Top 5 Benefits of Integrating an ATS into Your HRIS Systems

The HR software industry is expected to almost double in value in less than 10 years, from over US$ 17 billion in 2021 to US$ 33.5 billion by 2030. Many in this category of digital tools include Human Resources Information Systems (HRIS Systems) and Applicant Tracking Systems (ATS).

But what does all of this growth mean for HR professionals? How will it actually impact their way of working in the next 10 years?

With thousands of HR and recruitment tools available in the market, the key focus for HR personnel moving forward will be learning how to select and leverage these tools to their best benefit.

One of the main ways to make the most out of these tools is to use general HR systems together with more specialized tools where needed. And one of the more common practices is combining a comprehensive HRIS system with dedicated recruitment technology, such as an applicant tracking system, or ATS, to ensure that all internal HR processes (like payroll and benefits) are taken care of, while important external HR functions (like recruitment and hiring) remain competitive.

However, before deciding to subscribe to both an ATS software and HRIS system, it is important to know why HR professionals actually do this in the first place.

In this article, we will be covering the top five benefits of integrating an ATS into your HRIS systems so you can stay ahead of the projected growth in HR technology in the coming decade.

To start things off, let us explore what “software integration” actually means in the context of HR work and why it should matter to you.

What HR software integration actually means

Software integration most commonly refers to having two or more software that work together, without having to switch from one platform to the other. 

Typically, integration involves linking databases, functions, and interfaces into one solid platform, without losing out on the specific benefits and features of each software. This means that software integration can only be deemed successful if all the combined features result in a desirable outcome, such as increased productivity, or successfully meeting HR KPIs.

Integration is possible if the software you use comes with some form of interfacing capabilities, this most often comes in the form of an application programming interface, or API. By definition, APIs are interfaces that help users use two or more software at the same time without having to manually switch between them.

Think of it as a set of common rules that two different software both have to follow. Or, like a commonly-used second language that tools use to communicate with each other, instead of their native language – the code they were originally written in.

For example, if you have an API-friendly HRIS system in place that already takes care of your employees’ data, payroll, benefits, and training courses, you can also integrate an API-friendly ATS to come in and cover all of your recruitment work. 

The HRIS system and ATS will then use an API to share data with each other, and deliver a seamless experience that does not take any more of your time and effort to use both tools at the same time.Without an API, the ATS and HRIS systems would have separate sets of data. This would require management of even more spreadsheets, and would not be an efficient use of your time. 

This is especially crucial in the field of HR and recruitment, since HR functions require the storage of important employee information and financial data. For recruitment teams, it is also about creating, storing, and protecting large amounts of applicant data, candidate progression, and successful hiring statistics.

Without centralizing everything onto a common interface, HR personnel will be prone to the following integration-related risks:

The biggest risks of not integrating different HR software together

There are three main risks associated with not successfully integrating HR and recruitment tools:

1. You risk lagging behind the competition.

The amount of competition that an HR professional faces on a regular basis is more overwhelming than most may assume.

While one may think that HR personnel are not competing with anyone else – compared to recruiters and headhunters who have to compete with each other – it is, in fact, the direct opposite.

As you may know, HR work covers everything under the sun. From making sure employees’ needs are met, ensuring their professional growth, to finding new recruits to join the team - there are various degrees of competition in each of these functions.

Internally, each HR professional must ensure that they continuously create value in their role, because their career growth matters as much as the growth of other employees. By knowing how to make the most out of HR tools, they can become more efficient and produce more output. 

This automatically makes them more valuable and desirable in their company, as well as the job market. Think of it as one employee who is capable of doing the job of two HR personnel at once, for example.

Externally, namely in recruitment, HR professionals who manage talent and recruitment need to compete with top recruiters and headhunters to successfully hire top talent that would help their company grow. 

And especially considering how there are almost 5 million organizations globally that use recruitment software as of 2022, it is safe to say that many recruiters are already utilizing them like clockwork.

Thus, without making use of the available tools in the market - like HRIS systems and ATS software - HR professionals risk stagnating in their function and losing out to other professionals who are applying a more modern, tech-driven approach.

2. You risk possible breaches in information and data. 

The truth is that data is harder to keep track of if it is stored in multiple places. Whether it is data about technological services, financial information, or simply employees’ home addresses, it is always beneficial to have them stored in one safe place, instead of data silos.

The more doors you open, the harder it is to close them. And with data protection, it is often best not to take that risk. 

3. You risk compromising your health as an HR professional.

On the more human side of things, HR personnel are exposed to stressful situations on a daily basis, such as generally feeling overwhelmed from having to manage all HR functions for several employees at a time.

It comes as no surprise that 90% of HR personnel have reported increases in levels of stress in the past year, with the main stressor being the pandemic and its effects on workers and hiring.

This is why HRIS systems - paired with an API-friendly recruitment ATS - should be used to ease your workload. Without a centralized way to work and integrate other helpful tools, it will be very difficult to overcome that stress, unless your workload decreases–which is unlikely to happen in the world of HR.

