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The global online recruitment market size was USD 28.68 billion in 2019 and is projected to reach USD 43.39 billion by 2027, exhibiting a CAGR of 7.1% 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 advanced 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 type of 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 market.
The main drivers of the market include expanded use of cloud-based technologies, 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 the market growth of the online recruitment.
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, United States, launched Betts Connect, an online platform to enable companies to connect with talented professionals. The platform enables job seekers to build a profile and to curate it with important details for recruiting managers such as target salary, extraordinary accomplishments, desired position and location, and more.
COVID-19 Pandemic to Boost the Adoption of Online Recruitment 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 impact, 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 virus spread. In the wake of the novel coronavirus, many businesses have already been in an 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 E-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.
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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 from multiple sources provide 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. According to the survey conducted by Harvey Nash Human Resources in 2017, about 15% of HR members in more than 40 countries agree that automation and AI are revolutionizing workplaces to streamline and automate recruiting workflows and high-volume and repetitive tasks. 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.
Increasing Focus on Automation in Recruitment Process to Aid Growth
With the introduction of internet technology, the way of executing the 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 the companies and government organizations. Most of the 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 has altered the conventional recruitment processes, and provide the organization with an opportunity to find potential candidates suitable for the job.
Increasing Social Media Exposure to Spur Demand
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 a detailed picture of 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 the business strategy by communicating with talent through a broad 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.
Rising Incidence of Online Fraudulent Applications to Hinder Growth
Since there are a large number of online 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 type of recruitment services offer a detailed information analysis of reporting, so it is difficult to determine what works and how to optimize advertisements. Companies ought to be cautious to explain 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 with 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.
Online Recruitment Platform Largely Adopted by Permanent Job Seekers
By type analysis, the online recruitment market has been bifurcated into Permanent and Part-Time Online Recruitment.
The recruiting process has changed dramatically in recent years. With the constantly growing corporate sector, the number of job seekers looking for permanent opportunities has risen significantly. Advanced recruitment solutions are more efficient and intuitive, making it easy for permanent job seekers to find suitable jobs. Through enabling the usage of targeted, personalized questions, keyword matching tools, and other high-tech apps, web-based recruiting software reduces the risk of the job seeker to apply for the right position.
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Hotel/Catering Segment to Account for Maximum Online Recruitment Market Share
By application, the market has been categorized into Secretarial/ Clerical, Accounting/ Financial, Computing, Technical/ Engineering, Professional/ Managerial, Nursing/ Medical/ Care, Hotel/ Catering, Sales/ Marketing, and Other Industrial/ Blue Collar.
The adoption of web-based recruitment platforms and solutions are expected to grow in the hotel/catering industry. 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.
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The spread of the novel coronavirus has 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 growth of the market. In recent times, hotels around the world have been almost closed off with virtually no sales and have to bear fixed costs that have hampered this market growth.
North America Online Recruitment Market Size, 2016-2027 (USD Billion)
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Geographically, the market is segmented across five major regions namely North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.
North America stood at USD 11.49 billion in 2019 and is likely to remain dominant in the forthcoming years. This is attributable to the adoption of advanced recruitment 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 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 the 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 is steadily climbing in recent years.
The combination of demographic and economic drivers poses an enormous opportunity for the market growth 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, with the expansion of smaller companies and bigger competitors, continue to strengthen their market position.
Latin America is expected to exhibit strong growth during the forecast period. The growth of this recruitment industry in Latin America is mainly attributed to an increasing shift from conventional recruiting platforms to more efficient and advanced recruitment and talent acquisition solutions. Solution providers in the region are implementing solutions that can be integrated with existing business platforms and enable businesses to eliminate time-consuming activities.
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 Market Players Focus on Partnerships to Strengthen Market Position
Market-leading players such as LinkedIn, Naukri.com, TalentLyft, Zoho Corporation Pvt. Ltd., Indeed, HackerRank, 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 Tribepad Ltd., WeLove9am, and others are entering into strategic partnerships to strengthen their market position and achieve strong brand advertising.
August 2020 - Tribepad Ltd., a recruitment software provider, collaborated with WeLove9am, a marketing and advertising firm, to support Signature Senior Lifestyle Care Homes to smoothen the recruitment process in its care homes. The companies will harness Tribepad’s talent acquisition suite that includes onboarding software and Applicant Tracking Software (ATS) to deliver a seamless hiring process.
An Infographic Representation of Online Recruitment market
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The market research report offers qualitative and quantitative insights on online recruitment 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 market trends, and competitive landscape. Key insights provided in the report are the adoption trends of this type of recruitment 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 online recruitment industry trends, macro, and micro-economic indicators.
Value (USD Billion)
Type; Application; and Geography
Rest of Latin America
Fortune Business Insights says that the global market size was USD 28.68 billion in 2019 and is projected to reach USD 43.39 billion by 2027.
In 2019, the North America market value stood at USD 11.49 billion.
Growing at a CAGR of 7.1%, the market will exhibit steady growth in the forecast period (2020-2027).
The permanent online recruitment segment is expected to be the leading segment in this market during the forecast period.
The increasing need for automation in the recruitment industry coupled with the adoption of the internet to smoothen recruitment processes is one of the major factors driving the growth of the market.
LinkedIn, Naukri.com, TalentLyft, Zoho Corporation Pvt. Ltd., Indeed, HackerRank, Self-Management Group, Pymetrics are some of the major players of the global market.
North America dominated the market share in 2019.
Below is the list of companies that are studied in order to estimate the market size and/or understanding the market ecosystem
This list does not necessarily mean that all the below companies are profiled in the report. The report includes profiles of only the top 10 players based on revenue/market share.
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