Is it legal for employers to share ATS data with other companies?

Understanding ats data and its importance in recruitment

What is ATS Data and Why Does It Matter?

Applicant Tracking Systems (ATS) are software platforms designed to streamline the recruitment process. These systems help recruiters and hiring managers manage job applications, screen candidates, and track every step of the hiring process. ATS data refers to the information collected and stored within these systems, including candidate resumes, application details, screening results, interview notes, and sometimes even social media profiles.

ATS platforms have become central to modern talent acquisition strategies. They enable data driven decision making, reduce time to hire, and improve the overall candidate experience. By automating repetitive tasks, ATS software allows recruiters to focus on building relationships with candidates and delivering better recruitment services.

Types of Data Collected by ATS

• Personal data: Names, contact details, and sometimes sensitive information like date of birth or identification numbers.
• Application data: Resumes, cover letters, work history, and education details.
• Screening and assessment data: Test results, interview feedback, and recruiter notes.
• Tracking data: Status updates throughout the recruitment process, such as application received, interview scheduled, or offer extended.

With the increasing use of ATS platforms, the volume and sensitivity of candidate data stored in these systems have grown significantly. This raises important questions about data privacy, data protection, and the ethical use of personal information in recruitment.

Why Employers Rely on ATS Data

ATS help organizations manage large volumes of applications efficiently, especially for roles that attract hundreds or thousands of candidates. The data stored in these systems allows for better tracking, reporting, and compliance with hiring regulations. It also supports a more consistent and fair screening process, which is crucial for both recruiters and candidates.

However, the way this data is managed and potentially shared with other companies introduces a range of legal, ethical, and practical challenges. Understanding these issues is key for anyone involved in recruitment or considering the use of ATS software. For more on how ATS systems can impact job seekers, you can read about how ATS systems complicate job searches.

Legal considerations when sharing ats data

Legal Frameworks Governing ATS Data Sharing

Applicant tracking systems (ATS) are central to the recruitment process, storing personal data and application details for every candidate. When recruiters or hiring managers consider sharing this data with other companies, several legal considerations come into play. The laws and regulations around data privacy and protection are strict, especially when it comes to candidate information.

Data Privacy Laws and Consent

In many regions, data privacy laws such as the General Data Protection Regulation (GDPR) in Europe or the California Consumer Privacy Act (CCPA) in the United States set clear boundaries for how personal data can be used and shared. These regulations require:

• Explicit consent from candidates before their data is shared with third parties
• Clear communication about how their data will be used during the hiring process
• Secure handling and storage of candidate data within ATS platforms and systems

Without proper consent, sharing candidate data—even with another company in the same group—can lead to legal risks. Recruiters and hiring managers must ensure that their ATS software and processes are compliant with these regulations at every stage of the recruitment process.

Employer Responsibilities and Data Protection

Employers are responsible for protecting the personal data collected through ATS platforms. This includes:

• Implementing robust data protection measures in their applicant tracking systems
• Limiting access to candidate data to only those involved in the hiring process
• Ensuring that any data shared is done so with the candidate’s informed consent

Failure to follow these legal requirements can result in penalties, reputational damage, and a negative candidate experience. For organizations using recruitment process outsourcing services, it’s crucial to verify that external partners also comply with all relevant data protection laws. For more information on tools that help manage candidate data securely within ATS platforms, check out this resource on top automation tools for managing candidates in ATS.

Ethical implications of sharing candidate information

Balancing Transparency and Candidate Trust

When recruiters and hiring managers use applicant tracking systems (ATS) to manage the recruitment process, they handle a significant amount of personal data. This includes resumes, application details, screening notes, and sometimes even social media profiles. Sharing this information with other companies or third-party services raises important ethical questions, especially regarding candidate privacy and consent.

One of the core ethical principles in recruitment is respecting the confidentiality of candidate data. Candidates trust that their personal information will be used only for the job application they submitted. If their data is shared with other organizations without clear consent, it can damage their trust in the hiring process and the employer brand. This is particularly relevant as more companies rely on data-driven recruitment and advanced ATS platforms to streamline hiring.

• Consent matters: Candidates should be informed if their data might be shared beyond the original application. Transparent communication is key to maintaining a positive candidate experience.
• Purpose limitation: Data collected for a specific job or recruitment process should not be used for unrelated purposes without explicit permission from the applicant.
• Data minimization: Only share the information necessary for the intended purpose, reducing the risk of unnecessary exposure of personal data.

Ethical recruitment also means considering the impact of data sharing on candidates' future opportunities. For example, if an applicant is rejected for one role, sharing their data with another company without their knowledge could affect their chances elsewhere. Recruiters must weigh the benefits of efficient talent acquisition against the responsibility to protect candidate data privacy.

To navigate these challenges, many organizations are turning to recruitment automation tools that help manage consent and data protection within ATS software. These systems can automate consent requests, track data usage, and ensure compliance with data protection regulations, supporting ethical decision-making throughout the hiring process.

