Why 45% of Small Businesses Struggle with ATS (And How to Avoid It)

The ATS Adoption Gap#

Here’s a sobering statistic: while 35-60% of small and medium-sized businesses (SMBs) have adopted ATS platforms (recruitcrm.io, avahr.com), approximately 45% of SMBs are struggling to use these tools effectively despite implementation (LinkedIn).

This gap represents billions in unrealized value. Small businesses that successfully implement ATS report 40-60% reductions in time-to-hire, 40-50% cuts in cost-per-hire, and 78.5% report improved quality of hires (cadienttalent.com). Yet nearly half of SMBs aren’t realizing these benefits.

Understanding why ATS implementations fail—and how to avoid these pitfalls—is critical for any small business considering or struggling with ATS adoption.

The Most Critical Factor: Training#

The most critical thing here is to train the individuals who would be using the product. If you just start using a system but your recruiters aren’t trained from the beginning, they’ll likely miss out on many time-saving features and advanced capabilities.

Why Training Matters:

When recruiters don’t understand how to use ATS effectively, they:

• Revert to old manual processes
• Underutilize automation features
• Miss time-saving shortcuts
• Don’t leverage advanced capabilities
• Become frustrated and resistant

The Solution:

At Canvider, we try to provide materials like videos and tutorial posts to reduce this issue and empower self-learning. Comprehensive training ensures your team:

• Understands all features from day one
• Knows how to use automation effectively
• Can leverage advanced capabilities
• Feels confident and supported
• Maximizes the value of your ATS investment

The Five Critical Failure Points#

1. Financial and Budgetary Constraints#

The Problem:

While subscription costs seem modest ($60-$120 monthly), total implementation investment is more substantial (applicantz.io):

• Monthly subscription: $60-$120
• Annual software cost: $720-$1,440
• Data migration: $500-$1,500
• User training: $200-$500 per person
• Total first-year investment: $2,500-$5,000

Why This Causes Failure:

For businesses with tight margins, the upfront investment feels risky when benefits seem uncertain.

The Solution:

• Budget realistically (20-30% more than subscription) (applicantz.io)
• Start with free tier to test value
• Phase implementation over 3-6 months
• Calculate ROI first to demonstrate value

2. System Integration Complexity#

The Problem:

Most small businesses operate multiple systems (payroll, accounting, email, calendars). ATS integration is rarely plug-and-play.

Common Issues:

• Data format mismatches
• API compatibility problems
• Sync errors between systems

Why This Causes Failure:

For organizations without IT staff, these challenges can be insurmountable.

The Solution:

• Choose platforms with pre-built integrations
• Start with core integrations (email, calendar)
• Leverage vendor support
• Test thoroughly before going live

3. Time Constraints and Learning Curve#

The Problem:

The biggest obstacle isn’t cost—it’s time. Business owners working 70-hour weeks lack bandwidth to research, evaluate, test, and implement new systems.

The Learning Curve:

• User-friendly systems: 2-3 hours training (applicantz.io)
• Complex systems: 8-10 hours training
• Extended implementations: Lower adoption rates (applicantz.io)

Why This Causes Failure:

Learning ATS while managing daily operations diverts attention from revenue-generating activities.

The Solution:

• Prioritize rapid deployment (48-hour setup)
• Select user-friendly, SMB-focused systems
• Block dedicated time for setup
• Use vendor resources and training materials

4. Organizational Change Resistance#

The Problem:

Shifting from manual processes to software generates resistance:

• Recruiters comfortable with old routines
• Hiring managers resist standardized workflows
• Owners hesitant to disrupt operations

Why This Causes Failure:

Without change management, implementations stall or are underutilized.

The Solution:

• Build clear business case with ROI
• Involve stakeholders in selection
• Communicate benefits to each role
• Provide adequate training (this is critical!)
• Designate champions to help others

5. Data Quality and Preparation Issues#

The Problem:

Many small businesses have disorganized candidate data:

• Incomplete information
• Duplicate records
• Inconsistent formats
• Outdated information

Why This Causes Failure:

Poor data quality leads to poor ATS performance and user frustration.

The Solution:

• Assess data quality before selecting ATS
• Clean data before migration
• Use vendor migration tools
• Start fresh if data is too problematic

The Training Solution: Why It’s Critical#

The Most Common Mistake:

Implementing ATS without proper training. Teams assume they’ll “figure it out,” but this leads to:

• Underutilization of features
• Reversion to old methods
• Frustration and resistance
• Lower ROI

What Good Training Includes:

1. Feature Walkthrough

   • Core functionality
   • Automation capabilities
   • Advanced features
   • Time-saving shortcuts

2. Hands-On Practice

   • Real scenarios
   • Common workflows
   • Troubleshooting
   • Best practices

3. Ongoing Support

   • Video tutorials
   • Documentation
   • FAQ resources
   • Community access

Canvider’s Approach:

We provide comprehensive training materials:

• Video tutorials: Step-by-step guides for every feature
• Tutorial posts: Written guides for reference
• Self-learning resources: Empower users to learn at their pace
• Support: Help when you need it

This approach reduces the training burden and empowers your team to maximize ATS value.

