An Applicant Tracking System (ATS) and Human Resource Information System (HRIS) are the most widely used HR tools in organizations worldwide. The former helps with recruitment, and the latter focuses on employee management, from onboarding to offboarding.
But which one do you need? To determine the differences, let’s examine the key features and benefits of an ATS and HRIS. We will also examine their similarities and use cases to help you further narrow down when to pick one over the other or even both.
What is an Applicant Tracking System (ATS)?
An Applicant Tracking System (ATS) is software that helps businesses, whether small or large, streamline and organize their recruitment process, allowing them to be more efficient and better identify the qualified candidates. This usually includes managing job postings, screening resumes, and tracking potential hires as they progress through the hiring stages.
ATS Key Features
Here are the core features of an ATS:
- Resume parsing and screening: This process scans resumes, extracts key details, and filters candidates to ensure that they match the job description.
- Job posting distribution: This feature enables recruiters to post to multiple job boards and platforms, increasing job visibility and attracting a wider pool of candidates.
- Candidate communication and collaboration: Centralizes all communication to foster interaction between recruiters and candidates. It also facilitates feedback sharing and collaboration for better decision-making.
- Interview scheduling and feedback: The feature automates interview scheduling to reduce time conflicts between recruiters and candidates. It also centralizes interviewer feedback for streamlined and efficient collaboration.
ATS Benefits
Here are the main benefits of using an ATS:
- Streamlined recruitment processes: ATS helps recruiters handle their entire recruitment workflow in one place, from application to onboarding. This streamlines the process, as they don’t have to combine multiple systems to manage candidate information and collaborate.
- Automation of repetitive tasks: By automating recruitment tasks, such as resume screening, job posting, and interview scheduling, it significantly reduces manual effort and increases data accuracy. This makes recruiters more efficient by enabling them to focus on finding great candidates.
- Enhanced candidate tracking and data collection: ATS allows organizations to collect data and track candidates in real-time. Furthermore, they can use the data to extract valuable insights. Some systems even use AI in ATS to help them improve the hiring process.
What is a Human Resource Information System (HRIS)?
An HRIS is a software designed to help organizations streamline their HR workflows by organizing and automating various tasks. This makes HR processes more efficient, leading to better management of employee information and an improvement in the employee life cycle.
HRIS Key Features
Here are the key features that make up an HRIS:
- Employee data management: This feature helps organizations with the collection, storage, and management of employee data (e.g., payroll, benefits, training records, and performance reviews) to ensure accuracy.
- Payroll and benefits administration: Helps organizations streamline the processing of payroll and employee benefits, ensuring accuracy and compliance with relevant regulations.
- Time and attendance tracking: Automates the tracking of time, absences, and overtime, ensuring accurate payroll processing.
- Compliance and reporting: Tracks and monitors regulatory requirements to help organizations remain compliant with labor laws and industry standards.
HRIS Benefits
An HRIS provides the following benefits to organizations:
- Centralized employee data: Stores data in one location, allowing the HR department to access up-to-date employee information at all times. This also helps ensure that the information is maintained and managed efficiently.
- Improved decision-making through analytics: Provides data-driven insights in real-time, allowing organizations to make informed decisions about the workforce for the betterment of the organization.
- Integration of multiple HR functions into one platform: Consolidates recruitment, payroll, benefits administration, and other HR functions, reducing the need to invest in multiple systems. Not only does this streamline the processes, but it also saves the organization money and increases the ROI of the ATS.
What’s the Difference Between ATS and HRIS?
When deciding between an ATS and an HRIS, here are the main differences to consider:
| Basis of Comparison | Applicant Tracking System | Human Resource Information System |
|---|---|---|
| Purpose | Manages the recruitment and hiring process, from job posting to candidate hiring | Manages a broad range of HR tasks throughout the employee lifecycle |
| Function | Automates job posting, resume screening, interview scheduling, applicant tracking, as well as reporting on recruitment metrics | Manages employee database records, payroll processing, benefits tracking, time and attendance tracking, and compliance reporting. |
| Primary Users | Used by talent acquisition teams, recruiters, and hiring managers to manage the recruitment process | Used by HR managers, payroll specialists, and compliance officers to manage employee information and compensation, as well as ensure regulatory compliance |
| Integrations | Often integrates with job boards and other recruitment tools and systems—may integrate with HRIS for a seamless transition from hiring to onboarding | Integrates with broader HR systems, including payroll, time tracking, accounting, and performance management, to consolidate HR processes |
Similarities Between ATS and HRIS
Although an ATS and HRIS have fundamentally different functions, they share the following similarities:
- Onboarding: They automate various functions when it comes to the onboarding process, including collecting and storing candidate information, communicating with applicants, tracking the progress of new hires, and scheduling training and orientation.
