The global Recruiting Automation Software Market was valued at around USD 496.8 Million in 2021. With a projected CAGR of 2.7% for the next ten years, the market is likely to reach a valuation of nearly USD 660 Million by the end of 2032.
| Attributes | Details |
|---|---|
| Global Recruiting Automation Software Market Size (2021A) | USD 496.8 Million |
| Global Estimated Market Value (2022) | USD 507 Million |
| Global Forecasted Market Value (2032) | USD 660 Million |
| Global Market Growth Rate (2022 to 2032) | 2.7% CAGR |
| United States Growth Rate(2022 to 2032) | 2.5% CAGR |
| Key Companies Covered | Zoho; Recruit; LinkedIn Talent; Indeed; Hiretual; SmartRecruiters; Samanage Ltd.,; Entelo; Dice; Beamery; CareerBuilder; JobDiva; JazzHR; Greenhouse; Bullhorn; ZipRecruiter |
Future Market Insights’ analysis reveals that the larger proportion of the market revenue is grossed from On-Premise Recruiting Automation software, which is forecasted to grow at a CAGR of 2.5% from 2022 to 2032. With the use of recruiting automation software, companies can improve on the management, tracking, and communications with a larger number of candidates.
The global market for Recruiting Automation software witnessed a CAGR of 1.9% over the last seven years (2015 to 2021). The global market is predicted to surge at a CAGR of 2.7% and record sales worth USD660 Million by the end of 2032.
Efficiency and cost benefits, as well as a large pool of applicants, are driving companies to automate their recruitment processes
According to a survey conducted among executives at companies with over 1,000 employees, 62% of employers admitted that they are having trouble dealing with the current labor shortage. Over 78% of the survey participants mentioned that they are both willing and trying to invest in automation to combat this. Inefficient recruitment can greatly hamper a company’s growth, with 40% of CFOs saying that skills shortages are the key deterrent to achieving their goals. Recruiting software is essential to combat these issues since automation of functions like sourcing, screening and the creation of a talent pool can ensure recruiters can find the best possible talent a company needs.
Companies are looking to harness the benefits of automating their recruitment processes through recruitment automation software. Through this software, companies can reduce time spent on mundane tasks like sending mass emails, updating candidates on their progress, and scheduling meetings and interviews. The software also enables and enhances the possibility of recruitment analytics, which can help in making key decisions and improves communication and collaboration both within and across different people that are involved in the recruitment process.
They can also keep track of past applicants and create a rich talent pool. Using this technology, past applicants who showed potential can automatically seek once specific openings suitable to their qualifications will arise. The resultant reduction in costs, improvement in the acquisition of quality talent, and improvement in the time taken for these processes mean that this software is gaining traction.
Emerging talent highly prefers companies that have efficient and up-to-date recruitment processes
According to the USA Census Bureau, Generation Z accounts for 20.3% of the USA population. Studies find that GenZ has a high preference for up-to-date recruitment technology, with 54% saying they would drop out of the application process of companies with outdated methods. They also value relationships with recruiters; with most claiming it has a significant influence on whether they accept job offers.
Out of the respondents to the study, 82% of them believed that a recruitment process should be completed within 2 weeks. Companies who want to hire emerging talent are looking for ways to meet these demands, with the best solution being the adoption of automated recruiting software. This is a significant booster for demand and is expected to continue as GenZ talent enters the workforce.
AI systems that automate mundane processes ensure recruiters can focus on what is important
Using AI, mundane tasks can easily be automated to reduce pressure on recruiting teams. Through this, recruiters can focus more on important tasks, such as skill assessment and personal communication. Using AI, recruiters can reach out to the best possible candidates with factors such as skill level, location, education, and experience.
This process facilitates the mitigation of bias from the initial stages of the recruitment process and provides significant levels of data, which can be used to analyze efficiency and learn from it to make future decisions. Technologies like predictive analytics are also emerging as a solution. Using machine learning technology, companies can factor in data like performance, demography, skillsets, and roles to match a candidate with the best possible role.
