Online Recruitment Technology Market Size, Share & COVID-19 Impact Analysis, By Technology Type (Chatbot, Candidate Relationship Management Platform, Application Tracking System, and Video Interviewing (AI-based)), By Job Type (Secretarial/Clerical, Accounting/Financial, Computing, Technical/Engineering, Professional/Managerial, Nursing/Medical/Care, Hotel/Catering, Sales/Marketing, and Other Industrial/Blue Collar), and Regional Forecast, 2023– 2030

The global online recruitment technology market size was valued at USD 10.01 billion in 2022 and is projected to grow from USD 11.48 billion in 2023 to USD 30.87 billion by 2030, exhibiting a CAGR of 15.2% during the forecast period.

According to the Bureau of Labor Statistics report, there were 7.3 million job openings at the end of June 2019. The increasing number of job openings has created an enormous demand for online recruitment platforms to streamline recruitment processes that include resume management, employee screening, assessment tools, and others. The industry is largely driven by the massive outsourcing of traditional workplace recruiting processes to online recruitment platforms. Digital transformation and the fourth industrial revolution have further led to a new wave of work opportunities and a positive effect on the online recruitment industry.

The main drivers of the market include the expanded use of cloud-based technologies, the convenient availability of high-bandwidth internet infrastructure, and the expansion of social networking. Also, the growing adoption of mobile-based recruitment solutions, backed by a surge in demand for smartphones, is expected to favor market growth.  

Key players in the industry are focused on launching innovative online platforms to help companies find an appropriate candidate. For instance, in August 2019, Betts Recruiting, Inc., a recruiting firm headquartered in California, U.S., launched Betts Connect, an online platform to enable companies to connect with talented professionals. The platform enables job seekers to build a profile and curate it with important details for recruiting managers such as target salary, extraordinary accomplishments, desired position and location, and more.

COVID-19 IMPACT

COVID-19 Pandemic to Boost the Adoption of Online Recruitment Technology by Employers

The unavoidable effect of COVID-19 on companies across the globe cannot be overlooked. Organizations are looking for innovative solutions to keep things going efficiently in such unusual times. Throughout the context of COVID-19, businesses are running remotely and have advised their workers to work from home. The entire aim is to minimize direct interaction and maintain social distance to discourage further transmission of the virus. Also, in the case of recruiting, companies are avoiding face-to-face interviews to practice social distancing and avoid physical contact to prevent the spread of the virus. In the wake of the novel coronavirus, many businesses have already been in the unfortunate situation of laying off employees. Despite these unpredictable conditions, businesses are facing a recession and seeking to cut costs to help them pass through these tough times.

The giant IT, marketing, and financial companies worldwide are now announcing layoffs, which may lead to recession. According to a report published by the World Bank in June 2020, the economic shift and massive shock due to the virus spread have plummeted the global economy in severe contraction, resulting in a 5.2% decline in the global economy this year. In the end, businesses are less likely to hire a new employee and will inevitably reduce the number of job openings in the business, restricting the use of online recruitment platforms among businesses.

The current situation has accelerated the trend of moving toward remote-friendly hiring platforms being able to interview and screen candidates. As a result, robust growth is expected in the market in the long term.

LATEST TRENDS

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Adoption of Advanced Technologies to Bolster Market Growth

The emergence of advanced technologies such as big data, cloud computing, and artificial intelligence has positively impacted the market. Most recruiting managers and management experts agree that high availability of data drives the emerging employment patterns leading businesses to attract new employees. Data provides insights to companies that help recruitment managers to make choices on candidate selection. Recruitment managers are using data to make business choices. This indicates that recruiters need to build efficient talent analytics approaches that incorporate data and enable them to make effective hiring decisions.

AI-enabled recruitment software and Chatbots enable recruiters to automate the candidate searching procedure. People analytics help companies to step away from traditional recruiting based on arbitrary criteria that might have very little to do with the employee's probability of performance with any specific company. The Big Data strategy accurately defines the current conditions that contribute to employee performance and productivity, along with recruiting applicants who fall under those criteria. Additionally, this strategy makes it possible for recruiters and executives to understand interviewees, too.

DRIVING FACTORS

Increasing Focus on Automation in Recruitment Process to Aid Market Growth

With the introduction of internet technology, the way of executing the online recruitment process has evolved significantly in recent years. A significant shift from the traditional method of recruitment services to more productive, cost-effective methods has now become a central concern for companies and government organizations. Most companies have adopted online recruiting (e-recruitment) platforms rather than traditional recruitment approaches. Additionally, potential job candidates became more involved in finding and applying for employment opportunities over the internet. To produce the required pool of candidates, companies aim to establish compelling, rich content, easy-to-use, and user-friendly recruiting on their platforms or through online job portals.

