How to Choose the Right Applicant Tracking System for Your Business
- Cory Wormmeester
- Nov 26
- 6 min read
Updated: 2 days ago
The applicant tracking system (ATS) you choose today will either accelerate your growth or slow it down for years. With the ATS market now valued at over $3 billion and hundreds of options available, the decision has never been more consequential or more confusing. The good news: most small and mid-sized businesses don't need an enterprise-grade system. The bad news: they often buy one anyway, then abandon it for spreadsheets within six months.
This guide cuts through the noise. We'll help you understand when you actually need an ATS, what to look for based on your specific situation, and how to avoid the costly mistakes we see companies make repeatedly.
Not Every Business Needs an Applicant Tracking System (Yet)
Here's the truth that ATS vendors won't tell you: if you're hiring fewer than 20 people per year, you probably don't need a dedicated applicant tracking system. Spreadsheets, basic project management tools, and your typical email practices can still work just fine at that scale.
The 20-hire mark is where implementing an ATS starts to make sense. Below that number, the implementation time, training investment, and monthly fees rarely deliver positive ROI. Above it, the manual effort of coordinating candidates across emails and spreadsheets begins consuming more time than the software would cost.
Signs you're ready for an ATS:
You're regularly losing qualified candidates because responses take too long
Multiple people are involved in hiring decisions, and coordination has become chaotic
You can't answer basic questions like "how long does it take us to fill a role?"
Compliance documentation has become a concern (EEOC reporting, for instance)
Your hiring is growing, and you need infrastructure that scales
If those don't describe your situation, consider starting with a simple hiring tracker. A well-designed spreadsheet can handle the basics effectively without the overhead. We offer a free Google Sheets hiring tracker template that many of our clients have used successfully before transitioning to an ATS.
The Landscape: Understanding Your Options
The ATS market breaks roughly into three tiers based on company size and complexity. Knowing where you fit prevents you from overpaying for features you'll never use—or outgrowing your system within a year.
For smaller teams (under 100 employees, 20-50 hires/year):
JazzHR, Breezy HR, and Zoho Recruit dominate this segment. JazzHR offers unlimited users for $75-$329/month, with a user-friendly interface that hiring managers can actually navigate. Breezy HR provides a free tier for companies just testing the waters, with paid plans starting around $143/month. Zoho Recruit works exceptionally well if you're already using other Zoho products, with plans starting at $25/user/month.
For mid-sized companies (100-500 employees, 50+ hires/year):
Workable and Greenhouse become more compelling at this scale. Workable ($299/month+) bundles AI-powered sourcing with core HR capabilities and offers a rare 15-day free trial. Greenhouse ($6,500/year+) provides 500+ integrations and sophisticated structured hiring tools, though it comes with a steeper learning curve.
Specialized situations:
If you're a staffing agency, Bullhorn is the industry standard despite its complexity ($120+/user/month). If you need a combined HRIS and recruiting solution, BambooHR's recruiting module integrates seamlessly, though you'll pay for the whole HR suite ($250/month minimum).
What Actually Matters When Evaluating Platforms
We've helped multiple companies select and implement ATS platforms. The features that matter most aren't usually the ones vendors emphasize in demos.
Ease of use trumps feature count. The most sophisticated ATS in the world delivers zero value if your hiring managers won't use it. When evaluating platforms, involve the people who'll actually be scheduling interviews, reviewing candidates, and leaving feedback. If they find the interface confusing during a trial period, they'll revert to email and spreadsheets within weeks, and you'll have wasted your investment.
Integration capabilities determine long-term value. Your ATS needs to connect with your existing tools: calendar systems (Google, Outlook), job boards (Indeed, LinkedIn, ZipRecruiter), background check providers, and eventually your HRIS. Ask specifically about native integrations versus third-party integrations via tools like Zapier, which add cost and complexity.
Candidate experience directly affects hiring success. Over half of the candidates have declined job offers due to poor hiring experiences. Evaluate how the application process feels from the candidate's perspective. Is mobile optimization genuine or an afterthought? Can candidates easily check their status? Does automated communication feel personal or robotic?
Reporting capabilities reveal whether you're improving. At minimum, you should be able to track time-to-fill, source effectiveness, and pipeline conversion rates. Without this data, you're making hiring decisions in the dark. Surprisingly, some budget ATS platforms offer better reporting than their more expensive competitors.
Common Mistakes That Cost Companies Thousands
After years of helping businesses navigate ATS selections, we've seen the same expensive errors repeat across industries.
