In our “New Technology Shaping the Future of Work” report, we zoomed in on Hiring Work Tech. Hiring Work Tech includes all the tech categories involved in finding, selecting, and hiring a company’s workforce. Despite current economic uncertainty, 71% of the more than 1,000 HR and Talent leaders we surveyed said that Hiring Work Tech budgets were staying the same or increasing. The average budget increase was 47%.
Respondents were dispersed across market segments (SMB, Middle Market, Enterprise and Large Enterprise) at ratios that are reflective of the market. Thirty-eight industries were represented in the report. Manufacturing, healthcare, retail, and technology (Internet or Saas) all represented budgets as growing.
This is a good reminder that while headlines of layoffs from “big tech” capture our attention, the market is actually much more diverse.
Current Hiring Work Tech Stack
Respondents identified twenty-five Hiring Work Tech categories as currently being used in their tech stacks. The top twelve are listed here.
There is still room to grow in several categories. Applicant Tracking Systems (ATS) were widely reported in the enterprise and large enterprise market segments. The sheer size of the SMB and middle markets, along with the proclivity for smaller employers to leverage capabilities offered via their HCM/payroll platforms, probably contributed to this view. Digital or Video Interviewing is used across all market segments but still shows significant room for growth. While Recruitment Marketing was widely reported to be used in the enterprise and large enterprise market segments, it didn’t make the top 12 for overall adoption.
Increasing Hiring Work Tech Budgets
Our “New Technology Shaping the Future of Work” report shares the top twelve Hiring Work Tech categories with increasing budgets. The top five are listed here.
2023 will bring an increased focus on analytics to Talent Acquisition teams. However, not all analytics needs are the same. As we talk to employers with recruiting teams in different market segments, there are varying degrees of analytics sophistication and levels of operations or IT support for analytics. You must take stock of these variables in your environment before investing in tech that is too far behind or ahead of your team’s ability to use it.
It was encouraging to see that 42% of employers plan to increase existing DEIB Hiring Work Tech budgets. We’re seeing similar promise in VC investment flowing into this category and in the product roadmaps of Hiring Work Tech providers.
The successful adoption of chatbots and conversational interfaces is giving way to increasing budgets. Employers we spoke to look at these interfaces beyond high-volume hiring, where we saw early adoption. They’re looking at engaging with candidates of all types with these interface. We’re beginning to see these interfaces start to emerge for use internally on hiring teams as well.
Underwritten by Greenhouse Software, WorkTech set out on its most ambitious research. Perhaps the most ambitious ever in this category. WorkTech set out to better define and understand this new, fast-growing category. What are the market forces driving it? What is its immediate and long-term future? Join us as we define the future of Work Tech and, in turn, get a glimpse at the future of work.
Hiring Work Tech Getting Added to the Tech Stack
Our “New Technology Shaping the Future of Work” report shares the top twelve Hiring Work Tech categories currently planned to be added to the tech stack. The top five are listed here.
Employers plan to add assessment technology to the mix as they focus on making better hiring decisions. Skills assessments include surveys, quizzes/tests, simulations, etc. DEIB technology used at any stage of the hiring process will also be added, aiming to minimize hiring bias while diversifying talent pools. Chatbots and conversational interfaces will continue to find homes at employers of all sizes while the ATS continues to increase its adoption across market segments.
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