
Not always. If each opening gets a few dozen applicants and one person runs hiring, a spreadsheet, a shared inbox and email templates can work. You need an applicant tracking system, or a tool that includes one, when openings pull in hundreds of applicants, when several people review candidates, or when you need a clean record of who applied and why they were turned down. Applicants per opening matter more than hires per year.
"We only hire about 10 people a year" is the most common reason small companies give for not buying an applicant tracking system (ATS). It sounds like a volume question, but 10 hires can mean very different workloads:
The first fits in a spreadsheet. The second does not, no matter how organized you are. So start by counting applicants per opening for your last few roles, not hires.
A spreadsheet works when all of these are true:
These thresholds are rules of thumb, not standards. The test is simple: if you have never lost an applicant, never forgotten to reply, and never had to dig through email to explain a decision, you don't have an ATS problem yet.
Two or more of these and the spreadsheet is costing you more than a tool would.
No federal law requires an ATS. What the law does require is records. The EEOC's rules say covered employers must keep personnel and employment records, which include application forms and other hiring records, for one year, and longer if a charge of discrimination is filed, until it is resolved (EEOC recordkeeping requirements). Most federal anti-discrimination laws cover employers with 15 or more employees.
A spreadsheet can meet that if it is kept carefully. In practice, the weak point is not the spreadsheet but everything around it: resumes deleted from an inbox, interview notes on paper, decisions made in a chat. An ATS keeps the application, the notes and the decision together, with dates.
If you use AI anywhere in the process, records matter even more. Some states and cities now expect you to tell candidates about AI and to be able to explain a decision. See AI interview laws for small businesses.
Published prices for small-business tools, checked in October 2026 (see each comparison page for sources and limits):
For one person, that is anywhere from nothing on a free tier to about $3,600 a year in software. The bigger cost is usually your time: setting up job templates and email templates, connecting job boards, and learning a new tool. Budget a day.
Here is what most ATS buying guides skip. An ATS stores and organizes applications. It does not read them for you. If your openings get 300 applicants, tracking is the easy part; reading, scoring and phone-screening those 300 people is the week you lose.
So ask a different question: not "do I need an ATS?" but "what takes my time in hiring?" If the answer is losing track of people, you need tracking. If the answer is reading and screening, you need screening, and ideally a first interview that runs without you. We walk through that workflow in how to screen 300 applicants as the only HR person.
One row per applicant, and these columns at minimum:
Add three email templates (received, not moving forward, next steps) and reply to every applicant within a week.
HRBlade is a screening tool with an ATS built in, priced for a company with one HR person. The AI screens every applicant, runs the first interview by video, phone or chat, and hands you the top five with quotes from their answers; a person makes the decision. If you hire 10 people a year with a handful of applicants each, a spreadsheet may honestly be enough. If those 10 openings bring in thousands of applicants, the small business page shows how the screening side works.
Sign up free and explore with sample candidates; add a card to go live; the first charge comes after 24 hours, and you can cancel anytime. The Small Business plan is $99 a month, or $79 a month billed annually (see pricing).
If you need more capacity in a busy month, top-ups work on any plan: +100 AI interviews for $39, +1,000 resume screens for $19, +100 voice minutes for $49.
Yes. No federal law requires an ATS, but covered employers must keep hiring records, including applications, for at least one year under EEOC rules, and longer if a discrimination charge is filed.
Published prices checked in October 2026 range from a free edition (Zoho Recruit) and about $15 per user per month (Manatal) to about $75 to $299 a month for JazzHR, Breezy HR and Workable, depending on plan and company size.
An ATS stores and organizes applications and moves candidates through stages. AI screening reads and scores the applications, and some tools also run the first interview, which is where most of the time goes when volume is high.
When openings regularly get more than about 50 applicants, when more than one person reviews candidates, or when you can no longer explain past decisions from your records. These are rules of thumb, not legal thresholds.
Several vendors offer free tiers or trials, for example Breezy HR's limited free tier and Zoho Recruit's free edition. With HRBlade you can sign up free and explore with sample candidates; going live with real applicants needs a card, with the first charge after 24 hours.


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