- Function: They streamline data management, communication, compliance, and other HR processes to improve efficiency.
- Employee lifecycle: An ATS can handle recruitment and hiring, and the employees can be onboarded into the greater HR system using an HRIS, with a smooth transition of data between the systems.
- Integration benefits: Can integrate with an organization’s other apps and systems (e.g., Slack, Asana, Microsoft 365, Salesforce, Workday, and BambooHR), whether existing or new, to further streamline recruitment and HR management.
When to Use ATS vs. HRIS?
Let’s look at some scenarios where it makes sense to use an ATS or HRIS.
- ATS use cases: These are best for organizations looking to improve recruiting processes such as job posting, resume screening, candidate tracking, interview scheduling, applicant communication, onboarding, recruiter collaboration, employer branding, and reporting on hiring metrics.
- HRIS use cases: An HRIS is for organizations looking to manage their employees beyond the recruitment phase. This involves managing employee information, streamlining recruitment and onboarding, automating payroll processing, compensation management, attendance tracking, and compliance with labor laws.
Should You Get An ATS or An HRIS or Both?
You should pick an ATS if you are looking for a system that helps you with recruitment, hiring, and onboarding. For instance, it can come in handy if you need to process a large number of applications due to rapid expansion or seasonal hiring. It can also help when you’re looking for candidates with specialized or niche skills—an ATS can help filter them based on the relevant skills and experience.
You should pick an HRIS if you’re looking to manage post-hiring needs (e.g., compensation, benefits, and performance) and employee data. An HRIS is also more useful than an ATS when it comes to managing employees’ lifecycle, specifically onboarding, career development, training, and compliance.
However, there are certain scenarios where you need both an ATS and HRIS. For instance, when you are hiring a large number of employees and need to manage their ongoing employment needs. Some HRIS systems can handle recruitment and hiring, so you might not need an ATS. With that said, an ATS cannot handle broader HR tasks due to its limited focus.
Should You Integrate ATS With HRIS?
Integrating an ATS and HRIS has benefits like seamless onboarding, reduced manual entry, efficient HR processes (in recruitment and employee management), and better data accuracy. In the long run, it can make organizations more compliant, help them cut costs, and improve the employee and candidate experience.
However, it’s worth mentioning that ATS implementation has multiple challenges, especially regarding data compatibility and maintaining two systems simultaneously. But once you overcome the initial hurdles and investments, the benefits will shine through.
Here are scenarios where integrating an ATS and HRIS makes sense:
- Company size and growth plans: Medium to large organizations can benefit the most from this integration since their hiring and post-hiring needs are greater than those of small businesses. For smaller enterprises, standalone systems are usually enough.
- Volume of hiring: When an organization has high recruitment needs, integrating an ATS and HRIS ensures the smooth transition of candidates to employees.
- HR strategy and needs: If HR focuses on improving the candidate’s experience before and after hiring, integrating an ATS with an HRIS makes the process smoother and more efficient.
- Existing systems: If your ATS and HRIS are compatible, then integration should be seamless. If they aren’t, the process might be a bit more complex, and you need to consider if you have the resources to ensure the systems can work together without issues.
Final Words
ATS and HRIS are essential HR tools that serve distinct purposes. An ATS is recruitment-centric, whereas an HRIS covers a broader range of HR tasks. However, they can overlap, particularly during onboarding and data management. This is why integrating them can be beneficial for many organizations.
Businesses should consider their specific needs, size, and growth plans when deciding between these two solutions. Larger organizations might need both, while smaller businesses can choose just one. Ultimately, it will come down to the volume of hiring, the complexity of HR processes, and the long-term strategic goals.