How to build a business case for a new ATS

A strong business case begins with company priorities, not just your HR metrics.

Before you mention time to fill or recruiter productivity, you need to connect talent acquisition to outcomes your leadership team already cares about: growth, efficiency, and risk reduction.

When you position the ATS project as an enabler of business goals, you move it from a “nice to have” to a strategic investment.

How to make the connection

Think of this in four parts:

1. Define the company’s business goals.
   Examples include entering new markets, improving productivity, reducing costs, or strengthening compliance readiness.
2. Describe how talent acquisition supports each goal.
   For example:
   • Growth depends on filling revenue-generating roles faster.
   • Efficiency depends on reducing manual hiring work and improving collaboration.
   • Compliance depends on consistent processes and accurate data.
3. Identify the TA problems that block progress.
   • Growth is slowed by long hiring cycles and weak candidate pipelines.
   • Efficiency is limited by manual tasks and disconnected tools.
   • Compliance risk increases when data sits in multiple systems.
4. Show how a modern ATS removes those blockers.
   • Automating manual steps creates capacity and speeds up hiring.
   • Centralized data and reporting improve visibility for Finance and HR.
   • Built-in compliance workflows reduce errors and audit exposure.

Sample framework

You can use this simple table to structure your thinking. We’ve included some common examples for additional context, but make sure to align on your company’s business goals before filling this in.

Adjusting for your situation
The above framework will change slightly depending on where you are starting:

• If you are buying your first ATS, focus on building structure and visibility.
  If you are replacing a legacy ATS, emphasize efficiency, scalability, and data accuracy.
• If you are moving away from an HRIS add-on, highlight the need for depth in recruiting features and stronger candidate experiences.

Use this framework to link talent acquisition outcomes directly to measurable business impact. This connection is the foundation of every effective ATS business case, now and in the future. 

Once you’ve linked your ATS project to company goals, it’s time to look at where things stand today. 

Every strong business case starts with a clear picture of the current state. It gives your argument context and shows that your recommendations are based on evidence rather than assumptions.

Start by gathering the numbers that reflect how your hiring process performs right now. 

💡If you can’t find exact figures for each one, thoughtful estimates are okay.

Make sure to review recent hiring data, check finance records for external recruiter spend, or talk with hiring managers about how much time they spend on approvals and interviews. 

The goal is to build a snapshot that feels credible to leadership. Your numbers don’t have to be perfect, but they do need to be realistic and easy to explain. 

Some of the most useful baseline metrics include:

• Cost per hire
• Time to fill
• Time to hire
• Recruitment marketing spend
• Recruiter productivity (hires per recruiter)
• Candidate satisfaction or Net Promoter Score
• Turnover rate in the first year
• Percentage of non-starters
• Time to compliance or onboarding completion

As you collect these insights, note where the data is strong and where it’s incomplete. You might not have 100% of the data, so transparency about gaps will build trust and make your case easier to defend later.

Once you know what’s working and what’s not, you can start identifying the barriers that limit performance and show how a stronger ATS can remove them.

So, you’ve pulled together the data on your current performance; now it’s time to look at what is getting in the way of improvement. 

Every organization has barriers that make hiring slower, more expensive, or less effective. 

You need to name those barriers clearly to help others see why change is necessary, especially senior leadership.

Common challenges include:

• Manual processes that take time away from higher-value work
• Disconnected systems that make it hard to see the full picture
• Limited automation that prevents efficiency and consistency
• Weak data visibility that stops you from measuring progress
• Compliance risks caused by inconsistent record keeping
• Poor candidate experience that damages your brand and reduces offer acceptance

Each of these issues has a direct business impact. You can use a table like the one below to make that link clear. We’ve included some examples to get you started, but make sure to include your own.

When you connect each barrier to a business consequence, it becomes easier for decision-makers to understand the real cost of the current setup.

The cost of doing nothing

Legacy systems, manual work, and fragmented data carry a financial and operational price. Highlighting these costs helps stakeholders see that maintaining the current system is not neutral. The longer inefficiencies remain, the more they limit the organization’s ability to meet its goals.

By showing these impacts clearly, you help others see that an improved ATS is not simply a system upgrade but a solution to real business challenges.

After identifying what is holding your team back, describe what success should look like. 

This is where your business case starts to take shape. The goal is to define a clear and measurable picture of improvement that connects to company priorities.

Start by outlining the outcomes you want to achieve. You can group them into two main categories:

• Hard ROI: measurable gains in cost or time
• Soft ROI: broader improvements in quality, brand, and compliance

Examples of hard ROI outcomes:

• Reduce time to fill by a specific percentage or number of days
• Lower cost per hire through process automation or reduced external spend
• Increase hires per recruiter without adding headcount
• Consolidate multiple tools into one platform to reduce software costs

Examples of soft ROI outcomes:

• Improve quality of hire through better candidate screening and collaboration
• Strengthen employer brand with a consistent, engaging candidate experience
• Reduce compliance risk with automated tracking and audit-ready workflows
• Improve visibility for leadership through centralized data and reporting

When describing each goal, be specific about what will change and how you’ll measure success. For example:

“Reduce average time to fill from 45 to 30 days by streamlining approvals and automating interview scheduling.”

If you’re unsure where to start, look at your current numbers and aim for improvements that feel achievable rather than dramatic. Focus on changes you can clearly link to new workflows, better visibility, or reduced manual work. 

