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In this article, you’ll learn precisely what we know about candidate relationship management (CRM) in the recruitment context and, most importantly, how we determine the best recruitment CRM software for U.K., U.S., and global businesses.
What is a CRM System in Recruitment?
In recruitment, candidates are essentially potential customers that recruiters aim to connect with and bring on board. This is why the acronym CRM, which stands for Customer Relationship Management, is adapted to mean Candidate Relationship Management, which, in this context, indicates the process of building and strengthening connections with talent.
Candidate relationship management software, also known as a recruitment CRM system or recruiting CRM focuses on reaching out to candidates already in the company’s talent database through targeted sourcing, personalized communication, and regular engagement.
The main goal is to enhance the management of relationships with candidates throughout the hiring process. This includes helping organizations simplify talent acquisition workflows, improve candidate engagement, and optimize recruitment strategies.
Recruiting CRM is particularly popular among organizations with large talent databases like recruitment agencies and in-house recruiters at global enterprises. This makes sense, as instead of having to search for candidates from scratch, this software helps businesses use what they’ve already got—past applicants. It keeps their profiles up-to-date and connects them with the organizational culture and job openings that fit their career goals, which often leads to a shorter time to hire down the line.
Recruiting CRM is not to be confused with an Applicant Tracking System (ATS) though they both are critical to recruitment and have some overlap in terms of functionalities. One shouldn’t mix up recruitment CRM with a Human Resource Management System (HRMS), either, as they serve different purposes and have their own ways of communicating and managing data.
And here’s what I mean.
Differences Between a CRM, HRMS, and ATS
Recruitment CRM tools focus on nurturing candidate relationships before they apply, while ATS systems streamline the application process once candidates show interest in a position. HRMS, on the other hand, manages broader human resource functions throughout an employee's tenure. Below is a breakdown of these systems’ distinctions.
Difference #1: Purpose and Focus
- CRM: Primarily designed for managing relationships with candidates, particularly in recruitment contexts. A recruitment CRM focuses on nurturing potential candidates, engaging passive talent, and maintaining relationships over time. It allows recruiters to build talent pools and manage outreach efforts effectively, often before candidates apply for positions.
- HRMS: A comprehensive system that manages all aspects of human resources, including employee records, payroll, benefits administration, performance management, and compliance. An HRMS centralizes HR data and processes across the organization, serving as a backbone for HR operations.
- ATS: Specifically tailored to manage the hiring process. An ATS handles job postings, application tracking, resume screening, interview scheduling, and candidate communication once they apply for a position. Its primary focus is on streamlining the logistics of recruitment.
Difference #2: Data Management
- CRM: Collects data from multi-channel recruitment marketing platforms, including networking events, social media interactions, and previous applicants. It maintains a rich database of candidate information that can be leveraged for future recruitment needs.
- HRMS: Stores comprehensive employee data throughout their lifecycle in the organization—from hire to retire. This includes personal information, employment history, performance reviews, and payroll details.
- ATS: Primarily gathers data from job applications. It tracks candidates' progress through the hiring pipeline but may not retain extensive information about candidates who were not hired unless integrated with a CRM.
Difference #3: Communication Style
- CRM: Facilitates ongoing communication with candidates through personalized outreach efforts such as newsletters, event invitations, and email campaigns. This helps keep potential candidates warm even when there are no immediate job openings.
- HRMS: While it may include communication features for HR-related matters (like HR policy updates or benefits enrollment), its focus is not on candidate engagement but rather on employee management.
- ATS: Communication is typically transactional—focused on scheduling interviews or sending application updates.
CRM vs. HRMS vs. ATS: Comparison Table
Now that you have a good understanding of what a CRM is for recruitment, let’s dive deeper into what this tool can really do for you. We’ll check out the benefits of using a recruiting CRM and how it can help businesses hit their hiring targets effectively.
What Are the Benefits of Using CRM Software?
Candidate relationship management tools can be useful for a company in various ways, including centralized candidate management, enhanced candidate communication, streamlined recruitment processes, and talent pipeline development.
- Centralized candidate management: Recruitment CRM software allows companies to store and manage all candidate information in one place, so every member of the hiring team has access to the most current and relevant information, all while staying within their designated permissions.
