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Talent Acquisition Technology Ecosystem

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Talent Acquisition Technology Ecosystem Global Staffing and Recruitment Technology Talent Acquisition Technology Ecosystem February 15, 2018 | David Francis, Research Manager | [email protected] Talent Acquisition Technology Ecosystem | February 15, 2017 Contents Talent Acquisition Technology Ecosystem ........................................................................................................................................................... 2 Overview of an Ecosystem .................................................................................................................................................................................... 3 Systems of Record ................................................................................................................................................................................................ 8 Candidate Discovery ........................................................................................................................................................................................... 10 Candidate Assessment ........................................................................................................................................................................................ 14 Candidate Engagement ....................................................................................................................................................................................... 15 Candidate Verification ........................................................................................................................................................................................ 17 Confidential Report – NOT for Distribution | ©Crain Communications Inc. All rights reserved. 1 Talent Acquisition Technology Ecosystem | February 15, 2017 Talent Acquisition Technology Ecosystem Key Findings Talent acquisition technology can be grouped into five broad functions that mirror the candidate This report is an overview of hiring lifecycle. These functions are: the talent acquisition technology landscape. It • Systems of Record • Candidate Discovery outlines SIA’s framework for • Candidate Assessment categorizing the various talent • Candidate Engagement acquisition technologies • Candidate Verification available in the market, and provides definitions for each There are thousands of talent acquisition technology companies. Many are focused on a particular category. point solution or niche, while others combine a variety of solutions and may operate across multiple categories. This report is meant to be a holistic overview of the landscape, and not a detailed analysis We, at times, provide examples of the providers in each space. of brands in various categories for illustrative purposes. These This report is focused on talent acquisition technologies used directly by firms to source talent, and not examples should not be on technologies that are primarily designed for workers or by intermediaries as defined in SIA’s construed as a broader Workforce Solutions Ecosystem (such as staffing firms), though some technologies are used recommendation or by both firms as well as their intermediaries to source talent. endorsement of any particular This report does not separately categorize technologies such as artificial intelligence, blockchain or firm, and are not meant to mobile technology (as these can be broadly applied to many industries and applications), though these imply that brands mentioned technologies are often embedded to some degree in the solutions discussed in this report. The are better than competitors. application of these types of technology will, however, likely have a profound impact on the talent acquisition landscape for years to come. The talent acquisition ecosystem, like any biological ecosystem, is continuously evolving. More importantly, the rate at which technology is changing is faster today than it has ever been, which means that firms must constantly innovate to keep pace, and that the dominant players of today could very well become the disrupted and forgotten of tomorrow. For all stakeholders in the ecosystem, staying ahead of changes -- technological, regulatory, and societal – is paramount, and the firms that will succeed are likely not the largest, but those which adapt the fastest. Confidential Report – NOT for Distribution | ©Crain Communications Inc. All rights reserved. 2 Talent Acquisition Technology Ecosystem | February 15, 2017 Overview of an Ecosystem The framework to the right is our conceptualization of the Function Category Sub-category various components of the talent acquisition technology Applicant tracking systems ecosystem from the perspective of an organization that needs Systems of Vendor management systems to hire contingent or non-contingent labor. It includes five Record Software integrators broad functions which approximately mirror the candidate Workforce analytics hiring lifecycle. Job boards The first category is Systems of Record. These applications Job aggregators are typically the core of organizations’ recruiting functions in Social media job sites Online job advertising Community sites that they are the central database, or “hub”, from which Online classifieds talent acquisition activities are most often initiated, tracked Programmatic job ads/job distributors and managed. Job post optimizers The next category is Candidate Discovery. Firms in this Candidate Online staffing Discovery category use technology to find qualified candidates in Human cloud Crowdsourcing different and unique ways. Online work services Resume parsing/search-match tools Once candidates have been identified, the next three People aggregators Sourcing automation categories focus on further steps in the process: Candidate Sourcing process automation platforms Assessment, Candidate Engagement and, finally, Candidate Intelligent sourcing management systems Verification. Employee referrals Recruitment aggregators The “schema” is useful for conceptualizing how different Psychometric assessments Candidate technologies are related (and different), though we note that Skills tests Assessment many firms offer services in multiple categories, and due to Interviewing platforms Texting/email technology the rapid pace of innovation, the categories themselves Candidate Recruitment chatbots evolve over time. We will update our categorization Engagement periodically as new solutions come to market and old ones Engagement platforms disappear. Candidate Background check verification Verification Social media screening Confidential Report – NOT for Distribution | ©Crain Communications Inc. All rights reserved. 3 Talent Acquisition Technology Ecosystem | February 15, 2017 What is not covered in this report? The focus of this report is technology that is directly related to acquiring talent from the perspective of an end client. There are many interesting technology companies which, while likely relevant to staffing firms and/or buyers of contingent labor, are not directly related to talent acquisition, and thus are not included in the talent acquisition technology ecosystem (and by extension this report). For example, technology tools that help freelancers manage their back office, such as AND CO or Bonsai, while tangentially related to talent acquisition (in that the tools help freelancers conduct contingent work more efficiently/effectively), are not included in our talent acquisition technology ecosystem as these tools would not likely be used directly by end clients. There is another category of software solutions that can be deployed post-sourcing of workers to better manage, engage, and motivate workers. SIA categorizes these solutions as HR Tech, a sub-category of ‘Other Workforce Solutions’ in our Workforce Solutions Ecosystem and, as such, they do not feature within this report. Such solutions include technologies that facilitate onboarding, personnel administration, benefits administration, performance management, training, time & attendance, expense management and engagement/recognition. Many vendors bundle HR Tech to provide a comprehensive suite of human capital management tools as part of their wider ERP (enterprise resource planning) offerings. Lastly, this report does not separately categorize technologies such as artificial intelligence, blockchain or mobile technology (as these can be broadly applied to many industries and applications), though these technologies are often embedded to some degree in the solutions discussed in this report. The application of these types of technology will, however, likely have a profound impact on the talent acquisition landscape for years to come. For example, artificial intelligence could potentially transform how candidates are selected and matched to open jobs. As another example, candidates increasingly consume information and services via mobile devices, which has implications for how talent acquisition technology companies design their products and services. Confidential Report – NOT for Distribution | ©Crain Communications Inc. All rights reserved. 4 Talent Acquisition Technology Ecosystem | February 15, 2017 Key trends in talent acquisition technology The candidate is king: In many economies around the world, by virtue of a full employment market and consequent shortage of candidates (exacerbated by a skills mismatch), the candidate has in effect become “king” (or “queen”). In the US, for example, as seen below, the national unemployment rate was a mere 4.1% in January 2018, with
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