The Role of an Applicant Tracking System in Supporting Compliance and Data Security
Data protection and compliance is a critical priority for recruiting teams, particularly in sectors governed by strict regulatory obligations. Mishandling candidate data or failing to provide a transparent recruitment process can result in reputational damage and even legal penalties. But keeping abreast of changing regulations and tracking compliance can be a mammoth task, even for the largest HR teams.
That’s where the Applicant Tracking System (ATS) comes in. In this blog we’ll look at how this specialist hiring software can support compliance, data security and of course auditability at every stage of the hiring process.
We’ll also look at how Reach ATS can help HR teams automate privacy safeguards, maintain structured audit trails and help you meet the latest GDPR and industry specific compliance requirements, without adding to your team’s workload. We’ll begin by looking at the current compliance challenges modern recruitment faces.
Jump to:
What at the current compliance challenges for recruiters in the UK?
How can an ATS platform help companies support GDPR and Data Protection Standards?
How do built in audit trails support compliance?
Secure document handling with an ATS
Real-time compliance reporting made simple
How can an ATS help me protect the candidate experience while staying compliant?
Planning ahead – how can an ATS support broader compliance?
Why Reach ATS is Essential for Hiring Compliance
What are the current compliance challenges for recruiters in the UK?
Recruiters handle huge volumes of sensitive data, from CVs and salary histories to criminal records and health information. This creates a high-risk environment for data security, and indeed for recruiters, but is precisely what GDPR1 was designed to regulate.
Every piece of data handled by hiring teams requires a clear legal basis for processing. There’s a major focus on transparent data retention polices and auditable consent for sharing information.
Inconsistent document storage, lack of audit trails and expired permissions leave organisations hugely susceptible to legal penalties for the mishandling of candidate data. And beyond the legal risk, the reputational risk to organisations who mismanage data security are substantial.
These challenges are now evolving with the introduction of the new Data (Use and Access) Act 2025. The act provides more clarity on using automated decision making and handling Data Subject Access Requests2 (DSARs), but it also formalises the internal complaints process. This means recruiters must have robust systems in place to manage these new requirements and demonstrate compliance; turning what was once an administrative operation into a structured, formal and legally mandated process. There’s an excellent summary of the new Data Act 2025 by Dentons Solicitors here.
It’s crucial that recruiters align their hiring with wider organisational policies for a consistent, legal and transparent process. This ensures candidate, and employee data is held and disposed of in a legal, safe and timely fashion. But how best to do that?
How can an ATS platform help companies support GDPR and Data Protection Standards?
Applicant Tracking Systems are an excellent means of supporting UK data protection standards and GDPR when hiring. These specialist software platforms provide the specific capabilities necessary to meet legal and regulatory obligations without overwhelming HR teams with manual admin. A good quality, compliant ATS will allow teams to:
- Set and enforce automated data retention periods
- Automatically purge or anonymise expired records to prevent the unnecessary storage of personal data
- Centralise the management of candidate consent. Allowing applicants to grant or withdraw permission with ease
- Securely store all sensitive documents in one central, encrypted location
- Provide a time-stamped trail of all data related actions for auditing purposes
- Simplify the handling of DSARs – an ATS can provide a complete and auditable record of a candidate’s information, and actions taken with that information, in seconds.
And of course, beyond data protection, an automated workflow ensures that all necessary pre-employment checks, from DBS3 and RTW4 to AML5 or GLAA6 are all completed prior to contract signing. Keeping compliance at the heart of everything, no matter which sector you’re hiring in.
How do built in audit trails support compliance?
A specialist automated applicant tracking system is the best audit tool a recruiter can own. It automatically logs users’ actions, providing a comprehensive audit trail for every candidate and every hiring action taken.
At a glance a system user can:
- Review time-stamped activity logs to track system actions
- Trace who changed a candidate status or downloaded a document
- Push candidates through the system to shortlist or interview
- View which is the most recent version of a document
- Check if offer emails have been sent/replied to
This removes any doubling up of administrative work, keeps communication channels clear and provides clear oversight and accountability throughout the entire hiring process.
What happens if a hiring manager leaves mid-process?
A key benefit of a central audit trail is continuity. All applicant activity, notes and communication history are fully logged on the ATS system. A new manager can be assigned to a role or candidate instantly with full visibility of what’s taken place. This ensures minimal disruption to the candidate journey.
