Recruitment automation

Global market

2024: The volume of the global recruiting systems market grew by 8% over the year and reached $12.39 billion

At the end of 2023, the volume of the global online recruiting software market reached $12.39 billion. A year earlier, costs in this sector were estimated at $11.44 billion. Growth was recorded at 8%, as stated in the Market Research Future review, published at the end of October 2024.

The authors of the study highlight several factors that stimulate an increase in demand for recruiting systems. Companies and organizations recognize the importance of attracting valuable specialists to increase their competitiveness, and therefore increasingly turn to specialized online recruiting software solutions that simplify and automate the various stages of employee search and employment. Such systems, in particular, make it easier to publish vacancies, track candidates and schedule interviews, which ultimately leads to faster filling of vacancies and lower hiring costs.

Employers are paying attention to platforms that provide comprehensive solutions that go beyond basic job ads. The integration of artificial intelligence and machine learning technologies enhances the capabilities of systems for online recruitment, providing features such as intelligent candidate matching, predictive analytics and automated responses. AI algorithms can quickly process huge amounts of data, allowing companies to identify the most appropriate candidates faster and more accurately. This not only optimizes the process of finding workers, but also improves the quality of hiring.

Recruiting systems also help to organize the search for specialists in geographically distributed regions, which is important given the fact that many employees choose remote and hybrid work formats. Plus, recruiting platforms provide intuitive interfaces, mobile applications and personalized communications, which increases convenience for applicants. Organizations that emphasize managing relationships with candidates can gain a competitive advantage. Recruiting software integrates with social networks and other Internet resources, which allows you to expand the search for potential employees.

The authors of the study divide the online recruiting software market into candidate tracking tools, marketing tools, onboarding (phased involvement of a specialist in the social and work environment of the company), means of attracting candidates through recommendations and assessment tools. In 2023, costs in these segments amounted to $4 billion, $2.5 billion, $2 billion, $2.89 billion and $1 billion, respectively. The list of leading industry players includes:

SAP SuccessFactors; Glassdoor; Workday; Indeed; iCIMS; Bullhorn; SmartRecruiters; LinkedIn; Jobvite; ADP; Monster; CareerBuilder; Oracle Taleo; ZipRecruiter.

In 2023, North America led with an estimate of $5.0 billion, reflecting significant demand in the recruiting sector, driven by the introduction of advanced technologies and a mature labor market. This is followed by Europe with costs of $3.5 billion. In the Asia-Pacific region, the cost of recruiting systems amounted to about $2.7 billion. South America accounted for $0.9 billion, the Middle East and Africa - $0.29 billion.

At the end of 2024, the global recruiting systems market is estimated at $13.41 billion. Market Research Future analysts believe that in the future, the CAGR (average annual growth rate in complex percentages) will be 8.31%. Thus, by 2032, global spending in this sector could reach $25.4 billion.^[1]

2013

According to GIA^[2] forecasts, the global recruiting software market ]will reach $2 billion by 2018, fueled by companies' investments in the development of automated human capital management tools. According to Forrester Research^[3], in 2010 recruiting systems accounted for 11% of the global HRM systems market (almost $1 billion). According to Forrester forecasts, in 2012 the market was supposed to be $1.15 billion, in 2013 - $1.23 billion, and by 2014 to reach $1.33 billion with a CAGR of 8%.

Given that in the modern world it is people who make up one of the most valuable assets of the business, the selection of suitable specialists from year to year becomes an increasingly vital task that allows companies to achieve their goals. At the same time, hiring is a fairly costly and continuous process, as is the turnover of personnel, which is inevitable even in very stable companies.

The fluidity of personnel is one of the risks for the business, which with the help of modern HR automation tools can be significantly minimized. It is important to note that personnel is also directly related to hidden, veiled costs, which can reach 250% or more of the total annual salary of one employee, GIA experts point out.

The key benefits of truly efficient recruitment are attracting motivated employees who can achieve high productivity and ensure stable growth of human capital. Recruitment software primarily reduces the time and cost associated with hiring. In addition, such systems reduce the burden on the human resources department, streamline the hiring process, and increase the chances of hiring the "right" employee.

In the past two to three years, the growing popularity of social networks has made social recruiting one of the hottest trends in the personnel management systems market, as more and more personnel rely on profiles in networks such as Facebook, LinkdIn, Twitter and others when recruiting. Social networks act not only as platforms for communication, but also provide additional information about applicants and allow you to identify those who are in a "passive search."

