Top 10 Talent Acquisition Software Vendors, Market Forecast 2015-2020, and Customer Wins

Amid demographic shifts and skill shortages, Talent Acquisition vendors come to rescue

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In 2015, the top 10 Talent Acquisition software vendors accounted for 66% of the HCM applications market segment which grew 9% to approach $3.1 billion in license, maintenance and subscription revenues.

As a whole, Talent Acquisition applications represented 21% of the overall HCM applications market.

Last year LinkedIn, now a part of Microsoft, was No. 1 in Talent Acquisition with 21% market share and $668 million in HCM Talent Acquisition product revenues, riding a 34% jump in license, maintenance and subscription revenues. IBM was No. 2 with 12% share, SAP was the third at 8% and Oracle and Cornerstone OnDemand were fourth and fifth with 7% and 4%, respectively.

HCM Top 500

Exhibit 1 – 2015 Talent Acquisition Market Shares Split By Top 10 Talent Acquisition Software Vendors and Other, %

2015 Talent Acquisition Market Shares Split By Top 10 Talent Acquisition Vendors and Other, %
2015 Talent Acquisition Market Shares Split By Top 10 Talent Acquisition Software Vendors and Other, %

Through our forecast period, the Talent Acquisition applications market, which is comprised of six subsegments, is expected to reach $4 billion by 2020, compared with $3.1 billion in 2015 expanding at a compound annual growth rate of 7%. For Top 10 vendors in each of the six subsegments, please check their own index page by following their link below.

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.

Top 10 Talent Acquisition Software Vendors

Here are the rankings of the top 10 Talent Acquisition software vendors, their market shares in 2015 and recent developments.

Rank Top 10 Talent Acquisition Software Vendors 2014 Talent Acquisition Revenues, $M 2015 Talent Acquisition Revenues, $M YoY Growth, % 2015 Talent Acquisition Market Share, % Recent Developments
1 LinkedIn 500 668 34% 21% Microsoft completed acquisition of LinkedIn in December 2016.
2 IBM 410 365 -11% 12% Aligning its HR strategy with its advanced analytics, machine learning domain expertise.
3 SAP 228 253 11% 8% With more than 6,000 customers using its HCM suite, SAP aims to cross sell its TA products into a vast installed base of 45 million users.
4 Oracle 235 227 -4% 7% In its latest quarter, Oracle said its Cloud HCM applications sales spiked 131% after signing 436 deals including more than half from new customers.
5 Cornerstone OnDemand 98 124 27% 4% Positioning itself as Human Capital Management as a Service provider by introducing Cornerstone Edge for ISVs that can leverage its app builder and marketplace to extend their microservices that encapsulate Cornerstone’s Learning, Recruiting and other HCM apps.
6 Ultimate Software 90 108 20% 3% Saw 67% attach rate for its performance management applications when selling Core HR and Payroll in third quarter of 2016. In September 2016, Ultimate acquired Kanjoya for workforce analytics.
7 ADP 95 100 6% 3% Continues to gain ground in midmarket with Cloud-based Workforce Now, offering 75,000 customers a mix of WFM, Core HR and Payroll products.
8 iCIMS 62 85 37% 3% Launch of UNIFi positions iCIMS as a Platform-as-a-Service vendor, while allowing organizations to handle all aspects of talent acquisition within an all-encompassing ecosystem that save them time and money, while improving overall user experience.
9 Upwork 73 83 14% 3% Targets midmarket and large firms with Upwork Pro and Upwork Enterprise. Announced steep price hikes in May 2016 amounting to doubling the fees for some of the contractors using its Cloud service.
10 Insperity 68 75 10% 2% Beginning to move beyond Talent Acquisition into other Core HR solution offerings.
Subtotal 1859 2088 12% 66%
Other 1031 1051 2% 34%
Total 2890 3139 9% 100%

Source: Apps Run The World, December 2016

Top 10 HR Software Vendors In 22 HCM Market Segments From HCM Top 500 Research

Check the Top 10 HR software vendors in 22 HCM market segment as part of our HCM Top 500 market research. 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.

Split by Sub-Functional Markets
 Top 10 Core HR and Performance Management Software Vendors

HCM Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database

On the buyer side, customers are investing in HCM applications based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.

Since 2010, our global team of researchers have been studying the patterns of the latest HCM software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.

What follows is a sample of our latest findings, which are being updated continuously. Each year our research team identifies tens of thousands of these HCM customer wins and losses from public and proprietary sources.

The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.

