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Choosing an ATS: The Complete Guide to Smarter Selection

Written by Compono | Feb 2, 2026 6:08:00 AM

Choosing an ATS is one of the most critical decisions you will make for your people strategy, as the right applicant tracking system does far more than just manage resumes - it acts as the scientific engine for your entire talent lifecycle.

In today’s workplace, where recruitment has shifted from a simple administrative task to a high-stakes hunt for cultural alignment and technical competence, the tools we use must evolve. If you are still relying on a system that merely filters for keywords, you aren't just falling behind your competitors; you are likely inviting bias and high turnover into your organisation. We believe that to truly pick an ATS that delivers long-term value, you need to look past the surface-level features and focus on the science of selection.

The modern recruitment landscape: why traditional ATS selection fails

For decades, the standard applicant tracking system was built to solve a single problem: volume. They were designed to ingest a sea of resumes, scan for specific words like "Project Manager" or "Python," and spit out a list of candidates for a human to review. While this saved time in the early days of digital hiring, this legacy approach has become a liability. In the current best practices of 2026, we’ve seen that keyword matching is a poor predictor of actual on-the-job performance. It rewards people who are good at writing resumes rather than those who are good at the work.

Furthermore, traditional systems often struggle with the sheer amount of AI-generated resume spam now hitting inboxes. When every candidate can use a bot to perfectly align their CV with your job description, keywords become meaningless. To choose an ATS that future-proofs your business, you must move toward competency-based matching. This means looking for a platform that understands the relationship between skills, motivations, and the environment in which your team operates.

We often see organisations get caught in the trap of picking an ATS based on how many job boards it connects to or how pretty the dashboard looks. While user experience is vital, the core mission remains the same: finding the right person for your business. If the system doesn't help you identify who will stay for three years rather than three months, it isn't doing its job. A strategic coach in HR knows that the cost of a bad hire - especially the infamous 'brilliant jerk' who excels technically but destroys team culture - is far higher than any software subscription fee.

Step 1: auditing your process for bias and keyword dependency

Before you can pick an ATS that works, you need to understand where your current process is broken. Most hiring bias happens in the first ten seconds of a resume review. Whether it’s a human or a basic algorithm doing the scanning, unconscious preferences for certain universities, previous employers, or even specific phrasing can lead to a homogenous workforce. When you choose an ATS, you should be looking for a tool that actively removes these human interactions from the early data collection stages.

At Compono, we’ve spent years researching how to flip the traditional model. Instead of reading a resume first, imagine a world where you ask candidates to complete scientifically validated assessments upfront. This allows you to learn how people naturally work and how they align with your culture before a single bias-inducing keyword is read. This shift from 'outside-in' thinking (what the world says is a good candidate) to 'inside-out' thinking (who the person actually is) is the foundation of modern people science.

During your audit, ask yourself how many 'hidden gems' you are missing because they didn't use the exact terminology your current system expects. A construction manager might be an incredible fit for a logistics lead role due to transferable leadership and scheduling skills, but a keyword-based ATS will de-rank them immediately. To pick an ATS that supports diversity and inclusion, you need a system that uses fuzzy logic and skills ontologies to see the potential in people, not just their past titles.

Step 2: beyond features—evaluating behavioural science and psychometrics

When you are ready to pick an ATS, the 'features' list usually includes things like interview scheduling and bulk emailing. These are essential for hygiene, but they don't drive performance. The real differentiator in 2026 is the integration of behavioural science. We believe that an intelligent hiring platform should be underpinned by validated academic research. This ensures that the data you are using to make decisions is actually accurate and trustworthy.

Psychometric data is no longer a 'nice-to-have' add-on; it is the leading indicator of how someone will perform. By assessing work personality and job fit during the application process, you can identify the type of work an individual is naturally attracted to. For example, if you are looking for a detailed auditor but hire a visionary 'Pioneer' because their resume looked great, you are setting that person up for burnout and your team for frustration. Understanding these natural qualities helps you move from a reactive hiring stance to a proactive talent design strategy.

Compono Hire is a purpose-built tool that identifies the right talent for your job and company culture by matching applicants against attributes, skills, and experience in real time. By using these types of intelligent tools, you can ensure that every person you bring on board is a 'repeatable miracle' who fits the unique DNA of your organisation. When evaluating vendors, ask for the science behind their assessments. If they can't explain the construct validity or internal consistency of their models, you might just be buying a fancy version of a personality quiz.

