Short answer
An applicant tracking system (ATS) is hiring software that keeps every job, applicant, note and next step in one place. You post a job, applications flow in from the job boards, and the ATS shows where each person stands, from "new" to "hired".
You do not need one to hire once in a while. You need one when you have more than one open job, more than one person reviewing applicants, or more applicants than you can track in your inbox.
This guide is for owners and managers who hire their own people and want to know if an ATS is worth it. It covers what an applicant tracking system does, how it compares with email, a spreadsheet and Indeed's own tools, and what to look for if you buy one.
What is an applicant tracking system?
An applicant tracking system is software that collects job applications and tracks each applicant through your hiring steps. Every applicant gets one record with their resume, answers, notes, messages and current stage. Anyone on your hiring team can open that record and see what happened and what comes next.
The name "applicant tracking system" says what it does. "Applicant" is the person who applied. "Tracking" is knowing where each one stands. "System" means it replaces the mix of inbox folders, sticky notes and spreadsheets most businesses start with. ATS is the short form, and you will see both names used for the same thing.
For a business owner, the biggest change is seeing every applicant's stage at a glance. One IdealTraits customer in insurance put it this way:
"Being able to see where each of the candidate's stage in the employment application is great."
Michelle S., insurance agency, verified Capterra review, March 2024How does an ATS work?
An ATS works in five steps. It follows each job from the first post to the offer letter:
- Post the job. You write the job ad once. The ATS sends it to the job boards you pick and to your own careers page.
- Collect applications. Applications from every job board land in the same list.
- Screen. You sort applicants with the questions, tests or filters you choose. Some systems also give each resume a match score against the job.
- Interview. You message or text applicants, book interviews, and keep your team's notes and ratings on each record.
- Hire. You send the offer, collect the signed forms, and close the job. Everyone you did not hire stays on file for the next opening.
Each step in an ATS leaves a record. When an applicant calls to ask about their status, or a manager asks why someone was passed over, the answer is on the screen.
An ATS compared with email, a spreadsheet and Indeed
There are four common ways to track applicants. The table shows what each one handles well and where it starts to break down.
| What you need | Email inbox | Spreadsheet | Indeed Employer Dashboard | Applicant tracking system |
|---|---|---|---|---|
| All applicants in one list | No, spread across emails | Only if someone types them in | Yes, for jobs posted on Indeed | Yes, from every job board |
| Post to many job boards at once | No | No | No, Indeed only | Yes |
| See each applicant's stage | No | Yes, if kept up to date | Basic tools for Indeed jobs | Yes |
| Team notes and sharing | Forwarded emails | Shared file | Basic tools for Indeed jobs | Yes |
| Screening | By hand | By hand | Indeed's own screening tools | Questions, tests and resume matching, depending on the system |
Indeed features from the Indeed for Employers page (candidate management and messages), checked October 2026. Indeed adds tools often, so check its current list.
Email and spreadsheets work for one job and a handful of applicants. They get hard to keep current when a second job opens, because each tracker has to be updated by hand.
Do I need an ATS if I post on Indeed?
You do not need an ATS if you post only on Indeed, hire a few times a year, and one person reviews every applicant. Indeed's Employer Dashboard already lets you view and manage the candidates for your open Indeed jobs and message them, as the Indeed for Employers page describes. For that kind of hiring, a second system adds work without adding much.
You do need an ATS once any of these is true:
- You post on more than Indeed. Indeed's dashboard tracks Indeed applicants. Applicants from other job boards, referrals and your website end up somewhere else.
- You want the next step to happen on its own. Automated workflows in an ATS send a test or an interview invite when you move an applicant to the next stage.
- You want to test or interview before you call. Pre-hire assessments, one-way video interviews and texting live inside the ATS, next to the application.
- You want to reuse past applicants. The runner-up from last spring may be your best hire this fall. An ATS keeps them searchable.
