Is an ATS System Necessary for a Company of 200 Employees?

Understanding the needs of a 200-employee company

Hiring Challenges and Opportunities in a 200-Employee Company

When a company reaches around 200 employees, the hiring process becomes noticeably more complex than in a small business. At this stage, recruitment is no longer an occasional task handled by a single person or department. Instead, it often involves multiple hiring managers, several job postings at once, and a need for consistent candidate tracking. The stakes are higher: every new hire can impact team dynamics, productivity, and company culture.

Companies of this size typically experience:

• More frequent job openings across different departments
• Greater need for structured interview scheduling and communication
• Increased volume of applicants, making manual tracking inefficient
• Pressure to find the best talent quickly to support business growth

With more candidates and job boards in play, the risk of losing track of applicants or missing out on top talent rises. Hiring managers and recruiters need tools that help them stay organized and efficient. This is where recruitment software and applicant tracking systems (ATS) come into the conversation. These platforms offer features like resume parsing, automated job posting, and centralized candidate management, which can be game-changers for mid-sized companies.

However, not every 200-employee company has the same needs or resources. Some may still rely on spreadsheets or basic software, while others look for more advanced solutions. The choice often depends on the volume of hiring, the complexity of the recruitment process, and the company’s growth plans.

For those exploring ways to streamline their hiring process, it’s worth looking at top automation tools for candidate management. These tools can help companies manage candidates more efficiently, reduce time-to-hire, and improve the overall experience for both applicants and hiring teams.

What is an ATS system and how does it work?

How Applicant Tracking Systems Streamline Recruitment

Applicant Tracking Systems (ATS) are specialized software platforms designed to help companies manage their hiring process more efficiently. For organizations with around 200 employees, the recruitment process can quickly become complex, especially as the volume of candidates and job postings increases. An ATS system acts as a central hub for all recruitment activities, making it easier to track applicants, organize job descriptions, and manage job postings across multiple job boards.

At its core, an ATS automates and simplifies many of the manual tasks associated with candidate sourcing and hiring. Here’s how these systems typically work:

• Job Posting Management: ATS platforms allow hiring managers to create and distribute job postings to various job boards and social media channels from a single interface.
• Resume Parsing: The software automatically scans and organizes resumes, extracting key information to help recruiters quickly identify the best candidates.
• Candidate Tracking: Every applicant’s progress is tracked throughout the recruitment process, from initial application to interview scheduling and final decision.
• Collaboration Tools: ATS systems provide features for hiring teams to share feedback, rate candidates, and communicate internally, improving the overall decision-making process.
• Interview Scheduling: Many platforms offer integrated scheduling tools, reducing the back-and-forth between candidates and recruiters.

Modern ATS software, like Zoho Recruit and other user-friendly platforms, often include advanced features such as automated email templates, analytics dashboards, and talent acquisition tools. These features are designed to save time, reduce administrative workload, and ensure that no qualified candidate slips through the cracks.

For small businesses and mid-sized companies, the right ATS can be a game changer, helping to attract top talent and streamline the recruitment process. However, it’s important to consider whether the system’s features align with your company’s specific needs and hiring volume. For a deeper dive into sourcing executive-level technology talent and how ATS platforms can support this, check out this guide to sourcing top technology executive talent.

Key benefits of using an ATS for mid-sized businesses

Why mid-sized companies benefit from ATS platforms

For companies with around 200 employees, managing the hiring process can quickly become overwhelming. An applicant tracking system (ATS) offers a range of features that help streamline recruitment, making it easier for hiring managers and HR teams to handle multiple job postings, candidates, and interviews at once.

• Centralized candidate management: ATS software allows you to store, organize, and search all applicant data in one place. This means no more lost resumes or scattered email threads, and it’s much easier to maintain a digital record of applicants. For more on this, see how ATS systems keep applicant records organized.
• Efficient job posting and distribution: With an ATS, you can post jobs to multiple job boards and social media platforms with just a few clicks. This saves time and ensures your job description reaches a wider pool of talent.
• Automated resume parsing: ATS platforms use resume parsing tools to extract relevant information from applications, making it easier to compare candidates and identify the best fit for your company.
• Streamlined interview scheduling: Many systems offer built-in interview scheduling features, reducing the back-and-forth between candidates and hiring managers.
• Improved collaboration: ATS platforms allow multiple users to review, comment on, and rate candidates, supporting a more collaborative recruitment process across teams.
• Compliance and reporting: Tracking systems help companies stay compliant with hiring regulations by keeping detailed records and providing reporting tools for audits or internal reviews.

For mid-sized businesses, these features can save significant time and reduce manual errors. The right ATS platform can also help small businesses compete for top talent by making their recruitment process more professional and user friendly. Whether you’re using a system like Zoho Recruit or another ATS software, the benefits of automation and organization are hard to ignore when your company is growing and needs to attract the best candidates efficiently.

Potential drawbacks and challenges of ATS adoption

Common Hurdles When Implementing ATS Solutions

While an ATS (applicant tracking system) can streamline the recruitment process for mid-sized companies, it’s important to recognize the challenges that may come with adopting such software. Not every system is a perfect fit for every organization, and understanding these potential drawbacks can help hiring managers make informed decisions.

