Applicant tracking system (ATS) is software that simplifies the recruiting process by organising candidates with automated intelligence. This helps the recruiters screen the most and best-qualified candidates based on collected information regarding experience, skillset, and other aspects.
Applicant tracking systems have a vast market, with more than 90% of Fortune 500 companies using the software. It was valued at 2.3 billion US dollars in 2021 and will be approximately 3.2 billion US dollars in the next five years.
With this blog, we bring you the future applicant tracking system trends and forecasts of the applicant tracking system software market - key drivers, challenges, market leaders, and more. So read further to know more!
Market Size and Growth Rate
The introduction of applicant tracking systems (ATSs) to the market in the 1990s marked a turning point in the administration of the hiring process for the businesses that included this solution in their procedures, even though the initial versions were quite basic. Primarily, it made it easier for recruiters to keep track of applications and organise information about each candidate.
Since then, both HR technology and the hiring procedure itself have advanced significantly. Online applications grew in popularity throughout the early 2000s due to extensive internet usage and social media platforms' emergence. Additionally, in recent years, the job market has become more candidate-focused and has included new components like employer branding and candidate experience.
The global applicant tracking system market is growing at a compound annual growth rate (CAGR) of 6.2% from 2020 to 2030.
Market Segments
The platform (or hosting) type and the size of your business are the two main factors that categorise the types of ATS software. The primary ATS categories for the platform type are:
- Software as a Service: These vendors of the total, turnkey solutions keep your platform and business data on a cloud-based server. They often offer setup, support, and continuous client success management to make the most of the product. SaaS solutions are becoming increasingly popular because of their simplicity and 24/7 accessibility from anywhere.
- On-site: The business's own IT system keeps these software platforms online. They provide advantages like more flexible security and data maintenance options but demand a lot more maintenance and IT resources.
- Integrations: These more compact, modular solutions combine to build an entire ATS platform. ATS integrations are fantastic for smaller businesses with a smaller budget because they let you choose the ones that meet your needs (and no more than you need).
The secondary factor is the size and type of the company - enterprise, SMB, or agency.
Now the question arises - who uses an applicant tracking system?
The majority of large organisations use applicant tracking systems in some capacity. Over 98.8% of Fortune 500 companies, according to a Jobscan study, employ applicant tracking systems (ATS). According to a Kelly OCG poll, 66% of large corporations and 35% of small businesses, respectively. And these figures keep rising.
The truth is that you'll almost certainly encounter an ATS in the following scenarios:
- If you're applying to a big company.
- If you are using an online application form.
- Even job search engines like Indeed and LinkedIn have an internal ATS.
The ATS market is growing in more than just one or two countries. During the projection period, Asia-Pacific is anticipated to grow more rapidly than other regions. Recruiters in the APAC region face a significant problem because of the region's high population density, resulting in numerous job posting applications. As a result of the region's inclusion of nations that place a greater emphasis on these factors, such as Singapore, India, Sri Lanka, Malaysia, and Hong Kong, Asia-Pacific businesses are being informed about the advantages afforded by ATS to overcome this difficulty.
Key Drivers and Challenges
The key driver of the ATS software market is the demand for automation in the recruitment trends. Employers anticipate that by 2020, 17% of all jobs will be automated. Approximately 94% of US firms are already adopting AI, and robots plan to enhance their usage of automation over the next three years. Business executives are aware of the benefits of automating the recruitment process. HR and talent acquisition have been embracing automation and AI technology. Throughout the forecast period, these elements are anticipated to fuel demand for ATS software.
With ease comes challenges, and here are some of them faced while implementing ATS software:
- Integration problems: when you are under pressure to reach the "go live" date as soon as possible, ATS software integration problems can be a real pain in the neck. Ensuring that the chosen system is compatible with the ones your business already uses can help to handle this difficulty throughout the ATS selection process.
- Difficulties during the recruiting process: while an ATS can significantly speed up the hiring process, it cannot perform any magic. Before automating those procedures with the ATS, recruiters must first figure out how to improve the existing system by altering the stages, making the workflow checkpoints clearer, or in some other manner shifting internal focus.
- Issues while converting: a technical issue could manifest as incapacity or a lack of understanding of transitioning analogue processes to digital ones. So that these can be effectively converted without being completely transformed, the person who defines the rules in the new system needs to have a comprehensive understanding of how the business handles referrals, referral tracking, reference checks, onboarding, and many other important aspects of the hiring trends.
