Demand for recruitment software grows

April 26th, 2022 | Industry News

A recent international report suggested that the recruitment software market saw a year on year growth of 4.74% in 2020, at a time when many industries were flat-lining due to COVID-19. With a projected market growth of £521 million between 2020 and 2024 and Europe providing maximum growth opportunities, it all sounds good for companies like Recruit So Simple. But what’s driving the demand, and where is it likely to lead?

One consideration is the linkage between the economy and the recruitment industry – low unemployment leads to a decrease in demand for recruiters, but even when unemployment is low, there can still be substantial skill shortages. One of the biggest growth areas predicted in the recruitment software sector is SaaS recruitment agencies, as these have particular appeal for SMEs and companies recruiting short-term expertise, allowing for maximum flexibility in working hours and responsiveness, exactly where SMEs excel.

Recruitment CRM software can also assist businesses by allowing recruiters to ‘insure’ their clients against future shock. When economies wobble, skill shortages can derail company growth. Well-resourced recruiters can filter, rank and store candidate profiles to give their clients the edge when it comes to helping organisations hold their ground, or even grow, in challenging circumstances.

We’re currently seeing a trend towards self-employment, freelancing and side-gigs. However, this can be a temporary phenomenon in a changing world. Weaker economies lead to insecurity – people want more certainty and a reliable income. The pandemic experience is likely to send a lot of the freelance community back towards salaried employment, but remote working and side-hustles are likely to continue. Recruiting software can be used to help former contractors find their place back in the classic world of work, which requires the ability to recognise transferable skills and on-board freelancers back into the more restrictive, but more predicable, world of full time employment.

Remote working has become a big driver of change – the best recruitment software for agencies deals with the obstacles that globalisation and remote working have brought to recruitment agencies, such as negotiating legal systems, languages and cultural behaviours to ensure that employers and employees can easily find common ground.


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