Industry, Topics

Applicant Tracking System Market Continues to Grow and Diversity

The applicant tracking system market is continuing to grow, and as providers offer newer and better solutions, many companies are thinking about switching the service they currently use.

That’s the most important information to come out of “Talent Acquisition Systems 2011: Market Realities, Implementation Examples and Solution Provider Profiles,” a report released last year by Bersin & Associates. The report looked at survey responses from HR professionals and recruiters from organizations of all sizes and in all major industries.

According to Sarah White, who works as principal analyst of talent acquisition for Bersin & Associates, a lot of companies are choosing to work with providers that offer better support and a higher level of integration, and ATS companies that offer a large selection of products are doing the best. It’s commonly accepted that applicant tracking systems are just as important to the recruiting and onboarding process as interviewing and social networking.

Here are some key figures from the survey:

  • The ATS market increased by 11.1 percent to $837 million during 2010, which was slightly lower than the $861 million originally predicted by experts. The difference can be attributed to the slowing economy.
  • The survey predicted that the ATS market would grow by 12 percent to $937 million by the end of 2011, as high-end companies consolidate and low-end companies continue to expand.
  • About 50 percent of companies were planning to switch to a new ATS provider over the year, as new options and new technologies emerge.
  • The amount of time it takes to convince a company to commit to an ATS provider has increased from six months to up to three years.
  • A large majority of ATS providers offer a mobile solution in order to keep up with growing popularity.
  • More and more ATS companies are merging in order to offer a more robust suite of solutions to customers, such as search engine optimization or video services.
  • As social networks continue to become more and more popular, most ATS companies are offering the ability to integrate with LinkedIn, Facebook, or other sites.
  • Analytics have become more important than ever in evaluating a company’s application, interviewing, and hiring process.
  • Learning Management Systems are growing by 10 percent per year, while Performance Management and Succession Management Systems are increasing by 12 percent.

So, as you can see, applicant tracking systems and other similar technologies that make the recruiting and onboarding process easier, cheaper, and more efficient aren’t going anywhere anytime soon. If you’re not already using this technology, now is the time to jump on the bandwagon!

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