The ROI of retention: why matching for culture and competency matters

One of the largest content gaps in traditional recruitment guides is the specific impact of psychometric data on retention. High turnover is often the result of a 'happiness trap' - hiring someone because they seem great in an interview, only for them to realise six months later that the way your team works doesn't suit them. When you choose an ATS, you are actually making a long-term investment in your retention rates. By matching for culture fit at the start, you significantly reduce the risk of new hires leaving within the first year.

Consider the 'brilliant jerk' problem. These individuals often have the best resumes and the most impressive technical skills. A traditional ATS will rank them at the very top. However, if their work personality is competitive and individualistic while your culture is collaborative and people-centred, they will eventually cause a talent exodus. By using behavioural data, you can spot these red flags before the first interview. This is the shift from transactional hiring to transformational people management.

The ROI of picking an ATS like Compono Hire becomes clear when you look at the operational savings. We’ve seen organisations save millions by reducing the reliance on external recruiters and lowering the frequency of costly mis-hires. When your people are aligned with your purpose, they are more engaged, more productive, and more likely to stay. This is why we say that culture is a leading indicator of business success; get the culture right through scientific selection, and the financial results will follow.

Step 4: integration and scalability for modern HR ecosystems

No applicant tracking system should exist in a vacuum. To pick an ATS that truly empowers your HR team, it must be the 'data bus' for your entire people ecosystem. If you hire someone in your ATS, that data should flow seamlessly into your onboarding and development systems. Unfortunately, many organisations struggle with fragmented tech stacks where data lives in silos, leading to double-handling and manual errors.

When you choose an ATS, look for a platform that offers ecosystem connectivity. This means the ability to integrate with your payroll, HRIS, and learning management systems. For instance, the insights you gain about a candidate’s work personality during the recruitment phase should be used to personalise their onboarding and create a tailored development plan. This holistic approach ensures that the 'puzzle of work' is put together from day one.

Scalability is also a major factor. A mid-market business growing from 100 to 500+ staff needs a system that can handle increasing complexity without becoming a bureaucratic nightmare. You need a platform that allows for collaborative hiring—where managers, HR, and team members can all provide structured feedback in one central hub. This transparency builds trust and ensures that hiring decisions are made based on collective data rather than a single manager's gut feel.

Conclusion: making the shift from administrative tool to strategic asset

Choosing an ATS is your opportunity to move HR from a cost centre to a strategic partner. When you move away from the 'corporate police' mentality of enforcing rules and toward the 'strategic coach' role of designing high-performing teams, you change the trajectory of your business. The best applicant tracking system is the one that gives you the insights to make better, faster, and fairer decisions.

We encourage you to look beyond the resume and start looking at the person. By prioritising competency over keywords and culture over clichés, you create a workplace where people can truly thrive. Remember, people are your most important competitive advantage. Strategy can be copied, but a high-performing culture built through scientific selection cannot. Make the choice to invest in a system that understands people as well as you do.

Key takeaways for choosing an ATS

  • Prioritise Science Over Automation: Look for an ATS that uses validated psychometric and behavioural data to predict performance, not just keyword matching.
  • Eliminate Bias Early: Choose a platform that allows for anonymised or assessment-first screening to ensure a diverse and fair talent shortlist.
  • Prevent the 'Brilliant Jerk': Use behavioural science to identify candidates whose work styles align with your team's culture to avoid toxic hires.
  • Focus on Integration: Ensure your chosen ATS can connect with your wider HR tech stack to allow data to flow seamlessly across the employee lifecycle.
  • Measure ROI through Retention: The true value of an ATS is found in lower turnover rates and higher employee engagement, not just time-to-hire.

Where to from here?

 

Frequently asked questions

What is an applicant tracking system (ATS)?
An ATS is a software application designed to help organisations manage the recruitment process. It automates tasks like job posting, resume screening, and interview scheduling, but modern systems like Compono Hire also include scientific matching tools.

How does an ATS reduce hiring bias?
A modern ATS reduces bias by using objective data points—like skills assessments and psychometric profiles—to rank candidates instead of relying on subjective resume reviews where unconscious bias often creeps in.

Why is culture fit important when choosing an ATS?
Culture fit is the strongest predictor of long-term employee retention. An ATS that can benchmark your current culture and match candidates to it helps ensure that new hires will thrive in your specific work environment.

What is the difference between keyword matching and competency matching?
Keyword matching looks for specific words on a resume, which can be easily manipulated. Competency matching uses fuzzy logic and assessments to understand a candidate's actual ability and how their skills relate to the role's requirements.

Can an ATS integrate with my existing HRIS?
Yes, many modern applicant tracking systems offer APIs or pre-built integrations to connect with HRIS and payroll systems, ensuring that new hire data flows smoothly from recruitment to onboarding.