Top 7 Metrics Your ATS Software Should Track for Smarter Hiring

Hiring isn’t just about filling positions; it's about building a productive, future-focused team. But how do you know if your hiring process is working effectively? That’s where tracking the correct recruitment metrics matters.

With the right ATS software, you can have visibility into every stage of your recruitment funnel. The best ATS software does more than automate hiring; it gives startups the data to scale smartly.

Here are the 7 essential metrics your applicant tracking system should monitor:
 

1. Speed up your hiring process and stay ahead in the talent race.

This measures how long it takes from when a candidate enters your pipeline to when they sign your offer.

Why it matters: Slow hiring cycles lead to losing top talent. SHRM’s research on time-to-hire shows that faster processes help secure top talent.

A modern Online ATS Software gives real-time reports to track and reduce time-to-hire.

2. Where Your Best Hires Come From

Identifies which platforms, job boards, referrals, or social media are delivering your best hires.

Why it matters: Understanding where quality candidates come from helps optimise your recruitment spend.

The best ATS software for small businesses can auto-tag and monitor candidate sources.

3. Tracking candidate loss at each hiring funnel stage

Shows how many candidates exit the process before completion, such as before interviews or after applying.

Why it matters: High drop-off rates may indicate delays, bad communication, or a clunky application process.

A smart applicant tracking system flags the drop-off points for easy fixes.

4. Hiring success based on offer acceptances by candidates

Tracks how many candidates say yes to your job offers out of the total offers made.

Why it matters: If too many offers are declined, it could point to salary issues, poor hiring experience, or lack of clarity. For example, platforms like BambooHR’s ATS share resources on improving offer acceptance through better candidate engagement.

ATS software helps track offer stats and gather feedback from declined offers.

5. Overall hiring expense calculated for one hired individual

Calculates the total spend to recruit one employee covering job ads, hiring tools, recruiter hours, etc.

Why it matters: Monitoring this helps manage recruitment budgets and spending efficiency.

Startups using ATS software can automatically log and analyze cost per hire.

6. Finding the Right Candidates for Each Job Openings

This metric shows how many quality candidates you receive for each role, based on screening criteria or recruiter assessments.

Why it matters: If you get many applications but few qualified ones, your job ad or sourcing strategy may need work.

The best ATS software allows screening questions and auto-scoring to ensure quality at the top of the funnel.

7. Employee Diversity Measurement and Insights

Tracks candidate demographics across gender, ethnicity, and more while keeping anonymity intact.

Why it matters: Diversity drives innovation and growth. Monitoring DEI metrics helps build inclusive hiring practices.

A solid applicant tracking system offers safe, ethical diversity tracking with visual reports.

Final Thoughts

If you’re not tracking these important recruitment metrics, you are missing out on valuable insights. A powerful startup applicant tracking system not only helps you automate hiring it empowers you with data to improve continuously.

From saving costs to cutting hiring time, the best ATS software for small businesses lets you scale smarter, hire better, and grow faster.

Struggling to track and improve your hiring process?
Discover how AblyWorks can help you make smarter hiring decisions with real-time recruitment metrics, powerful analytics, and automation tools. 

Frequently Asked Questions (FAQs)

1. Why are hiring metrics important for startups?
They show which parts of your hiring process are working and which need improvement. For startups, data-driven hiring is crucial for growth.

2. Can ATS software track these hiring metrics automatically?
Yes. The best ATS software offers built-in analytics dashboards to track metrics like time-to-hire, cost, drop-off rates, and more.

3. How can applicant tracking systems reduce hiring costs?
By automating tasks and reducing manual errors, applicant tracking systems cut recruitment expenses and save recruiters hours.

4. What’s the best ATS software for small businesses?
Look for an ATS that’s easy to use, affordable, and offers strong analytics. The best ATS software for small businesses adapts to your hiring volume and growth.

5. When should startups invest in ATS software?
If you're handling multiple roles, using spreadsheets, or losing candidates due to delays, it’s time to adopt a startup applicant tracking system.