Reduction of time spent on mundane tasks and initial processing ensures recruiters are doing their best possible work
A recent survey indicates that 75% of hiring teams predict that hiring in the upcoming years will be challenging, while 84% report burnout due to work. Technology and the automation of recruitment and hiring are essential to enhance the work environment for recruiters. Positive work experience for recruiters is vital to the successful acquisition of talent since they form the core of the functioning of any recruiting process.
According to research, 50% of recruiters would shift companies if the other one had better recruiting software. For this process to function smoothly, employers are looking at harnessing the advantages of software. Recruiters can harness technology to filter through the massive stream of applicants with intelligence platforms and tools like score and rank technologies. When tasks like scheduling, responding to routine or frequently asked questions and basic screening are assigned to automatic software; recruiters can add significant value to their companies. For example, research finds that AI recruiting assistants can reduce nearly 16 hours of work each week for a recruiter.
Large enterprises continue to contribute the most, however small and medium companies can also benefit from adapted versions of Recruiting Automation Software
Large enterprises are the key contributors to demand, with a CAGR of 1.1% from 2015 to 2022 and a forecasted CAGR of 2.3% in the forecast period of 2022 to 2032. This is large because large enterprises have a significantly higher number of candidates and applicants. They also tend to have a larger number of employees and job openings. They benefit greatly from the collaboration possibilities this software provides, with the ability to share data across teams, and with managers. While Small and Medium Businesses also benefit from the automation of recruiting software, they may not require some of the features it provides on a larger scale and can thus avail of cheaper versions with limited features.
Europe is an emerging center for demand or recruiting automation software and remains the leader with a 25.2% market share in 2021 and a predicted market size of USD 166.3 Million by 2032. According to a study conducted in European countries, it takes a candidate an average of 6 minutes and 11 seconds to apply to major jobs, with an average of 27 clicks in 2021 as compared to 41 in 2019. The integrations with social media enabled by the software are showing growth, with 47% of companies in 2021 having an application accessible through social media as compared to 18% in 2019.
The USA accounted for over 35% of the global Recruiting Automation Software Market in 2021. North America and the US have large amounts of consumer expenditure. The USA is also home to large companies, which have both large volumes of applicants as well as a large number of job openings. The USA is expected to account for a USD 51 Million absolute dollar opportunity between 2022 and 2032 and a forecasted market size of USD 235.5 Million by 2032.
On-Premise Automation is currently the leading type of Recruiting automation Software, with a CAGR of 1.4% from 2015 to 2021 and a forecasted CAGR of 2.5% from 2022 to 2032. They are preferred by organizations that require specific, tailored systems and the security benefits of having only the required teams accessing the system as well as the ability to control for any complications since the control remains internal. For these reasons, the companies are willing to pay higher costs associated with On-Premise Software.
At present, Recruiting Automation Software providers are focused on developments that will ensure further simplification of mundane processes, as well as automation of initial tests and screenings. The key companies operating in the market include Zoho, Recruit, LinkedIn Talent, Indeed, Hiretual, SmartRecruiters, Samanage Ltd., Entelo, Dice, Beamery, CareerBuilder, JobDiva, JazzHR, Greenhouse, Bullhorn, ZipRecruiter.
Some of the recent development in Recruiting Automation Software are as follows:
Similarly, the team at Future Market Insights has tracked recent developments related to Recruiting Automation Software companies, which is available in the full report.
The global Recruiting Automation Software market was valued at USD 496.8 Million in 2021.
The Recruiting Automation Software industry is set to witness a growth rate of 2.7% over the forecast period and be valued at USD 660 Million by 2032.
The Recruiting Automation Software Market expanded by 1.9% from 2015 to 2021.
Zoho, Recruit, LinkedIn Talent, Indeed, Hiretual, and SmartRecruiter are some of the key players.
The USA, UK, China, Japan, and South Korea are the key drivers of recruiting automation software sales.
The market in the US accounts for more than 35% of the global market.
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Recruiting Automation Software Market
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