- Enhanced communication: These systems facilitate effective communication with candidates through automated messaging and email integration. This ensures timely and positive interactions with candidates, which is key for attracting top talent.
- Streamlined recruitment processes: A recruitment CRM takes a lot of the busy work off recruiters' plates by handling repetitive tasks like scheduling interviews and sending out reminders.
- Improved candidate experience: When you have a solid CRM in place, you can keep potential hires in the loop with updates and reach out in a way that feels personal. Candidates definitely appreciate transparency and quick responses, and that can really affect how they view the company.
- Talent pipeline development: One of the best things about recruitment CRM software is that it can help build and maintain a talent pipeline, so you always have a good pool of qualified candidates ready for when a position opens up. This way, you can fill critical roles faster, which takes a load off your recruiters’ shoulders.
What Are the Functions of a Recruitment CRM?
There’s a lot that a candidate relationship management system can offer, but these are the 6 recruiting CRM key features that you definitely want to prioritize:
- Centralized Candidate Database: The most important CRM feature. A recruitment CRM serves as a single repository for all candidate information, including resumes, contact details, and interaction history.
- Candidate Sourcing and Tracking: Recruitment CRMs facilitate the sourcing of candidates from your job boards, social media platforms, direct applications, and multiple other channels. They also let you track candidates' progress through the recruitment pipeline as well as previous interactions and follow-ups.
- Automated Communication: A vital aspect to enhance candidate experience. This feature allows for the automation of communication tasks, such as sending out initial engagement emails or following up on interview schedule links.
- Workflow Automation: Recruitment CRMs streamline repetitive tasks like scheduling interviews and sending reminders. This recruitment automation allows recruiters to focus on more strategic activities rather than getting bogged down by administrative tasks.
- Analytics and Reporting: A hub for high-value recruitment metrics and insights (i.e., time-to-hire and conversion rates) often up-to-the-minute to help you identify successful strategies and areas needing improvement.
- Candidate Engagement: The ongoing communication with candidates, especially passive candidates who may not be actively seeking new opportunities to help you build a strong talent pool for future placements.
How Does Recruitment CRM Work?
We observe and research dozens of recruitment CRM software vendors each month. Here’s a general overview of how one works.
Step #1: Candidate Sourcing
Some CRMs provide an in-house Applicant Tracking Systems (ATS) feature, and some don’t. But most provide a Chrome sourcing extension, which you can use to source candidates from multiple platforms, including LinkedIn, Gmail, and Outlook, and centralize their data into the CRM.
Step #2: Data Collection and Centralization
As candidates apply, their resumes are parsed by the CRM, or by the ATS and then transferred to the CRM through an ATS integration. In both cases, the candidate data entry—such as resumes, contact details, and relevant experience—is collected and stored in a centralized database.
Step #3: Candidate Search
Once you have a combined pool of talent across sources in your CRM, the next step is to use the built-in search and filtering functionality to shortlist potential candidates for each role.
Robust candidate relationship management software often provides quick search, Boolean search, as well as custom search so you can easily narrow down the prospects. Some even let you search within notes and resumes, not just the candidate profiles.
As you can see, Recruit CRM equips users with Boolean search, searching in notes, and a variety of filtering options to help them find the most prospective candidates.
Step #4: Candidate Engagement
You have a group of individuals you want to convert to applicants, in this step, you can do just that using the recruiting CRM’s engagement tool.
Recruiters use the CRM to engage with candidates through personalized communications, such as emails or SMS sent to invite them to apply for an opening job that meets their skillsets, directly through the platform.
This feature often, if not always, comes with an automation option, which allows recruiters to craft resonated messages, send them out in bulk, and even set up automatic follow-ups for those who haven’t responded.
For example, some time ago, I tested Zoho Recruit for our recruitment CRM software buyer guide. I was able to craft a personalized email to send a potential candidate to my hiring manager using one of the pre-made templates.
I didn’t end up scheduling the email at that moment, but I could have easily set it to land in the manager’s inbox exactly when I wanted.
Step #4: Candidate Screening
The CRM aids your recruitment team in screening candidates based on qualifications and fit your job description. It may include tools for parsing resumes and assessing candidates against predefined criteria, enabling quicker identification of suitable candidates.
