The Udder Blog

What is ATS underutilisation actually costing you? Most teams don't know

Written by Oriana Manda | Jun 8, 2026 9:34:28 AM

The contract signing felt like a turning point. Real budget, a vendor who seemed to get it, a demo that showed exactly what good looked like. Someone put a roadmap in a slide deck. Someone else used the word "transformation."

That was 18 months ago. The system is live. You're still running a separate spreadsheet to track headcount.

The story is what happens between the go-live and the point where the system is actually doing what you paid for, and what that gap costs every month it stays open.

The implementation almost always shrinks

By go-live, most HR system projects are operating at a fraction of their original scope. Integrations get descoped. Workflows get simplified. Configuration decisions get made under time pressure by people who won't be around to live with them.

The vendor calls it phased delivery. The team calls it shipping something. Both framings are reasonable. But the phase-two items stay in a backlog, and nobody comes back 6 months later to calculate the cost of leaving them there.

60% of companies use their HR technology primarily for daily transactional operations rather than the strategic functions they purchased it for. That's 6 in 10 organisations paying for full capability and using a fraction of it.

The workaround becomes the process

Drift starts quietly. A manual step gets added because the system configuration doesn't quite match how the team works. A spreadsheet starts tracking something the system was supposed to track. A Notion doc becomes the onboarding reference because the system's version is out of date.

None of it feels expensive when it starts. It feels like pragmatism.

And then it becomes the process. The workaround gets embedded. The manual step shows up in someone's job description. New starters get trained on the spreadsheet because it's the thing that actually works. The system runs in the background, but the operating model has quietly moved around it.

Where the cost actually shows up

Implementation drift scatters the cost across four categories that rarely get added up at the same time.

Time. The hours spent doing manually what the system should be doing automatically: data entry, reconciliation, chasing approvals that should be triggered, building reports that should run on a schedule. These hours are distributed across many people's days, which is exactly why nobody totals them. A review of a typical mid-market TA team will surface hours and hours of recoverable manual work per week from process gaps alone.

Process efficiency. The steps that take longer than they should because the system creates friction rather than removing it. Onboarding with 12 manual touchpoints. Interview scheduling that relies on someone's memory. Approval workflows bypassed by email because the system's version is slower. Every one of those steps has a cost attached to it, even if nobody's calculated it.

Data trust. The moment a manager asks for a spreadsheet because they don't trust the system's output, the system has stopped functioning as a decision tool. The CPO who asks the team to validate headcount before presenting to the board. The hiring plan built on gut feel because the reporting isn't reliable enough to build on data. When trust erodes, the system becomes a record-keeping obligation.

Missed decisions. The hardest to quantify and usually the most significant. The workforce planning conversation that didn't happen because the data wasn't there. The retention risk that wasn't flagged because the system wasn't configured to surface it. The time-to-fill problem that ran for two quarters because nobody could see it clearly enough to act on it. These are real costs with real numbers attached. They just never get attributed to the system gap that caused them.

The gap compounds because nobody's measuring it

The practical problem with implementation drift is that it's self-concealing. The workarounds normalise. Data quality issues become the assumed baseline. Teams stop expecting the system to do things it was never properly configured to do.

Most HR teams have been living with the gap long enough that they can't clearly see it anymore. The gut feel is there — something's off — but the cost stays invisible because nobody's ever totalled it up.

There's definitely a gap. The only real question is whether you know how big it is.

We write weekly on getting more from the HR or TA technology you already have. If this landed, you'll want the rest.