• Complexity and Learning Curve: Many ATS platforms come packed with features, but this can sometimes make them less user friendly. Training hiring managers and recruiters to use new tools, such as resume parsing or interview scheduling, can take time and resources. For small businesses or teams without dedicated HR tech support, this learning curve can slow down the hiring process.
• Cost Considerations: ATS software often comes with subscription fees, setup costs, and possible charges for additional modules. For companies with 200 employees, the investment can be significant, especially if only a few job postings are managed at a time. Budget constraints may push some organizations to seek more affordable tracking systems or even manual solutions.
• Integration Challenges: Connecting an ATS with existing HR systems, job boards, or other recruitment tools isn’t always seamless. Some platforms may not integrate well with your current software stack, leading to duplicated work or data silos. This can impact the overall efficiency of your talent acquisition process.
• Customization Limits: Not all ATS platforms are flexible enough to match a company’s unique hiring workflows. If your recruitment process involves specific steps or requires custom job description templates, you may find that some systems lack the necessary customization options.
• Candidate Experience: A poorly configured ATS can create barriers for applicants. Complicated application forms, lack of mobile optimization, or unclear communication can discourage top talent from completing the process. Ensuring the system is user friendly for both candidates and hiring managers is crucial.
• Data Security and Compliance: Handling candidate data comes with legal responsibilities. Some ATS solutions may not offer robust security features or compliance with data protection regulations, putting companies at risk.

Ultimately, while ATS platforms like Zoho Recruit and others offer valuable features for tracking and managing candidates, it’s essential to weigh these potential challenges against the benefits. Companies should carefully evaluate their recruitment needs, the scale of their hiring, and the readiness of their teams before committing to a system ATS solution.

Alternatives to ATS for candidate sourcing

Exploring Manual and Alternative Digital Methods

While ATS platforms and tracking systems are popular for streamlining the recruitment process, they are not the only options for companies with around 200 employees. Many organizations still rely on a mix of manual and digital tools to manage their hiring needs. These alternatives can be particularly appealing for small businesses or those with limited budgets.

• Email and Spreadsheets: Some hiring managers use spreadsheets to track candidates, resumes, and interview scheduling. This method is cost-effective and user friendly, but can become cumbersome as the volume of applicants grows.
• Job Boards and Social Media: Posting job descriptions on popular job boards or leveraging social media platforms can help companies reach a wide talent pool without investing in dedicated ATS software. However, tracking applicants and managing communications can be challenging without a centralized system.
• Recruitment Agencies: Partnering with external recruitment agencies can offload much of the candidate sourcing and screening process. This approach is often used when internal resources are stretched, but it may not provide the same level of control or insight as in-house tracking systems.
• Basic Recruiting Tools: There are lightweight recruitment tools designed for small businesses that offer essential features like resume parsing and interview scheduling, but lack the complexity of full-featured ATS platforms. These can be a good fit for companies not ready to commit to a comprehensive system.

Weighing Flexibility Against Efficiency

Choosing alternatives to an ATS system often means trading off some automation and advanced features for greater flexibility and lower costs. Manual processes can work for companies with fewer job postings or a less frequent hiring process, but as the business grows, tracking candidates and maintaining a smooth recruitment process can become increasingly difficult. For some, a hybrid approach—using basic digital tools alongside manual tracking—may offer the best balance until a more robust system is needed.

How to decide if your company should invest in an ATS

Questions to Guide Your ATS Investment Decision

Choosing whether to invest in an ATS platform for a company of 200 employees is a strategic decision. The right move depends on your current recruitment process, hiring volume, and the challenges your team faces. Here are some practical questions to help you evaluate if an ATS system is the best fit for your organization:

• How many open jobs do you manage at once? If your hiring managers juggle multiple job postings and candidates, manual tracking can quickly become overwhelming.
• Are you struggling with resume parsing or interview scheduling? ATS software can automate these steps, saving time and reducing errors.
• Is your current process user friendly for both recruiters and applicants? A good system ATS should streamline the candidate experience and make it easier for your team to collaborate.
• Do you need to post jobs to multiple job boards? Many ATS platforms offer integrated job posting features, simplifying your outreach.
• Are you losing track of candidates or missing out on top talent? Applicant tracking systems help ensure no one falls through the cracks, especially as your company grows.
• What is your budget? Some small businesses find that basic tools or spreadsheets are enough, while others benefit from investing in more robust ATS solutions.
• Do you require reporting and analytics on your recruitment process? If you need to measure time to hire, source effectiveness, or diversity metrics, an ATS can provide these insights.

Evaluating Features and Fit

When considering ATS software, compare the features offered by different systems. Look for platforms that align with your company’s needs, such as:

• Integration with existing HR tools
• Scalability for future growth
• Support for small business workflows
• Ease of use for hiring managers and candidates

Popular options like Zoho Recruit are known for being user friendly and offering a range of tools for tracking applicants, posting jobs, and managing the recruitment process.

When Alternatives Might Be Enough

If your hiring volume is low or your recruitment process is straightforward, you might not need a full-featured ATS. Simple tracking systems, spreadsheets, or basic recruitment tools can work for some companies. However, as your hiring needs grow, investing in an ATS can save time and help you attract the best talent.