Step #5: Workflow Automation
Many modern recruitment CRMs allow for the creation of customizable workflows that automate repetitive tasks like scheduling interviews, sending candidate notifications, and generating and tracking invoices.
This automation improves efficiency by reducing manual effort and ensuring that no steps in the recruitment process are overlooked.
Step #6: Collaboration Among Team Members
The system facilitates collaboration by providing centralized access to candidate information and communication history. Team members can share notes, feedback, and interview schedules within the CRM, ensuring everyone involved in the hiring process is aligned.
As an example, I can leave a note and tag a colleague to chat about the next steps with a candidate directly on the Zoho Recruit platform.
Step #7: Analytics and Reporting
Advanced reporting features provide real-time insights into key recruitment metrics and team-based KPIs, such as candidate sources, recruitment costs, and time-to-hire. These analytics help recruiters identify successful strategies and areas needing improvement, enabling data-driven decision-making.
Step #8: Ongoing Candidate Relationship Management
A recruitment CRM supports long-term relationship management with both active and passive candidates. Recruiters can nurture these relationships over time, building a talent pool for future hiring needs.
SmartRecruiters’ CRM product is a good example in this case. Its Communities feature allowed me to create multiple talent pools and nurture them with engagement automation over time.
How to Choose the Best Recruitment CRM Software
Choosing the best recruitment CRM software involves evaluating various factors to ensure it meets your organization's specific needs. Here’s a comprehensive guide to help you select the right recruitment CRM:
Factor #1: Know Your Recruitment and Business Needs
Before diving into software comparisons, start with a needs assessment. What challenges are you currently facing? Do you struggle with candidate engagement, talent pipeline management, or team communication bottlenecks?
Different CRMs specialize in different areas. For example, if candidate engagement is an issue, you might benefit from a CRM that offers automated follow-up emails or personalized messaging features.
Next, consider the size of your recruitment team and the volume of candidates you handle. These factors play a crucial role in determining which CRM features are most important for your team.
For instance, a small team might need a simple, easy-to-use CRM with core features such as Manatal and Recruit CRM, while a larger organization dealing with high-volume hiring would benefit from advanced automation and analytics capabilities of solutions like SmartRecruiters and Bullhorn.
Factor #2: Prioritize User-Friendly Features
A Recruitment CRM is only as effective as its usability. You need a platform that your team can understand and start using quickly.
Look for a system with a clear, straightforward interface that doesn't require extensive training. A clean dashboard makes it easier for everyone to access the information they need.
Recruiting isn’t always done from a desk. Having mobile access ensures your team can manage candidates while on the go, whether they’re at a networking event or interviewing on-site.
Last but not least, look for recruitment process automation features. Automating tasks like follow-up emails, interview scheduling, and candidate tagging can save your team from lots of low-value, manual workloads.
Factor #3: Check for the CRM Integration Capabilities
Your recruitment CRM should work harmoniously with the rest of your tech stack. For many teams, this means ATS integrations, email synchronization, or even productivity tool pair-ups.
Also, if you’re switching from another platform, it’ll be critical to ensure the new CRM knows what it’s doing with data migration. While some provide support during this process, some don’t. So, it’s best to clarify this with the vendor and see if that would incur any extra fees.
While we’re at it, take a look at my recruitment software pricing guide. It breaks down not just the initial subscription costs but also what you'll really be spending in the long run. Plus, I've thrown in some tips and tricks to help you secure the best possible deal from the vendors.
Factor #4: Customer Support and Training are Also Important
No matter how user-friendly a CRM is, there will always be questions or technical issues.
While most, if not all, vendors offer live support and online product self-help, their qualities vary. If you aim for a budget-friendly solution, you’ll most likely have to rely on these two support options.
In this scenario, you’d want to check if the vendor provides prompt and helpful assistance through email tickets or live chat and whether the online guides, video tutorials, and webinars are actually helping your team hit the ground running.
For recruitment CRM software catering to mid-sized and large teams, support often includes phone support and a dedicated customer success manager (CSM). If that’s your case, it’s worth testing the expertise and availability of the provided support.
