Recruiting Software Market
Global Industry Analysis and Forecast 2023-2030
Market Value (2022)
USD 2.50 Billion
Forecasted Value (2030)
USD 3.90 Billion
CAGR (2023 - 2030)
Fastest Growing Region (2023 - 2030)
Large Enterprises, SMEs
IT & Telecommunications, Banking, financial services and insurance (BFSI), Manufacturing, Retail, Media & Entertainment, Healthcare, Government, Others
The global Recruiting Software Market was valued at USD 2.50 billion in 2022 and is projected to reach USD 3.90 billion by 2030, growing at a CAGR of 5.85% from 2023 to 2030.
The introduction of data analytics in recruitment is a primary driving factor boosting the growth of the recruiting software market. Several recruiting software solutions are now leveraging data analytics to help recruiters make data-driven hiring decisions and improve the overall recruiting process. With data analytics, recruiters can identify the most effective candidate sourcing channels, track candidate engagement, measure the ROI of campaigns, and monitor key recruitment metrics such as time-to-hire and cost-per-hire. The integration of data analytics tools into recruiting software is expected to streamline the process, reduce hiring bias, and optimize the talent acquisition process.
However, some specific challenges that have been identified in the use of recruiting software include managing too many job listings, tracking recruit metrics accurately, and ensuring that the software is user-friendly for both recruiters and candidates. Furthermore, the use of recruiting software can create its own set of problems if not implemented correctly, such as the risk of overlooking candidates due to an overreliance on software automation instead of human intuition. However, these challenges can generally be mitigated through careful planning, implementation, and ongoing evaluation of the process.
Analyst’s Review on Recruiting Software Market
The trend of increasing use of automation and artificial intelligence (AI) in recruitment processes is fueling the growth of the recruiting software market. AI-powered software can automate a number of tasks such as resume screening, scheduling interviews, and even engaging with candidates. By leveraging machine learning algorithms, AI software can also help identify candidates with the most potential and mitigate bias in the hiring process. With more companies adopting AI-based recruiting software, this trend is expected to continue to grow in the upcoming years. A number of recruiting software providers are already incorporating AI-powered tools to streamline the process, enhance candidate engagement, and improve the overall quality of hires.
Recruiting software refers to a digital solution for managing and optimizing the daily tasks associated with human resources and the overall HR goals of an organization. This technology is designed to support HR professionals and recruiters with job postings, resume screening, applicant tracking, and other aspects of the process. It is designed to assist HR professionals and recruiters with managing the hiring process. Common types of recruiting software include applicant tracking systems (ATS), candidate relationship management (CRM) tools, and hiring management platforms. Greenhouse, Zoho Recruit, Workable, Lever, and Freshteam by Freshworks are among the popular examples of recruiting software available in the market. These tools can help streamline and automate the process, which can save recruiters time, reduce human error, and improve hiring outcomes.
Recruiting software offers several advantages to organizations, such as increased efficiency through the automation of time-consuming tasks including candidate screening, and scheduling interviews. It can further enhance collaboration between HR personnel, providing data analytics to track key metrics such as time-to-hire, cost-per-hire, improve diversity and inclusion, and algorithms to identify candidates from diverse backgrounds.
Additionally, recruiting software can provide a better candidate experience, with personalized communication, a streamlined application process, and quick response times. The software can further lead to cost savings through reduced resources needed to manage the process, from posting jobs to onboarding new hires. These advantages ultimately help organizations to optimize their processes, improve the quality of their hires, and achieve their hiring goals more efficiently and effectively.
The rapid adoption of cloud technology is one of the major drivers behind the growth of the recruiting software market. Cloud-based recruiting software is becoming increasingly popular among businesses of all sizes due to the rising number of small and medium enterprises. This type of software offers several benefits, including greater accessibility from any location, easier management and control of data, and the ability to operate at the highest levels of data security without additional costs or maintenance. Cloud-based recruiting also allows for greater automation and integration with other apps and tools. Numerous cloud-based recruiting software solutions are customizable and provide an all-in-one hiring platform, making it easier for recruiters to manage the entire process. For instance, in February 2020, the merger of Kronos Incorporated and Ultimate Software to form a larger cloud-based entity signified the increasing trend of cloud adoption by organizations seeking effective human capital management (HCM) and workforce management solutions. The combined company leverages this trend and created a unique combination of cloud solutions that will assist organizations in managing their personnel more efficiently. With cloud technology adoption on the rise, the recruiting software market is expected to continue growing rapidly in the years to come.