Even small, steady improvements can make a strong business case when they tie directly to business goals.

Once you’ve defined what success looks like, you need to turn it into numbers. This step gives your business case weight. It will show that your plan is both practical and financially sound.

Start by mapping the main areas of spend in your current setup and the likely costs of a new system. 

Think about software licenses, implementation fees, internal time spent managing tools, and the external recruiter or advertising costs that add up every year. This becomes your total cost of ownership, or TCO.

Then, look at where a modern ATS can deliver measurable benefits. Automated workflows reduce recruiter and hiring manager time spent on administration, while smarter job marketing tools can cut reliance on agencies. 

A single, integrated platform often replaces several disconnected systems, which lowers subscription and maintenance costs.

You can use a table like the one below to visualize where your organization stands today and what could change.

When you have a solid estimate, make sure to summarize your findings clearly. Include total expected savings, estimated payback period, and any additional benefits that cannot be measured in dollars but still carry business value, such as improved brand reputation or reduced turnover.

To put it simply, you need people outside of your department on your side. Securing buy-in early will make the approval process faster and build trust across teams.

So, who’s going to be involved in the decision? Each function views an ATS differently, so knowing who you need to appeal to is the best place to start. 

Involve those chosen teams or individuals early and share what you’ve already uncovered, including the current challenges, desired outcomes, and expected impact. 

Ask for their input and address concerns as they arise. When people help shape the case, they are more likely to support it.

You can always tailor your message to what matters most to each group. 

For example:

• Finance values ROI and predictable costs.
• IT wants assurance on security, integration, and vendor stability.
• HR looks for easier processes and stronger candidate experiences.
• Marketing values brand consistency and analytics.
• Legal and compliance focus on data accuracy and audit readiness.
• Leadership wants confidence that the investment drives business performance.

Bringing these perspectives together creates a stronger, more balanced case. It shows that your proposal reflects shared priorities and has been designed with the whole organization in mind.

The best way to build confidence in your business case is to prepare for the conversations that will challenge it. Focus on understanding what matters most to each stakeholder and anticipate where they may need reassurance or more detail.

Review your proposal through their perspective, and use the section above to help outline the main focus of each team: Finance may question return on investment or payback time. IT might focus on data security or integration complexity. HR will want to know how the change will affect adoption. 

Then, for each potential concern, write down a short, evidence-based response. Use your ROI model, implementation plan, or case studies to support your answers, and make sure to always keep your explanations brief and fact-driven.

Remember the cost of doing nothing? This is another great time to raise it, as you’ll likely get questions around timing or the necessity of change. Showing that inaction has its own cost will help maintain momentum and reinforce the urgency for improvement.

Once you have gathered your data and stakeholder input, it’s time to bring everything together into a clear, balanced recommendation. 

A transparent comparison of vendors will help decision-makers see why your preferred option delivers the most value.

Use a simple scoring model to evaluate each solution against consistent criteria. This shows that your decision is based on measurable factors rather than personal preference.

Common evaluation criteria include:

• Functionality and depth of features
• Scalability and long-term flexibility
• Security and compliance certifications, such as ISO 42001 or SOC 2
• Integration with existing HR and IT systems
• Quality of customer support and service
• Cost predictability and contract terms
  

Assign a score to each category using a clear scale, such as 1 to 5 or low, medium, and high. Add short notes to explain how each score was reached.

Including a table like this makes it easier for leadership to understand your evaluation and builds confidence in your recommendation. 

You can then end this section with a brief summary of why your chosen vendor best meets business goals and provides the right balance of capability, reliability, and value.

💡Looking for a more detailed comparison of potential systems? We’ve got an RFP guide waiting for you.

With all the work complete, the final step is to organize your findings into a clear, professional business case that makes it easy for the leadership team to assess and approve.

We’ve already created a template for you to get started. We’ve used this guide to structure the document, so we’ve laid it out as follows:

1. Executive summary: A concise overview of the case, key goals, and main recommendations
2. Defined problem: A summary of the challenges in the current process and their business impact
3. Baseline metrics: The data that shows where you are starting from
4. Target outcomes: The measurable goals you plan to achieve
5. ROI and payback analysis: A clear outline of the financial logic and expected return
6. Risk assessment: Potential risks and how you plan to manage them
7. Stakeholder alignment plan: A record of who has been involved and where support has been secured
8. Vendor evaluation summary: The results of your transparent comparison and the final recommendation
9. Final recommendation: A short summary reiterating your choice and the findings

If you’re designing your own, make sure to keep the layout simple and use visuals, tables, and short summaries to make the document easy to scan. 

Each section should be supported by facts, not opinions, and clearly linked to business goals.

Before finalizing, make sure you review the document with a small group of key stakeholders to confirm accuracy and alignment.

And remember, don’t be too worried about criticism! Any negative feedback will be invaluable in refining the details and strengthening confidence before you present it more widely. 

Learning how to build a strong business case is one of the most valuable skills a talent leader can develop. The same approach that helps you justify an ATS investment will strengthen every future proposal you make.

You’ve gathered the right information, clarified what needs to change, and outlined the impact a new ATS can have. With this work in place, you have what you need to shape a business case that’s clear and easy for others to understand. 

Now you’ve done the research, it’s time to put this all into practice. If you’re ready to pull everything together, the Business Case Template will help you turn your plan into a complete proposal that’s ready to share