Top 10 HCM Software Vendors In Recruiting Market Segment

Recruiting market segment is expected to reach $1243 million by 2020


This report ranks the Top 10 HCM software vendors in Recruiting market segment as part of Talent Acquisition product group. These top 10 vendors are ranked by their latest annual product revenues attributable to that particular market segment.

It also summarizes the market outlook and our forecast assumptions at the group level and for that segment, respectively.

The top 10 Recruiting software vendors accounted for 65% of the Recruiting market segment which topped $991 million in license, maintenance and subscription revenues.

Here are the Top 10 HCM software vendors in Recruiting market segment based on their latest annual product revenues. Check the methodology section below as well as our FAQ section on how we conduct research for these Top 500 market reports.

Rank Vendor 2015 Product Revenues In Recruiting Market Segment, $M 2015 Share In Recruiting Market Segment, %
1 LinkedIn Corporation Subscribe Subscribe
2 IBM Subscribe Subscribe
3 SAP Subscribe Subscribe
4 Subscribe Subscribe Subscribe
5 Subscribe Subscribe Subscribe
6 Subscribe Subscribe Subscribe
7 Subscribe Subscribe Subscribe
8 Subscribe Subscribe Subscribe
9 Subscribe Subscribe Subscribe
10 Subscribe Subscribe Subscribe
Other Subscribe Subscribe
Total 991 100%

Source: Apps Run The World, December 2016

Talent Acquisition Outlook

Here are our current market forecast for the Talent Acquisition segments through 2020. Through our forecast period, the Recruiting market segment as part of Talent Acquisition product group is expected to reach $1243 million by 2020, compared with $991 million in 2015 at a compound annual growth rate of 7%.

Click on each of the following segments to drill down the vendors that cater to those markets.

Exhibit 2 – Worldwide Talent Acquisition Applications Market Forecast 2015-2020 By Subsegment, $M, and Compound Annual Growth Rate, %

Talent Acquisition Segments 2015 2020 CAGR, %
Applicant Tracking 568 766 9%
Contingent Labor Management 342 502 12%
Marketing 323 444 10%
Onboarding 307 401 8%
Recruiting 991 1243 7%
Sourcing 608 661 3%
Total 3139 4017 7%

Source: Apps Run The World, December 2016

Talent Acquisition Market Definitions and Forecast Assumptions

Human capital management includes such functions as eRecruiting (applicant tracking), Onboarding (employee profile), Performance Management (assessment, goal management, succession planning), Core HR (personnel administration, benefits, compensation management, payroll), Workforce Management (absence management, activity tracking, scheduling, time and attendance), and eLearning (learning management system). For complete definition, please see below or visit our Taxonomy page.

Drivers behind the growth of Talent Acquisition applications market include:

  1. Aging population, coupled with increased emphasis on work-life balance, will continue to pose challenges for employers and recruiters.
  2. Contingent labor management, which used to cover hourly, seasonal and low-skill contract workers, has become a focal point for a growing number of employers to find talented and specialized workers and resources that normally would have been overlooked or underutilized. The flexibility of the gig economy has vastly expanded the pool of available workers on a global level.
  3. Social recruiting, video interviews and innovative ways to brand a workplace have resonated with a new generation of employees as well as recruiters aiming to take their high-volume recruitment efforts to the mobile generation.
  4. Digital transformation in response to new user demands, market forces.
  5. Restructuring of HR processes to accelerate for next decade.
  6. Heavily modified recruiting systems entail rising costs

Inhibitors include the following trends that cut across multiple Talent Acquisition segments:

  1. Employer branding may fall short of expectations on the parts of recruiters and candidates.
  2. Scaling out marketing offerings to enable employers to communicate with salaried and hourly workers across multiple platforms – text, video, chat, email – will be key to long-term success.
  3. Expansion by Recruit Holdings and CareerBuilder, which own some of the biggest job boards, could render some Talent Acquisition vendors less relevant.
  4. Any change to LinkedIn by its new owner Microsoft to rope off more resume content could have considerable ramifications for the Talent Acquisition market.

Further Readings

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Similar to any of the hundreds of reports that we have published since 2010, HCM Top 500 is a labor of love. Since 2013, our team of researchers have been conducting rigorous research on thousands of HCM vendors, surveying them quarterly, reviewing their products at even shorter intervals because of the compressed Cloud release cycle, and discussing HR vision with their customers to better understand user needs as well as different paths to upgrade and replace their existing systems.

Each year we also attend many industry-wide and vendor-specific user conferences – HR Tech, Dreamforce, SAPPHIRENOW, Oracle Open World, just to name a few, to gauge what customers are looking for.

Throughout this process comes a rich database of more than 2,000 HCM vendors as well as over 50,000 HCM customers that have been touched one form or another through regular surveys, phone and in-person interviews, email exchanges, and social media interactions, etc.

On a proactively basis, we contact the vendors directly to tabulate their latest quarterly and annual revenues by HCM segment, vertical market, revenue type, region, country and customer size.

We supplement their written responses with our own primary research to determine quarterly and yearly growth rates in each of the 22 segments and 21 verticals, in addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.

Another dimension of our quantitative research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world.

The database provides customer insight and contextual information on what types of HCM, enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall HCM and IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.

The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the HCM marketplace for years to come.