Proven Strategies for ATS Success#

Strategy 1: Invest in Training from Day One#

Don’t skip this step. Proper training ensures:

• Team understands all features
• Automation is used effectively
• Time-saving features aren’t missed
• Confidence and adoption are high

How to Implement:

1. Schedule training before go-live
2. Use vendor-provided materials (videos, tutorials)
3. Provide hands-on practice
4. Create internal documentation
5. Offer ongoing support

Strategy 2: Rapid Deployment#

Organizations that begin using ATS within 48 hours show higher adoption rates (applicantz.io).

Why It Works:

• Momentum builds quickly
• Immediate value visible
• Less time for resistance
• Faster learning

Strategy 3: User-Centric Design#

Choose platforms designed for SMBs with intuitive interfaces that reduce training time.

Strategy 4: Clear Process Definition#

Define your hiring workflows before implementation to prevent confusion and delays (techtarget.com, seemehired.com).

Strategy 5: Strong Change Management#

Build business case, involve stakeholders, communicate benefits, and provide support.

Strategy 6: Ongoing Optimization#

Regularly review metrics, identify bottlenecks, and optimize processes to maximize value.

The Readiness Assessment#

Before implementing ATS, assess your readiness:

Training Readiness:

• Time allocated for training
• Training materials available
• Team committed to learning
• Support resources identified

Process Readiness:

• Hiring workflows defined
• Decision criteria clear
• Current process documented

Organizational Readiness:

• Stakeholders engaged
• Benefits understood
• Resources allocated

Technical Readiness:

• Integration requirements identified
• Data quality assessed
• System requirements understood

Common ATS Implementation Mistakes#

Mistake 1: Skipping Training#

The Mistake: Assuming users will “figure it out”

Why It Fails: Poor adoption, underutilization, frustration

The Fix: Invest in comprehensive training from day one

Mistake 2: Choosing the Wrong Platform#

The Mistake: Selecting enterprise ATS designed for large companies

Why It Fails: Too complex, requires IT support, overkill

The Fix: Choose SMB-focused platforms

Mistake 3: Trying to Do Everything at Once#

The Mistake: Implementing all features simultaneously

Why It Fails: Overwhelming, high failure risk

The Fix: Start with core features, add complexity gradually

Mistake 4: Ignoring Change Management#

The Mistake: Implementing technology without addressing people

Why It Fails: Resistance, poor adoption, abandonment

The Fix: Build business case, communicate benefits, provide support

The Bottom Line#

The gap between ATS adoption and effective utilization is real—45% of SMBs struggle despite implementation. But this gap is avoidable.

Success Factors:

1. ✅ Comprehensive training (most critical!)
2. ✅ Rapid deployment (within 48 hours)
3. ✅ User-centric design (intuitive, SMB-focused)
4. ✅ Clear process definition (before implementation)
5. ✅ Strong change management (stakeholder engagement)
6. ✅ Ongoing optimization (continuous improvement)

The Key Distinction:

The challenge lies not in the value proposition (ATS delivers 300-500% ROI) but in execution discipline. Small businesses that invest in proper training, implement thoughtfully, and provide ongoing support realize transformative benefits.

Those that skip training or implement reactively struggle to move beyond basic functionality.

Ready to Ensure Your ATS Success?#

Start with training:

1. Choose a platform with comprehensive training materials
2. Allocate time for team training
3. Use vendor-provided resources (videos, tutorials)
4. Provide hands-on practice
5. Offer ongoing support

Recommended Next Steps:

1. Try Canvider Free - Access our video tutorials and guides
2. Complete the readiness assessment
3. Plan your training approach
4. Follow the success strategies
5. Monitor and optimize continuously

No credit card required. Comprehensive training included. Start your path to ATS success today.

Frequently Asked Questions#

Why do ATS implementations fail?#

ATS implementations fail due to five main reasons: (1) Financial constraints, (2) Integration complexity, (3) Time constraints, (4) Change resistance, and (5) Data quality issues. But the most critical factor is lack of proper training.

What percentage of small businesses struggle with ATS?#

Approximately 45% of small businesses struggle with ATS despite adoption. The primary reason is insufficient training—teams don’t learn how to use features effectively.

How can I ensure ATS implementation success?#

Ensure success by: (1) Investing in comprehensive training (most critical), (2) Choosing rapid deployment platforms, (3) Selecting user-friendly systems, (4) Defining processes before implementation, and (5) Providing ongoing support.

Why is training so important for ATS success?#

Training is critical because untrained users miss time-saving features, underutilize automation, revert to old methods, and become frustrated. Proper training ensures your team maximizes ATS value from day one.

References#

1. RecruitCRM - Applicant Tracking System Statistics
2. Avahr - Why Small Businesses Need Efficient Applicant Tracking Systems
3. LinkedIn - SMB AI Gap: Why 45% of Small Businesses Still Struggle
4. Cadient Talent - ROI of Applicant Tracking Systems
5. Applicantz - The Best ATS Solutions for Small Businesses in 2025
6. TechTarget - Steps for Implementing an Applicant Tracking System

Last updated: January 2025