ATS vs CRM: Why Staffing Firms Need Both for a Modern Tech Stac

Your applicant tracking system (ATS) is the backbone of your recruiting operations, but let’s be honest—is it also a bottleneck?

For many staffing firms, the platform that’s essential for tracking placements is the same one creating friction. It’s a logistical workhorse that falls short on candidate engagement and pipeline visibility. And if you're tired of the data silos and clunky workflows, you've probably asked the question: Is it time to fire our ATS?

The answer isn't always a simple yes or no. The real solution lies in building a tech ecosystem in which each platform serves a distinct, powerful purpose.

In a recent episode of SmartBug on Tap, our VP of Sales, Alexandra Whitmore, sat down with Abigail Allen, our SVP of Sales and a staffing industry veteran with two decades of experience, to tackle this very issue. Their conversation provides a clear framework for navigating the customer relationship management (CRM) versus ATS debate, elevating your candidate journey with HubSpot, and determining your best next move.

Table of Contents

• Comparing CRM vs. ATS: What’s the Difference?
• Supercharging the Candidate Journey with HubSpot
• Your Next Move: Reposition, Integrate, or Replace?
• Building a Tech Stack That Grows with You

ATS vs CRM: Key Differences for Staffing Firms

At the heart of the tech stack debate is a fundamental misunderstanding of what each system is built to do. In fact, many common CRM strategy pitfalls stem directly from this confusion.

A key point Abigail emphasized during the podcast is that firms treat their CRM and ATS as interchangeable, which is like confusing a filing cabinet with a communications hub. One is for storage and processes, the other is for engagement and relationships.

What an ATS Does (and What It Doesn’t)

An ATS is a powerful logistical tool designed for a specific, linear process: posting jobs, parsing resumes, ensuring compliance, and moving candidates through the interview stages. Its primary job is to manage applicants efficiently. The limitation? It’s not built for nurturing long-term relationships.

Why Staffing Firms Need a CRM for Engagement

A CRM platform is your system of engagement, designed to manage relationships with both clients and candidates—a unique challenge for staffing firms known as the "double funnel." Its core functions include tracking sales pipelines, automating marketing outreach, and providing a 360-degree view of every interaction.

When firms try to force one system to do the other's job, it leads to missed follow-ups, zero marketing automation, and a complete lack of sales pipeline visibility. This mismatch creates friction, drains resources, and leaves opportunities on the table.

How HubSpot Enhances ATS with CRM Capabilities

Where a traditional ATS sees an applicant, HubSpot sees a relationship. Instead of a transactional process in which candidates either get placed or fall off the radar entirely, you can create an engaging, long-term experience.

Abigail noted that the biggest wins for firms using HubSpot come from a few key capabilities:

• Automated nurturing: You can build workflows that automatically send relevant job alerts, share valuable content, or keep your "silver medalist" candidates warm for future opportunities. This transforms your database from a static list into a dynamic talent pool.
• Enhanced visibility: HubSpot tracks candidate engagement, including who is opening your emails, clicking on job postings, and visiting your site. This gives recruiters powerful insights into who is most interested and allows marketing and sales teams to work in lockstep from a shared, unified platform.
• Seamless integration: The goal isn’t always to replace the ATS but to enhance it. When you integrate your ATS with HubSpot, data flows seamlessly between them. Your ATS handles back-end logistics, while HubSpot manages all front-end communication, creating a single source of truth for your entire team.

This integrated approach lets you leverage the best of both systems. That leaves one critical question: Should you reposition your current ATS, or is it time to replace it entirely?

Your Next Move: Reposition, Integrate, or Replace?

Knowing that a healthy tech ecosystem is possible is one thing; deciding how to achieve it is another. According to Abigail, the decision to integrate your ATS with a CRM versus replacing it entirely comes down to a few key factors. If your ATS is still functional but your teams are struggling with visibility and engagement, a better integration with HubSpot is likely the answer.

However, if you're experiencing deeper issues, it might be time for a change. Here are a few signs that your ATS is holding you back:

• Low user adoption: Your recruiters actively avoid using the system because it’s clunky, slow, or creates more work than it saves.
• Zero sales visibility: Your sales team has no idea where candidates are in the submission process, leading to friction and missed opportunities.
• Disconnected data: Your teams are manually entering the same contact information into multiple systems, wasting time and creating errors.
• Poor candidate experience: Candidates complain they never hear back, or they receive generic, irrelevant communication from your firm.

A healthy tech stack allows your ATS to be the efficient processing engine it was built to be, while HubSpot acts as the central cockpit for managing relationships, automating outreach, and providing clear visibility across the entire business.

Building a Tech Stack That Grows with You 

Forcing an outdated ATS to do the job of a modern CRM is a recipe for inefficiency and frustration. The goal isn’t just to have technology, but to have a strategic ecosystem in which the right tools are used for the right jobs. By pairing a functional ATS with a powerful CRM like HubSpot, staffing firms can stop wrestling with their software and start building better relationships with clients and candidates alike.

Ready to assess if your tech stack is helping or holding you back? Schedule a consultation with our team or download our CRM/ATS evaluation checklist to figure out your next best step.