Contemporary recruitment practices remain
dominated by Applicant Tracking Systems (ATS) that operate on elimination
logic, sequentially filtering candidates through keyword gates and
multiple-hurdle screenings. While efficient at reducing applicant volume, this
paradigm systematically discards potentially suitable candidates and degrades
the quality of information available to hiring decisions. This paper introduces
Applicant Relationship Management (ARM), a relational paradigm for talent
acquisition derived from Customer Relationship Management (CRM) theory. ARM
reconceptualises applicants as stakeholders in a co-creative assessment
process, replacing sequential elimination with compensatory multi-dimensional
evaluation, dialogue-based interaction, and sustained relationship management
including silver medallist re-engagement. Drawing on stakeholder theory,
relationship marketing, and compensatory assessment science, we develop the ARM
framework and its lifecycle model. We then examine its implications for emerging
regulatory and sustainability reporting frameworks, including the EU Artificial
Intelligence Act (which classifies recruitment AI as high-risk from August
2026), the UN Sustainable Development Goals 8 and 10, and the CSRD/ESRS S1
workforce disclosure standards. Preliminary evidence from a pilot platform
implementation is reported alongside explicit boundary conditions and a future
research agenda with testable propositions. The paper contributes to
recruitment theory by proposing a paradigm shift from transactional processing
to relational cultivation, and to management practice by offering a framework
that aligns operational effectiveness with regulatory compliance and applicant
dignity.
