If you’re like me, you hate spending money.
I like to think I’m frugal, but a better word, as my friends delight in pointing out, is “miser.”
It’s not that I can’t enjoy a good bout of retail therapy every now and then, but for me that usually revolves around $0.99 ebooks on sale on Amazon, or $2.00 video games on sale on Steam.
Notice the pattern?
I’m always looking for sales, and the deeper the discount the happier I am.
But with applicant tracking systems, deal-hunting can be extremely frustrating.
Because discovering what the software actually costs in the first place often means signing up for a “price quote” and having to talk to salespeople or do a demo.
So I’ve taken the time to demystify applicant tracking software pricing for you in the video embedded below. In four minutes I cover what ATS costs, including the different pricing models, and some examples for each so you can find deals of your own!
And here’s the full transcript if you prefer written text to the dulcet tones of my voice:
What you can expect to pay for an applicant tracking system is going to vary quite a bit based on your organization’s needs and your size.
Hi I’m J.P. Medved, I’m Capterra’s resident HR and recruiting technology specialist and in this video I’m going to break down for you how you should think about applicant tracking system pricing.
First of all, the market for corporate recruiting software is massive. Right now, it’s at about $1.5 billion and growing. And applicant tracking systems are very effective: an Aberdeen study found that companies and organizations that have a formal hiring process and tracked applicant communications using something like an applicant tracking system are 40% more likely to be classified as best-of-breed or best-in-class, so it’s very important to have one of these with your organization.
Now, ATS pricing breaks down into three different models:
The first, and by far the most common, is going to be a pay-per-recruiter model. What that means is you’re paying for every full-time recruiter or hiring manager that you have accessing and using the system. The following numbers are ranges, and these are going to vary quite a bit across vendors, but roughly you can expect to pay about $60 to $99 per month per recruiter.
The second- pricing model, which is a little less common but you’ll probably still run into, is pay-per-employee. What this is, is using the size of your organization as a kind-of proxy for what you should be paying for the software. So this means rather than paying for people who are actually using the software you’re paying for how many full-time employees you have at your company. To start off you can expect to pay around $4 to $7 per employee per month.
Now, this will change as you get up into higher numbers. If you’ve got thousands, or tens of thousands of employees you can expect those numbers to come down pretty dramatically to the $0.20 range per employee per month. But starting out this $4-$7 range is about what you can expect. Again, a little less common than paying per recruiter
The third model, and even less common, and typically used, actually, in conjunction with one of the first two, is pay-per-job opening or applicant. What that means is you’re going to be paying for the number of concurrent open jobs that you have. So if you’re looking for an HR specialist, and a programmer, and a content marketer you’re going to be paying for three open jobs. You can expect to pay about $5 to $19 per open job, per month.
The other model here is pay-per-applicant or candidate. The way that’s done is, usually, you’re paying for the number of resumes that you keep in the system at any one time. That’s going to be much lower: that’s going to be you paying $0.04 to $0.10 per resume in the system. Again these’ll be used, generally, in conjunction with one of the other two.
Now, all of these models can have some additional fees so this is not going to be everything. They can have set-up and implementation fees, or support fees, but this is the core of what you should be expecting. Again, these are all per month pricing; you will see some annual or one-time fees but I wanted to break this up to make an apples-to-apples comparison for you.
Thank you for watching; I hope that answers some questions. If you have additional questions, please check out the links in the video description below that should have some additional information, and if you’re looking for an applicant tracking system, reach out to Capterra. Our experts can walk you through your needs and requirements and match you up with the perfect system. And we’ll do it all for free!
Looking for Applicant Tracking software? Check out Capterra's list of the best Applicant Tracking software solutions.