Today, e-recruitment has been implemented in multiple organizations of all sizes. However, the majority of organizations are now utilizing e-recruitment to post vacancies and approve interview requests, and communicate with candidates via email. Thus, the internet and information technology have altered the conventional recruitment processes and provided organization with an opportunity to find potential candidates suitable for the job.

Increasing Social Media Exposure to Spur Demand for Online Recruitment Technology

The rise of social networking has opened up new avenues of interaction and revolutionized the way people share knowledge. As social networking infrastructure begins to grow and becomes more prevalent, it presents exciting opportunities for the recruitment industry. Throughout the context of changing the global business environment, the position of social media has significantly expanded. Recruiters realize the need for more innovative ways to improve their business strategy by communicating with talent through a wide variety of social media sites.

The prevalence of social media has prompted businesses to recognize its usage as a marketing method. Having penetrated the recruitment field, social networking today is one of the recruitment trends that is finding popularity amongst several companies.

Social networking may be a powerful tool for a business that could be used to market vacancies and build a strategic edge so that it would attract a wider range of prospective applicants. Today, businesses rely increasingly on social networking than on magazines, radio, or recruiting agencies. In recent years, the usage of social media has changed the recruiting cycle for several businesses around the globe.

RESTRAINING FACTORS

Rising Incidence of Online Fraudulent Applications to Hinder Growth

Since there are a large number of online recruitment applicants due to the availability of easy internet access, companies and recruitment managers find it difficult to hire specific employees while cutting down the unqualified candidates. Not all online recruitment technology services offer a detailed analysis of reporting, so it is difficult to determine what works and how to optimize advertisements. Companies ought to be cautious in explaining work listing and be as clear on the positions they are searching for and skills as practicable to avoid unnecessary applications.

Most hiring procedures are done online with businesses that may not need exams. Interviews via Skype and phone are usually carried out, particularly for offshore firms. In this case, recruitment managers and recruiters cannot ensure a person's professional ethics, especially for specific cultures and conditions. Many applications may be fraudulent to gain details regarding the business or the recruiting officer, while spammers can use online information to advertise a service to businesses. When businesses include a large amount of data for online job advertising, malicious hackers may try to use the available knowledge to obtain access to the IT systems of the organization.

SEGMENTATION

By Technology Type Analysis

Growing Adoption of AI Technology by Organization Led to the Highest CAGR of the Chatbots Segment 

By technology type, the market is divided into chatbot, candidate relationship management platform, application tracking system, and video interviewing (AI-based).

The recruiting process has changed dramatically in recent years. With the constantly growing corporate sector and an increasing number of candidate, organizations are looking for adoption of AI-based video interviewing technology. This technology plays a vital role to enhance the hiring process by conducting interviews from remote locations, making it more efficient and easy for candidates and organizations.

Chatbot segment is anticipated to grow at the highest CAGR during the forecast period, owing to the growing adoption of AI technology among businesses. It helps to improve candidate experiences and people analytics.

By Job Type Analysis

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Increasing Usage of Online Recruitment Technology in Hotel/Catering Aids the Market Growth

By job type, the market is categorized into secretarial/clerical, accounting/financial, computing, technical/engineering, professional/managerial, hotel/catering, sales/marketing, nursing/medical/care, and other industrial/blue collar.

The adoption of online recruitment platforms and solutions is expected to grow in the hotel/catering segment. According to the U.S. Bureau of Labor Statistics, the turnover rate in the hospitality industry is 2 to 3 times greater than in other industries. Hotels and catering businesses always witness obstacles while recruiting perfect candidates easier and faster. Therefore, they are adopting social media platforms such as LinkedIn, Facebook, Twitter, and others as the most effective method for recruiting hospitality professionals.  

The spread of the novel coronavirus had a devastating impact, leading to a contraction in global economic activity. With cancellations of flights & trains across countries, hotel reservations have been monumentally canceled, which has limited the online recruitment technology market growth. In recent times, hotels around the world have been almost closed off with virtually no sales and have had to bear fixed costs that have hampered market growth.

REGIONAL INSIGHTS

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Geographically, the market is segmented across North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.

North America captured a significant online recruitment technology market share and stood at USD 4.05 billion in 2022, and is likely to remain dominant in the forthcoming years. This is attributable to the adoption of online recruitment technology solutions among SMEs and large enterprises. From the adoption of social media recruiting to the introduction of mobile recruiting platforms, the online recruitment industry witnessed numerous changes in the past years, aiming to improve the recruitment processes for employers and employees in the region. Recruitment marketing technologies and AI would enable employers and recruiters in the region to expand further recruiting-related administrative duties, such as answering queries, arranging interviews, and even performing initial screenings for candidates. This could potentially improve productivity by more than 50%, allowing recruiters more time to focus on technical tasks. Moreover, recruiters in the region are also using assessment tools and software to validate the candidate’s capabilities.

