ATS vs CRM: What’s the Difference and Why You Need Both

ATS vs CRM

Today, the way companies used to hire earlier is changing widely. Right now, about 36% of workers in the U.S. are freelancers. Even the experts are saying it could rise to over 50% in the next 10 years. 

At the same time, there is a huge chaos about AI and automation and it is replacing jobs. Further, it is making hiring even more challenging.

It’s surprising to see that the old-fashioned ways are used to find candidates. It includes job boards and ads. Those aren’t working anymore. 

In fact, most of the best talent people aren’t even looking for jobs. However, 82% of them say they’re open to new opportunities.

Even if they are open to work, the companies don’t wait for the right candidates to come to them. Hiring is becoming even more advanced. It means you need to - 

• stand out from rest of the candidates, 

• move fast, and 

• make your company and job offers appealing—especially to those who aren’t actively job hunting.

One of the best ways to do this is by using powerful, modern recruiting software.

The recruitment industry is huge. It is worth over $215 billion globally. And it’s expected to grow to $330 billion by 2025. There are tons of software tools out there, like - 

• ATS (Applicant Tracking Systems), 

• CRMs (Candidate Relationship Management), and 

• HCRMs (Hiring Candidate Relationship Management).

With so many options, it can be hard to choose the right one. But the key is to find a tool that fits your company’s needs and helps you hire smarter—not slower.

Both ATS and CRM systems are used to make hiring much more organized and efficient. However, to get the best results, it’s important to understand when and how to use each tool. Even if you are thinking of using it for overall hiring strategy.

How ATS Helps?

An Applicant Tracking System (ATS) that automates the hiring process. It handles everything from job posting jobs to tracking applications. 

It even helps with welcoming new hires during onboarding. With ATS, hiring becomes faster and easier for both recruiters and candidates.

A good ATS helps with everything from start to finish, including:

• Posting jobs on websites, social media, and job boards

• Keeping track of job applications

• Creating a database of potential candidates

• Reading and organizing resumes

• Sending out skill tests

• Tracking hiring data and reports

• Scheduling interviews

• Sending emails and updates to candidates

• Doing background checks

• Sending job offers and contracts

• Collecting e-signatures

• Onboarding new hires

Why Use an Applicant Tracking System?

Using an ATS helps companies - 

• hire faster, 

• communicate better, and 

• give candidates a smoother experience. 

It also helps recruiters focus on finding the best people instead of getting stuck with time-consuming tasks.

What About CRM?

A Candidate Relationship Management (CRM) system, on the contrary, is used to build and maintain good relationships with people. Those are the candidates who have applied in the past or may apply in the future. It helps create a pool of potential candidates for future job openings.

A CRM usually includes features such as:

• Building and storing a list of deserving candidates

• Making it easy to search saved resumes by keywords

• Sending personalized messages to people in the talent pool

• Helping candidates stay connected with the company’s brand

• Tracking how candidates move through the hiring and onboarding process

• Sending surveys to gather feedback on the hiring experience

• Providing reports and data to improve future hiring

Using a CRM helps companies build strong relationships with talent, so when a job opens up, they already have a group of interested and qualified people to choose from. 

It can reduce the need for outside hiring agencies, improve the quality of applicants, and speed up the hiring process.

What’s the Difference Between an ATS and a CRM?

To put it simply:

• A CRM is for attracting and staying connected with candidates over time.

• An ATS is for managing the hiring process when someone actually applies.

But if your ATS isn’t working well, it can slow everything down. Here are some signs your ATS needs an upgrade or better CRM integration:

• You have to type in the same information over and over again

• Candidates are grouped by what job they have now, not what they want

• You can’t track how engaged or interested candidates are

• You’re not seeing improvements in key areas like time to hire or cost per hire

• The system just handles basic admin work and doesn’t help you think ahead

• Some job openings stay vacant for months

Should You Connect Your CRM with Your ATS?

Even though a CRM and an ATS may seem similar, they serve different purposes:

• An ATS (Applicant Tracking System) helps you manage the application and hiring process—like posting jobs, reviewing resumes, and scheduling interviews.

• A CRM (Candidate Relationship Management) tool helps you build and maintain a list of potential candidates—even those who aren’t applying right now.

• When you connect a CRM with an ATS, it creates a powerful system that handles every step of hiring—from finding candidates to bringing them on board.

Here’s how it works:

• The CRM helps you stay in touch with great candidates, even if they’re not ready to apply.

• When a job opens, you can move candidates from your CRM into the ATS, which takes care of the hiring steps.

• If someone doesn’t get the job, the CRM keeps them in your network for future roles.

The setup makes hiring faster, smoother, and more organized.

In today’s job market, candidates have many choices. Having a system that communicates clearly, responds quickly, and keeps things professional makes your company stand out. It helps you hire top talent before your competitors do.

Frequently Asked Questions

Why Do We Need an ATS?

An Applicant Tracking System (ATS) is a tool that helps organize and manage the hiring process. It works like a smart database for job applications—automating tasks like sorting resumes and tracking candidates. 

It helps recruiters and hiring managers focus on the best candidates instead of wasting time going through every single resume.

Have You Ever Used a CRM or ATS?

It’s easy to mix up a CRM and an ATS, but they do different things:

• An ATS is mainly used to collect and sort resumes and job applications.

• A CRM (Candidate Relationship Management) tool is used to build and manage relationships with potential candidates—even if they haven’t applied yet.

Both tools are helpful, but they serve different purposes in the hiring process.

Is CRM a Tool or a Skill?

A CRM is a tool, but using it well also takes good communication skills. While the system helps track and manage candidate or customer relationships, it’s the personal connection that really makes it work. 

So, it’s a mix of using the right technology and having the right people skills to build strong, lasting relationships.