Practical scenarios where ats data might be shared

When and Why ATS Data Gets Shared

In the recruitment process, there are practical scenarios where applicant tracking system (ATS) data may be shared between companies or with third-party services. Understanding these situations helps hiring managers, recruiters, and candidates navigate the complexities of data privacy and protection.

• Background Checks and Screening Services: During the hiring process, employers often use external screening services to verify candidate information. In these cases, relevant candidate data from the ATS may be shared with consent to ensure compliance and accuracy.
• Recruitment Process Outsourcing (RPO) Providers: Companies sometimes partner with RPO firms to manage parts of their recruitment process. These providers may require access to ATS platforms or exported data to deliver their services efficiently, always under strict data protection agreements.
• Internal Mobility and Group Companies: In organizations with multiple subsidiaries or brands, candidate data may be shared across different entities to facilitate internal mobility or talent acquisition. This is typically managed through integrated systems ats or shared ATS software, with clear policies on data privacy.
• Collaborative Hiring: Some hiring processes involve collaboration between several departments or even partner companies. Sharing ATS data can help streamline the process, reduce time to hire, and enhance the candidate experience, provided that personal data is handled responsibly.
• Application Tracking for Compliance: In regulated industries, sharing applicant tracking data with auditors or compliance teams may be necessary to demonstrate fair and transparent hiring practices.

Each scenario requires careful consideration of data protection laws, candidate consent, and the ethical implications discussed earlier. Recruiters and hiring managers should ensure that any sharing of candidate data is justified, secure, and transparent to maintain trust and uphold the integrity of the recruitment process.

Risks and challenges in sharing ats data

Potential Pitfalls When Sharing ATS Data

Sharing applicant tracking system (ATS) data between companies can introduce a range of risks and challenges that impact both the recruitment process and the candidate experience. While ATS platforms are designed to streamline hiring, the movement of candidate data outside the original organization raises several concerns.

• Data Privacy and Protection: One of the biggest risks is the potential breach of data privacy. When candidate data is shared without proper consent, it can violate data protection regulations. This includes personal information collected during the application and screening process, which is often protected by law in many regions.
• Loss of Candidate Trust: Candidates expect their personal data to be handled with care. If they discover their information has been shared without their knowledge, it can damage the employer brand and reduce trust in the hiring process. This can lead to negative reviews on social media and job boards, impacting future talent acquisition efforts.
• Compliance Issues: Different countries and regions have specific requirements for handling and transferring personal data. Failing to comply with these regulations can result in legal penalties and reputational harm. Recruiters and hiring managers must be aware of the legal landscape before sharing any data between systems or organizations.
• Data Security Risks: Transferring data between ATS software or other tracking systems increases the risk of unauthorized access or data leaks. If the receiving company does not have robust data protection measures, candidate data could be exposed to cyber threats.
• Inconsistent Data Management: When multiple companies use different ATS platforms or recruitment services, there can be inconsistencies in how data is stored, updated, and deleted. This can lead to outdated or inaccurate information being used in the hiring process, affecting both recruiters and applicants.

Recruitment teams must weigh these risks carefully and ensure that any sharing of ATS data is done with clear consent from candidates and in compliance with relevant data protection laws. A data-driven approach to talent acquisition is valuable, but it should never come at the expense of candidate privacy or the integrity of the recruitment process.

Best practices for managing and sharing ats data responsibly

Building a Responsible Data Sharing Framework

Recruiters and hiring managers working with applicant tracking systems (ATS) need to prioritize data privacy and candidate experience when handling candidate data. A responsible approach to sharing ATS data starts with a clear understanding of what personal data is collected during the recruitment process and how it is used throughout the hiring process.

• Obtain explicit consent: Always get clear, informed consent from candidates before sharing their personal data with third parties or other companies. This helps maintain trust and aligns with data protection regulations.
• Limit data access: Only share applicant data that is necessary for the specific recruitment or screening purpose. Avoid sharing full application histories or sensitive information unless absolutely required.
• Use secure ATS platforms: Choose ATS software and services that offer robust data protection features, including encryption and access controls. This reduces the risk of unauthorized access or data breaches.
• Regularly review data sharing policies: Update your internal guidelines to reflect changes in data privacy laws and best practices. Ensure all recruiters and hiring managers are trained on these policies.
• Document data flows: Keep records of when, why, and with whom candidate data is shared. This transparency is crucial for compliance and for responding to candidate inquiries about their personal data.
• Prioritize candidate experience: Communicate clearly with candidates about how their data will be used and shared during the recruitment process. Transparency builds trust and supports a positive employer brand.

Leveraging Technology for Data Protection

Modern ATS platforms and tracking systems can help organizations manage candidate data responsibly. Look for systems ats that support:

• Granular user permissions to control who can access or share candidate data
• Automated consent management to track candidate permissions in real time
• Audit trails for all data access and sharing activities
• Integration with data privacy compliance tools

By implementing these best practices, organizations can ensure that the recruitment process remains data driven while respecting candidate privacy and meeting legal obligations. This approach not only protects candidates but also strengthens the integrity of the hiring process.