You do not have to choose between Indeed and an ATS. An ATS that integrates with Indeed keeps Indeed as your biggest source of applicants. With IdealTraits, applicants still apply on Indeed with Indeed Apply, and their application lands in the ATS. When you change an applicant's status, such as "not selected", IdealTraits sends that update back to Indeed.
Already posting on Indeed and losing track of applicants? See the IdealTraits applicant tracking system.
Signs your business needs an ATS
An ATS is worth it when tracking applicants takes more of your time than talking to them. Watch for these signs:
- You find a strong application a week after it came in.
- Two managers called the same applicant, or nobody called them at all.
- You ask "did we ever hear back from that person?" more than once a week.
- You post the same job on several sites and copy each application into a spreadsheet.
- Good applicants take other offers before you reply.
- You cannot say how many people applied for your last opening or where they came from.
One or two of these signs is normal for any business that hires. Three or more signs mean your hiring process depends on memory, which breaks down once you have more than one open job.
An ATS also helps you keep records. The U.S. Equal Employment Opportunity Commission says employers covered by federal anti-discrimination laws must keep all personnel or employment records for one year (EEOC recordkeeping requirements). An ATS keeps every application and status change with a date, so you are not digging through old emails. Check with your own lawyer for the rules in your state.
What an ATS will not do
An ATS organizes hiring. It does not fix every hiring problem by itself, so know its limits before you buy one.
It will not bring you applicants on its own
An ATS sends your job ad to the job boards, but the job ad still has to be good. A weak title, no pay range or a vague description gets few applicants in any system. Fix the ad first; see why job ads stop working and how to fix them.
It will not tell you who will stay
A resume shows what someone has done. It does not show how they are likely to work, how they handle pressure, or whether they fit the role. A basic ATS does not measure fit. Systems with built-in pre-hire assessments help by giving each applicant a validated personality test and a cognitive test before the first interview.
It does not reject people on its own
Many job seekers believe an ATS throws out resumes before a person sees them. An ATS sorts applicants by the rules you set, such as required questions or a minimum score, and a person makes the decision. If you set strict knockout questions, review them often so they do not screen out good people by mistake.
The rules you set in an ATS count as your hiring decisions under federal law. The U.S. Equal Employment Opportunity Commission says a screening test or selection step "must be job-related", and that the employer, not the software vendor, "is still responsible for ensuring that its tests are valid" (EEOC, Employment Tests and Selection Procedures). Keep each knockout question tied to a real need of the job, such as a license the role requires.
What to look for in an applicant tracking system
Most ATS products track applicants. The differences are in what comes with them and how you pay. Use this checklist when you compare systems:
- Posting to many job boards in one click, including Indeed, so you write the ad once.
- A real Indeed integration with Indeed Apply and status sync. Ask whether the vendor is an Indeed ATS partner, and at what level.
- Screening tools built in: pre-hire assessments, AI resume matching and screening questions, so you do not pay for a second tool.
- Fast ways to reach applicants: text recruiting and one-way video interviews.
- Unlimited users and applicants, so you are not charged more when a job gets popular or a new manager joins.
- Automated workflows that send the next step, such as a test or an interview invite, when an applicant moves stages.
- Offer letters and e-signature forms, so the last step happens in the same place.
- Published prices. If you cannot find the price without a sales call, ask what changes it: users, job slots, applicants or locations.
How IdealTraits helps
IdealTraits is an all-in-one hiring platform with AI that helps businesses hire for fit, not just experience. The applicant tracking system comes with job posting to 100+ job boards, validated personality assessments, AI resume matching and an AI job ad writer, one-way video interviews, text recruiting and automated workflows. Every plan includes unlimited users and unlimited applicants. Plans and what each one includes are on the IdealTraits pricing page.
IdealTraits is an Indeed Platinum ATS Partner, three years running (2024, 2025 and 2026), and won the 2026 Indeed Partner Award for Technical Excellence in the SMB category. Our integration covers Indeed Apply, candidate sync and disposition sync. See how IdealTraits works with Indeed.
18,000+ businesses have used IdealTraits to hire, including insurance agencies, car dealerships and franchises.