Can Employers Legally Share ATS Data with Other Companies?

What is ats data and why is it valuable?

Understanding the Value of ATS Data in Recruitment

Applicant Tracking Systems (ATS) have become essential tools in the modern hiring process. These platforms help recruiters and hiring managers manage the entire recruitment process, from job postings and resume collection to interview scheduling and candidate communication. The data stored within an ATS—often called ATS data—includes resumes, job descriptions, interview notes, candidate feedback, and more. This information is not just a record of past applicants; it is a valuable resource for making data-driven hiring decisions and improving talent acquisition strategies.

• Efficiency: ATS software streamlines the recruitment process by automating resume screening, keyword matching, and interview scheduling. This saves time for recruiters and ensures that qualified candidates are not overlooked.
• Centralized Information: All candidate data, including resumes and communication history, is stored in one place. This makes it easier for hiring managers to track progress and collaborate with other team members.
• Data-Driven Insights: By analyzing ATS data, organizations can identify trends in their hiring process, such as which job postings attract the most qualified applicants or which keywords are most effective in job descriptions.
• Compliance and Data Protection: With increasing regulations around data protection, having a secure system for managing candidate information is critical. ATS platforms often include features to help ensure compliance with data privacy laws.

Because ATS systems store sensitive candidate information, questions often arise about how this data can be used or shared, especially with other companies. Understanding the legal and ethical boundaries is crucial for any organization using ATS platforms. For more on how candidate data can impact sourcing strategies, you might find this article on poach severance and its implications for candidate sourcing helpful.

As we explore further, it becomes clear that the value of ATS data goes beyond simple record-keeping. It is a strategic asset that, when managed responsibly, can enhance the recruitment process and protect both the organization and its candidates.

Legal considerations when sharing ats data

Understanding the Legal Framework Around ATS Data Sharing

Applicant tracking systems (ATS) collect and store a wide range of candidate data throughout the recruitment process. This includes resumes, interview notes, job postings, and even interview scheduling details. When considering sharing this data with other companies, employers must navigate a complex legal landscape to ensure compliance and avoid significant risks.

Data Protection Laws and Compliance

Data protection regulations like the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States set strict rules on how personal information, including candidate data, can be processed and shared. These laws require employers and recruiters to:

• Obtain clear consent from candidates before sharing their information outside the original hiring process
• Inform candidates about how their data will be used and who will have access to it
• Ensure that any transfer of data to another company or third-party ATS platforms is secure and justified

Failure to comply with these regulations can lead to heavy fines and damage to employer reputation. It’s essential for hiring managers and talent acquisition teams to work closely with legal advisors when considering sharing ATS data.

Contractual and Confidentiality Obligations

Many recruitment process agreements and job postings include confidentiality clauses that restrict how candidate information can be used. Sharing applicant data with another company without explicit permission may breach these contracts. Additionally, some ATS software providers have terms of service that limit data sharing between organizations using their systems.

Industry Standards and Best Practices

Beyond legal requirements, industry standards encourage a data driven approach to candidate privacy. Recruitment tracking systems should be configured to protect sensitive information, and recruiters should regularly review their data protection policies. For a deeper dive into how legal changes impact candidate sourcing, you can read about poach severance and its implications for candidate sourcing.

Ultimately, the legal considerations around sharing ATS data are complex and evolving. Employers must stay informed about current laws and best practices to protect both their organization and the candidates whose data they manage.

Ethical implications of sharing candidate information

Balancing Transparency and Privacy in Recruitment

When employers consider sharing applicant tracking system (ATS) data with other companies, the ethical landscape becomes complex. ATS platforms store sensitive information about candidates, including resumes, interview notes, and sometimes even assessment results. This data is collected during the recruitment process with the expectation that it will be used solely for evaluating fit for a specific job or within a particular organization.

Sharing candidate information outside the original hiring process can lead to significant privacy concerns. Candidates trust that their data will be handled with care and used only for the intended purpose. If their information is shared without explicit consent, it can undermine trust in the entire talent acquisition process and damage the employer’s reputation.

• Consent and Transparency: Candidates should be informed if their data might be shared with third parties. Without clear communication, sharing resumes or interview scheduling details can feel like a breach of trust.
• Purpose Limitation: Using ATS data for anything beyond the original job posting or recruitment process raises questions about fairness and candidate rights.
• Data Minimization: Only the necessary information should be shared, and only when it is essential for the hiring process. Oversharing can expose candidates to unnecessary risks.

Recruiters and hiring managers must also consider the impact on diversity and inclusion. If ATS data is shared across organizations, it could reinforce biases or limit opportunities for candidates who may have been rejected for reasons unrelated to their skills or potential. Ethical recruitment means treating each applicant as an individual, not just a data point in a tracking system.

For those looking to optimize their recruitment process without compromising ethics, exploring pooling job strategies can be a more responsible approach. This method allows organizations to build talent pools while respecting candidate privacy and data protection standards.

