Candidate Tracking Systems vs Spreadsheets: Which Is Better for Hiring

When managing recruitment, the tools you use can significantly impact the efficiency and success of your hiring process. The question often boils down to this: Are spreadsheets enough, or is it time to invest in a candidate tracking system?

Let’s break it down to help you make an informed decision: Candidate Tracking Systems vs Spreadsheets.

A research study found that nearly 88% of spreadsheets contain errors, which makes using spreadsheets for hiring risky, especially when tracking candidates, interview feedback, and compliance data. This is one of the key reasons why the debate around Candidate Tracking Systems vs Spreadsheets has become increasingly relevant for modern recruitment teams.

Candidate Tracking Systems vs Spreadsheets: Key Differences

Spreadsheets: The Traditional Choice

Spreadsheets have long been a go-to option for small-scale recruitment. They’re familiar, accessible, and customizable. Tools like Excel or Google Sheets offer flexibility for organizing candidate information, especially when hiring volumes are low.

How Spreadsheets Work in Recruitment

In a typical setup, recruiters create a spreadsheet with columns such as candidate name, role applied for, interview stage, recruiter notes, and final status. Each update, whether it’s interview feedback or status changes, must be entered manually.

For example, a small retail chain hiring 10–15 store associates might rely on a shared Google Sheet to track applicants received via email or walk-ins. While this works initially, problems start once hiring volumes increase or multiple recruiters access the same file.

Advantages of Spreadsheets

• Cost-effective: For early-stage startups or local businesses, spreadsheets feel like a no-brainer. A small marketing agency hiring its first two interns can track candidates in Excel without spending anything extra. There’s no approval process, no contracts, and no monthly subscriptions, just open a file and start hiring.

• Customizable: Recruiters can instantly add columns for specific needs, portfolio links, referral source, or interviewer comments. For example, a boutique design studio may add a column for “Creative Test Score” or “Client Feedback,” tailoring the sheet exactly to its hiring style.

• Easy to use: Most teams already know how spreadsheets work. There’s no onboarding or training required. A hiring manager can jump in, scan rows, and understand candidate status in minutes, making spreadsheets appealing for quick, informal hiring needs.

• Quick fixes and flexibility: If a hiring process changes mid-way, recruiters can immediately adjust the sheet. There’s no dependency on system rules or workflows, which gives teams short-term flexibility.

Challenges with Spreadsheets

• Manual updates slow everything down: Imagine a recruiter managing 150 candidates for a sales role. Every resume update, interview note, and status change has to be entered manually. Miss one update, and a qualified candidate might never get a callback.

• High risk of human error: In one common scenario, two recruiters edit the same sheet simultaneously, one updates interview feedback while the other changes candidate status. The result? Overwritten data and lost information directly affect hiring decisions.

• Poor scalability: What works for 10 candidates breaks down at 100. A logistics company hiring warehouse staff across multiple locations may end up with dozens of tabs and versions, making it nearly impossible to track progress accurately.

• Limited collaboration and visibility: Hiring managers often struggle to understand where candidates stand. There’s no clear recruitment funnel, no alerts, and no accountability—leading many teams to reconsider Candidate Tracking Systems vs Spreadsheets once hiring pressure increases.

Candidate Tracking Systems: The Modern Solution

Candidate Tracking Systems (CTS), usually part of a broader Applicant Tracking System (ATS), are purpose-built tools designed to manage recruitment at scale. They centralize candidate data, automate workflows, and bring structure to the hiring process.

How a Candidate Tracking System Works

A CTS collects applications directly from job portals, career pages, or referrals and automatically organizes them into predefined stages like screening, automated interview, and offer. Recruiters can move candidates through the pipeline with a click, while the system records every action.

For example, a BPO company hiring 300 customer support executives per month uses a candidate tracking system to auto-screen resumes, assign interviewers, and track drop-offs. This eliminates dependency on manual tracking and ensures no candidate slips through the cracks, highlighting the clear difference in Candidate Tracking Systems vs Spreadsheets.

Advantages of Candidate Tracking Systems

• Automation saves time at scale: A candidate tracking system automatically parses resumes, updates candidate stages, and sends interview reminders. For example, a fast-growing tech firm hiring 50 engineers quarterly can reduce recruiter workload by automating repetitive tasks—freeing time for candidate engagement.

• Consistent and accurate data: Since candidates move through predefined stages, there’s no confusion about who’s shortlisted, interviewed, or rejected. This structured approach significantly reduces errors that commonly occur in spreadsheets.

• Designed for high-volume hiring: Whether it’s campus hiring or mass recruitment, CTS platforms can handle thousands of applications without slowing down. A BPO hiring in bulk can track drop-offs, interview no-shows, and offer acceptance rates in real time.

