Staffing Agency Software Market Size, Share & COVID-19 Impact Analysis, By Type (Cloud and On-premise), By Application (Small and Medium-sized Enterprises and Large Enterprises), and Regional Forecast, 2022-2029

The global staffing agency software market size was valued at USD 390.9 million in 2021. The market is projected to grow from USD 418.3 million in 2022 to USD 772.8 million by 2029, exhibiting a CAGR of 9.2% during the forecast period. Based on our global market analysis, this market exhibited an average growth of 6.3% in 2020 as compared to 2019.

Staffing agency software is used by staffing firms to source, recruit, and track candidates throughout the recruitment process. Further, staffing agencies hire candidates across three categories, including temp-to hire, contract employment or short-term hire and long-term staffing. The software provides outstanding characteristics, such as adaptability and scalability, which help in tracking the candidates, thereby contributing to the industries’ growth opportunities. One of the major factors propelling the market growth is the demand for staffing agency in small & medium-sized organizations. Increasing technological developments as well as digitization in emerging countries is another factor boosting the staffing agency software market growth. For instance, in October 2020, Bullhorn collaborated with DACH multi-posting/e-search provider, GermanPersonnel GmbH. Through this partnership, Bullhorn will offer cloud-based software to DACH recruitment agencies. The company expanded the size of the German team in 2021 to serve the region. The partnership helped to expand regional growth in terms of internal resources as well customers for the company.

COVID-19 IMPACT

Pandemic Led to Notable Uptick in AI and Cloud Implementation in Staffing Agency Solutions

In 2020, companies and their employees faced unprecedented challenges as they shifted to online and work from home practices. The year was extremely challenging for recruitment agencies.

• As per the Global Recruitment Insights and Data, 2022, two out of five agencies reported year-on-year revenue losses in 2020, which hampered the demand for staffing agency software amid pandemic.

In response to the pandemic, staffing agencies adopted virtual recruitment practices to maintain the business continuity.

• As per the COVID-19 Impact Survey, staffing agencies focused on investment and utilization of recruitment technologies while candidate sourcing, application tracking, resume harvesting, and others. Further, it stated, agencies leveraging tools for communicating and relationship-building with candidates, clients, and teams.

Artificial Intelligence (AI) assists businesses with predictive analysis to automate recruiting. It accomplishes this by using machine learning to match candidates to the most appropriate job profiles.

• As of 2020, 65% of HR organizations already use AI for talent acquisition and by 2023, 77% of HR organizations are likely to use the same for recruitment.

Furthermore, most of the players are providing AI-powered platforms for smoother recruitment processes done by staffing agencies, HRs, and others. For instance,

• Skillate, an AI recruiting platform, is a refined analyzing engine that streamlines and speeds the hiring process. It delivers intelligent hiring services powered by AI, people analytics, and better applicant experiences. The platform also allows organizations to hide personal information about candidates to make fair hiring judgments. Skillate employs deep learning to extract information from resumes and uses AI-based JD assistants to write better job descriptions to recruit superior talent. It also includes an auto-interview scheduler, job description assistant, and data-backed recruiting insights and analytics.


• Similarly, Zoho Recruit, a cloud-based applicant tracking system, offers end-to-end hiring solutions to staffing agencies, temporary employees, and HR departments. Chatbots are used by Zoho's AI recruiting platform to aid customers and organizations locate applications, grade resumes, design process workflows, and communicate with applicants in real-time. In partnership with candidate matching software Zia, Zoho Recruit enables organizations to build a list of the top applicants for a certain job description.

Hence, the adoption of AI and cloud in staffing agency software is expected to propel the market growth during the forecast period.

LATEST TRENDS

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Rising Adoption of Cloud-Based Solutions in Staffing Agencies

Software as a Service (SaaS) and cloud-based software in general have been gradually increasing in popularity, and this trend is expected to continue. This deployment strategy is both economical and scalable, giving enterprises of all sizes opportunities and flexibility. Furthermore, it is accessible whenever and wherever consumers have internet connection, which boosts the need for digital and social media recruiting.

• For instance, AkkenCloud is a cloud-based system that gives enterprises comprehensive access to their information anywhere, at any time. Accessing the same information in real-time from anywhere in the globe increases communication with organizations while giving maximum control and security.

