There’s been lots of rumbling over the past several years about how recruiting is a dying industry. Artificial intelligence, automation and big data were coming for our jobs, and entire agencies would be replaced by internal hiring managers armed with these digital tools. The industry was poised for last rites.
During this time (2013 to be exact), I moved my family from London to California to open the San Diego office of TrackerRMS, the integrated software solution for recruiting agencies. If recruiting were dying, I picked a very bad time to start a recruiting software company, that’s for sure.
But, the news is good. Despite the ramblings of an occasional prophet of doom here and there, recruiting in 2018 is on solid ground. You have ample reason to be optimistic.
Recruiting stats in 2018
There’s a direct correlation between overall economic health and the health of the recruitment industry. As the U.S. and world economies continue to improve, the demand for talent and recruiting services grow.
A number of recent reports attest that this is indeed what’s happening. Take a look:
In the U.S.
- Last year, Staffing Industry Analysts predicted 3 percent growth for the 2018 U.S. staffing market; in April, they revised that prediction to 4 percent, citing the improving economy as the main reason for this (albeit slight) acceleration.
- SIA also projects the U.S. staffing market will pass $150 billion in total revenue in 2019.
- Staffing industry sales totaled $160.6 billion in 2017, 4.4 percent more than the previous year. Search and placement sales accounted for 16.7 percent of total staffing and recruiting industry sales, the largest share since 2001, according to the American Staffing Association.
- The Bureau of Labor Statistics predicts total employment will reach 160.3 million jobs in 2024, an increase of almost 9.8 million jobs over 2014.
- 40 percent of global employers report talent shortages, according to Manpower Group.
- Global staffing revenue has grown from $350 billion in 2008 to $441 billion in 2017, and SIA projects it will reach an all-time high of $464 billion in 2018 (all figures USD).
- Market research firm Technavio forecasts that the worldwide recruitment process outsourcing market will grow at a compound annual growth rate of 17.66% from 2017 to 2021.
- The worldwide recruiting market is projected to be worth more than $200 billion, Forbes reports.
Recruiting is changing & evolving - not dying
Recruiting in the age of automation and AI looks different than when I first entered the industry back in 1998. Agencies must be highly digital and staffed with recruiters who are comfortable with technology and able to learn (and re-learn) quickly. Over the next decade, I believe winning firms will have members of their teams that know how to analyze big data and work with machine learning software, predictive analytics and advanced search technology.
But in the end, people offer people jobs, and recruiting will always be about relationships. Considering the vital role that the candidate experience plays in recruiting success, we’re in no risk of dying out any time soon.
Sunny recruiting skies are ahead, if you leverage technology to work better and smarter, and adopt a culture of continuous learning.
TrackerRMS: Recruiting software for the digital age
TrackerRMS is an end-to-end software solution for recruitment agencies. Combining customizable cloud-based applicant tracking, recruitment and CRM software with unparalleled customer support, TrackerRMS empowers recruiters with the data they need to build better relationships and make smart business decisions. Learn more about our products today.