HCM Market Taxonomy

From hire to retire, HCM continuum extends across 22 markets, 21 verticals
From hire to retire, HCM continuum extends across 22 markets, 21 verticals

Definition of Human Capital Management (HCM) Applications

Core HR and Performance Management
Core HR and Performance Management Description
Personnel & Organization Management Core human resource management system, personnel records, HR master file, accruals, organizational development, org chart visualization
Payroll Payroll processing, tax filing, language support, country-level updates, payslip calculations, automatic deductions and other government requirements for proper disbursement of employee compensation.
Benefits Administration Benefits and health administration. Plan and design benefits lifecycle, billing and payment. Carrier solutions are also included for integration purposes.
Pension Administration Pension and retirement fund(401K) administration as well as software that helps manage profit sharing plan, defined benefit plan, or cash balance plan.
Compliance Compliance, regulatory updates and reporting including such laws as Affordable Care Act, Overtime Regulations, Fair Labor Standards Act
Performance & Goal Management HR performance management applications are designed to automate the aggregation and delivery of information pertinent to the linking of job roles and the mission and goals of the organization. More specifically, the system allows users to automate the performance review process by using mechanisms such as training and key performance indicators to continuously track and monitor the progress of an individual employee, work team, and division. Some of the key features include: Assessment of individual career objectives and organizational skills gaps that impede performance and job advancement. Continuous reviews and establishing milestones. 360-degree evaluation and real-time feedback. Performance appraisal automation. Goal setting and tracking. Employee surveys. Alignment of human assets to corporate objectives. Fast tracks for top performers.
Learning & Development Learning management systems refer to applications that automate the administration, tracking, and reporting of training events. Other tools may include courseware and other delivery, management, tracking, or integrated solutions whose focus is on the learning environment, including learning content management systems. Career development tools include apps for coaching, mentoring, employee development planning, and diagnosing of development needs.
Succession & Leadership Planning Identify and address current and potential talent gaps to create succession management reporting. Develop and maintain a continuous supply of internal talent to fill critical job roles. Improve employee engagement through digital tools to advance career path development opportunities.
Compensation Management Compensation management applications are designed to automate the process of providing cash, noncash, variable and nonvariable compensation to employees through advanced modeling, reporting, and built-in interfacing to payroll processing systems. Other key features include seamlessly manage compensation budgets and allocation in a single, shared tool. Streamline pay recommendation workflows and approvals. Support multiple pay and incentive practices. Ensure budget compliance and adherence to compensation guidelines. Quota and territory management. Calculation and distribution of commissions, spiffs, royalties, incentives to employees, and channel and business partners. Compensation analysis using internal and external data for retention risk analysis. Linking salary, commission and incentives — cash and noncash — to business objectives. Payroll and payment engine interfaces. Account payables integration.
Talent Acquisition 
Talent Acquisition Description
Applicant Tracking Applicant tracking software automates such functions as management of resumes, applicant information, scoring, workflow, matching, search, interview scheduling, job descriptions, EEOC reporting, job postings and notifications
Recruiting Recruiting applications are designed to automate the recruitment process of salaried and hourly employees through screening and skills assessment, as well as automated selection processes to improve hiring pipeline by identifying talent inside or outside the organization. Other key features include: Manage skills inventories. Create and manage job requisitions. Coordinate team collaboration within hiring processes. Video Interviewing, team building and digital coaching.
Marketing Applications designed to attract and engage candidates and employees. Other tasks automate functions such as candidate relationship management apps, career site technology, social recruiting, employee referrals, branding, video engagement, campus recruiting and internal hiring
Contingent Labor Management Processing of hiring of contingent labor, search, skills matching, assessment, interview scheduling, negotiation of rates, approvals, project milestone payments, project completion tracking, performance ratings
Sourcing Facilitate resource planning for staffing firms as well as vendor managed system, allowing for front office integration for employment agencies as well as talent acquisition apps designed for staffing firms.
Onboarding Applications designed to deploy workers to appropriate jobs, projects, or teams for accelerated on-boarding.
Workforce Management
Workforce Management Description
Absence and Leave Management Absence management applications offer automated features to support employee leave management, employer authorized leave, Short-Term-Disability/Workers’ Comp coordination, federal and state compliance, customized leave correspondence, medical certification processing, insurance premium payment tracking as well as employee self-service capabilities. Leave Management supports compliance activities related to government regulations such as the Family and Medical Leave Act in the United States and other local leave laws in different countries.
Workforce analytics Workforce analytics are used to analyze compensation, benefits, and other employee variables. These applications can also be used to analyze and optimize labor allocation for particular projects.
Fatigue Management Fatigue Management apps help automate key facets of fatigue risk mitigation, enforcing employee work-hour limits and aligning with fitness for duty best practices. Similar apps may act as electronic work diaries for real-time reporting and compliance with transportation laws.
Hardware (Time Clock) Time capture is the hardware platform that provides authentication features for clock-in and clock-out times, meal and rest breaks, as well as timesheet and payroll reporting and compliance.
Workforce Scheduling Products are designed to Increase forecasting accuracy by factoring in a variety of methods and historical patterns. Create optimal schedules to meet customer demands, while reducing costs and maximizing resources
Task Management Task Management offers labor management capabilities such as task-based and project-based activity tracking as well as measurement and reporting functions against performance standards like engineered labor standards, team standards and reflective standards.
Time & Attendance Time and Attendance applications are designed to automate employee time tracking in different locations, help reduce overtime expenses, improve payroll accuracy, eliminate pay errors and adjustments, along with the need to simplify and optimize administrative tasks and complex rate calculations by making available accurate and current labor data and full audit trail of payroll data.