Applicant Tracking System: A Definitive Pillar of Support for Employer Branding

Abstract

Human resource management practices have undergone a significant transition as a result of information technology, including how data is collected, used, stored, and shared. Further, it allows organisations to keep track of all their human resources data. Organisations should ensure a well-established procedure to evaluate the pool of candidates because wrong onboarding may wreak havoc on the recruitment strategy. Particularly for entry-level jobs, organizations receive a large number of applications, and organisations take more weeks or months to proceed with the screening and shortlisting of top notch candidates, which may negatively affect employer branding. Therefore, Applicant Tracking Systems (ATS) can handle thousands of applications promptly, however, there is a dearth of research focusing on the impact of ATS and employer branding. The purpose of this study is to identify the influence of ATS on employer branding. Further, we have used the theory of job signalling to identify the opportunities and challenges of implementing the ATS for Small and Medium scale organisations in Sri Lanka. The data were collected from 413 school leavers and fresh graduates in Sri Lanka. Moreover, twenty-three (23) managers in SMEs took part in semi-structured interviews. Content analysis and Structural Equation Modelling (SEM) were performed to identify the association between ATS and employer branding. The findings of the study showed a positive association between ATS and strong brand image with the theory of job signalling. Further, the study showed the opportunities and challenges of implementing an ATS by SMEs to ensure employer branding. Consequently, the paper synthesises the findings from the works of literature related to the organization that is currently in the process of implementing an ATS. Theoretical and practical implications are provided in ATS and employer branding with job signalling theory.