Why are hiring techs so popular now in the booming HR tech market? (Part 1)

DX (Digital Transformation) is expanding rapidly in the world of organization and human resources. The term HR tech has been used in Japan for a long time, but in the product area, the market is growing with three main functions.

photo The photo is an image (courtesy of Getty Images)

The first is the core HCM (core personnel system) area, which is responsible for the entire series of personnel business processes such as employee information management, transfer, promotion, remuneration change, and retirement. The transition from traditional on-premises products to cloud solutions is remarkable. Typical products include SAP SuccessFactors’ Employee Central, Workday, and Oracle HCM.

The second is the talent management area, where you can develop the skills of all employees such as goal setting and evaluation, successor management, learning history management, career development, and future management leader candidates. It is a function to support training. In this area, SAP SuccessFactors, Workday, and Oracle are the main players in the world, but in addition to that, Corner Stone on Demand, SumTotal Systems, Sava Software, and in recent years Kaonavi, Talent Palette, HR Brain, etc. have grown as Japanese original products. There is.

And the third growth area is recruitment tech, which is the main theme.

According to an analysis by global market research firm IDC (Worldwide Talent Acquisition Technologies and Services Forecast, 2021-25), recruitment tech will be CAGR 4.5% in 20-25 years. It is expected to grow and reach a market size of $ 177.2 billion in 2013.

In 20 years, there was an emergency evacuation restraint of hiring in the corona wreck, but now the hiring is resumed amid the economic recovery trend from the corona wreck. The number of companies is increasing. In addition, due to the penetration of the remote work environment and the transformation of values ​​in the new normal era, we will easily quit the current company centered on Generation Z and move toward changing jobs or starting a business in order to realize what we want to do. There is also a movement called (the era of major resignation). In view of these recent trends, the world of recruitment will become more efficient and sophisticated by leveraging digital technology from the standpoint of not only job seekers but also companies.

Two reasons why hiring tech is needed now

Hiring There are two main reasons why tech is needed now.

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