The core HR team have control over who can access the system, which means that users can easily be removed, maintaining high levels of data security.
Secure document handling with an ATS
Secure document handling with structured access controls is a key feature of recruitment applicant tracking systems. Internal access to an ATS should be secured by Multi-Factor Authentication (MFA) and Single Sign On (SSO) which prevents unauthorised access by verifying user identity. This multi-layered approach to data security helps protect and encrypt the most sensitive documents and data.
As well as storing all your hiring documents in one central, encrypted repository, an ATS can also give different access levels to different users. For example, role-based access can be given to sensitive files such as Right to Work documents or references – ensuring only those that need to see them, get to access them.
Secure uploads and download logs protect against the loss or misplacement of sensitive documents and give HR teams a clear visual record of who has viewed key documents – helpful when you’re trying to keep workflows moving!
How do we manage data retention rules across multiple teams or business units?
A fully configurable ATS allows you to apply different data retention settings per business unit, department, or location. Ensuring compliance with varying organisational policies or regional regulations. HR teams can automate reminders, anonymisation or delete processes accordingly.
Global compliance
In a global marketplace, data security is a geographical issue too. ATS providers should be able to offer clients the ability to store data in specific geographic locations to satisfy local data residency laws. This includes building in controls for cross-border data transfers with the appropriate legal frameworks.
In line with this, ATS providers should be using internationally recognised certifications to provide they have undergone rigorous, independent audits of their information security management and internal controls. Certifications such as ISO 27001 combined with regular third-party security tests like penetration testing demonstrate a commitment to protect candidate and client data from cyber threats. This certification should be a crucial consideration when it comes to choosing an ATS provider.
At Reach we take data security seriously and hold Cyber Essentials Plus certification and ISO27001 accreditation.
Real-time compliance reporting made simple
GDPR compliant ATS systems also make reporting on data activity and consent a truly simple, real-time process. By logging every interaction, from a candidate’s initial application, to which recruiter modified their record and when, an ATS can instantly generate comprehensive, exportable reports.
This capability is invaluable for sectors with stringent regulatory and safeguarding requirements. For example, the healthcare sector, where reporting on DBS checks is mandatory, or financial services organisations who must meet FCA (Financial Conduct Authority) reporting requirements for regulated roles.
These ready-to-run data sets provide compliance officers, HR professionals and auditors with the information they need to demonstrate compliance and accountability without the time-consuming work of gathering data manually.
How can an ATS help me protect the candidate experience while staying compliant?
In a competitive hiring landscape, a smooth candidate journey is a vital part of successful hiring. And as any recruiter will tell you, honest and open communication is the key to a positive candidate experience.
Clear data use policies embedded in branded applicant portals are a great way to set your intentions for data usage transparency. Using your candidate applicant tracking system, organisations can offer simple options for data storage while automated reminders about expiring consents or required actions offer clarity for all parties.
When you are open and honest about the data you collect, and transparent about how it will be stored, used and purged, you build trust in your employer brand. This promotes an efficient, fair and positive experience for all candidates.
Planning ahead – how can an ATS support broader compliance?
Compliance and data security don’t end when the job offer is made. ATS integration lets you securely transfer data across your entire HR software ecosystem, streamlining the transition from candidate to employee and providing a robust end to end audit trail.
By securely transferring data to your HRIS or payroll platform during the onboarding process, you apply the same high level of data security. This eliminates duplication and/or manual errors, which is essential for legal and financial accuracy.
A fully configurable ATS can also support future compliance by automating critical alerts for expiring documents, such as DBS certification (essential for those working with vulnerable individuals and young people).
This holistic approach to data security and compliance also helps grow and strengthen your employer brand – demonstrating a proactive commitment to data protection standards.
Why Reach ATS is Essential for Hiring Compliance
Today’s evolving regulatory environment requires so much more than manual processes and fragmented systems. Using a specialist ATS like Reach ATS, one that can be flexed and configured to fit your hiring and compliance needs, can significantly reduce the time HR teams spend on data security, compliance and auditing.
Automating data storage and retention, centralising consent management and documentation and comprehensive audit trails provide peace of mind not just to your hiring team, but also to candidates.
By making compliance simple, and a core part of your hiring process, you safeguard your organisation from legal and reputational risks while building trust with every candidate. If you’d like to know more about our IS027001 certified hiring software, then Reach out and book a demo today.