ATS CRM: What’s the Difference? Why You Need Both in 2025

AI and machine learning have reshaped recruitment, and in 2025 it is now harder than ever to find top talent, especially with the Rise of Freelancing. To simplify the process, businesses turn to recruitment software, with ATS and CRM systems being the most effective solutions.

Many assume an Applicant Tracking System (ATS) alone is enough, but top recruiters know better. While an ATS streamlines hiring, a Candidate Relationship Management (CRM) builds lasting talent relationships. So, what’s the difference between ATS and CRM? Do you need both? Let’s break it down.

What’s an ATS (Applicant Tracking System)?

An Applicant Tracking System serves as a repository for recruiters to create and post different jobs. After that, they can collect applications from the candidates, test, select, and process them further through the entire hiring process — all via one platform.

Simply put, an ATS is recruiting software that eases and optimizes the whole recruitment process.

Why You Need an ATS

There are many Applicant Tracking System Benefits. An ATS helps with several key tasks in the hiring process, including:

• Job posting and distribution

• Resume screening and parsing

• Candidate management

• Interview scheduling

• Compliance and reporting

• Communication and collaboration

• Onboarding support

Things to Look For in an ATS

When selecting an ATS, make sure you choose one with these essential features:

Job posting and distribution

Ability to easily post and distribute job openings across multiple platforms, including job boards and social media.

Resume parsing

Automatic extraction of key information from resumes to streamline candidate evaluation and selection.

Candidate sourcing

Tools to help source candidates from various channels, such as job boards, social media, and internal databases.

Applicant tracking and workflow

A clear, visual workflow that allows you to track candidates through each stage of the hiring process.

Collaboration tools

Features for team members to comment, share notes, and collaborate on candidate evaluations.

Customizable interview scheduling

Automated tools to schedule and manage interviews, saving time and reducing errors.

Reporting and analytics

Data-driven insights to track the success of your hiring efforts, including time-to-hire, cost-per-hire, and other key metrics.

Compliance and data security

Ensures your hiring practices are compliant with laws (e.g., GDPR, EEOC) and that candidate data is secure.

Candidate experience

User-friendly interfaces for candidates to apply, communicate, and track their application status.

Integration capabilities

Seamless integration with other tools like HRIS, CRM, and onboarding software for smooth workflows.

What’s a CRM (Candidate Relationship Management)?

A Candidate Relationship Management (CRM) is software that provides recruiters or hiring managers with a pool of talented candidates whenever a position becomes vacant.

A CRM system keeps the recruiters and potential Candidates in contact so the recruiters can consider these candidates for any future job opening. CRM helps create talent communities that allow talent acquisition (TA) professionals to strengthen relationships with passive talent.

Why You Need a CRM

Here are the key tasks a CRM assists with that can make life easier in your organization:

• Talent sourcing and pipeline building

• Engagement and communication

• Candidate experience management

• Event and campaign management

• Collaboration and relationship tracking

• Data and analytics

• Integration with ATS and other HR tools

Things to Look For in a CRM

When choosing a CRM for recruitment, here are some key features to look for:

Candidate management

Centralized database to track and manage candidates throughout the hiring process.

Pipeline visualization

Visual representation of candidate stages, helping to easily track progress and manage workflows.

Automated communication

Tools for automating emails, follow-ups, and reminders to improve candidate engagement.

Integration capabilities

Ability to integrate with other tools like your ATS, job boards, and social media platforms.

Data analytics and reporting

Insights into recruitment performance, candidate trends, and source effectiveness.

Collaboration features

Allows team members to collaborate on candidate profiles and share notes seamlessly.

Customizable workflows

Tailored processes that can match the unique needs of your recruitment team.

Candidate segmentation

Grouping candidates by skills, experience, or other attributes to streamline recruitment efforts.

Candidate engagement

Tools to nurture relationships, send updates, and manage ongoing candidate conversations.

Mobile access

A mobile-friendly interface for on-the-go access to candidate data and communication.

What’s the Difference Between an ATS and CRM?

An ATS is a recruitment tool that facilitates the talent acquisition process for everyone involved in the hiring funnel. The software makes selecting, screening, and hiring candidates and managing applications easier than ever. With an ATS, a recruiter doesn’t have to worry about a load of administrative tasks.

Meanwhile, a CRM system helps recruiters with their hiring efforts by providing all the information about passive and active candidates. When the ATS is not optimized with CRM, it diverts the recruiting teams from taking necessary initiatives.

To determine whether your ATS and CRM are appropriately optimized, watch for these things in your recruitment system:

• It requires manual input for several entry fields.

• It categorizes candidates by their current employment instead of their desired job.

• It doesn’t have any method for evaluating candidate and recruiter relationships.

• It doesn’t provide a return on investment (ROI).

• The ATS is usually used for completing administrative tasks.

• Job positions stay vacant there for months.

Why Integrating CRM With an ATS Makes Sense

CRM vs. ATS. Do you have to choose? The answer is no. An integrated talent solution makes complete sense.

In this candidate-focused work environment, hiring professionals must be aware of modern technologies. Knowing these technologies has become critical for the success of talent acquisition programs.

It’s believed that most of the hiring occurs in the pre-application stage. So, companies need to adopt recruitment software that helps them with administrative tasks and with candidate relationship management. This way, they can have an edge in this cut-throat competitive market.

