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Great Potential in Recruiting and HCM Software for Small Businesses
The HCM Technology Report indicates there is opportunity for HCM and recruitment software vendors to target small businesses. Research by JazzHR and Verified First demonstrate that small-medium businesses are increasing reliance on recruiting software, despite dissatisfaction. About half of businesses are not happy with their applicant tracking system (ATS) and want an integrated approach to the employee experience.
In today’s world of work, almost all businesses are having difficulty recruiting talent. What recruiting and HCM difficulties are specific to small businesses?
Employees at smaller businesses may have a large scope of responsibilities in their role. They may want to be as involved as possible in the recruiting and onboarding experience, but their various responsibilities prevent them from making those tasks a priority. This creates a long recruiting journey for candidates, which may lead to losing talent as top candidates find another job during the process, as suggested in Wall Street Journal.
To address unique challenges, small businesses are seeking help from consulting and technology companies to recruit and retain talent (HCM Technology Report). Some technologies, such as Ceridian, ADP, and SAP SuccessFactors, have products or offerings that are specifically aimed at small businesses to grow this market. JazzHR, which targets small and medium-sized businesses, just announced a record-breaking year of 31% growth.
Our Take
We predict that HCM and recruiting software companies will continue to develop their small business offerings to take advantage of this market opportunity. There are unique challenges small businesses face surrounding talent, and technology companies can help address them. Additionally, most small businesses are not satisfied with their current technology solutions. They may want to switch to a vendor that better matches their needs and provides a holistic HCM strategy, rather than solely a recruiting solution.