How is an ATS different from a Human Resource Information System (HRIS)?

What is a Human Resource Information System (HRIS)?

A Human Resource Information System (HRIS), also often referred to as an HRM solution, is typically designed as a comprehensive system that centralises core HR functions, such as:

• Payroll
• Benefits administration
• Employee records.

In contrast, a best-of-breed solution, such as an ATS system, is focused on one or a few functions to address specific requirements where deep domain expertise is required with a specialist vendor.

What is an HRIS used for?

A Human Resource Information System is built to support HR as a whole and combines the activities of Human Resources to manage employee data. A Best of Breed solution, like an Applicant Tracking System, can be implemented independently or integrated into a broader HR technology ecosystem, allowing organisations to tailor their HR tech stack to their unique needs.

Why use an ATS?

An Applicant Tracking System (ATS) is used to streamline and automate the recruitment process. This helps remove the need for manual administrative tasks and greatly reduces human error. 86% say using an ATS has increased the speed at which they hire candidates. It allows busy in-house recruitment teams to efficiently manage job applications, organise interviews, and most importantly, ensure that the successful candidates receive the required documents and right-to-work checks, which creates an engaging, swift candidate and onboarding experience.

Recruiters can also use an ATS to keep active candidates and their talent pools engaged by using communication automation tools. Those can be used to create personalised, automated messages and reminders to candidates. As well as creating customised recruitment workflows that work for them, as well as using built-in recruitment analytics and dashboards to gain full visibility of the talent acquisition process.

Here are additional benefits of using an ATS System: 

• Ability to automate and streamline hiring.
• Expanded candidate reach. 
• Tools to build an engaged pool of talent. 
• Reduced risk with built-in compliance and reporting.

HRIS vs ATS: Key Differences

The key differences lie in functionality, flexibility and integration capability. An HRIS is built to support HR as a whole, meanwhile an Applicant Tracking System (ATS) is often a better solution to a specific part of the business, such as Talent Acquisition. Using an HRIS for Talent Acquisition activities that it was not designed for can create pitfalls in your processes, productivity and candidate experience.

The term “Applicant Tracking System” is fundamentally limiting. Leading organisations don’t just track applicants, they orchestrate entire talent acquisition ecosystems.

Modern talent acquisition platforms integrate: 

• Applicant Tracking - but as the foundation, not the ceiling
• Recruitment CRM - for building relationships with passive talent
• Employee Referrals - gamified systems that turn employees into talent scouts 
• Onboarding - seamless transition from candidate to contributor
• Analytics - data-driven insights for continuous improvement

A good place to start, when identifying the problems you are looking to address and the capabilities between an ATS and an HRIS, is by defining which departments, functions, and roles will be impacted by your requirements.

It’s also important to validate if the solution is required to grow along with your organisation, and how each solution can provide the best candidate and user experience, if it can address your recruitment challenges fully, and whether it can support required integrations.

If you would like to learn more about how an Applicant Tracking System can help you navigate and stay on top of the skills-short candidate market, book a demo with one of our team members, who will gladly share some winning ideas to enhance your recruitment process. No hard sell or strings attached, just some insight to see if your current system has become a barrier, not a bridge to recruitment success.