How to choose an ATS for staffing agencies

The modern-day staffing market is a dynamic and rapidly evolving industry. New trends and laws emerge daily, and contract staffing happens at a massive scale. The industry is only expanding, with the Staffing Industry Analysts reporting a 22% increase in contract staffing placements in September alone.

In such a fast-paced environment, staying ahead requires not just efficiency but also adaptability. As an agency owner, you need to track applicants, ensure compliance with labor laws, and maintain a competitive edge in securing placements. With AI revolutionizing the industry, choosing an Applicant Tracking System (ATS) that integrates AI-powered tools and flexible APIs is critical for sustained growth.

The Growing Importance of AI-Driven ATS Platforms

Traditionally, Applicant Tracking Systems (ATS) were designed to manage candidates by automating repetitive workflows, such as job postings and resume parsing. Today, ATS platforms enhanced with AI capabilities are transforming how staffing agencies operate, enabling them to predict hiring trends, improve placement quality, and speed up recruitment cycles.

An AI-driven ATS can analyze candidate profiles, predict the best fit for roles based on historical hiring patterns, and even automate personalized communication at scale. These advancements mean that staffing agencies not only save time but also deliver better results to clients and candidates alike.

Key Benefits of AI-Powered ATS Platforms

Accelerated Recruitment Process

AI capabilities within ATS platforms can automate sourcing by scanning resumes for specific qualifications, skills, and experience. Advanced tools can even rank candidates based on compatibility with job requirements, ensuring faster placements.

For example, an ATS with AI can analyze a database of resumes in seconds, identifying candidates with niche skills like Python programming or blockchain expertise. This eliminates manual screening, allowing recruiters to focus on building relationships with top talent.

Enhanced Candidate Matching

AI can go beyond surface-level matching by analyzing behavioral patterns, work history, and cultural fit to predict long-term candidate success. This ensures a better experience for both clients and candidates, reducing turnover and enhancing client satisfaction.

Predictive Analytics

AI-powered ATS platforms provide actionable insights through predictive analytics. For instance, recruiters can forecast hiring trends, determine which positions may take longer to fill, and allocate resources more effectively.

Time and Cost Savings

By automating routine tasks, such as resume parsing, scheduling interviews, and even follow-up communications, recruiters have more time to focus on strategic activities like engaging with clients and sourcing passive candidates. The time saved translates into higher productivity and profitability.

Improved Compliance and Security

With AI, ATS platforms can automatically flag compliance issues related to labor laws, such as misclassification risks or discrepancies in candidate documentation. This proactive approach mitigates legal risks and ensures peace of mind for staffing agencies.

Must-Have Features in a Modern ATS

AI-Enhanced Candidate Matching

Look for systems that use machine learning to refine candidate search results. For example, AI-powered ATS platforms can learn from past placements to improve the accuracy of future matches, saving recruiters hours of effort.

Seamless Integrations via APIs

An ATS should integrate effortlessly with your existing software stack, including job boards, CRM systems, and payroll platforms. Flexible APIs enable staffing agencies to scale operations without disrupting workflows. For instance, integration with tools like Ascen’s EOR platform can extend your ATS’s functionality to include onboarding, payroll management, and funding.

Mobile-Ready Portals

Customizable and mobile-ready portals for candidates and clients are essential. With 80% of job seekers and clients expecting mobile access, a user-friendly portal can enhance communication, improve transparency, and reduce time spent chasing updates.

Advanced Analytics Dashboards

An ATS should provide detailed analytics dashboards, enabling you to track metrics like time-to-fill, time-to-onboard, and recruiter performance. AI tools can also identify bottlenecks in your hiring process and suggest actionable improvements.

How AI Integration Future-Proofs Your ATS

Scalability

As your staffing agency grows, an AI-driven ATS can adapt by analyzing larger datasets, automating more complex workflows, and supporting additional recruiters without compromising performance.

Flexibility for New Markets

AI can analyze market trends, helping agencies identify growth opportunities in emerging industries or regions. This adaptability is invaluable for agencies looking to expand their footprint.

Faster Implementation

AI-enabled ATS platforms often come with pre-configured models and workflows that reduce setup times, ensuring you see ROI quickly. Additionally, many vendors now offer 24/7 support and implementation training to minimize disruptions.

Which ATS to Choose?

When selecting an ATS, there are countless options to consider, but finding the right one for your staffing agency depends on your specific needs and goals. Many providers now incorporate AI and automation to streamline operations, improve candidate matching, and boost efficiency. While the market is vast, a few standout platforms include:

• Loxo: Known for its AI-driven talent intelligence, Loxo offers deep learning capabilities for sourcing and candidate matching, using its Talent Graph to optimize recruitment processes and enhance placement success rates. Loxo recently launched an integration with Ascen.
• Bullhorn: A leader in the staffing industry, Bullhorn leverages AI to automate workflows, provide actionable insights through predictive analytics, and deliver a seamless user experience across front- and back-office operations.

These platforms exemplify how AI is reshaping recruitment, helping agencies improve efficiency, meet client expectations faster, and stay competitive in a fast-moving industry.

How Ascen Enhances Your ATS

Ascen’s robust API seamlessly integrates with leading ATS platforms, enabling staffing agencies to:

• Streamline Back-Office Operations: Automate onboarding, timesheet management, invoicing, and payroll funding through Ascen’s EOR services.
• Optimize Workflows: Reduce manual tasks and improve collaboration by unifying front- and back-office operations.
• Enhance Candidate and Client Experiences: Provide real-time updates and insights via Ascen’s mobile-ready portals, ensuring transparency and satisfaction.

To see how Ascen can revolutionize your staffing operations with AI-powered ATS integration, book a demo here.