How to Replace Multiple HR Tools with One Custom System
The average HR department juggles 6 to 12 tools. Discover how to replace them with one integrated system that works better and costs less.
Door Ingmar van Maurik · Founder & CEO, Making Moves
The problem with the HR tool jungle
The average HR department of a growing company uses between 6 and 12 different tools. An ATS for candidate management, a separate assessment platform, a scheduling tool for interviews, an onboarding system, an HRIS for employee data, and on top of that spreadsheets, email, and Slack for daily communication.
Each tool was once chosen to solve a specific problem. But together they create a new problem: fragmentation. Data is spread across multiple systems, recruiters constantly jump between screens, and oversight of the total hiring process is missing.
This article shows how you can replace that proliferation of tools with one integrated system, what the benefits are, and how to execute the transition successfully.
The real cost of tool fragmentation
Before we look at the solution, it is important to understand the impact of fragmentation. The costs are both direct and indirect.
Direct costs
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Indirect costs
Indirect costs are at least as high, but are rarely measured:
The total of direct and indirect costs for a company with 100 to 500 employees typically ranges between 40,000 and 100,000 euros per year. An amount that often pays back the investment in a custom system in less than a year.
What we mean by one system
An integrated hiring system combines the core functions of multiple tools in one platform:
Candidate management and pipeline tracking form the foundation, comparable to a traditional ATS but with more flexibility in the flow. You define your own stages, rules, and automations.
Integrated assessments are no longer an external tool but a native part of the process. Candidates complete assessments within the same environment where they apply. Results are automatically linked to the candidate profile and factored into scoring.
Intelligent scheduling synchronizes with the calendars of hiring managers and interviewers. Candidates choose a suitable time from available slots without endless back-and-forth emails.
Real-time analytics provide insight into the full funnel: from source to hire, with conversion rates per step, cycle times, and quality metrics. No compiling reports from multiple sources, but a live dashboard that is always current.
AI-powered decision support goes beyond what separate tools offer. Because all data lives in one system, AI can recognize patterns that would remain invisible across multiple tools. Think of which assessment scores predict success in specific roles, which sources deliver the best candidates, and where the bottlenecks are in your process.
The transition: how to approach it
Step 1: map your current stack
Start with an inventory of all tools involved in hiring. Think broader than just the official tools. Often there is also use of:
For each tool, create an overview of which functions are actually used, what the costs are, and who the users are. You will discover that many tools are only being used for 30 to 40 percent of their capability.
Step 2: define your ideal hiring flow
Before building a system, you need to know what you want. Describe your ideal flow from start to finish:
This is an excellent moment to improve your process, not just digitize it. Critically examine steps that exist because they have always been there, not because they add value.
For inspiration on what an effective hiring funnel looks like, check out our article on the perfect hiring funnel.
Step 3: choose the right build partner
Building your own system is not something you do alone. You need a partner who understands how hiring works and has the technical expertise to translate that into software. Pay attention to:
Step 4: migrate in phases
Do not try to switch everything at once. A phased approach reduces risk and gives your team time to adjust:
Phase 1 (month 1-2): Build the core, candidate management, and the primary hiring flow. Run in parallel with your existing ATS.
Phase 2 (month 2-3): Integrate assessments and scoring. Start with a pilot for a limited number of positions.
Phase 3 (month 3-4): Add analytics, scheduling, and AI features. Expand the pilot to all positions.
Phase 4 (month 4-5): Turn off your existing tools. Migrate historical data where relevant.
Step 5: train your team
The best tool is worthless if nobody uses it. Invest in:
Real-world results: what you can expect
Companies making the switch to an integrated system consistently report strong results:
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These numbers are based on companies with 100 to 500 employees and 50 to 300 hires per year. Exact results vary, but the direction is consistent.
Common objections
Is it not risky to put everything in one system? Less risky than it sounds. A well-built system has better uptime than most SaaS tools, and you have full control over backups and disaster recovery. Moreover, you eliminate the risk of integration failures, which is currently one of your biggest vulnerabilities.
What if we miss a feature that a specific tool had? A custom system is by definition extensible. Features you miss can be built. The difference is that you only build what you need, instead of paying for features you do not use.
Is the initial investment not too high? The investment is higher than one month of SaaS licenses, but lower than what you pay over 2 to 3 years for separate tools. Think of it as the difference between renting and buying: monthly costs are lower and you build equity.
Key takeaways
Ready to simplify your HR stack? Get in touch for a free inventory of your current tools and a plan for consolidation. Or read more about how a custom ATS compares to SaaS.