Applicant Tracking System Market Trends

Growth Drivers

• Rising Emergence of Data Analytics in Recruitment - Researchers found that companies that use analytics in recruitment achieve 2 to 3 times better results in terms of hiring quality, time to hire, and employee retention. Companies are increasingly using data analytics to identify the best candidates for job openings. This includes collecting data on the qualifications and experience of job applicants, as well as other factors such as their personality, preferences, and past performance. This data is used to identify the best candidates and make more informed recruitment decisions.
• Rapid Growth in Employment Rate - For instance, a 47% employment rate was recorded in India in 2021. By comparison with the previous year, the indicator increased by 5.3% in 2021. As the rate of employment increases, more companies are looking for effective ways to manage the hiring process, and an ATS is one way to do this. ATS automate the process of sorting and tracking job applications, making it easier for companies to manage large numbers of applicants.
• Significant Growth In Small Businesses - According to the latest statistics, the number of small businesses in the US stands at 34 million, which represents 98% of all companies operating in the country. It has been estimated that US small businesses have created 8.5 million jobs between March 2020 and March 2021.
• Increasing Demand for Cloud-Based Applicant Tracking Systems - A recent survey concluded that about 99% of Fortune 500 companies utilize integrated ATS software. In addition, 67% of large companies rely on ATS software, whereas 35% of small businesses rely on it.
• Higher Employment Rate in IT and Banking Sector-As the IT and banking sector continues to grow and employ more people, the need for efficient recruitment processes increases. ATS provide companies with the tools they need to efficiently and effectively manage their recruitment processes, which is why the demand for them is also increasing. It was observed that India Inc. gained 3.82 million new jobs in 2021-22, with 94% of the job growth coming from IT, banking, and finance sectors.

Challenges

• High installation and maintenance costs - Companies have to invest a significant amount of money to set up an applicant tracking system, and then have to pay for ongoing maintenance. This can be a major financial burden for companies, and can limit the growth of the applicant tracking system market.
• Difficulty in integration of the applicant tracking system with existing HR systems
• Lack of awareness and the presence of a large number of manual processes