You certainly don’t want to deal with a representative who seems to have little understanding of your issue, nor do you want someone who is hard to reach when you need help.
Another factor to consider is the vendor’s support team's turnover rate. It may not seem significant, but it can lead to real frustrations.
One common complaint I hear from HR friends is about being assigned a new CSM every few months, and I feel them. Having to restart explaining the encountered issues each time is definitely not the best use of time.
Factor #5: Understand the Total Cost of Ownership
A lot of recruitment CRMs, like Manatal, Recruiterflow, and Recruit CRM, tend to chargecharge per user, which is ideal for small teams or those that need flexibility.
On the other hand, some such as Workable and Recruitee use a flat monthly fee, which can be more cost-effective for larger teams with higher user counts.
Also, be cautious that some vendors don’t disclose every fee they charge on their pricing page until being asked.
In my experience, features and services such as data migrations, third-party integrations, software implementation and user onboarding, and customer support, often cost extra.
So, make sure you check these details with the vendor beforehand (during vendor demo call could be a great time).
Factor #6: Research Vendor Reputation and Trusted Software Reviews
Imagine ending up with a vendor who has been sued for a data breach! A little research can help you prevent that from happening.
Also, checking out trustworthy, factual HR and recruitment software reviews can be really useful for gaining a well-rounded perspective on the vendor’s reliability, customer service, and overall satisfaction from other users in similar industries, as long as you know where to look.
Factor #7: See the CRM Software in Action with Trials and Demos
I can’t stress enough how important this step is in my HR and recruiting tech vetting, especially when it comes to candidate relationship management software. I like to think of it as a probation period for new hires, making sure both sides are happy with each other.
You might have noticed that the recruiting CRM software you thought would be perfect for your team turned out to be a bit overkill, or maybe that option you initially overlooked actually fits your hiring goals better.
So, take advantage of any free trials or demo versions that potential vendors offer. And what if they don’t provide those?
My go-to move is to reach out to their sales team and ask for them. Not all vendors are open to this, but surprisingly, some are. In my experience, this approach has worked in my favor about 50% of the time, so steal it!
What Is the Best CRM Software for Recruitment?
(Good) Free Recruiting CRM for Startups and Small Businesses
Zoho Recruit (Free-forever plan available, price starts at $25/mo)
- Best For: Budget-minded teams, especially staffing agencies
- Key Features: Candidate sourcing, tracking, customizable workflows
- Pros: Affordable pricing, free version, integrates with Zoho apps
- Cons: Limited outbound sourcing and automation capabilities
Recruit CRM (Free plan available post free trial, price starts at $85/mo)
- Best For: Recruitment agencies seeking an easy-to-use platform
- Key Features: AI-powered resume parsing, candidate matching, workflow automation, multi-job board posting
- Pros: User-friendly, integrates with Gmail and LinkedIn
- Cons: Some minor performance issues reported
Manatal (Free plan available, price starts at $15/mo)
- Best For: Recruiters wanting AI-driven ATS and CRM features
- Key Features: Talent pool management, social media integration, customizable pipelines, compliance tools
- Pros: Affordable, user-friendly, strong automation
- Cons: Limited customization and fewer reporting features
Best Recruiting CRM Software for Staffing Agencies
Bullhorn
- Best For: Large staffing agencies seeking a comprehensive, scalable ATS and CRM solution
- Key Features: Email integration, dashboard reporting, relationship intelligence, candidate engagement tools
- Pros: Intuitive interface, strong mobile capabilities, excellent customer support
- Cons: Can be expensive for smaller agencies
Ceipal
- Best For: Staffing firms requiring robust automation and compliance tools
- Key Features: Applicant tracking, workforce management, compliance tools
- Pros: Comprehensive reporting, strong automation capabilities
- Cons: Steep learning curve for new users
Gem
- Best For: Agencies prioritizing candidate sourcing with CRM functionalities
- Key Features: Talent pipeline management, outreach automation, analytics tools
- Pros: Ideal for managing relationships with passive candidates, robust analytics
- Cons: Pricing may be higher than some alternatives
Was it Worth Your Time?
I hope so!
Any questions on recruitment CRM software I’m missing here? Let me know.
