As more human resources teams start to modernize their HR practices by investing in better Human Resources Information Systems (HRIS Systems) and recruitment software, it is clear that digital transformation in HR is now stronger than ever.
The HR management software sector is estimated to rise to over USD 33 billion in value by 2030. And on the recruitment side, there are approximately 4.8 million organizations using recruitment software globally as of 2022, with the number expected to grow to over 6 million by 2030.
Naturally, this exponential growth presents several burning questions for HR personnel:
How many different types of software do you actually need? Why do you have to invest in other tools if HRIS systems already cover basic recruitment functions? How can you make sure that the tools are even worth investing in?
Modernizing HR practices is not only about subscribing to any so-called “best” HR tools. Rather, it is about knowing how all-encompassing software like HRIS systems can work with more specialized tools, like a recruitment applicant tracking system (ATS), to your absolute benefit.
And in this article, we will be showing you exactly how to integrate an ATS with your HRIS systems (either existing or ones you plan to invest in), so you can unlock the full potential of the tools you subscribe to and stay ahead of other HR professionals.
What exactly does “modernizing” HR systems mean?
A 2022 PwC survey of over 600 global HR leaders found that one of the biggest HR challenges among them is modernizing existing HR systems (36% of those surveyed). But what does “modernizing” actually mean in the context of HR work?
Modernizing HR systems means using technology to improve the output from your work in all HR functions, while saving time and money in the process. This defines efficiency, and is the main way of validating the use of technology to make things leaner and better.
HR functions that benefit from these tools include recruitment, performance evaluations, training, compliance, compensation, and engagement, among others.
Most of these functions can be taken care of with the use of reliable HRIS systems, that help you establish a strong employee database and keep track of compensation and employee leave requests, for example.
However, some functions require more detailed software than others, such as the recruitment and hiring fields. A deeper look at the same PwC survey above shows that a whopping 39% of those surveyed agree that improving recruitment/hiring processes is their biggest HR challenge–the largest share of all challenges recorded in the survey.
HRIS systems comprehensively cover internal functions within the organization. The challenge here is that recruitment, on the other hand, typically involves hours of outbound work in contacting candidates and posting job openings to attract more applicants.
This is precisely why modernizing HR work needs to cover both the internal and external functions that HR professionals deal with every day of the week. It is also exactly why modernizing is the key to staying valuable and relevant, as other HR personnel continuously look to stay ahead of one another.
And in the next section, we will be playing down the key differences between HRIS systems and recruitment software, to find out how they should work together to give you a competitive edge.
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What are HRIS systems and applicant tracking systems (ATS)?
Human resources information systems (HRIS systems) are software that helps with internal HR work, like employee databases, performance reviews, attendance, compensation, and skills-based training.
They exist to make it easier for HR professionals to tackle their daily tasks, mainly by centralizing all HR functions into one accessible interface.
Think of it as a way to minimize the use of multiple spreadsheets to store separate groups of data, like employees’ personal information and their different performance evaluation results.
For instance, if your HR tool setup were a spider’s web, HRIS systems would be at the center, as the main foundation to modernize existing systems and practices.
On the other hand, applicant tracking systems, or ATS, would be comparable to one of the key supporting strings of silk on the web. A reliable ATS must be able to take over the entire recruitment process, which comprises several smaller “strings,” from posting job boards to hiring, and even generating post-hire reports to calculate ROI.
As one of the key functions of HR, the main purpose of successful recruitment is to find the brightest talent to join the organization. And naturally, finding the best people for each job comes with an overwhelming amount of pressure on HR professionals, in addition to everything that is already on their plates.
Why you need an ATS to complement HRIS systems
The fact is that recruitment takes time. According to statistics by LinkedIn, it takes an average of 33 to 49 days to hire someone for a single position, depending on the industry. Most higher-ups would likely not be pleased with this timeline, especially in the midst of a huge talent shortage.
This is exactly where specialized tools like an ATS can help, by solving issues specific to the recruitment side of HR, especially time-consuming tasks like job posting.
But why consider a separate ATS when some HRIS systems already provide recruitment-related features?
Some HRIS systems do come with a built-in ATS, but not all of them include features that a dedicated ATS does. A specialized ATS will provide you with features like AI-driven candidate recommendations, which show you favorable candidates for each position based on their degree of likeness to your specified criteria, like this:
Compared to a regular candidate database that can be found in some HRIS systems, a dedicated ATS should ideally be easier to use and provide you with more capabilities in selecting the best people to interview, and, eventually, decide to hire.
