forms and checklists
  

Explore Homebase Hiring and Onboarding to streamline your hiring process, simplify team management, and find the best candidates faster—without the hassle of spreadsheets or overflowing inboxes.