SaaS solutions allow for immediate upgrades, ensuring that all of the staff have access to the most up-to-date technology. This fosters higher levels of performance and production, allowing a company to stay ahead of the competition. In addition, as compared to on-premise systems, SaaS solutions give a greater level of security.

• For instance, AkkenCloud unifies applicant tracking, customer relationship management, human resource management, reporting, email, and more, removing the need for a substantial upfront investment in several software packages as well as months of installation time.

Hence, cloud-based solutions are likely to propel the market growth during the forecast period.

DRIVING FACTOR

Augmentation of Existing Products by Unified Technologies to Boost the Market Growth

Organizations are primarily concerned with providing creative, efficient, and cost-effective work and project-based solutions. Oracle Fusion Cloud Human Capital Management and Oracle Fusion Cloud ERP, for example, were installed recently. Oracle Fusion Cloud Human Capital Management is an excellent tool for managing activities such as talent management, workforce management, and payroll. Also, Oracle Cloud ERP is aiding the finance and procurement teams in identifying underlying profitability drivers, improving working capital utilization, and controlling company costs.

• September 2021: Oorwin, an AI-powered platform announced its integration with widely known job board, Naukri.com. The integration with Oorwin's ATS permits recruiters to post positions on Naukri directly from the Oorwin's website. It makes the process easier for recruiters to hire people quickly and simply. Additionally, this integration also provides the recruiters with the specifics of the positions that are advertised from the dashboard itself. The recruiters can automatically extract resumes from applicants that are applied on Naukri into Oorwin for particular jobs that are advertised on Oorwin, owing to this update.

Therefore, enhancements in the existing products by integrating technologies, such as AI, are likely to propel the market growth.

RESTRAINING FACTOR

Technical Limitations to Impede the Market Growth

Some organizations, such as Amazon, have demonstrated preconceptions that are reinforced through hiring tools. The screening engine was shown to favor phrases commonly used by male candidates, resulting in unintended inequity that made it more difficult for female applicants to qualify. Biases may be increased by technology since recruitment software programs must be customized by a person.

Since staffing agency software adheres to predetermined criteria, individuals who think outside the box may be excluded from consideration for reasons unrelated to their abilities or fit. For example, a candidate who would have been great for the organization based on "soft" talents such as communication and creativity might get neglected as they might lack certain qualifications or sufficient experience to compete with other applicants.

Due to formatting difficulties, certain resumes may be overlooked by recruitment software. While recruiters are unaware of the problem, this might disqualify highly competent candidates from consideration or change the way their CV is seen. It's critical to ensure that a system exists to double-check the software on a frequent basis to ensure that technical challenges do not hinder recruiting.

Although the software can help to speed up and simplify many aspects of the hiring process, it should not be used to make final decisions or take complete control of the process.

Hence, the aforementioned factors may hinder the market growth.

SEGMENTATION

By Type Analysis

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Surging Applications in Various Sectors to Fuel Cloud Adoption

Based on type, the market is categorized into cloud and on-premise.

The cloud segment is anticipated to gain maximum market share with the highest CAGR during 2022-2029. The increasing adoption of cloud technologies in industries is surging the demand for cloud-based staffing agency software. For instance,

• December 2021 - CEIPAL Corp partnered with CloudCall, a cloud-based software provider, to expand CEIPAL’s customer relationship management software capabilities. The collaboration of CEIPAL with CloudCall would be providing access to the communication technology to staffing professionals to engage with candidates while hiring.

Also, this technology provides an efficient and rapid process to source, recruit, and track candidates throughout the recruitment process that improves optimization and capacity to compete. The growth of on-premises is lowering as only a few large enterprises with maximum spending capacity are investing in this technology.

By Application Analysis

Availability of Operation Optimization at Lower Cost to Fuel Demand in SMEs

Based on application, the market is divided into small and medium-sized enterprises and large enterprises.

Large organizations were early users of the software and are likely to account for the majority of revenue during the forecast period. The software provides major businesses with effective recruitment solutions and services.

Small and medium-sized companies are expected to showcase highest growth during the forecast period owing to low cost and excellent capabilities. By reducing unnecessary stages, the software improves the staffing experience and speeds up the recruitment process. The software is being used by SMEs with a few employees to improve their decision-making capabilities. As a result, demand for this software from small and medium-sized businesses is predicted to rise, assisting the market growth.

REGIONAL INSIGHTS

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Geographically, the market has been studied for five key regions, North America, South America, Europe, the Middle East & Africa, and Asia Pacific. They are further categorized into countries.

