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ATS vs CRM: What are the key differences?
Knowing the differences between ATS and CRM software can help recruitment agencies gain a competitive edge. Research shows that 61% of companies now spend more on CRM software than standalone ATS systems, indicating a shift toward relationship-focused recruitment strategies. Our comprehensive guide will help you understand details of each system and why implementing a combination of ATS and CRM could be the ideal software solution for your agency.
What are the differences between ATS and CRM?
Knowing the differences between ATS and CRM software can help recruitment agencies gain a competitive edge in the recruitment sector. By understanding the nuances of each system, agencies can begin to achieve the best possible outcomes.
Understanding when and how to use ATS vs CRM software is vital in seeking out and then retaining the top talent as a recruiter. Although these two terms have subtle differences, our comprehensive guide explains the details of each system and why implementing a combination of ATS and CRM could be the ideal software solution for recruiters.
What does an ATS do that a CRM can't?
What are the key features of a CRM in recruitment?
What does an ATS do that a CRM can't?
An applicant tracking system (ATS) is a software tracking system that works to smooth out and simplify the journey for candidates progressing through your recruitment processes.
This type of software ensures a positive candidate experience by focusing on:
- Managing information: job specification, screening criteria, interview scheduling and recruitment projects.
- Accountability: transparent and compliant applicant handling.
- Accessibility: easy-to-monitor applicant data and commercial measures.
- Enhanced accuracy: detailed record of all processes in the applicant ‘journey’.
The best ATS software option would be adaptable to your specific business goals and sector. It would also automate some of the tasks involved in applicant handling, to save you time and money. Learn more about what ATS systems are in our guide.
What are the key features of a CRM in recruitment?
A CRM is a tool for managing customer relationships, and in recruitment, it’s used to manage business development by tracking potential clients and moving them through the sales pipeline, helping find leads and close deals.
A recruitment CRM (customer relationship management system) works to support recruiters in the following ways:
- Improved lead management: Enable efficient lead generation, qualification and nurturing.
- Enhanced client relationships: Helps recruiters build and maintain strong relationships by tracking deal progress and interactions.
- Streamlined sales process: Clear overview of the recruitment pipeline, tracking position openings and progress.
Using traditional methods to identify job seekers is no longer a viable option in today’s digital world, and ambitious recruiters appreciate that the best software for recruitment is designed to streamline the recruitment pipeline and ensure the satisfaction of both candidates and clients in a competitive landscape.
Recruitment CRM software is also used as a talent pipeline, keeping job seekers and current employees engaged and ready to leverage for your specific recruitment and hiring purposes.
ATS vs CRM: Which should you choose first?
To further clarify ATS vs CRM, you need to look at how they dovetail with each other. In effect, a CRM proactively seeks out candidates who are relevant and engaged with the types of job roles you handle. An ATS, on the other hand, is a reactive software tool that enables you to process those candidates in an efficient, effective and compliant manner. Let’s explore more differences between ATS vs CRM below:
| How does a CRM (Candidate Relationship Management) system benefit recruiters? | How does an ATS (Applicant Tracking System) benefit recruiters? |
| A CRM in recruitment is a software that helps recruiters manage and nurture client relationships, streamlining the lead generation and closure process. | Software focus: software used to manage and track candidate information, from application to placement. |
| Key functions: contract management, lead generation, client communication. | Key functions: job posting, candidate sourcing, screening, interviewing, onboarding. |
| Data: client information, client communication history, deal stages. | Data: candidate information, job applications, interview feedback. |
| Automation: automating tasks like lead scoring, analytics of sales. | Automation: automating tasks like resume screening, scheduling interviews, sending offer letters. |
| Outcome: increased client satisfaction, improved sales performance, improved understanding of lead generation. | Outcome: efficient recruitment process, improved candidate satisfaction, improved time-to-fill. |
Why do 97% of Fortune 500 companies use integrated recruitment systems?
One of the myths regarding recruitment agency software is that you should choose either a CRM or an ATS option, or that you need to have both operating in tandem. In fact, there are strong reasons why CRM and ATS functionality should be combined into one intuitive software solution for recruitment businesses.
Integration leads to various commercial benefits and saves you time and money.
According to recent ATS statistics, automation can reduce time to fill a position by up to 60%, while integrated ATS-CRM solutions help agencies close 40% more deals than those using standalone systems. (Select Software Reviews)
There are more insights on the advantages below, but it is worth emphasising that you need to be confident that your software genuinely integrates the two. You will not achieve the same results by investing in a CRM that does some applicant-related management tasks, or ATS software that ‘bolts on’ some CRM functionality.
