Talent CRM: Is Your Future Employer “Stalking” You?
Employers are using a new kind of tool, a talent CRM (candidate relationship management) system, to start engaging candidates long before they even apply. These talent CRMs, which are sometimes called recruitment CRM systems, screen both passive and active candidates, as well as everyone who has previously applied.
Employers are using a new kind of tool, a talent CRM (candidate relationship management) system, to start engaging candidates long before they even apply.”
If you are somewhat familiar with HR and recruiting, you might say, “Hey, isn’t that just an ATS (Applicant Tracking System)?” Although some ATS tools includes features of a talent CRM, there are a number of key differences that differentiate the two.
- ATS focuses on tracking applicants who have already applied, while talent CRM can increase your talent pool and number of applicants.
- ATS rates candidates based primarily on self-reported information from the candidates while talent CRMs can fill in the blanks of a candidate’s profile by scouring the web for social media, blogs, and other online behavior.
- ATS doesn’t measure engagement, but talent CRMs can weigh the interest a candidate might show towards a specific job.
- ATS is generally more of a productivity tool for workflow and compliance while talent CRMs do significant amounts of legwork for recruiters.
How Talent CRMs Work
Ideally, talent CRMs utilize cookies, fingerprinting, or similar alternatives to cookies to track a candidate’s online behavior in order calculate how good of a fit they would be for a position. And of course, that‘s done with the candidates’ consent and is GDPR-compliant.
However, currently available talent CRMs haven’t gone to such depths just yet. At present, they are tools that help employers increase the number of potential candidates in the pipeline by hosting online events and establishing online engagement channels such as instant chat. Also, once the candidates willingly share their social media profiles (i.e. Facebook, LinkedIn), they use web scraping to extract information from their pages and enrich their profile in the talent CRM database.
Beamery, a talent CRM based in the UK, recently raised $138 million in funding.
One of the most famous players in this field is Beamery. Established in 2014 in the UK, Beamery has dubbed their talent CRM a ‘talent operating system’ and has seen great success in the US market. Recently, it raised USD $138 million in June 2021. A smaller player in the space is Clinch, which was acquired by another HR tech company Pageup in 2019. Greenhouse, which was acquired by TPG for $500M in Jan 2021, also provides an applicant tracking system and recruiting software designed to help make companies grow their candidate pipeline. Also, cutting in with a different approach, ZIP Recruiter, which went public on NYSE in May 2021 and now valued at USD $2.5 billion, helps its clients to get the word out about a role, with a service akin to programmatic advertising.
As for ATS companies that also provide similar features, iCIMS, founded in 1999 and occupies the largest market share in ATS, helps companies attract talent with targeted recruitment marketing. And another top ATS company, Bullhorn ATS, founded in 1999 and acquired by Insight Partners in 2017, has also begun to assist companies by nurturing future candidates.
Our portfolio company LAPRAS integrates candidates’ online presences into their profiles.
Asian Market for Talent CRMs
While the concept of talent CRMs is relatively new in Asia, there are some companies pioneering this field.
In Japan, PERSOL, a large staffing company in Japan founded in 1973, has rolled out a new service called HITO-link, which claims to be the first talent CRM in Japan. On the other hand, HERP, a startup founded in 2017, provides ‘HERP Nurture’ and ‘HERP Hire’ to enable existing employees to easily engage their personal friends as potential candidates. Some smaller players in the market include Meety, Talent Cloud, Calin, and Talentio.
Also, although not exactly a talent CRM, our portfolio company LAPRAS streamlines the recruitment process of programmers and engineers by integrating each candidates’ GitHub, Twitter, Note, and other online media accounts into their individual profiles to help companies assess and rate the candidate’s capabilities.
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