The lack of awareness among organizations about the benefits of using such software to optimize the recruiting processes is hampering market growth. Some businesses may not be aware of the latest cloud technologies available in the market to manage their workforce more effectively. This lack of awareness can result in these businesses missing out on the benefits of using recruiting software including streamlined processes, improved collaboration, enhanced data analytics, reduced bias in hiring, and cost savings. All of the aforementioned factors are likely to impede product adoption.
The global recruiting software market is segmented based on offering, organization, end-user, and geography.
Based on offering, the market is categorized into software and services. The software segment dominated the market in 2022, accounting for the largest revenue share of 63.19%. Recruiting software solutions are constantly evolving with providers offering new features and functionalities to optimize and streamline the hiring process. These advancements are aimed at improving the speed and efficiency of recruiting, enhancing the candidate experience, and facilitating data-driven decision making by recruiters and hiring managers. Features such as AI and machine learning algorithms, social media and job board integrations, and mobile-friendly interfaces are becoming increasingly common in recruiting software offerings, allowing businesses to attract and engage top talent more effectively. Additionally, recruiting software providers are enhancing their solutions with talent management features, such as performance evaluation, succession planning, and onboarding. Overall, businesses can leverage these innovative solutions to improve their processes and build a high-performing workforce.
Based on organization, the recruiting software market is divided into large enterprises and small and medium enterprises. The large enterprises segment accounted for the largest market share of 66.27% in 2022. Large enterprises are continuously seeking to optimize the recruiting process with the constant evolution in recruitment solutions, providers are offering features to improve the efficacy and efficiency of the hiring process, elevating candidate experience and facilitating data-driven decision-making. Overall, recruiting software provides an invaluable tool for large enterprises seeking to optimize their recruitment processes.
By end-user, the recruiting software market is segmented into IT & telecommunications, banking, financial services and insurance (BFSI), manufacturing, retail, media & entertainment, healthcare, government, and others. The IT & telecommunications segment held the largest market share of 34.94% in 2022 owing to increasing investments in recruiting software solutions aimed at optimizing the hiring process. The focus on optimizing processes as well as nurturing existing talent makes recruiting software a valuable investment for the IT and telecommunications industry. For instance, in 2021, according to a survey by Jobvite, 40% of recruiters reported an increase in recruitment budgets due to the COVID-19 pandemic with a focus on improving processes.
Based on region, the global recruiting software market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.
North America dominated the recruiting software market in 2022, accounting with a revenue share of 38.34%. The growth of the regional market is primarily attributable to the increasing adoption of early advancements and cloud-based solutions across organizations. The high adoption rate of the product in the region can be attributed to several factors, including a robust technological infrastructure, the need for efficient processes in a highly competitive job market, and the emergence of innovative recruitment solutions from leading providers such as SAP, Oracle, and Bullhorn. Overall, recruiting software has become an essential and irreplaceable tool in the region.
The global recruiting software market study will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization which could pose new opportunities for the market. The major players in the recruiting software market are
- ADP, Inc.
- Bullhorn, Inc
- Freshworks Inc.
- Recruitee B.V.
- Sage Group plc
- UKG Inc.
- Workday, Inc.
- Zoho Corporation Pvt. Ltd.
- SAP SE
- December 2022 (Expansion): Asia Healthcare Holdings (AHH), a hospital chain, partnered with HROne to automate its HR operations. Consequently, AHH utilized the HROne platform to create a flexible and user-friendly experience for all employees across its portfolio of enterprises.
- October 2022 (Launch): Oracle launched a talent acquisition solution, the Oracle Recruiting Booster, to assist HR and talent acquisition teams by enhancing engagement with candidates, creating communities of top talent, enabling faster recruitment processes, and providing a personalized experience for each candidate.
- February 2020 (Merger): Kronos Incorporated and Ultimate Software are in a definitive merger agreement to form the most innovative human capital management (HCM) and workforce management company with the aim of helping businesses manage their workforce through a combination of cloud solutions. The company rebranded the merged entity as UKG (Ultimate Kronos Group).
The global Recruiting Software Market is segmented as:
- Large Enterprises
- Small and Medium Enterprises
- IT & Telecommunications
- Banking, financial services and insurance (BFSI)
- Media & Entertainment
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- North Africa
- South Africa
- Rest of Middle East & Africa
- Latin America
- Rest of Latin America