Vendor Customer Win Industry No. of employees Revenue, $M Old Product New Product Wins in
ADP American Cancer Society Nonprofit Organizations 8500 1200 Legacy Applications ADP Enterprise HR 2012
ADP San Bernardino Valley College Diversified Consumer Services 1500 300 Legacy Applications ADP Vantage HCM 2016
ADP Waste Pro Renewable Electricity 2600 464 Legacy Applications ADP Vantage HCM 2016
ADP Welcov Healthcare Pharmaceuticals 3500 850 Legacy Applications ADP Vantage HCM 2015
IBM Allergan Plc Pharmaceuticals 31200 15071 Legacy Applications IBM Kenexa BrassRing 2014
IBM Daiichi Sankyo, Inc. Internet Software & Services 32229 12006 Legacy Applications IBM Kenexa BrassRing 2014
IBM Dave & Busters Communications Equipment 12495 866 Legacy Applications IBM Kenexa BrassRing 2016
IBM Jaguar Land Rover Careers Automotive 28000 32750 Legacy Applications IBM Kenexa Skills Assessments 2016
IBM Mercury Insurance Insurance 5100 3090 Legacy Applications IBM Kenexa BrassRing 2014
IBM MSC Industrial Direct Co. Industrial Conglomerates 6500 2910 Legacy Applications IBM Kenexa BrassRing 2014
IBM Plexus Industrial Conglomerates 14000 2654 Legacy Applications IBM Kenexa BrassRing 2014
IBM Potash Food Products 5395 8000 Legacy Applications IBM Kenexa Learning Management System 2015
IBM Sysco Distributors 51700 48680 Legacy Applications IBM Kenexa BrassRing 2015
IBM TravelClick Hotels, Restaurants & Leisure 1500 250 Legacy Applications IBM Kenexa Learning Management System 2016
iCIMS AmTrust Financial Services, Inc. Insurance 6200 5290 Legacy Applications iCIMS 2016
iCIMS Avamere Health Services Hospital & Health Care 7350 1000 Legacy Applications iCIMS 2016
iCIMS Boys & Girls Clubs of America Nonprofit 58000 1800 Legacy Applications iCIMS 2016
iCIMS Caremount Medical – Physician Group Hospital & Health Care 700 100 Legacy Applications iCIMS 2016
iCIMS Cross Country Healthcare Staffing and Recruiting 6624 804 Legacy Applications iCIMS 2016
iCIMS Dickey’s Barbecue Restaurants Restaurants 1100 500 Legacy Applications iCIMS 2016
iCIMS Frias Transportation Management Transportation 1000 300 Legacy Applications iCIMS 2016
iCIMS John Q. Hammons Hotels Management Hospitality 4000 1100 Legacy Applications iCIMS 2016
iCIMS Massage Envy Health, Wellness and Fitness 25000 1000 Legacy Applications iCIMS 2016
iCIMS Nexus Engineering Group Design 80 15 Legacy Applications iCIMS 2016
iCIMS Pace Analytical Services Environmental Services 1600 560 Legacy Applications iCIMS 2016
iCIMS Richard Stockton University Education 600 150 Legacy Applications iCIMS 2016
iCIMS Southeastern Freight Lines Transportation 4500 1150 Legacy Applications iCIMS 2016
iCIMS St. Josephs Healthcare System Hospital & Health Care 5100 785 Legacy Applications iCIMS 2016
iCIMS The Senior Lifestyle Company Hospital & Health Care 6000 1000 Legacy Applications iCIMS 2016
iCIMS Treasure Island Resort & Casino Gambling & Casinos 1500 900 Legacy Applications iCIMS 2016
Insperity Barsa&Company Accounting 30 4 Legacy Applications Insperity 2016
Insperity Boston Financial Management Financial Services 50 4 Legacy Applications Insperity 2016
Insperity Centage Corporation Computer Software 150 9 Legacy Applications Insperity 2016
Insperity Driveline Retail Merchandising Retail merchandising services 1500 700 Legacy Applications Insperity 2016
Insperity Golden Key Group Human Resources 90 10 Legacy Applications Insperity 2016
Insperity JibJab Entertainment 90 10 Legacy Applications Insperity 2016
Insperity National Assembly on School-Based Health Care Nonprofit Organization 30 4 Legacy Applications Insperity 2016
Insperity Navistar Transportation 16500 10775 Legacy Applications Insperity 2016
Insperity Novatech Information Technology and Services 200 35 Legacy Applications Insperity 2016
Insperity The Mortgage House Financial Services 120 15 Legacy Applications Insperity 2016
Insperity The Receivables Exchange Financial Services 100 40 Legacy Applications Insperity 2016
Insperity The Ronald Reagan Presidential Foundation Nonprofit Organization Management 140 18 Legacy Applications Insperity 2016
Insperity Thelab Marketing and Advertising 120 15 Legacy Applications Insperity 2016
Insperity United Through Reading Nonprofit Organization Management 30 2 Legacy Applications Insperity 2016
Insperity Valkyrie Defense & Space 200 25 Legacy Applications Insperity 2016