CRM can help recruiters maintain and optimize their talent pool to make effective, data-driven decisions. Moreover, CRM speeds up the hiring process by providing instant data about past, active, and future candidates. When it’s the right time to hire an employee, recruiters can use an ATS to enhance the applicants’ entire hiring process.

Do You Need an Integrated Talent Solution? The Checklist

So how do you know if your recruiters need an integrated talent acquisition solution? The below checklist will help you out:

Do you hire candidates frequently?

If yes, you definitely need one. While the CRM is entirely proactive, the ATS is reactive. This means the CRM helps you target your prospects easily whenever you have an open vacancy, as it has all the records of your past, active, and potential candidates. Then, you can use your ATS to facilitate the entire hiring process.

Does your team rely on spreadsheets to collect and manage candidates’ data?

The use of spreadsheets has become obsolete these days. Now, recruiters are looking for new software and technologies to easily store and manage candidate data.

Of course, Excel is great for accounting tasks, but it’s not that effective for the Recruitment Process. For instance, you can’t get visual insights into candidate-recruiter relationships on a spreadsheet. Moreover, you also have to add the data manually.

Do you have a team of recruiters?

If your company depends on a team of recruiters, you need an CRM ATS integrated solution to make the data accessible at all times. With CRM software, you and your team members can share information, including notes, candidates details, and lead updates. In the end, ATS will take care of the rest of the hiring work.

Do you have any hard-to-fill job openings?

Some job positions get tons of applications, while others remain dry for months. If you’re hiring for any position like the latter, you will be required to attract candidates, build relationships with them, and then choose the best one after screening.

This is where you can use an ATS and CRM integrated solution. It helps you build a pool of potential candidates to screen, evaluate, and test for the desired job role.

Do you spend a lot of time on data entry and processing?

The biggest bummer of hiring employees is the load of data entry work. Typically, an ATS (working alone) requires a lot of time to process and function properly. However, with an integrated CRM and ATS system, you can relieve your workflow burden and get back to the important tasks in no time.

Does your ATS store a candidate pool of thousands?

If you’re one of those recruiters who receive many job applications, you need integrated talent acquisition software to manage them. Yes, your ATS may have years of data stored, but it is useless until you have a proper CRM system for managing and optimizing it.

Moreover, the data may also be inaccurate, and your ATS may not recognize it properly. With an integrated CRM system, you can update all your stored ATS data, verify its accuracy, and make it valuable.

Do you initiate online campaigns to increase interest?

Undoubtedly, online campaigns are compelling to create brand awareness and attract potential candidates. However, the problem is that they don’t let you measure your return on investment (ROI), such as total Time To Hire, cost per hire, quality, and more.

This means you can’t track the candidates who responded or saw your campaigns. With an integrated ATS and CRM system, you can track your attendees and even see who visited or saw your campaigns. Not only that, but you can see what’s working for you and improve the aspects that aren’t creating much value for your recruitment drive.

Elevate Your Recruitment Strategy with Oleeo ATS and CRM

Recruiters today can maximize their hiring efforts with the right ATS and CRM tools. As technology advances, integrated talent acquisition solutions will continue to evolve, making it essential to stay ahead.

Oleeo makes it easy. Oleeo Recruit, our ATS, uses AI, automation, and data to streamline hiring, while Oleeo Engage, our Recruitment CRM, helps you build lasting candidate relationships.

FAQs About ATS vs. CRM

What is the main function of an ATS (Applicant Tracking System)?

An Applicant Tracking System (ATS) streamlines and automates the hiring process by managing job applications, organizing candidate data, and tracking applicants throughout the recruitment pipeline. It helps recruiters post job openings, screen resumes, schedule interviews, and collaborate with hiring teams, meaning a more efficient and structured hiring workflow.

How does a CRM (Candidate Relationship Management) system benefit recruitment?

A Candidate Relationship Management (CRM) system improves recruitment by building and nurturing long-term relationships with talent before they even apply. It helps recruiters engage passive candidates, personalize communication, and maintain a talent pipeline for future hiring needs. By leveraging data and automation, a CRM ensures stronger employer branding, better candidate experiences, and a more proactive approach to hiring.

Is there an overlap between ATS and CRM functionalities?

Yes, there is some overlap between ATS and CRM functionalities, as both streamline recruitment processes. While an ATS focuses on managing active applicants, tracking applications, and automating hiring workflows, a CRM is designed to engage passive candidates, nurture talent pools, and build long-term relationships. Some modern platforms integrate both, offering a comprehensive solution for sourcing, tracking, and engaging candidates throughout the hiring lifecycle.

Why might an organization integrate their CRM with an ATS?

An organization might integrate their CRM with an ATS to create a more efficient, seamless recruitment process. By connecting both systems, recruiters can easily transition candidates from passive interest in the CRM to active applicants in the ATS, which means better data synchronization and eliminating duplication. This integration helps streamline candidate sourcing, communication, and tracking, while also enabling a more holistic view of the talent pipeline to improve overall recruitment outcomes.

How does having both an ATS and CRM give a company a competitive edge?

Having both an ATS and CRM gives a company a competitive edge by allowing them to efficiently manage the entire recruitment process, from building strong candidate relationships to streamlining hiring workflows. This combination boosts candidate engagement, improves data-driven decision-making, and makes sure there is a seamless transition of candidates through the hiring funnel. This all leads to faster, more informed hires.