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5 best benefits of integrating an ATS into your HRIS systems

So now that we have covered what software integration really means and the roadblocks from  not integrating an ATS into your HRIS systems, it is time to move on to the five biggest benefits you will receive from successfully integrating the two: 

1. ATS and HRIS Systems integration saves time overall.

Many HR professionals work in excess of 40 hours a week, according to the U.S. Bureau of Labor Statistics. Although those are the statistics, some HR professionals commenting on forums will likely say that the workload could reach 50-60 hours per week during packed periods. This apparently often happens when they are recruiting for multiple jobs while managing documentation for dozens of employees simultaneously.

The last thing these professionals need is software that takes more time away from their schedules. This is where software integration can step in and decrease weekly work hours.

To save time, ATS and HRIS systems should provide you with the ability to automate everything that can be automated. On the HR side, this involves automated payroll tools, or automated leave trackers, to name a few.

The recruitment side is where it gets a little more complicated, as it is one of the most time-consuming parts of working in HR. In fact, LinkedIn cites that it takes up to 49 days to hire someone successfully.

Multiply that by just five new positions, and you are looking at several hours per day spent just recruiting, while other HR tasks are put on the back burner until it is time to put out another fire.

A powerful and reliable ATS should be able to automate job postings across multiple platforms at once, recommend candidates from job sites and your talent pool, and provide you with a simple candidate dashboard to eliminate the need for spreadsheets to organize recruitment progress.

And more importantly, the ATS should be able to automatically send all applications to your existing HRIS systems, to ensure you have a common database for all the information. Any setup that does not provide this functionality is likely not worth your time.

2. It improves the quality of your output.

In connection to the first benefit, the time saved by automating things that can- and should - be automated directly contributes to the quality of your work.

For example, if a hiring manager can save four hours (that would otherwise be spent manually posting jobs across multiple platforms and tracking applicant statuses) they can use the remaining time for more valuable tasks.

From developing more effective hiring strategies to taking in more interviews to speed up the hiring process, the possibilities are endless.

With ATS and HRIS systems integration, HR professionals can also reduce the amount of manual tasks and oversee automatically-generated employee or candidate lists instead of manually filling everything in.

To illustrate what this means, here is a screenshot of the candidate pipeline dashboard from Manatal’s ATS, showing how much you can limit your involvement in manual pipeline management:

As you can see, a worthwhile ATS needs to make processes simple in order to save time and improve the quality of work. In this case, Manatal’s candidate dashboard is a drag-and-drop interface that eliminates the need for typing in candidate names each time one is chosen.

All information on applicants and candidates are also sent directly to the main HRIS system, which makes it much simpler to manage data without jumping across platforms.

3. It helps prevent duplicate information.

Another time-consuming task in HR and recruitment is vetting duplicate applications and candidate profiles. Internally, this could also concern the use of multiple spreadsheets that store the same information. This has been known to generally add to confusion among concerned employees who work with the data in question.

With both systems integrated, the centralized database ensures there are no duplicate entries of any kind. For example, Manatal’s, API-friendly ATS automatically organizes job applications by combining all duplicate entries into one candidate profile per applicant.

This means hiring managers will not need to watch out for double entries from any applicant, and will be able to view a comprehensive profile of a candidate along with all positions they have applied for under your organization.

Keep in mind, however, that this function will only be useful with HRIS systems and ATS that have an API. Without one, the information sources would be separate, and hence, harder to maintain.

4. Integration makes reporting easier.

In relation to benefit 3 above, minimizing the possibility of duplicate information directly contributes to more accurate data, such as the number of unique applications per job opening, or the number of candidates.

Integration thus allows more realistic reports and projections, as all data would be pulled from the same source. This makes for reports that actually have business value and can be turned into actionable next steps.

In this example of this automated report from Manatal, you can see clear ratios of candidates coming from each channel:

This helps HR professionals apply a more data-driven approach to hiring, as it informs them (and the organization’s executives) where they should be investing their time, budget and resources.

5. It protects information for compliance purposes.

One of the key purposes of API-based integration of HRIS systems and an ATS is to have a centralized database. In terms of confidential information like employees’ personal details, applicant data, or even important internal documents, it is generally best to have them all protected in one place.

Take employees’ insurance information, for instance. According to law firm Baker McKenzie, information breaches that violate Health Insurance Portability and Accountability Act (HIPAA) privacy standards could result in up to a US$ 50,000 fine, per violation.

And while the laws generally penalize leaks that are intentional, it is wiser to stay on the safer side and avoid the possibility of going into litigation, as it is part of an HR professional’s job to maintain integrity when dealing with employees’ personal data to begin with.

Managing personal data might not seem like that big of a deal in smaller teams but it is nonetheless a professional obligation to safeguard information. If you need to deal with the private and personal information of 100 employees at once, one slight displacement could prove to be more than troublesome.

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RELATED: A Must-Read Guide to Integrating an ATS with HRIS Systems

Choose an API-friendly ATS

Given all the benefits of software integration we have covered, it is safe to say that successful integration would not be possible if the tools you use do not feature an API.

However, it can be hard to visualize just how API-friendly ATS and HRIS systems can collectively transform the way you work as an HR professional.

If you are curious to know how the integration works, Manatal ATS support API integration and is currently available for a free, 14-day trial.

Feel free to sign up for your free trial to learn more today!