The right talent sourcing is all that matters for different companies ranging from small to mid-sized to larger ones including the multi-national companies. Hiring the right talent is pivotal for organizational success, but recruiting has been one of the most challenging aspects of the HR, especially for technology and product based companies. The major segment of the industry that source candidates includes the consulting and staffing companies along with a large number of recruitment vendors and sub vendors.
These sourcing agencies are the key activity partners who manage all the recruitment activities. They build candidate networks using social media channels and various other modes. But, today these agencies face a lot of challenges, especially with respect to sourcing of candidates in the IT industry.
According to one of the Technavio’s report on the overview of Global Recruitment Process Outsourcing (RPO) market, they anticipate the market to grow rapidly and will post a CAGR of close to 18% during 2017-2021 period. They predict that the increased usage of neo-sourcing will drive the growth prospects for the global RPO market in the forthcoming years. In one of their reports on human resource outsourcing market analysis, they identify and state that the digitization of human resource outsourcing to be one of the primary driving factors for the growth of this market during the next few years.
In another report by Statista, in 2017, the market size of the U.S. staffing and recruiting industry was 142.8 billion U.S. dollars and is expected to grow to 148.3 billion dollars in 2018. The staffing industry has been steadily growing with a rise of 3% each year. There is a huge revenue turnover involved with this industry segment and a deep dive into the industry is a need of the hour to understand the possible top trends that could lead the staffing services market segment in the years to come. An understanding of some of these factors could help consulting agencies and other players in this segment to better equip themselves to the ever changing scenarios of recruitment and the human resource outsourcing market.
With the ever changing technology innovations and furthering with their continuous advances, AI driven integrated solutions will increasingly influence interviewing and assessment of candidates. It not only results in better recruitment automation, but also makes the hiring process smoother, and more streamlined. However, they will not replace the human functions of assessing a candidate’s potential or determining their cultural fit, but significantly will speed up and shorten the recruitment process. In one blog “Future of recruitment 2020-2030”, the author states that the world of work and the future of recruitment is going to be a highly dynamic market and there is no overwhelming consensus on the cumulative effects of change and the major technological dynamics that will affect the market would be automation, augmentation, artificial intelligence and autonomous vehicles. In another blog by Medium.com that reads “Top 5 Recruitment trends for 2019”, AI is bound to change the scenario of staffing and help prevent any unconscious bias in hiring.