Another example would be an ATS’ ability to let you post job openings across dozens of job boards instead of posting one opening at a time. Instead of spending hours–or even days–posting and collecting applications from different job boards, a reliable ATS should automate job posting, and automatically store applicant information in a database that can be linked with existing HRIS systems.
However, although an ATS can really help ease your workload in recruitment, a crucial factor to note is that it must provide you with everything you need, without the hassle of jumping from platform to platform. This is to say that any tool that you subscribe to must not force you to jump from the tool to your main HRIS system, and vice versa.
Rather, the external tools should all be accessible within the HRIS systems themselves, for the investment to be worthwhile.
And in the next section, we will be explaining exactly how to integrate specialized tools like an ATS with an existing HRIS system.
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How to integrate ATS and HRIS Systems: using an API
Integrating an ATS with main HRIS systems means allowing both tools to access each other without having to switch between software to use them.
This is most commonly achieved by using HRIS systems that feature an application programming interface, or API. By definition, APIs allow two different software to communicate with one another. For you, this means that you can use an API to make smooth transitions from software to software.
In a regular setting, APIs are used in several user-centric apps, like navigation tools that require interactions with multiple sources to ensure a smooth user experience. This is also the objective in an HR and recruitment setting, where the goal is to make things as convenient for the user as possible while navigating multiple tools.
Please note, however, that API integration will only work if the other tool in question also features an API. The software will then be able to generate a token that can be linked to your main HRIS system, like this:
Overall, there are two main benefits of integrating an ATS with your HRIS systems by using an API:
- It is much easier for you to manage - If you do end up getting an API-friendly ATS to integrate into your HRIS systems, you will notice the difference in time saved compared to a setup that does not feature integration. Having all the extra help from multiple specialized systems while enjoying the ease of seamless use should be the main goal in this case.
After all, it would defeat the purpose of investing in tools for convenience if you end up taking more time to access them.
- It safeguards your data - By using an API to connect both software together, you will also be centralizing where the data is stored. Instead of storing employee data from HRIS systems in one place, and storing candidate data in the other, API-based integration allows for all of it to be stored on the main HRIS system database.
This means you will not have to worry about potential data breaches, which often stem from storing data in one too many places. It is even better if you can find both HRIS systems and ATS that are cloud-based. Cloud storage generally leads to more security while saving costs, which would otherwise be used on paying for extra servers and data storage.
Considering where we currently are in terms of the competitive HR software market, API-based integration should be a requirement for any reliable HRIS system.
APIs are the main way to connect multiple tools and systems to your benefit, and thus, it is strongly recommended that you only look for tools that offer this function. It is very hard to justify subscribing to a service that does not focus on making your life easier through a streamlined working experience otherwise.
Manatal’s ATS, complete with an open API feature
In the modern HR world, it is no longer only about picking which software is the best among its competitors. The bigger priority now is selecting the right ones, and finding out how they can work together to take things to the next level.
This constructive mindset sets progressive HR professionals apart from those who resist change. It starts with accepting that HR has an overwhelming array of functions and responsibilities and that tools exist out there to improve how you overcome them.
While you can opt to use one tool, you might risk falling behind companies that are making the most out of a few specialized tools in addition to their existing HRIS systems.
The right HRIS systems for each organization will largely depend on the organization’s actual needs. Some may prefer to have HRIS systems that focus on employee database capabilities, while smaller companies may opt for systems that prioritize sourcing training courses to stay on the cutting edge.
On the recruitment side, however, it is wise to select a tool that makes the most out of the advanced hiring technology, with API functionality kept in mind.
The ATS includes streamlined applicant data that is automatically fed into the existing HRIS system, automated job board posting with over 2,500 free and premium channels, automated candidate profiles to ensure no duplicate applications, and much more. It also has built-in customer relationship management for recruitment teams that work with external clients.
Manatal features an open API, which means it can be linked to most HRIS systems that support API-based integration. It also offers guides on integrating the ATS into your HRIS systems, along with 24-hour customer support to ensure a seamless experience.
Curious to know how you and your organization can benefit from integrating a specialized ATS to your existing or future HRIS systems? Sign up for a free 14-day trial to test Manatal out today!
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