ATS vs. CRM

ATS vs. CRM_ Key Differences and Why Both Are Essential for Talent Acquisition

Published: October 22, 2024
Updated Date : December 18, 2024

Did you know most of the talented people we want to hire aren’t even job hunting? Seriously, about 70% of the workforce are what we call passive candidates. That’s why

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Editorial Team

Outrightcrm.com

Did you know most of the talented people we want to hire aren’t even job hunting? Seriously, about 70% of the workforce are what we call passive candidates. That’s why finding and hiring them is getting tougher. The recruiting methods we used a few years back? Yeah, they just don’t work anymore. So, what now?


I’m sure you’ve seen tons of recruiting tools out there. It’s overwhelming, right? With so many choices, it’s hard to know which one’s the right fit. A lot of companies stick with either an ATS for recruiting or a CRM, thinking they have to pick one. But here’s the thing - you don’t. You can actually have both. And honestly, you should.


Today, I’ll show you why using a combo of these talent relationship management tools is more important than ever, and how it can make your life a whole lot easier.


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What is ATS for recruiting?


Want an ATS explained? Tons of definitions have been written about it, but we will write one more. So, ATS (Applicant Tracking System) in simple words is a software whose functions are aimed at attracting candidates and automating the hiring process. Now, not recruiters, but the ATS platform writes job descriptions, then looks for where to post them and places them, then receives applications from candidates and selects the best for your organization. With ATS, workflow becomes smoother and more streamlined because all recruiting tasks are now under one roof. Best of all, the risk of a recruiter making a mistake or overlooking a rock star programmer is reduced, if not eliminated. One more thing you should know about ATS. 

In addition to its direct purpose of making recruiters' work faster and more efficient, ATS for recruiting also helps improve the employee experience. Using tools like employee recognition software alongside ATS can further enhance this experience by acknowledging employee contributions and fostering a positive workplace culture. How is this related? The fact is that ATS makes the hiring process and communication with candidates smooth and transparent, and this attitude increases the chances that talented employees will accept your offer. Delivering a great employee experience from the start is not just an empty phrase. It builds trust and increases retention and engagement. And don't forget: disengaged employees cost companies $3,400 for every $10,000 in salary. That's why keeping new hires motivated and engaged is key not only to their personal satisfaction, but also to your organization's success.


What is CRM system for recruitment?


Recruitment CRM (Candidate Relationship Management) is a holistic software that helps everyone involved in recruitment to build and nurture relationships with potential candidates. The main job of a CRM system for recruitment purposes is to keep track of all touch points with candidates and guide them through the entire journey from getting to know them to hiring them. Even if it takes years. 


Another plus of CRM systems used for recruiting, especially if they are supplemented with specialized CRM extensions, is that they build a base of both talented applicants and passive candidates. That's a good headstart for the future. Consider this: Your company's recruiters desperately need to hire great talent. But now they don't have to spend time building a database of potential candidates because, thanks to CRM, they already have it. Time saving? Sure. 


ATS vs. CRM: What's the difference?


The differences between ATS and CRM should be considered in several ways:

  • The focus
  • Use cases 
  • Key features

Let's go through each of these points. 


ATS vs CRM: Focus


Let's take a look at the ATS. It focuses on managing active candidates, i.e. working with those who have applied. This system handles everything related to organizing applications, tracking the candidate's path from stage to stage, communicating with candidates, and scheduling interviews. 


The primary function of a recruiting ATS is to engage current, or active, candidates by providing timely feedback, updates, and a smooth hiring process.


ATS Focus: Simplify and automate the recruiting process to make hiring faster and more efficient.

Now let's move on to CRM. This system focuses on dealing with potential, even passive, candidates, often those who have never applied but are of interest to the company as a candidate.


CRM is used to send personalized messages to unengaged candidates, as well as to create and maintain their interest in your company. 


The primary goal is to engage potential candidates by creating personalized and consistent touch points. Integration with CRM is essential to building an engaging culture within your team.


CRM Focus: Build a long-term talent pool and maintain good relations with all candidates, especially passive ones.


ATS vs CRM: Use cases


The ATS goes into action as soon as a candidate applies. It follows him or her all the way from application to hire. With an integrated ATS, you can quickly find out where a candidate is at (resume evaluated, interview scheduled, offer sent, etc.) so you can properly track their next steps.


CRM is most often used to communicate with potential candidates even before they apply. That is, this software works for the future, constantly forming a pool of candidates. First of all, CRM is a database of contacts of potentially interesting people (you may have met them at a conference) to offer them cooperation in the future. 


ATS vs CRM: Key features 

ATSCRM
Job posting managementCreating and managing a talent database
Screening and organizing resumesTalent pool segmentation
Candidate journey trackingPersonalized messages, emails, and updates
Automated communication with current candidatesKeeping in touch with potential candidates
Compliance management Building long-term relationships
Time-to-hire and recruiting efficiency metricsBranding tools

Why CRM and ATS are essential for attracting job candidates


The war for talent continues. Candidate demands on employers, the quality of the employee experience, and employee engagement are also on the rise. Today, 32% of U.S. workers consider themselves engaged, while 16% are not actively engaged. It is important to understand that a company's attitude toward employees can be manifested in the first communication

CRM and ATS are essentia

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In the war for talent, the winner is the one who finds the right people and engages them in the right way. That's only possible if you use the right talent relationship management tools. 


On the one hand, you have a CRM system that gives you quick access to a database of candidates you've been communicating with for a long time. And on the other hand, if the right talent applies, that job can have a nice impact on the candidate's journey through the ATS. 


It's this holistic view of hiring that shows how important it is to cover all stages of the candidate experience if you want to hire quickly and with only the best talent.


Conclusion


As we've seen, there are some similarities between ATS and CRM for recruiting purposes. Yes, you can use only one of these systems if you need to. However, it's worth recognizing that they still cover different stages of the hiring process, and thus each of these systems is essential at some point in the candidate journey. 


If it's important for you to build long-term relationships with candidates and create a good impression of the company in the minds of potential hires, then CRM is the right choice. However, if your goal is simply to speed up or automate the hiring process for current candidates, then an ATS may be the go-to option. 

You can also go the third way - using both CRM and ATS. That way, you get the best of both worlds.

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