• Better collaboration across teams: Recruiters, hiring managers, and HR leaders can all access the same system without version conflicts. Comments, ratings, and feedback stay attached to the candidate profile, improving decision-making and transparency.

• Actionable insights and reporting: Unlike spreadsheets, CTS platforms show where candidates drop off, how long each stage takes, and which sources perform best, making the comparison of Candidate Tracking Systems vs Spreadsheets heavily favor data-driven hiring.

Challenges with Candidate Tracking Systems

• Initial cost concerns: For very small businesses, paying for a CTS may feel unnecessary. A company hiring once or twice a year might hesitate to invest in software when spreadsheets appear “good enough.”

• Learning curve for teams: Recruiters used to spreadsheets may need time to adapt. Without proper onboarding, teams might only use basic features and miss out on automation benefits.

• Set up and process alignment: A CTS works best when hiring workflows are clearly defined. Organizations with ad-hoc or inconsistent hiring processes may initially struggle to configure stages effectively.

• Overkill for low-volume hiring: If hiring is occasional and informal, a full-fledged recruitment software may feel excessive, reinforcing why Candidate Tracking Systems vs Spreadsheets depends heavily on hiring scale and maturity.

Candidate Tracking Systems vs Spreadsheets: Comparing Key Features

Candidate Tracking Systems vs Spreadsheets: Which is Better?

The answer depends on your recruitment needs:

• Small-scale recruitment: If you’re managing a handful of candidates, spreadsheets might suffice. They’re simple, free, and familiar.
• High-volume hiring: For larger organizations or recruitment agencies, a candidate tracking system or a full-fledged recruitment software like Hirium is essential. The automation, scalability, and collaboration tools save time and improve accuracy

How to Move from Spreadsheets to a Candidate Tracking System

Moving away from spreadsheets can feel overwhelming, especially for teams that have relied on them for years. However, understanding Candidate Tracking Systems vs Spreadsheets makes it clear that a structured transition can significantly improve hiring efficiency:

Assess Your Recruitment Needs and Current Pain Points

Start by identifying where spreadsheets slow down your hiring process. Missed follow-ups, unclear candidate stages, and manual data updates are common issues. Understanding these gaps helps clarify why the shift from Candidate Tracking Systems vs Spreadsheets matters for efficiency and accuracy.

Define a Realistic Budget and ROI Expectations

Set a budget that includes both setup and recurring costs. While spreadsheets seem inexpensive, they often lead to hidden costs such as delayed hiring and recruiter time. Evaluating return on investment helps justify the transition highlighted in Candidate Tracking Systems vs Spreadsheets.

Choose a Platform That Fits Your Hiring Workflow

Select a system that aligns with your hiring volume and future growth. Prioritize features like automation, reporting, and integrations with job portals. A user-friendly platform ensures faster adoption and long-term usability.

Prepare and Train Your Hiring Team

Introduce the system through structured training sessions. Ensure recruiters and hiring managers understand daily workflows within the platform. Proper training reduces resistance and prevents teams from reverting to spreadsheets.

Migrate Data Carefully for Continuity

Clean existing spreadsheet data before migration by removing duplicates and outdated entries. Import accurate candidate records into the system to maintain hiring history. A smooth data transfer ensures business continuity and reinforces the value of Candidate Tracking Systems vs Spreadsheets.

Conclusion: Candidate Tracking Systems vs Spreadsheets

Choosing between spreadsheets and candidate tracking systems comes down to scale, budget, and long-term recruitment goals. Spreadsheets may work for smaller operations, but they often fall short as hiring volumes increase. Candidate Tracking Systems vs Spreadsheets is an important decision point for teams looking to reduce manual effort, improve accuracy, and create a better candidate experience.

Moving to a candidate tracking system is a strategic shift that requires evaluation and readiness. If you are exploring this transition, a free trial can help you understand whether the switch makes sense for your business. You can try Hirium’s free trial to assess how automation fits into your recruitment process and decide if this change aligns with your hiring needs.

FAQs

1. Can small businesses afford a Candidate Tracking System?

Yes, there are budget-friendly options and subscription-based systems designed for small businesses.

2. Are spreadsheets secure for candidate information?

Not entirely. Without proper encryption, spreadsheets are vulnerable to breaches.

3. Can I integrate a Candidate Tracking System with other tools?

Yes, most systems integrate with email, job boards, and HR tools to streamline processes.

4. How much time can a Candidate Tracking System save?

It can reduce time spent on manual tasks by up to 50%, depending on the volume of hiring.

5. Candidate Tracking Systems vs Spreadsheets: Which is better for growing hiring needs?