The 5 Biggest Problems with an ATS — and What to Do About Them

If you're reading this, two things are probably true:

1) You're a recruiter.

2) You're familiar with (and probably use) an ATS.

The ATS has been the cornerstone of a recruiter's tech stack for decades. And from simplifying hiring processes, managing candidate data, and improving overall efficiency, it's made some large promises. However, the talent landscape has evolved drastically over the past few years. And many recruitment agencies and executive search firms have realized their ATS platforms no longer meet their needs.

Despite major technological advancements since the first ATS tools were developed (5o years ago), hiring processes haven't been made easier. In fact, you could argue that things have actually gotten increasingly difficult:

• Candidate data is messier (and more out-of-date) than ever.
• Efficiency tanks as more & more tools are bolted-on to your ATS through clunky integrations.
• Accessing candidates (and breaking through the digital noise in their inboxes and feeds) is tougher than ever.

So is the answer really that we need "better" ATS tools? Or should we be looking at the actual problem we're trying to solve for with fresh eyes?

(This probably won't come as a surprise, but our money's on the latter.)

After researching and speaking with hundreds of recruiters, we compiled the biggest issues that surfaced with ATS platforms. We also identified the barriers holding firms back from making necessary changes.

Together, let's answer the question of if finding a "better" ATS would solve their problems — or if embracing something entirely different may be the solution.

Let's dive in!

The 5 biggest problems with ATSs

We'll start by looking at the limitations of the ATS as we know it.

1. Limited capabilities beyond tracking

ATS platforms excel at organizing candidate data — but they often fall short when it comes to proactive hiring and strategic decision-making. Legacy ATS solutions are designed to simply track applications rather than to provide insights into talent markets, predict future hiring needs, or optimize the overall recruitment strategy. This limitation leads to missed talent opportunities and inefficiencies in the hiring process.

2. Limited customization and flexibility

Many ATS platforms lack the flexibility to be tailored to specific business needs or to an agency's specific type of recruitment. This mismatch between the tool's capabilities and the organization's requirements leads to frustration, low adoption, and inefficient hiring processes.

More importantly, this results in organizations being forced to adopt rigid and inefficient workflows to make the ATS work for them — instead of using the ideal recruitment workflow and having a system that supports that.

3. Siloed data and lack of integration

Arguably the biggest drawback to ATS platforms is that they operate in isolation, relying on bolt-on integrations with other tools in order to meet recruiter's needs. This leads to data silos, where valuable information is trapped within the ATS, and data-mapping nightmares where some of the information is passed over to other tools incorrectly (or slips through the cracks entirely). As a result, recruiters spend excessive time on manual data entry and struggle to gain a holistic view of their talent pipelines.

Without a "source of truth" system, recruiters don't have the data visibility they need to improve performance or make informed strategic decisions moving forward.

4. Inadequate use of AI and automation

While some ATS platforms have incorporated basic automation features (or have developed a ChatGPT plug-in that they refer to as their AI), many lack the true AI capabilities that modern recruitment demands. AI-driven tools can enhance candidate matching precision, provide predictive analytics, reduce bias in the hiring process, and automate repetitive tasks — freeing up recruiters to focus on more strategic activities.

Without these capabilities, firms are stuck with a largely manual, inefficient process.

5. Resistance to change and adaptation

The recruitment landscape is dynamic, with new challenges emerging regularly. Over the past few years alone, the market has changed dramatically.

Yet many ATS platforms lack the flexibility to adapt to these changes — or the software company that owns them simply refuse to evolve. When this happens, it leaves recruitment firms with outdated systems that no longer align with their evolving needs. As firms seek to grow and evolve, an ATS that can’t keep up becomes a significant liability.

4 things that keep recruiting firms from taking action

Despite the clear challenges, many recruitment agencies and executive search firms remain hesitant to make changes. Throughout our conversations, we've identified some trends — and surfaced some common obstacles that hold these firms back.

