ATS Agency: How Does it Work to Help Businesses in the USA?

ats for staffing agency usa

Summary: You might have heard about ATS agencies in the USA. But, you might not know how these agencies function and get access to top talent. These agencies rely on ATS software to help businesses find qualified candidates. Continue reading the blog to learn how an ATS agency utilizes the ATS software.


You probably clicked on this blog to better understand what an ATS agency is. Do not worry! You have come to the right place. You can read this brief guide to learn how modern-day recruitment agencies work and use applicant tracking software to help business owners find the most suitable candidates. So, without wasting more time, let us look at the insights!

What is an ATS agency?

An applicant tracking agency is a recruitment agency that uses ATS software to help companies hire qualified candidates. Now, you must be wondering what ATS software is. To understand ATS agencies, you have to first learn about ATS. An applicant tracking system (ATS) is an AI-based computer software organizations use to make hiring more effective and scalable.

In other words, the software is specifically designed keeping recruitment in mind. As a result, it helps hiring managers and recruiters identify, attract, screen, and hire candidates quickly and efficiently. The primary goal of recruitment agencies behind using ATS is to simplify and streamline the recruitment process and to make it more accurate and faster for organizations.

Besides ATS agencies, two primary businesses rely on ATS software. These business types are:

  1. Enterprise-level business organizations
  2. Small and medium-scale business organizations

Usually, every agency uses ATS software to fulfill their clients hiring needs. However, the features and functionalities of the software may vary from agency to agency. That is because there is a long list of ATS systems available in the market. They all differ from each other based on their scope and complexity. That is why the hiring software has no fixed cost.

Why is using ATS software necessary for an ATS agency?

Did you know? As per a report by Select Software Reviews, 94% of recruiting professionals say that using ATS for hiring has provided them with better hiring results. It proves the significance and relevance of the ATS software in the modern recruitment landscape.

The increasing popularity and demand for AI-based hiring software made almost every agency adopt ATS. These agencies rely on the ATS system primarily for two reasons. First, it reduces their workload and saves them time and effort they would spend on performing repetitive hiring tasks manually.

Second, the automated software makes the complicated hiring process fast and easy. However, there are still many reasons why an ATS agency trusts ATS software to satisfy the increasing workforce needs of their clients. Some of these reasons are:

  • Identify talented candidates: Employment agencies specialize in sourcing top talent for organizations. But sometimes, sourcing the best candidates from the large talent pool becomes difficult. But ATS software is here to help! The software allows recruitment professionals to identify and attract the best candidates from the diverse pool in the market.
  • Provide qualified candidates to organizations: Staffing agencies use ATS software to screen thousands of candidate profiles. Before they introduce any candidate to the organization, they make sure the candidate is a perfect fit for the organization’s open role. Thus, we can say that the ATS software helps recruitment agencies provide the most qualified candidates to businesses.
  • Save time and resources: Poor HR software and technologies can do no good in today’s technology-driven business world. But an ATS is a modern contribution to the recruitment world. Therefore, recruitment agencies can replace their time-consuming and ineffective old hiring technologies with the ATS to save time and resources and get better outcomes.

What exactly does ATS software do to help an ATS agency?

ATS software is a powerful and centralized system for recruitment professionals that helps them in almost all hiring steps from start to finish. The most powerful ATS in the US market are cloud-based SaaS solutions. Professionals working in an ATS agency can use these systems anytime and anywhere.

That is why every top ATS recruitment agency in the US market uses on-site and SaaS ATS software. SaaS systems might be a bit more expensive than open-source software, but they are more efficient. Such software also offers more advanced features and functionalities.

These qualities of the SaaS ATS systems make them more capable than other ATS software. Here are some significant hiring steps where an ATS proves to be a highly efficient software for an ATS agency:

1. Candidate sourcing

The ATS integration with many application pages, online job platforms, and other tools allows it to post jobs effectively. That is why the ATS agencies use the software to automatically post jobs and advertisements on different job boards and social media platforms.

2. Candidate management

You will be surprised that ATS software can automatically upload relevant candidate information and documents into the centralized candidate database. Thus, an ATS agency uses the software to add, manage, screen, and store all the candidate documents and files in one place. It includes information on all the former and current candidates.

3. Candidate screening

As we mentioned already, an ATS also screens candidate profiles. It does this by creating and managing online assessments and video interviews. Not only this, but it also stores and adds the assessment results to its database. An ATS agency USA, can use these results displayed by the ATS to identify qualified candidates from the large pool.

4. Generating job offers

Once a candidate passes the online interview, an ATS software automatically generates and sends the offer letter to the candidate. It then collects signed documents from the candidate and adds them to the candidate’s file it maintains in its database. In this way, the ATS agency remains stress-free as the software saves them the time and effort of sending offer letters separately to the hired candidates.

These ATS features above are the most common features that reflect the software’s capability. Other than this, there are many more features that recruitment professionals discover once they start using the software for hiring.

How can you choose the right ATS agency?

Now that you know how ATS agencies work, you might ask yourself, how can I choose the best staffing agency to fulfill my hiring needs? Right? So, below are some factors that will help you pick a trustworthy ATS agency partner for your business:

1. Determine your needs

Before you judge which ATS agency will be the best for you, you should determine your needs. By this, we mean that you should ask yourself questions such as, do I need to hire new employees for temporary roles, or do I want long-term employees for my company? Staffing agencies work better when they know their clients’ needs. Thus, determine your needs, and then start searching for the best staffing agency in the USA.

2. Understand how the agency works

All top staffing agencies rely on modern hiring tools and technologies to satisfy their client’s needs. On the other hand, there are still many agencies in the USA that use outdated hiring tools and methods. But to find top talent quickly, you should only partner with top ATS agencies. These agencies will not only offer you a vast candidate database, but they will also help you boost networking in the employment market.

3. Evaluate the agency’s reputation

The industry reputation or brand image of a staffing company can speak a lot about its working. A staffing company with a positive brand image in the industry will be an experienced and reliable agency. On the other hand, you cannot consider an ATS agency with negative employee reviews and client feedback as a trusted agency. Thus, you should evaluate and compare the industry reputation of different agencies to choose the right one.

4. Understand the agency’s screening process

Usually, all staffing agencies use different methods and tools to screen candidates in the recruitment pipeline. Some agencies use the manual screening approach. While some combine and use the latest candidate screening technology with manual screening to identify the most suitable candidates. However, choose a staffing agency that uses the latter screening approach. It is the best way to ensure quality hires.

5. Consider other factors

Besides the factors we mentioned above, there are many other aspects that businesses ignore when choosing the best staffing agency. These factors are the agency’s time to hire, interview-to-hire ratio, track record, pricing structure, and employee retention strategies. Moreover, besides staffing and recruitment services, you should find out what other services the agency can provide you.

Choosing the right ATS recruitment agency is essential. It is because these agencies will serve as intermediaries between you and job seekers. If you consider the above factors, there are higher chances of you finding the right staffing partner to satisfy your workforce needs. This way, you will also have higher chances of becoming successful in the coming years.


Undoubtedly, ATS software is the most essential tool for an ATS agency. The immense benefits of the software are the main reason for its increasing popularity in the US job market. Do you want to adopt this modern hiring software for your business and get access to its high-quality features? Connect with our experts and book a free demo of our exceptional ATS software, Pitch N Hire.