Advancement in technologies such as artificial intelligence (AI), data mining, and others has provided more assistance and increased recruitment efficiency to employers in the region. Moreover, the availability of high-speed internet connection, the proliferation of smart media, and advanced technologies have given unprecedented opportunities for key players to provide assessment tools and services to determine the right candidate for the role.

While the economies in Asia Pacific have undergone exponential development in recent years, unique factors are impacting the potential to develop a successful recruiting process in those regions. Despite fast growth rates in these developing economies, countries such as China, Japan, India, and even Australia are moving from agrarian to new urban societies. The problem for companies that are growing in these regions is to successfully attract the resources required to support such a substantial increase in the global workforce. Talent acquisition and HR management solution providers in the region are experiencing significant growth as businesses tend to automate recruiting processes and meet technical advancement trends. According to the World Bank, Asia Pacific represents 50% of the total global workforce and has been steadily climbing in recent years.

The combination of demographic and economic drivers poses an enormous opportunity for the market in the region, coupled with a dramatic rise in the regional startup ecosystem and emerging businesses in the coming years.

Europe is projected to maintain its robust economic development in 2019, contributing to a favorable employment environment with high rates of confidence between professionals and employers. In Europe, the market will continue to thrive as IT, along with engineering firms, continue to hire at a high pace. There have been more recruiting activities among banking, legislation, and HR firms, and with the expansion of smaller companies and bigger competitors they continue to strengthen their market position.

South America is expected to exhibit strong growth during the forecast period. This is mainly attributed to an increasing shift from conventional recruiting platforms to more efficient and advanced recruitment and talent acquisition solutions. Online recruitment technology solution providers in the region are implementing solutions that can be integrated with existing business platforms and enable businesses to eliminate time-consuming activities.

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The Middle East & Africa region has experienced massive change in the industry in recent years owing to the growing need for the workforce in SMEs and the rising number of workers from rural communities and middle-class families.

KEY INDUSTRY PLAYERS

Key Market Players Focus on Partnerships to Strengthen Market Position

Market-leading players, such as BambooHR LLC, HireVue, Inc., TalentLyft, Recruitee.com, SmartRecruiters, TestGorilla, and others, are launching innovative offerings and adopting advanced technology to provide businesses with efficient solutions. On the other hand, other key players, such as Fountain, Avature, Yello, and others, are entering into strategic partnerships to strengthen their market position and achieve strong brand advertising.

LIST OF KEY COMPANIES PROFILED:

• BambooHR LLC (U.S.)


• HireVue, Inc. (U.S.)


• TalentLyft (Croatia)


• Yello (U.S.)


• Fountain (U.S.)


• flair.hr (Germany)


• SmartRecruiters (U.S.)


• Avature (U.K.)


• Recruitee.com (Netherlands)


• TestGorilla (Netherlands)

KEY INDUSTRY DEVELOPMENTS:

• April 2023 – Recruiter.com launched a new platform known as Recruiter Marketplace. This platform is developed to transform the talent acquisition landscape. It helps employers to connect with freelance candidates through automation to provide a cost-effective and flexible way to connect with global freelancers.


• January 2023 – SmartRecruiters launched a product that includes new features, such as zoom integration, Onboarding start date edit, and Interview Scheduler changes, including multi-day scheduling, multi-country posting and remote work support, and others. This new product plays a vital role in enhancing the experience of hiring candidates.


• June 2022 – TestGorilla secured USD 70 million Series A funding to help companies for talent-based hiring process and eliminate biased hiring. The company has attracted more than 5,300 since 2020. These customers include Oracle, H&M, Bain & Company, Sony, UK’s National Health Services, Revolut, PepsiCo, and others.


• October 2021 – Avature launched a new platform with the full range of recruitment capabilities for WeChat. This platform helps its customers’ to offer access to their social media reach and allows them to promote open positions and recruiting events on WeChat.


• April 2020 - Hallmark Solutions, one of the leading Human Resource Software providers, launched GetGot, a recruitment system designed to help companies post jobs online and enable job applicants to apply online.

REPORT COVERAGE

An Infographic Representation of Online Recruitment market

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The report offers qualitative and quantitative insights on online recruitment technology and a detailed analysis of market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights provided in the report are the adoption trends of online recruitment technology solutions by individual segments, recent industry developments such as mergers & acquisitions, consolidated SWOT analysis of key players, partnerships, Porter’s five forces analysis, and business strategies of leading market players, key industry trends, macro, and micro-economic indicators.

Report Scope & Segmentation