According to the CedarCrestone^[4] for 2012, the most common social networks were used by HR specialists in the field of recruitment (13% of the study participants noted this application), followed by employee training and development (7%) and HR management (7%). In the field of recruitment, the highest indicator of the use of social networks was achieved, as expected, in the field of hiring personnel - 49%, as well as hiring top managers - 16%.

SaaS Solutions Share in Various Segments of the Global HRM Market in 2010

Forrester Research, 2010

Among regional markets, the largest recruitment automation markets in the world remain the United States, according to GIA. The maximum growth rate is recorded in the Asia-Pacific region, where, on average, revenue from the sale of recruiting systems increases by 13.6% for a year, primarily due to healthy economic growth, a boom in the population and industry, as well as new business in general.

GIA names 2LS Limited, Accolo, Bond International Software, ITS Software Systems, Jobvite, Lumesse, Kenexa Microdec, Newton Software,, Oracle Peoplefluent Swiftpro SuccessFactors Limited, and others as the largest players among vendors.

Russian realities

In large cities of Russia over the past five years, the situation with the selection of personnel remains extremely difficult. Therefore, all companies that have to fight for a "high-quality" applicant or carry out mass recruitment of personnel need an automation system.

Recruitment automation, first of all, allows the company to form its base of applicants, that is, to form the company's personnel reserve and, due to this, reduces the time and cost of finding a new employee. In such systems, after the first interview, information about its results, strengths and weaknesses is stored in the company's database.

When recruiting is automated, the following processes are optimized:

• selection criteria are clearly set for vacancies;
• candidates can see job information and apply at any time;
• recruiters can work with candidates according to templates (send letters, conduct questionnaires), involving other interested participants in the process at the desired stage;
• all information is well structured and stored in one place available to the process participants.

The recruitment process takes the necessary form, saving all participants from unnecessary actions and unnecessary information. In addition, the ability to collect HR reporting is provided, and time costs are reduced.

At the same time, recruitment automation is beneficial when it is an element of the full cycle, that is, when competencies, personnel reserve and personnel planning are recorded. Only in conjunction with these tasks does recruitment automation yield results. But if the entire circuit is not automated, recruitment automation itself is useless. The most you can get is labor savings.

As for the size of the business, it is vital to automate recruitment in large companies (for example, in retail chains), in companies with a large number of vacancies, for example, in organizations conducting project activities, and rapidly developing companies.

Products for automation of recruitment on the Russian market can be conditionally divided into two categories: the first are intended for personnel agencies, the second - for all other companies. Agencies use well-proven systems produced in a specialized version. In this category, the leader in popularity is the E-Staff solution.

Companies from the second category implement 1C or programs of their own development, most of which do not use automated recruitment systems at all. Among other major vendors offering recruitment automation within their HRM platforms, we can mention (Oracle SAP E-Recruiting the company IBS offers its own on its Industrial solution Recruiting based on SAP HCM basis), the Microsoft Dynamics АХ system "" (), Diasoft"," Diasoft FA# Balance "." " Kontur PersonnelBOSS-personnel officer Small companies use, " E-Staff (formerly E-Staff Recruiter) Summary,." Experium

Nevertheless, according to Alexander Shishilov, head of the department for automation of personnel management processes at EAE-Consult, automation of recruitment as a separate business process is in demand to the extent that the company is ready to limit its requirements.

"In other words, a separate process by definition reduces the ability to use the entire potential of a single HRMS system. In particular, this concerns the relationship of recruitment with the processes for assessing personnel, planning training and adaptation of employees, and career management. Therefore, for many companies, automation of recruitment as a separate business process can only be considered as a temporary solution on the way to building an integrated personnel management system, "he believes

Among the major recruiting automation projects of recent years for recruiting automation in Russia, for example, the introduction of SAP E-Recruiting in Rosseti Center (IDGC of Center), for which the recruitment methodology was implemented, can be noted. Also, on the basis of E-Recruiting, the hiring of personnel in Euroset is automated. Among the projects based on Diasoft FA# Balance, for example, the recruitment module was involved in the implementation at Uniastrum Bank. On the basis of the IBS solution, large projects were implemented in Sberbank of the Russian Federation and Uralsib FC.

Notes