Risks involved in sharing ats data with other companies

Potential Consequences of Sharing ATS Data

Sharing applicant tracking system (ATS) data with other companies introduces a range of risks that can impact both the organization and the candidates involved. While ATS platforms streamline the recruitment process, the data stored within these systems—such as resumes, job applications, interview scheduling details, and candidate profiles—are highly sensitive. Mishandling this information can have serious repercussions.

• Data Breaches and Unauthorized Access: When ATS data is shared externally, the risk of data breaches increases. If the receiving company lacks robust data protection measures, candidate information could be exposed, leading to identity theft or misuse of personal data.
• Loss of Candidate Trust: Candidates expect their information to be handled with care during the hiring process. If they discover their data has been shared without consent, it can damage the employer brand and discourage future applications.
• Regulatory Penalties: Non-compliance with data protection laws, such as GDPR or CCPA, can result in significant fines. These regulations require organizations to safeguard personal data and often prohibit sharing without explicit consent.
• Competitive Disadvantages: Sharing ATS data may inadvertently reveal recruitment strategies, job postings, or talent pools to competitors. This can undermine a company’s competitive edge in talent acquisition.
• Legal Disputes: Candidates may pursue legal action if their data is shared improperly, leading to costly litigation and reputational harm.

Recruiters, hiring managers, and HR professionals must weigh these risks carefully. Using ATS software and systems responsibly is essential for maintaining trust and ensuring a secure, data-driven recruitment process. Protecting candidate data should always be a top priority in any hiring process involving applicant tracking systems.

Best practices for protecting candidate data

Implementing Robust Data Security Measures

Protecting candidate data within applicant tracking systems (ATS) is essential for maintaining trust and complying with data protection laws. Recruiters and hiring managers should ensure that their ATS software uses encryption for both data storage and transmission. Regular security audits and vulnerability assessments help identify and address potential risks in the recruitment process.

Limiting Access and Permissions

Not everyone involved in the hiring process needs full access to all candidate information. Restrict access within the ATS platforms so only authorized personnel—such as talent acquisition teams or hiring managers—can view sensitive data. This reduces the risk of accidental or unauthorized data sharing.

Clear Data Retention Policies

Establishing clear guidelines on how long resumes and other applicant data are stored in the tracking system is crucial. Regularly review and delete outdated or unnecessary candidate records to minimize exposure. Make sure your data retention policy aligns with local regulations and industry standards.

Transparent Communication with Candidates

Inform candidates about how their data will be used and stored throughout the recruitment process. Transparency builds trust and helps applicants feel more comfortable sharing their information. Include privacy statements in job postings and during interview scheduling to clarify your data handling practices.

Training and Awareness for Recruiters

Continuous training for recruiters and hiring managers on data protection best practices is vital. This includes recognizing phishing attempts, understanding the importance of secure passwords, and knowing how to handle applicant tracking system data responsibly.

• Use secure ATS systems that comply with data protection regulations
• Regularly update ATS software to patch security vulnerabilities
• Monitor access logs to detect unusual activity within the tracking system
• Establish protocols for reporting and responding to data breaches

By following these best practices, organizations can protect candidate data, maintain compliance, and foster a responsible recruitment environment.

Alternatives to sharing ats data

Exploring Secure Collaboration Methods

Instead of directly sharing ATS data with other companies, organizations can consider safer alternatives that still support their recruitment process and talent acquisition goals. These methods help maintain data protection standards and reduce risks associated with candidate information exposure.

• Aggregated Reporting: Share only anonymized or aggregated data, such as hiring trends or recruitment process metrics, rather than individual resumes or applicant details. This approach supports benchmarking without compromising candidate privacy.
• Referral Networks: Build trusted recruiter networks where job opportunities are shared, but candidate data remains within the original applicant tracking system. Recruiters can refer candidates with their consent, maintaining control over personal information.
• Third-Party Platforms: Use secure, compliant recruitment platforms that facilitate collaboration between companies while keeping applicant data protected. These platforms often include features for interview scheduling, job postings, and resume parsing, all within a controlled environment.
• Data-Driven Insights: Exchange insights about job descriptions, keywords, or hiring process improvements without sharing actual candidate data. This helps optimize the recruitment process and ATS software usage without breaching confidentiality.

Leveraging Technology for Privacy

Modern ATS platforms and systems ATS often include advanced privacy settings and user permissions. Hiring managers and recruiters should use these features to restrict access to sensitive data, ensuring only authorized personnel can view applicant tracking information. Regular audits and updates to the tracking system help maintain compliance with data protection regulations.

Candidate Consent and Transparency

Whenever collaboration or data sharing is necessary, always seek explicit consent from candidates. Inform applicants about how their data will be used during the hiring process. Transparent communication builds trust and aligns with ethical recruitment standards.

Summary Table: Alternatives to Direct ATS Data Sharing

Alternative	Benefits	Data Protection Level
Aggregated Reporting	Enables benchmarking, no personal data shared	High
Referral Networks	Candidate control, targeted job matching	High
Third-Party Platforms	Secure collaboration, compliance features	Medium to High
Data-Driven Insights	Improves recruitment process, no personal data	High

By focusing on these alternatives, organizations can continue to benefit from collaborative hiring and recruitment process improvements without exposing sensitive ATS data or risking candidate trust.