Understanding the Differences Between ATS and HRIS Systems

When hiring and managing workers, two tools are crucial: ATS and HRIS Integration. An Applicant Tracking System (ATS) assists with the hiring process by organizing applications, tracking candidates, and streamlining recruitment. Meanwhile, a Human Resource Information System (HRIS) manages employee data once they are hired, overseeing payroll, benefits, and performance tracking.

The primary distinction lies in their functions. ATS is designed for hiring tasks, while HRIS focuses on managing employees post-hire. Implementing ATS and HRIS Integration not only saves time by eliminating redundant data entry but also enhances data accuracy and facilitates a smoother onboarding experience. This integration provides improved reporting capabilities and supports informed decision-making.

Key Takeaways

• An ATS helps with hiring by organizing applications and tracking candidates. This makes hiring faster and easier.

• An HRIS handles employee info after they are hired. It manages payroll, benefits, and performance to keep records correct and follow rules.

• Combining ATS and HRIS systems cuts down on typing data twice. This saves time, reduces mistakes, and makes starting a new job smoother.

• Using both systems together improves reports. This helps businesses make smart choices using correct information.

• Picking the right tools to connect these systems is important. Make sure they can grow with your business and work well together for better results.

What is an ATS (Applicant Tracking System)?

An ATS is a tool that makes hiring easier. It helps post jobs, check resumes, and track candidates. By automating tasks, it saves time and finds better hires.

Core Functions of an ATS

An ATS simplifies hiring steps. Here are its main jobs:

Key Features of an ATS

When picking an ATS, look for these helpful features:

• Easy to use for everyone.

• Lets you change questions and workflows.

• Works well with other HR tools.

• Keeps data safe and follows rules like GDPR.

Benefits of Using an ATS

An ATS has big benefits for hiring. For example, hiring the wrong person can cost 30% of their first-year pay. ATS tools help avoid mistakes by automating tasks like resume checks and emails.

Here are some real-life examples:

Using an ATS helps you hire faster, find better workers, and save time.

What is an HRIS (Human Resource Information System)?

An HRIS is a tool that helps manage worker information. It stores and organizes employee data in one place. This system cuts down on paperwork and makes data easy to find. It is useful for businesses of all sizes.

Core Functions of an HRIS

An HRIS makes HR tasks simpler. Its main jobs are:

• Employee Data Management: Save details like contact info and job roles.

• Payroll Processing: Pay workers on time and avoid mistakes.

• Benefits Administration: Handle benefits like health insurance and retirement plans.

• Compliance Support: Follow tax and labor laws to avoid problems.

• Time and Attendance Tracking: Track work hours and vacation days.

These tasks free up HR teams to focus on bigger goals.

Key Features of an HRIS

Pick an HRIS with features that fit your needs. Important features include:

• Cloud-Based Accessibility: Use it anywhere, which most companies prefer.

• User-Friendly Interface: Make it easy for HR and workers to use.

• Integration Capabilities: Connect it with tools like ATS or payroll systems.

• Customizable Workflows: Adjust it to match your company’s needs.

• Data Security: Keep employee information safe with strong protections.

Benefits of Using an HRIS

An HRIS has many benefits for businesses:

• Improved Efficiency: Automate tasks so HR can focus on big projects.

• Enhanced Compliance: Stay updated on laws to avoid fines.

• Scalability: Manage more workers as your business grows.

• Better Employee Experience: Let workers update info or check benefits easily.

• Cost Savings: Save money by making HR tasks faster.

The HR software market is growing fast and will reach $33.57 billion by 2028. Businesses spend about 15 weeks choosing the right system, showing how important it is today.

Key Differences Between ATS and HRIS Systems

Main Purpose and Focus

An ATS helps make hiring easier and faster. It organizes job ads, checks resumes, and tracks candidates. An HRIS, however, manages worker details after they are hired. It handles payroll, benefits, and performance tracking.

Here’s a comparison of trusted sources for HR data:

Both systems do different jobs but work together to manage the full employee journey.

Data Handling and Use

An ATS works with candidate data during hiring. It automates tasks, reads resumes, and matches skills to job needs. This helps find the best candidates quickly. An HRIS, on the other hand, manages worker data after hiring. It tracks hours, handles payroll, and shows trends in the workforce.

Here’s a list of key data features:

Using both systems together improves clarity and reporting.

Who Uses Them and Why

Recruiters and hiring managers mostly use ATS tools. These tools help speed up hiring and improve the candidate experience. HRIS tools are for HR teams and business leaders. They help manage worker records, follow rules, and improve efficiency.

For example:

• ATS Example: A recruiter uses an ATS to rank resumes and set up interviews.

• HRIS Example: An HR manager uses an HRIS to pay workers and track their progress.

Each system focuses on a different part of the employee process. Together, they ensure smooth transitions from hiring to managing workers.

Benefits of ATS and HRIS Integration

Better Data Sharing and Fewer Errors

When ATS and HRIS systems connect, data moves smoothly between them. This removes the need for manual data entry, saving time and reducing mistakes. For example, sharing hiring data with HRIS makes onboarding faster. Also, better job data integration helps recruiters focus on finding great candidates.

Companies like Lithko cut renege rates by 50% by automating onboarding and managing candidate data better. Cognizant reduced recruitment admin time from 80 to 40 hours weekly. These examples show how combining ATS and HRIS boosts accuracy and efficiency.

