The applicant tracking system market is expected to grow at 7.3% CAGR during the forecast period of 2021 - 2026. An applicant tracking system is a solution that enables the electronic handling of recruitment requirements. These systems can be accessed online by businesses at different levels depending on the recruitment needs, allowing them to collate and analyze applicant data. An applicant tracking system software is used by companies to recruit employees more efficiently. The system can also be used to post job vacancies on a corporate website or job feed for screening resumes and generate interview requests to shortlisted candidates through email. The applicant tracking system has features like individual applicant tracking, pre-screening questions, automated resume ranking, response tracking, and customized input forms.
- The market has gained a significant boost due to the ease of integrating applicant tracking systems with different productivity tools. For example, Oracle Corporation's PeopleSoft Recruiting Solution offers recruiting and career-search tools for recruiters, candidates, and managers. It has intuitive, easy to use pages for every step in the recruiting scenarios, allowing external candidates and employees to search, view, and apply for jobs online. With built-in applicant tracking, recruiting managers can focus on the most important outcome, which is identifying and hiring talent quickly. The solution is capable of integrating with productivity tools such as MS Outlook, which allow users to schedule interviews without the requirement for dual entry seamlessly.
- The recruitment companies are entering into several cutting-edge technology partnerships to boost technology adoption in the applicant tracking system. For instance, in January 2020, AI recruitment startup Talview announced that it had become an integration partner with LinkedIn's applicant tracking system, Talent Hub. LinkedIn's Talent Hub allows companies to source, manage, and hire candidates from one source, and Talview's live interviewing offerings are now integrated into the LinkedIn Talent Hub experience.
- With the increasing penetration of the internet and social media, job applicants can easily reach out to the potential recruiting personnel. Social media is the ecosystem of online communication channels through which networks or communities can share valuable information. The growth in social networking has driven by the rising penetration of smartphones worldwide, as smart apps and mobile internet access have facilitated the adoption of social networking activities. It has witnessed an increased acceptance across companies, wherein the company communicates with its potential candidates through social media networks like Linkedin and others.
- At the time of the COVID-19 pandemic, remote recruiting for the recruiters and managers has become significantly useful. The companies are seeing a big move to virtual interviewing with tools like Microsoft Teams, Skype, Zoom, and candidates who are becoming more comfortable with these emerging technologies. The remote recruiting process will require a new set of skills and significantly polished applicant tracking techniques. Employee onboarding is also becoming remote. For example, at Accenture Plc, a new hire may not walk into the company office for months. The training modules are also being delivered remotely.
- In May 2020, Jobvite Inc. published a report on how the COVID-19 pandemic has changed the jobseeker's attitude. The report's comparative data revealed, unsurprisingly, the stress levels at work have increased significantly, and that job market perception has changed considerably. According to the data, 47% of workers are afraid of losing a job in the mid of 2020, compared to 28% in February 2020. Moreover, nearly 46% of surveyed workers are now planning to have a second source of income outside of their regular jobs. With the increasing numbers of active job seekers across the globe, it is creating more opportunities for the applicant tracking system market.
Key Market Trends
The Adoption of Data Analytics Strategy by Recruitment Companies is Expected to Bolster the Market Growth Over the Forecast Period
- The recruitment companies are adopting data analytics-driven solutions for their applicant tracking systems, leveraging the growth of the market. In January 2020, Jobvite launched a data science strategy to power its HR products suite. This initiative focuses on ensuring company recruiters are served the best-fit candidates and eliminating wasted time for both candidates and recruiters. This data-driven strategy incorporates multiple algorithms and sources of data that span enterprise-wide preferences for hiring and the individual recruiter-level preferences.
- In June 2020, Workday, Inc. announced the availability of Workday People Analytics. This newly developed augmented analytics application identifies significant risks and opportunities regarding a company's potential candidate base and delivers these insights in a story form. These insights empower business leaders and HRs to make better people decisions faster to shape business outcomes.
- Talentegy, a talent analytics and engagement platform designed to help human resource teams optimize candidate and employee experience, has recently announced the broadened scope of its analytics solution with a new data visualization solution. Unify, the visualization solution enables organizations to create insights with their talent data that will result in building more robust recruiting strategies.
North America Geographic Segment is Expected to Hold a Significant Share Throughout the Forecast Period
- The primary driver for the North America geographic segment's growth is the significant presence of technology providers. These players focus on entering into partnerships, merger-acquisitions, and innovative solutions offerings to stay in the regional and globally competitive landscape.
- In May 2020, technology giant Microsoft Corporation and Workday Inc. announced a strategic partnership to prioritizing resource planning in the cloud and expanding the business solutions so that customers can use it to optimize their everyday work better. With the help of this partnership, Workday customers will be able to run Workday Adaptive Planning on the Azure cloud. Moreover, Microsoft will adopt Workday Adaptive Planning for its finance teams for budgeting and forecasting to accelerate the decision-making process. Such developments of strategic technology & knowledge transfer and partnerships are expected to experience growth in the region.
- The North American region represents the significantly technologically advanced workforce in the world. It supplies and hires skilled human resources from other regions. Companies in the United States are a great source of demand for applicant tracking system solutions in the region. Even in developed countries, such as Canada, there is very limited modernization in its HR functions.
- This indicates a considerable opportunity for the adoption of applicant tracking software in the region. Moreover, the requirement to modernize HR across companies in the region, the rise in the adoption of mobility trends, and cloud computing in countries, such as the United States, also substantiates the market's significant growth.
The applicant tracking system market is moderately competitive and consists of a significant number of global and regional players. These players account for a considerable share in the market and focus on expanding their customer base. These vendors focus on the research and development investment in introducing new solutions, strategic partnerships, and other organic & inorganic growth strategies to earn a competitive edge over the forecast period.
- In May 2020, Jobvite Inc. announced a partnership with Ultimate Software, enabling job recruiters to view and assess a vast range of employee data and connecting their recruiting efforts to post-hire performance. With the help of this partnership, Jobvite offers platform-to-platform integrations between its software and Ultimate Software's human capital management solutions.
- In June 2020, Workday, Inc. announced that it is expanding operations into Mexico, with a new country manager. The services partners are ready to assist the company deployments in the country. New customers will join more than 250 multinational companies currently deploying Workday in Mexico, including GE, Nissan, HP Inc., and Santander. As part of the collaborative Workday solutions, customers share ideas and actively engage with hiring teams on the innovative recruiting ideas.
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