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.
A constructive and a deep research by Linkedin has shown that more than 75% of the job seekers research a company’s reputation and they deep dive into various other sources to find more about the company. Typically, companies with good name tend to attract more prospective job seekers rather than those companies with a relatively lesser reputation. Thus, it is important to note that while recruiting and hiring new employees, the recruiting company falls back on a lot of the process of screening, evaluating, interviewing and finally onboarding the candidates. But, at the same time, the candidate also evaluates in depth about the company’s reputation in all ways. Henceforth, companies should balance their social networks to showcase their visibility.
With the digital marketing taking its leap, various social media channels like Facebook, Twitter and Linkedin are on the go. Most effective amongst them is Linkedin that continues to garner the attention of recruiters and prospective candidates to call out and look out for jobs. It helps both parties to send messages through its fully viable messaging app. The advent of social media has made it easy to get in touch with passive candidates than ever before. Similarly, talent pools can now be identified simply by searching hashtags, or through using sub-forums or other online communication methods.
With huge resource pool, the task of the staffing agencies with screening, scheduling interviews, sourcing, on boarding and further payroll management continues to bother them a lot. They lookout for alternatives wherein automation or latest integrated solutions that are AI enabled could lead the market segment. Complete automation eases the workflow and the entire process from hire to exit becomes handy and less time consuming. There are certain AI driven integrated ATS, HR and CRM platforms that are bound to ease your efforts and streamline your workflow to generate quicker turnaround time along with generating quicker ROI.
We do know that nature continues to bring new changes all along and it has been observed by various staffing agencies that young employees below the age of 24 years tend to job hop very frequently. Linkedin in one of its blogs, states that young professionals continue to job hop within short periods and they ensure that they are in search for the right job that primarily aligns their values. This trend might continue for some time more.
Companies are looking out for easier modes of interviews such that the human intervention becomes less and those recruiters can be used for aligning other required tasks. Video is an elegant and more interactive mode of performing interviews that can be accessed by the resource 24/7 at their own convenience and submitted back to the reviewer. This process decreases the recruiter overhead to a larger extent and makes the process simpler and easier. Staffing agencies and other mid and large sized companies are closely looking at adopting such methodologies.
A deeper outlook of all the above factors might help staffing agencies, recruitment vendors and all other consulting companies to ease their operations with automation and AI enabled integrated solutions.