1. Resistance to change: A significant barrier is simply the fear of change. Many firms have invested heavily in their existing ATS platforms and are wary of the disruption that comes with adopting new technology — which is understandable! Concerns about the learning curve, data migration, and potential downtime can cause decision-makers to stick with suboptimal systems rather than exploring new solutions.
2. Perceived complexity and cost: The prospect of implementing a new system can seem daunting. Concerns about the complexity of onboarding, the time required for training, and the upfront costs can deter firms from taking the leap — even when the long-term benefits are positive and clear.
3. Lack of awareness: Many firms are simply unaware of the full range of capabilities that modern recruitment technology can offer. In fact, they may not even be aware that it exists! We found that many were unaware of the fact that software exists that goes beyond the basic functions of an ATS — providing things like strategic talent insights, advanced analytics, and automation that can transform their recruitment processes.
4. Short-term focus: The reality is that recruitment is often a fast-paced environment where immediate needs take precedence over long-term strategy. This can make it difficult for firms to justify an investment in new tech — even if it offers substantial future benefits surpassing today's results.

So...is the solution a "better" ATS?

We talk to dozens of firms a week who are fed up with their current ATS. They're frustrated by how unintuitive and clunky it is, or with the lack of customer support. Or perhaps simply the fact that they're not finding success with it. When faced with these limitations, they often think the natural next step is to upgrade to a "better" ATS.

However, while a more advanced ATS may provide nominal improvements, it will still fail to address the underlying issue. A "better" ATS won't fix the core problem — because the core problem has much more to do with workflow than it does with technology.

And this is where a new option, the Talent Intelligence Platform, emerges.

Let's look at the two paths you could go down:

Path 1: When a "better" ATS might be good enough

Smaller-scale needs

For smaller firms or those with very straightforward recruitment processes, moving from a very basic ATS to one that includes some basic automation and analytics might be sufficient to address immediate operational inefficiencies

Cost considerations

If budget constraints are significant, firms might prioritize a more cost-effective ATS upgrade that still offers some enhancements over their current system.

Incremental improvements

A new ATS may get the job done if the primary issue at hand relates to manual data entry, poor user experience, or other minor inefficiencies. An ATS with improved UI/UX features may help solve for some of these challenges.

Path 2: When a Talent Intelligence Platform is the answer

Broader capabilities beyond applicant tracking

While ATS platforms primarily focus on tracking applications, Talent Intelligence Platforms offer a much wider range of capabilities. TIPs have features that span the entire recruitment workflow, including: proactive sourcing, gathering market insights, uncovering candidate contact information, reaching out via omnichannel sequences, and more.. This allows firms to not only manage candidates more effectively, but to also make strategic long-term decisions based on data.

Proactive vs. reactive recruitment

A TIP shifts the focus from reactive recruitment — where you’re just managing applications as they come in — to proactive talent acquisition. TIPs enable firms to anticipate hiring needs, identify future skills gaps, and build talent pipelines well before vacancies become urgent.

Enhanced candidate experience

TIPs go beyond the administrative aspects of recruitment. With a TIP, you can improve overall candidate experience through personalized communication, advanced matching algorithms, and better engagement tools — all of which can significantly improve your ability to attract and engage top talent.

Integration with broader business goals

Unlike traditional ATS platforms, TIPs are designed to align recruitment strategies with broader business objectives. They help firms connect talent acquisition with workforce planning, diversity & inclusion goals, business development, and long-term organizational growth strategies.

Advanced analytics and insights

Talent intelligence platforms provide deep insights into recruitment metrics, talent market trends, and performance data that an ATS alone cannot offer. This helps firms to not only streamline their processes, but to continuously optimize them based on data-driven insights.

Flexibility and scalability

TIPs are more flexible and scalable than traditional ATS systems, allowing them to adapt to the evolving needs of the business. Whether it’s expanding to new markets, adjusting to industry shifts, or integrating new data sources, TIPs offer the adaptability that many ATS platforms lack.

Seamless integration

With a TIP, you don't need to integrate with as many external tools because your entire workflow exists within one robust platform. This eliminates data silos and ensures that all recruitment data is accessible and actionable.

Scalability and future-proofing

As firms grow and evolve, their recruitment needs will change. TIPs are designed to scale alongside the business, offering features and functionalities that can be expanded as needed. This ensures that firms are not only solving today’s problems but are also prepared for the challenges of tomorrow.

Wrapping up

For recruitment agencies and executive search firms looking to truly transform their recruitment processes, a Talent Intelligence Platform offers far more value than simply upgrading to a "better" ATS.

Sometimes, it's not a "better" tool that you need, but perhaps something entirely different.

We like to think of the Henry Ford quote "If I'd asked my customers what they wanted, they would've said a faster horse." Most "better" ATSs out there are actually just faster horses. Which is fine — unless you're competing against people driving cars.

Ready to take a Talent Intelligence Platform for a test drive? Schedule a demo or start your free trial today.