- Making an ATS mobile-friendly: Even while an ATS may be mobile-friendly, a business may fall short if it doesn't develop a website that employees can use to learn more about the organisation. A company may lose out on mobile traffic that could make up a significant portion of the applicant pool if mobile solutions offered by an ATS are not used.
Future Applicant Tracking System Trends
The scope of ATS software is very high, but it is even higher with the best amalgamation of artificial intelligence and machine learning. Candidate communication may become more fluid with the use of conversational AI interfaces.
Candidates who are hired, their performance on the job, and the information they gave in their application can all be used to train machine learning models. These can screen applications considerably more efficiently than crude keyword-based methods. In addition to candidate screening, applicant tracking software driven by AI offers candidate ranking capabilities that help firms find the most pertinent prospects.
According to John Bersin, only 47% of businesses use HR software that is less than seven years old. These businesses may be encouraged by advancements in machine learning to update or improve their software to boost productivity and shorten the hiring process.
Adopting AI and ML in ATS software can eliminate monotonous tasks, make better decisions, and expose more suitable individuals to job postings. But with the increasing number of smartphone users, the demand for mobile-friendly ATS software is also increasing. Recruiters are also using mobile devices to publish job notifications due to the rise in the use of mobile devices to apply for employment.
Candidates can communicate with recruiters from far-off regions by using mobile devices. For instance, the Monster Jobs mobile app, which is compatible with Android and iOS, was just released by Monster.com. Engagement and feedback, learning and development, employee feedback, performance check-ins, and video interviewing are a few of the apps used in HR procedures.
There are numerous ATS integration types to meet the needs of various recruiters. GoHire provides you with a variety of HR technology integrations:
- Job boards integration: to post all the job openings without fuss, we integrate the most useful employment platforms and websites. It is simpler to post the job ad straight through the ATS if the ATS connects appropriately with a variety of job boards. As a result, HR no longer needs to post job adverts on various employment sites and portals individually. You can now significantly reduce the time spent on manual effort.
- Social media integration: by integrating social media platforms with your applicant tracking system, you may post job openings across various social media networks at once. The data can also be used to determine which platform performs better and draws in a larger talent pool. Thus, you can concentrate your efforts there.
- HR software integration: the new hires are automatically added to the payroll and begin receiving training when the ATS is integrated with HR software. As a result, new hires have a seamless onboarding experience and are likelier to promote your business to their friends and family.
- App integration: if you wish to send mass emails, you may easily integrate your ATS with email marketing software. Without these technologies, sending hundreds of emails to find candidates for open positions is challenging. Sending resumes and other pertinent information to other team members as quickly as possible is made possible by combining the ATS with communication tools like Slack.
- Company website integration: the process for the HR team is made simpler by integrating your ATS with your website. Additionally, it makes it simpler for potential employees to learn more about the open roles. Candidates are more likely to apply for the available position in your firm when they can get all the necessary information in one spot without having to search the internet.
Key Players in the ATS Software Market
To improve their market positioning, the key drivers of ATS solutions have adopted various organic and inorganic growth methods, including new product launches, product upgrades, partnerships and agreements, business expansions, mergers, and acquisitions. Some famous players are SAP, ADP, Ultimate Software, Cornerstone, PeopleFluent, iCIMS, IBM, Oracle, and many more.
You will be astonished to find out about the market shares occupied by the key players. We have created a categorised briefing for your convenience:
- During the projection period, integration and implementation services are expected to have a sizeable market share.
- Large enterprises will hold a larger market share in 2021 based on organisation size.
- BFSI will dominate the industry during the forecasted period.
Conclusion
ATSs are crucial for streamlining and automating your hiring process and assisting you in becoming more productive and efficient in your daily responsibilities. They also improve the hiring process, reduce the burden, and boost candidate experience.
However, finding, attracting, and choosing the ideal applicants are not simply the responsibility of ATSs. These are connected to your company branding and recruitment tactics; therefore, it's critical to have a strong strategy before purchasing one.
The market for applicant tracking systems (ATS) is anticipated to grow at an unanticipated CAGR between 2022 and 2029, surpassing 2022 in terms of dollar volume. Investors are still enthusiastic about this industry despite fierce competition because the global recovery applicant tracking system trends are evident, and more fresh investments will continue to enter the sector.
Consider your needs and budget before picking the best applicant tracking systems for small businesses, research the options that best meet those needs, and test drive those options.
Use demo calls with software providers to determine which ATS is ideal for you.
Ask them any questions you have and have them demonstrate their software. After the demo, sign up for a free trial if your preferred vendor offers one, so you can experience the platform yourself.
