Why building your own ATS is a bad idea (and what the best agencies do instead)
Chris Allen
Nov 9, 2025
TL;DR
Building your own ATS might seem cost-effective, but small agencies lose $12K–$50K in billable hours and surprise maintenance costs.
68% of agencies using homegrown systems face security issues within the first year.
63% of DIY ATS solutions become outdated within 18 months due to limited development resources.
Agencies using an ATS with automated interview scheduling save time, cutting scheduling by 65% and reducing candidate drop-off by 42%.
Those using commercial ATS platforms see a 56% boost in hiring manager satisfaction within just six months of implementation.
The hidden costs of building your own ATS
Let’s be honest: when you’re running a small recruiting agency or working solo, every dollar and every hour matters.
So, it’s no surprise that some recruiters consider building their own applicant tracking system (ATS) to save on subscription fees and gain full control. On paper, it sounds smart — your own custom tool, built exactly the way you want it.
But here’s the catch: the hidden costs of building and maintaining a DIY ATS often snowball far beyond what anyone expects.
The average homegrown ATS costs between $15,000 and $50,000 to develop. That’s before you even consider the 3–6 months of developer time it takes, AND the lost billable hours.
For small agencies, those lost hours can mean $12,000–$25,000 in missed revenue.
One solo recruiter I spoke with learned this the hard way: after spending six months and $15,000 building his “dream ATS,” he ended up with a glitchy system that caused more frustration than freedom. In the end, he scrapped it and joined Happlicant instead, paying a fraction of the cost and even getting many of his feature requests added by their team.
Then there’s the maintenance headache.
Small agencies spend 27% of their annual tech budget patching and maintaining homemade systems — more than triple what commercial ATS users spend.
Solo recruiters lose nearly 10 hours a week fixing bugs, updating features, or Googling security patches, compared to just 2 hours for users of ready-made tools. That’s valuable time that could’ve gone into sourcing candidates or closing clients.
And let’s not forget security.
68% of small agencies with DIY ATS solutions experience security issues in their first year, versus just 12% of those using commercial platforms.
One small agency I worked with learned this painfully when their outdated security framework led to a data breach. The result? Damaged client trust, lost business, and a painful lesson in why cybersecurity is best left to professionals.
Building your own ATS may feel empowering at first, but in practice, it often becomes a costly detour — one that pulls you away from what you actually do best: recruiting.
The pitfalls of limited functionality in homegrown ATS
Another big drawback of DIY ATS systems is the lack of features that modern recruiters simply can’t live without. Missing functionality might not sound like a dealbreaker at first, but over time, it quietly chips away at productivity and results.
Only 29% of homegrown ATS include built-in compliance tools for regulations like EEO-1, OFCCP, or GDPR. That means most recruiters using a DIY setup are stuck doing tedious manual checks, or worse: risking compliance mistakes that could lead to legal trouble.
Commercial ATS platforms, on the other hand, have moved far ahead.
Commercial systems now include AI-powered resume parsing, compared to just 12% of DIY systems. That’s a massive gap.
With advanced parsing, recruiters can instantly surface top candidates instead of sifting through piles of resumes by hand.
Integration is another major pain point.
Recruiters using commercial ATS tools enjoy 43% higher candidate engagement rates, largely thanks to built-in communication features like automated emails, text messaging, and calendar syncing.
Unfortunately, 76% of homegrown systems don’t offer these integrations, leaving recruiters to juggle multiple tabs and copy data between tools manually.
One recruiter told me she spent nearly five hours a week just moving candidate data between her homemade ATS, CRM, and email system. “It felt like my entire job was copy-paste,” she said. That kind of frustration is common, and it’s exactly what modern ATS platforms are designed to eliminate.
The burden of constant updates and maintenance
Staying current with industry standards is an uphill battle for anyone running a homegrown ATS.
63% of DIY systems become outdated within just 18 months because there’s no dedicated team to maintain and update them. Happlicant’s own research echoes this, showing that 72% of recruiters using self-built systems struggle to keep up with shifting compliance rules and tech updates.
The time drain doesn’t stop there.
72% of solo recruiters relying on spreadsheet-style systems work 11 or more extra hours each week just managing candidate data.
One recruiter told me maintaining her cobbled-together setup “felt like a second job,” pulling valuable time away from work that actually brings in revenue.
The advantages of purpose-built ATS for small agencies
Modern applicant tracking systems (ATS) are designed to give recruiters the best of both worlds (flexibility and ease) without the need to write a single line of code.
92% of ATS platforms now include no-code workflow builders, empowering small agencies to tweak and customize processes on their own. That means you can adapt your hiring workflows, set up automations, or change approval steps, all without waiting on an IT team or expensive developers.
In fact, agencies using configurable ATS tools cut their process adaptation time from three weeks to just two days when business needs shift.
Purpose-built ATS platforms also come packed with smart, recruiter-friendly features.
Systems with automated interview scheduling slash scheduling time by 65% and reduce candidate drop-off rates by 42% — a massive improvement in efficiency and candidate experience.
Agencies using ATS platforms with built-in candidate relationship management (CRM) tools see 3.2 times more repeat placements from their existing talent pools. That’s not just convenience, it’s measurable business growth.
Another huge win is integration.
Modern ATS platforms are built to play nicely with your existing tech stack: from CRMs and job boards to email and payroll software.
Agencies using integrated systems spend 38% less time on manual data entry and 29% less on troubleshooting across platforms.
Happlicant’s own data backs this up: agencies with fully integrated ATS setups experience a decrease of 32% on time-to-hire than those using a patchwork of disconnected tools.
In short, modern ATS platforms like Happlicant make it faster, smarter, and a whole lot less stressful.
Achieving recruitment success with the right ATS
When you stop spending time managing tech and start focusing on what truly drives your business, the results speak for themselves.
Agencies using commercial ATS platforms cut time-to-hire by 30% and cost-per-hire by 22% within their first year. That’s real, measurable progress that translates directly into more placements and happier clients.
Agencies adopting purpose-built ATS solutions saw a 56% boost in hiring manager satisfaction in just six months — proof that streamlined systems make everyone’s job easier.
One solo recruiter told me that switching to Happlicant was a game changer.
Instead of troubleshooting tech issues or updating spreadsheets, they could finally focus on building stronger client relationships and placing more candidates. “It felt like I got my business back,” they said, a sentiment that’s becoming increasingly common among small agencies embracing smarter tools.
The takeaway? Leveraging proven, configurable ATS solutions is one of the simplest ways to scale efficiently. The majority of top-performing small agencies rely on configurable platforms, not custom-coded systems.
Ultimately, investing in the right ATS partner is an investment in your agency’s future.
A reliable provider with a strong track record, consistent product innovation, and responsive support can help your team grow and adapt to changing market demands. When you choose a platform that evolves with you, you’re setting your agency up for long-term success.
Get access to the fastest-growing agency & independent recruiter software. CRM, ATS and much more to run and grow your business more efficiently.
The bottom line: Avoid the DIY ATS trap
By skipping the headaches of building your own ATS and choosing a purpose-built solution instead, you free yourself to focus on what really matters: connecting great people with great opportunities.
The truth is, managing technology shouldn’t be your full-time job. A well-designed ATS made for small agencies gives you all the tools you need (from automated workflows and compliance support to seamless integrations) without the stress of maintenance or bugs.
When you have the right platform working behind the scenes, you can spend more time building relationships, closing placements, and growing your business.
A reliable, feature-rich ATS tailored to your agency’s needs amplifies your impact. So, embrace the technology that’s built to support you, and watch your recruitment success reach new heights.
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