ATS vs. CRM: What's the difference?
While ATSes and CRMs are both part of the recruiting process, each system focuses on different parts of the candidate journey. Learn more about the differences between the two.
Talent acquisition is one of the most important parts of a company's operations, and companies must choose the right software to ensure they are carrying it out in the best way possible. Many tools are available in the marketplace for talent acquisition, including applicant tracking systems and candidate relationship management systems, but the two differ in important ways.
An ATS primarily focuses on filling current positions, while a CRM focuses on maintaining a candidate pool for future vacancies. Both systems help recruiters manage candidates, but each plays a different role in that process. Over the past few years, vendors have been merging the functionality of the ATS and CRM into one system. However, the two systems do still exist separately.
Learn more about ATSes and CRMs.
What is an ATS?
An ATS is designed to help talent acquisition specialists, also known as recruiters, fill open positions. An ATS supports recruiters throughout the process of opening a requisition, posting the position, interviewing candidates, and offering the successful candidate a job with the company. Many systems provide workflows for securing approvals at different steps. For example, a user might seek approval for a job listing before the new position is posted.
Candidates use an ATS to view and apply for positions, then track the progress of their application.
An interview team, which includes recruiters, the hiring manager, and possibly others within the company, uses an ATS to learn more about a candidate and record notes after completing an interview. An ATS might include specific forms for interviewers to fill out following an interview, which makes it easier to combine interview feedback and determine whether the candidate is a good fit for the company.
Most contemporary ATSes include AI and have done so for years. AI can search for certain keywords within resumes and rank candidates based on its findings. However, candidates today might use AI to generate their resumes so their resume will match the job posting, and AI bias in reviewing resumes is an ongoing concern.
What is a CRM?
A CRM helps companies maintain contact with people who applied to jobs in the past or are former employees. A CRM acts as a repository of candidates for the recruitment team to explore when a new job opens up. The CRM might include notes from past interviews, which can give recruiters a head start.
A talent acquisition team can use a CRM to communicate regularly with potential candidates, including keeping potential candidates apprised of company updates, such as open positions. These efforts are an attempt to convince message recipients to apply for another position.
The talent acquisition team might use a CRM to group potential candidates by department, such as finance or IT, or further break down the potential candidates by other categories, such as candidates for hard-to-fill roles. Grouping candidates helps the recruitment team send the optimum communications to each group.
What are the differences between an ATS and a CRM?
The main difference between an ATS and CRM is the point in the recruiting journey at which each tool is used. An ATS focuses on the entire applicant journey, while a CRM helps keep potential candidates interested in the company.
Many ATS systems include some CRM functionality. An ATS won't offer as many candidate-focused features as a CRM, but recruitment leaders might find that using an ATS with CRM functionality can be a suitable first step for their company.
One of an ATS' CRM functionalities will likely be coordinating regular communication to potential applicants, which is one of the most important parts of nurturing a candidate pool.
Eric St-Jean is an independent consultant with a particular focus on HR technology, project management and Microsoft Excel training and automation. He writes about numerous business and technology areas.