Better Reports and Insights

When ATS and HRIS work together, they provide better reports and insights. You can use data from both systems to track important numbers and make smarter choices. For example, linking reviews with retention rates shows what helps employees succeed.

• Connected systems improve tracking of hiring costs and turnover.

• Detailed reports help spot workforce trends.

• Decisions are easier with clear data from both systems.

These tools help find weak spots and create plans to improve performance.

Faster Hiring and Onboarding

Integration makes hiring and onboarding quicker by connecting data between systems. This avoids delays and gives new workers a better start. For example, linking ATS with onboarding tools speeds up background checks and payroll setup.

• Data sharing between ATS and HRIS makes onboarding faster.

• CRM tools in ATS improve candidate relationships and personalize hiring.

• Automated tasks save HR teams time and effort.

Azilen cut hiring time by 54% and doubled efficiency by using AI chatbots with ATS and job boards. These results show how ATS and HRIS integration can improve hiring and onboarding.

Better Employee Lifecycle Management

Combining ATS and HRIS systems helps manage workers better. From hiring to retirement, these tools keep things smooth. They track progress, find skill gaps, and suggest training. This makes employees happier and more productive.

A strong onboarding process is a big advantage of integration. Studies show good onboarding keeps 82% of new hires and boosts productivity by 70%. When ATS data links to HRIS, manual work is reduced. This speeds up onboarding and lowers mistakes. New workers feel supported right away.

Companies see better retention, job satisfaction, and performance with integration. For example, HRIS tracks top workers and helps reward them. This builds loyalty and lowers turnover. It also simplifies changes like promotions by keeping all data together.

By linking ATS and HRIS, you create one system for all employee stages. This improves their experience and helps your company keep great talent.

Cost and Time Efficiency

Using ATS and HRIS together saves time and money. Automating tasks like data transfers lets HR focus on bigger goals. This speeds up hiring and reduces admin work.

A SHRM study shows integration boosts efficiency by 30%. Companies also improve retention by 60% with better hiring processes. For every dollar spent on ATS, $3 is saved in hiring costs. Faster hiring means fewer empty roles, saving money.

The savings go beyond just costs. Integration gives better workforce insights for smarter decisions. For example, tracking hiring costs helps use resources wisely. This ensures you get the most from HR tools.

By merging ATS and HRIS, you save money and improve hiring. It’s a smart choice for any company wanting to grow efficiently.

How to Combine ATS with HRIS

Check Your Current HR and Hiring Needs

Before combining ATS with HRIS, review your current systems. Find out where your hiring or HR processes have problems. For example, do you have trouble keeping track of candidates? Or are there delays when new workers start? Knowing these issues helps you pick the right features for the integration.

You can use tools to measure and understand your needs. Here’s a table comparing some popular tools:

These tools help you see where integration can make the biggest difference.

Make Sure Your Systems Can Grow

Your systems need to grow as your business gets bigger. Check if your ATS and HRIS can handle more data and users. For example, can your ATS manage more job applications during busy times? Can your HRIS store more employee records as your team grows?

Cloud-based systems are a good choice for growth. They make it easier to share data and work from anywhere. This helps your team manage hiring and HR tasks even as your company expands.

Pick the Best Tools for Integration

The last step is choosing the right tools to connect ATS and HRIS. Look for systems that work well together. Features like APIs, pre-made connectors, and simple designs make the process easier. These tools also lower the chance of mistakes.

Follow these steps to combine your systems:

1. Review Your Current Tools

2. Pick the Right ATS

3. Plan How to Connect Them

4. Set Up the Integration

5. Train Your Team to Use It

6. Watch and Improve the System

By doing this, you’ll create a system that works smoothly. Data will move easily between ATS and HRIS, saving time and reducing errors. This makes hiring and managing workers much easier.

Knowing how ATS and HRIS systems differ is important. ATS helps with hiring, while HRIS handles worker data after hiring. Combining these systems makes data sharing easier, improves reports, and speeds up onboarding.

Here’s how to begin:

1. Find out which ATS and HRIS tools you use now.

2. Look for ready-made integrations or use APIs for custom setups.

3. Decide what data to share and test the connection well.

4. Teach your HR team how to use the system fully.

This method saves time, makes HR happier, and gives better worker insights.

FAQ

What is the main difference between ATS and HRIS?

ATS helps with hiring tasks like posting jobs and tracking candidates. HRIS handles worker details after hiring, such as payroll and benefits. They focus on different parts of managing employees.

Can small businesses benefit from ATS and HRIS integration?

Yes, combining them makes hiring and managing workers easier. It cuts down on manual work, improves data accuracy, and saves time. Small businesses can work more efficiently and grow faster.

How does ATS improve the hiring process?

ATS automates steps like checking resumes and planning interviews. It helps find good candidates quickly and makes hiring smoother for everyone involved.

Is it expensive to integrate ATS with HRIS?

The cost depends on the tools and features you pick. Many systems offer flexible plans to match your budget. Over time, the money saved from better hiring makes up for the cost.

What should you consider before choosing an ATS or HRIS?

Think about your hiring needs and how you manage workers. Choose systems that are easy to connect, can grow with your business, and keep data safe. Trying demos can help you decide.