With this in mind, here are some factors to consider when questioning whether or not to integrate the two systems:
- Company size: this factors in size, reach and usage. Small-scale recruiting businesses may benefit from one system that combines both ATS and CRM software, whereas growing or mid-sized recruitment agencies may benefit from two separate systems.
- Industry: depending on your industry, and the speed at which you need to place candidates, you may need to implement one system rapidly (e.g. ATS), and then look to store data on a CRM.
- Business goals: work out your long-term recruitment goals and the processes that could be improved by implementing new software systems.
- Non-negotiables: decide which features of an ATS vs CRM are essential to the smooth daily operations of your recruitment.
- User experience: check if good customer support, beta testing and customisation features are available so that you can be supported through your CRM vs ATS user experience.
What are the technical integration factors to consider?
When evaluating ATS/CRM integration, consider these technical factors identified by Gartner research:
- API compatibility: Ensure seamless data flow between candidate sourcing and application tracking
- Data governance: Maintain GDPR compliance across both pre-application and post-application candidate data
- Workflow automation: Look for platforms that trigger CRM nurture sequences based on ATS application status changes
- Reporting consolidation: Unified analytics that track candidates from initial engagement through placement
What are the benefits of combining ATS & CRM?
- Small agencies (1-10 consultants): 73% achieve better ROI with integrated ATS & CRM solutions
- Mid-size agencies (11-50 consultants): Experience 28% faster growth when using combined platforms
- Enterprise agencies (50+ consultants): Report 35% higher consultant productivity with unified systems
Finding an authentic combination of CRM and ATS software is the optimum way to enjoy the advantages of both, as well as end-to-end software for recruitment pipelines. In effect, you are tying up recruitment candidate identification, attraction, processing and retention into one streamlined software package for hiring professionals.
The benefits of CRM and ATS combined include optimising the candidate journey and improving analytics and data flow. This is particularly true for recruitment agencies, whose purpose is to find appropriate candidates for clients.
Recruitment agencies can create strong data flow, with excellent transparency and control by combining ATS and CRM software. For instance, candidate information from your recruitment marketing will pass seamlessly into your applicant tracking system.
In a similar manner, less time will be needed for inputting, cross-checking and updating your data. For example, it’s essential that you can automatically update an applicant list information with the latest candidates attracted via your CRM. This rapid process ensures that your tracking systems are not ‘bogged down’ or cluttered by out-of-date data. When you automate various recruiting tasks, you can free up your agency staff for more ‘hands-on’ work, including client account management.
Integrating CRM and ATS software also creates a ‘library’ of candidate information you can draw on for multiple purposes, such as carrying out vital reporting tasks. Having one comprehensive and streamlined software solution improves your ability to smooth out and measure candidate experience during recruitment. This improved experience is key to talent retention and your organisation’s reputation in the recruitment industry.
Why choose ATS/CRM integration for compliance and risk management?
Integrated systems provide crucial compliance benefits that standalone solutions cannot match:
- Audit trails: Complete candidate journey documentation from first contact to hire
- Data retention: Automated compliance with regional data protection laws
- Bias reduction: Standardised processes across sourcing and selection phases
Research from SHRM indicates that 85% of employers using automation report it saves time and increases efficiency while improving compliance outcomes.
Enhance your candidate and client experience with Vincere Core ATS & CRM in one
The evidence is clear: agencies using integrated ATS/CRM platforms significantly outperform those using standalone systems. Vincere Core ATS & CRM in one provides purpose-built integration specifically designed for recruitment agencies' unique workflows.
Contact Vincere, or book a free demo with a product expert to begin your agency’s road to efficient and effective recruitment.
FAQs about ATS vs CRM in recruitment
What's the difference between ATS and CRM in recruitment?
A recruitment ATS manages active job applications and compliance workflows, while a recruitment CRM nurtures relationships with passive candidates and builds talent pipelines. According to Workable, an ATS organises the actual application process, while the CRM creates and maintains pools of active and passive talent for recruitment.
Do I need both ATS and CRM for my recruitment agency?
Research from SmartRecruiters indicates that top recruiters rely on solutions offering both CRM and ATS in one platform, as each focuses on specific functions within the hiring process. Gartner research confirms that CRM is now considered a "core required system" for modern talent acquisition.
How much can integrated ATS/CRM save my agency?
Studies show that integrated systems can reduce time-to-hire by 60% while increasing deal closure rates by 40% compared to standalone solutions.
What if I already have a CRM system?
What does CRM data migration entails?