Buying for today instead of tomorrow. Companies select an ATS perfectly sized for their current hiring volume, then find themselves switching systems within 18 months as they grow. Stress-test your prospective platform: if you doubled your hiring volume next year, would pricing remain reasonable? Would the system handle the load? Factor in multi-location support and international capabilities, even if you don't need them yet.
Falling for the AI pitch without proof. Nearly every ATS vendor now claims AI-powered features. Many deliver little more than keyword matching dressed up with buzzwords. When vendors demonstrate AI capabilities, ask to see them work with your actual job descriptions and real resumes (anonymized, of course). Time the process. If you can't see measurable efficiency gains, the AI is marketing, not value.
Underestimating implementation costs and time. Here's a number that should concern you: companies typically spend 40-60% more than initial quotes once implementation fees, data migration, training, and integrations are factored in. A platform quoted at $5,000/year often costs $7,500-$8,000 in year one. Always request a detailed breakdown of all potential costs, including what happens if you exceed user limits or need premium support.
Choosing based on price alone. The cheapest option often ends up costing more in the long run due to poor support, missing features, or the eventual need to switch platforms. Evaluate the total cost of ownership over three years, including likely price increases at renewal (some vendors apply 15-20% annual increases).
Skipping the trial with real workflows. Demos are curated and rehearsed performances. Insist on a genuine trial period, at least 15 days, and run actual recruitment workflows through the system. Post a real job. Have hiring managers evaluate real candidates. Schedule actual interviews. A system that looks great in a demo can reveal serious usability problems under real conditions.
Questions to Ask Every Vendor
These questions cut through sales presentations to reveal what you're actually buying:
On pricing: "What's the total cost of ownership over three years, including implementation, migration, training, integrations, and likely price increases?" Get this in writing.
On support: "What are your response time commitments, and is phone support included or extra?" Test their support during your evaluation period for key indicators, such as the responsiveness you experience, which then predicts what you'll get as a customer.
On data ownership: "If we leave, in what format will we receive our data, and how long does export take?" Vendors who export data only in proprietary formats are creating intentional switching costs.
On implementation: "Walk me through your 30-60-90 day implementation plan. What resources will we need to provide, and who from your team will be dedicated to our setup?" Vague answers here often mean chaotic implementations.
On integrations: "Which integrations are native versus requiring third-party connectors? What are the actual costs for connecting to [your specific tools]?" Some vendors advertise hundreds of integrations while charging separately for each one.
On references: "Can we speak with a customer similar to our size and industry—including someone outside the recruiting team?" Talk to hiring managers who use the system daily, not just the HR leader who approved the purchase.
Hidden Costs That Inflate Your Budget
Budget for these expenses that rarely appear in initial quotes:
Implementation fees typically run $500-$5,000 for SMBs—often 10-25% of your annual subscription. Some vendors waive these; others don't mention them until you're ready to sign.
Data migration costs $500-$5,000, depending on volume and complexity, roughly $50-$100 per 1,000 candidate records. If your current system exports data in non-standard formats, expect costs toward the higher end.
Training isn't always included. Comprehensive training programs can add $100-$500 per user session. Factor in time costs, too, and your team won't be productive during training hours.
Premium integrations beyond the bare job boards often cost $30-$100 per month each. API access for custom integrations may require additional fees.
Add-on features such as video interviewing, advanced assessments, or enhanced reporting are often available at higher pricing tiers than the one you initially selected.
Making Your Decision
Create a weighted scorecard covering these factors in order of importance for SMBs:
Ease of use (can hiring managers adopt it quickly?)
Core functionality (job posting, candidate tracking, communication)
Integration capabilities (HRIS, job boards, calendar systems)
Support quality (responsive, accessible when you need help)
Total cost (including all hidden fees over 3 years)
Scalability (grows with your business without dramatic price jumps)
Get references from non-recruiting users and hiring managers to show whether a system truly works in practice. Negotiate annual payment terms for discounts, price caps on renewals, and explicit data export provisions in your contract.
Most importantly: involve stakeholders throughout the process. The ATS that your HR leader loves but your hiring managers refuse to use is an expensive failure.
About Envision Talent Solutions
Choosing an ATS is a significant decision, but it doesn't have to be overwhelming. If you'd like guidance tailored to your specific situation—whether you're evaluating your first ATS or considering a switch, we help companies navigate this process every day. Our ATS Selection & Advisory service removes the guesswork and ensures you invest in the right platform from the start.