North America is anticipated to lead the staffing agency software market share. High penetration of advanced technologies such as cloud, AI, and others is boosting the growth of the software in North America. Cloud-based solutions offer robust processing and ease in accessing the software for organizations, thereby fueling the market.

Similarly, growing adoption of cloud solutions by SMEs would propel the market growth. Prominent players in the staffing agency industry, such as Bullhorn, Zoho Corporation Pvt. Ltd., Avionte, CEIPAL Corp, and others, are focusing on acquisitions and product launches, thereby propelling the market growth in the region. For instance,

• January 2020 - CEIPAL Corp acquired Zoniac, an applicant tracking system platform for consulting and recruiting agencies. The acquisition aims to strengthen staffing software product offerings. Also, this acquisition added an experienced software development team to grow and develop the recruitment software offerings.

 Asia Pacific is predicted to grow at the highest CAGR during 2022-2029. The market in Asia Pacific is highly fragmented, owing to an increasing number of players, whose major focus is to expand their geographical presence by offering customized services to clients across developing nations worldwide.

• According to Asian Development Bank (ADB) Institute survey, an unemployment rate increased by 20% across the globe in 2020 due to the COVID-19 pandemic. Further, as per the survey, Asia Pacific lost 8% of working hours in 2020. The growing government initiatives and increasing support for businesses are expected to create new job opportunities among enterprises.

Europe is likely to have a dominant position in the market. In terms of expanding investments and finances, the region's staffing industry is the second largest. Players in the market are focusing on expanding their geographical presence by offering customized services to clients across nations worldwide. For instance,

• July 2021: Avionté Introduces Avionté+, a collaboration initiative designed to streamline the Tech Stacks of staffing firms. The Avionté+ platform enables quick deployment and excellent compatibility between Avionté software over and 60 pre-integrated technology partners and third-party partners.

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The Middle East & Africa is expected to have a substantial growth rate owing to the rising focus on enhancing the staffing industry. Saudi Arabia, the UAE, and Qatar are investing in advanced technologies such as AI and the Internet of Things (IoT) to improve their recruitment system. South America is anticipated to showcase steady growth with increasing research and development for staffing agency software in the region.

KEY INDUSTRY PLAYERS

Key Players Emphasize on Advanced Staffing Agency Software to Strengthen their Positions

Key players are focusing on research and development (R&D) activities to develop a comprehensive range of staffing agency software offering to meet the customer's and organization's needs. The launch of advanced software assists players to sustain their business competence. The enhancement and expansion of the existing product portfolio uplift the position of vendors in the market. Market players are focused on development of the software based on emerging technologies such as cloud, AI, and other. Companies are focusing on developing cloud-based, mobile-friendly staffing agency software, with the growing consumer demand for automated and flexible software.

August 2021 – PCRecruiter integrated with Integration Platform (IPaaS), Zapier. Through this integration, PCRecruiter customers can customize workflows and automate tasks. The combination would allow customers to create links between applications of Zapier and PCRecruiter.

June 2019 – PCRecruiter integrated Sense, the communication and engagement platform. The integration of Sense will enable users to send personalized messages at scale with real-time data of PCRecruiter. Sense automates the communication from on-boarding to redeployment for existing as well as new applicants.

List of Key Companies Profiled:

• Zoho Corporation Pvt. Ltd. (India)


• Ramco Systems Ltd (India)


• Bullhorn, Inc (U.S.)


• Avionté (India)


• CEIPAL Corp (U.S.)


• Main Sequence Technology, Inc. (U.S.)


• Vicere (U.K.)


• AkkenCloud (U.S)


• JobDiva (U.S.)


• JobAdder (Australia)

KEY INDUSTRY DEVELOPMENTS:

• April 2022 – AkkenCloud partnered with Sense, an engagement and communication solution provider. Through this partnership, recruiting and staffing agencies can leverage both platforms efficiently and increase retention rate.

REPORT COVERAGE

An Infographic Representation of Staffing Agency Software Market

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The global staffing agency software market research report includes prominent areas throughout the world to get a better knowledge of the industry. Furthermore, the research provides insights into the most recent industry and market trends, as well as an analysis of technologies that are being adopted at a quick rate on a worldwide scale. It also emphasizes some of the growth-stimulating restrictions and elements, allowing the reader to obtain a thorough understanding of the industry.

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