The talent acquisition technology landscape has shifted significantly with new providers and categories entering the market and AI seems to be the common denominator. Companies are using, on average, 10 or more providers to support everything from recruitment marketing to onboarding. The interest and investment in AI show no signs of stopping, and today’s companies have more options and opportunities than ever before. But navigating this landscape and truly understanding AI’s impact has become increasingly complex even for the most sophisticated buyers. Companies are not always clear what solutions to consider and what drives results.
Aptitude Research has identified three trends that are influencing the TA tech market today:
- TA tech investment is increasing. As companies increased their investment in talent acquisition technology in 2022, 70% stated they will continue to invest the same or increase this investment during a recession.
- Business leaders are more focused on TA tech. Over 50% of companies state that business leaders are more focused on TA tech this year than last. With multiple stakeholders involved in decision making, companies must think more strategically about investments.
- AI is here to stay. We have moved past the early fears of AI and employers, recruiters, and candidates are embracing AI-driven solutions. One in two companies believe that AI will improve the candidate experience. Companies must carefully consider the role that AI plays in transforming the TA tech stack and which providers take an ethical approach to AI.
Ten years ago, the talent acquisition technology market was comprised of multiple providers offering clear products in defined categories, including background screening, job boards, applicant tracking systems, assessments, and onboarding. Today, the market has exploded with hundreds more providers and new vendors entering each month. Additionally, the lines have blurred – many offer several solutions in talent acquisition or have created new categories of technology, making the buyer’s decision more complicated.
Our latest research on the evolutions of TA tech highlighted the following key findings:
Quality is a priority. For the first time in two years, quality of hire is the number one driver in technology investments over efficiency for 70% of companies. While efficiency is still critical for companies looking to improve time to fill and recruiter productivity, quality will see a renewed focus over the next year.
Companies are increasing investment even during an economic downturn. Seventy percent (70%) of companies plan to continue to invest the same amount or increase their investment in TA tech even in the event of an economic downturn. With remote work and recruiter experience challenges over the past two years, the demand for technology has never been greater. Companies see the value during both strong and weak economies.
Companies have more solutions but are less happy with them. Over 60% of companies are using more solutions today than before COVID, yet only 11% of companies are satisfied with this technology. The buying behavior over the past two years and companies must be careful when evaluating providers and consider true partnerships. Many of these companies are finding it challenging to implement and adopt these systems.
DEI needs to be more of a priority. Diversity, equity, and inclusion (DEI) was a key driver in technology decisions two years ago. Today, companies identified efficiency, quality, and experience over reducing bias. Companies should not sacrifice reducing bias. The right technology can solve for multiple outcomes in talent acquisition.
Not all AI is the same. Every provider in talent acquisition seems to be tackling AI, but companies must carefully consider the quality of data and ethical AI. Companies must provide due diligence when evaluating providers.
Candidates are embracing AI. One in two companies believe that AI is improving the candidate experience. And, nearly half of companies in this study do not know when they should use AI to support talent acquisition. For many companies, humans are still doing tasks that can be supported through AI, including communication and screening.
The next year will create more challenges and opportunities in TA tech and companies must carefully consider evaluating providers. We are excited about upcoming research reports that include hourly hiring, conversational AI, and the CRM Index.