LinkedIn 90 Seconds Media 120 18 Legacy Applications LinkedIn Talent Solutions 2016
LinkedIn Abunayyan Holding Gas Utilities 4500 800 Legacy Applications LinkedIn Talent Solutions 2016
LinkedIn Alexander Mann Solutions Professional Services 3000 1000 Legacy Applications LinkedIn Talent Solutions 2016
LinkedIn BBVA Diversified Financial Services 109305 26840 Legacy Applications LinkedIn Talent Solutions 2016
LinkedIn Blackbook Executive Professional Services 10 2 Legacy Applications LinkedIn Talent Solutions 2016
LinkedIn Clarify Professional Services 80 10 Legacy Applications LinkedIn Talent Solutions 2016
LinkedIn Erste Group Diversified Financial Services 46780 5040 Legacy Applications LinkedIn Talent Solutions 2016
LinkedIn Halcyon Knights Professional Services 40 4 Legacy Applications LinkedIn Talent Solutions 2016
LinkedIn Hays Professional Services 8830 1127 Legacy Applications LinkedIn Talent Solutions 2016
LinkedIn oOh! Media 550 300 Legacy Applications LinkedIn Talent Solutions 2016
LinkedIn RED SAP Staffing Solutions Professional Services 350 60 Legacy Applications LinkedIn Talent Solutions 2016
LinkedIn The Entourage Education Services 100 10 Legacy Applications LinkedIn Talent Solutions 2016
LinkedIn Vodafone Group Diversified Telecommunication Services 101440 47870 Legacy Applications LinkedIn Talent Solutions 2016
LinkedIn Working at Booking.com Commercial Services & Supplies 11000 2200 Legacy Applications LinkedIn Talent Solutions 2016
LinkedIn York Walker Professional Services 10 1 Legacy Applications LinkedIn Talent Solutions 2016
Oracle Allstate Insurance 40200 35700 Legacy Applications Oracle Taleo Cloud Service 2007
Oracle Hamilton Island Hotels, Restaurants & Leisure 1300 250 Legacy Applications Oracle Talent Acquisition Cloud 2016
Oracle PRIMUS Global Professional Services 1000 100 Legacy Applications Oracle Talent Acquisition Cloud 2016
Peoplefluent American Cancer Society Nonprofit Organizations 8500 1200 Legacy Applications PeopleFluent Recruiting 2014
SAP AECOM Construction & Engineering 100000 17989 Legacy Applications SAP SuccessFactors Talent Solutions 2015
SAP Allstate Insurance 40200 35700 SumTotal Learn SAP SuccessFactors Talent Solutions 2013
SAP Cargotec Transportation 10837 3729 Oracle Taleo Cloud Service SAP SuccessFactors Talent Solutions 2016
SAP National Football League (NFL) Leisure Products 1000 12000 Legacy Applications SAP SuccessFactors Talent Solutions 2016
SAP Sabre Hotels, Restaurants & Leisure 9100 2960 Oracle Taleo Cloud Service SAP SuccessFactors Talent Solutions 2016
SAP TASNEE Industrial Conglomerates 1000 4850 SAP HCM (HR) SAP SuccessFactors Talent Solutions 2016
SumTotal Systems, a Skillsoft Company American Cancer Society Nonprofit Organizations 8500 1200 Legacy Applications SumTotal Talent Expansion Suite 2016
SumTotal Systems, a Skillsoft Company Intel Security Internet Software & Services 7500 1800 Legacy Applications SumTotal Talent Expansion Suite 2015
SumTotal Systems, a Skillsoft Company University of California Education Services 5000 2000 Legacy Applications SumTotal Talent Expansion Suite 2015
UpWork Amazon Catalog & Mail Order Houses 230800 127990 Legacy Applications UpWork 2016
UpWork Cisco Computer Networking 71883 49240 Legacy Applications UpWork 2016
UpWork Eventbrite Internet 500 50 Legacy Applications UpWork 2016
UpWork Microsoft Computer Software 114000 85320 Legacy Applications UpWork 2016
UpWork NBC Broadcast Media 10000 7000 Legacy Applications UpWork 2016
UpWork OpenTable Internet 1400 430 Legacy Applications UpWork 2016
UpWork Panasonic Manufacturing 249520 64300 Legacy Applications UpWork 2016
UpWork Pintrest Internet 700 170 Legacy Applications UpWork 2016
UpWork The Motley Fool Online Media 480 120 Legacy Applications UpWork 2016
UpWork UCLA Higher Education 42000 6700 Legacy Applications UpWork 2016
UpWork Unilever Consumer Goods 172000 55670 Legacy Applications UpWork 2016

Source: Apps Run The World, December 2016

Further Readings

The HCM Top 500 report series covers more than 3,000 pages of content, make sure that you don’t miss any of the 500+ profiles by becoming a subscriber. Or you can catch the highlights with the following links:

Methodology

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.

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