5 Hottest Recruitment Software Trends
Published: 03/07/2022
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Every day, the software market grows. Its popularity, inevitably, drives trend formation. In this article, we shall examine the hottest recruitment software trends that both managers and payroll employees can benefit from. Whether you work in a traditional agency or as a contractor recruiter, you will find this blog useful.
It has long been understood that recruitment companies stand no chance against their competitors unless they adopt the software that streamlines their workflows. From shorter time to hire to smoother payroll procedures, efficiency-driven digital tools are essential. However, now that the market is saturated with various solutions, it can be daunting to navigate.
We always recommend building your tech stack based on your business's needs. However, it’s also worth looking at the functionality trends within your industry, especially if it’s niche. Most often, these trends emerge because other companies in your sector have recognised their value, and while no trend should be followed blindly, this may be a strong indication that there’s something you can utilise too. With this in mind, let’s explore what the hottest digital functionality trends are for recruitment software.
The recruitment sector has undergone many changes in recent years; thus, if your solution is as old as five years, there is a chance it lacks the functionality we are going to list below. However, this does not mean you must discard a platform that has been, and continues to be, of good service to you.
Not every recruiter or payroll employee within recruitment will benefit from these trends. Ultimately, as always, it depends on your needs and which of these features you require. Therefore, pursue your direct requirements rather than mimicking what everyone else does. Without further ado, let us discuss what is trending.
One of the biggest changes that occurred in the recruitment industry in 2022 is the end of the adaptation period to the IR35 changes for the agencies. Since the adjustment of the legislation, the recruitment firms were given a year during which non-malicious noncompliance would go unpunished. However, as the ‘soft-touch’ approach time limitation has now expired, they are facing serious financial damages for not adhering to the rules. Although most agencies have worked with the advisors and were fully prepared to modify their processes, mistakes naturally happen. Unfortunately, even if it’s something as simple as human error, it’s now a punishable offence.
The recruitment agencies were not the only ones compelled to move and adapt quickly. Vendors of recruitment software also found themselves in a position where they needed to modify the way their platforms operate. Whether it involved tinkering with existing functions or adding a completely new module, the introduction of the IR35-supporting feature is understandably one of the most sought-after demands that recruitment agencies have for digital tools. It can also serve as a good indicator of whether the software is updated regularly and how well the provider understands the industry. While some solutions used by hiring firms may not be niche to the sector, those marketed as such should raise concerns if they lack IR35-related functionality.
Recruitment agencies that supply shift workers are sometimes also responsible for allocating their work times. Given the wide range of responsibilities these agencies already have, the last thing they need is to manage another time-consuming process that is prone to human error. This is why employee shift scheduling is a sought-after feature. Not long ago, it could only be found as a stand-alone solution, but recently, more and more recruitment-specific platforms are incorporating it into their functionality lists.
The reason it wasn’t as popular before is that it isn’t exclusive to recruitment firms. In fact, it is mainly aimed at stand-alone companies that operate on a shift basis, assisting managers in allocating the workforce more quickly and effectively. Recruitment agencies picked it up relatively recently, and as its popularity grew within the industry, sector-oriented solutions began to include it as part of their package. Naturally, this feature is currently trending with firms that allocate shift workers themselves, as opposed to those that work with contractors or aim to supply permanent salaried workers. However, this does not seem to affect its growing demand.
ATS (Applicant Tracking System) and CRM (Candidate Relationship Management) are essential solutions for any recruitment firm. However, they are not the only tools a firm needs to succeed. Together, they form the foundation of the digital toolbox, as they are responsible for key recruitment functions. Other solutions aim to enhance their effectiveness in ways that are unique to each agency. Therefore, it’s crucial for all solutions to work together.
Software integrations essentially link different solutions to one another, enabling enhanced automation functionality, seamless data transfer, more detailed insights, and much more. As the additional solutions that recruitment firms employ vary depending on the company’s specific needs, integrations with the core ATS and CRM solutions pave the way for developing unique processes tailored to the firm's requirements. Undeniably, creating workflows that cater to your specific needs by utilising software capabilities rather than constructing workflows around software limitations is a more effective and, therefore, more popular approach.
Recruitment agencies must manage numerous payroll procedures, particularly when working with contractors. Given their already hectic schedules, this task is especially time-consuming and can, if mishandled, result in a loss of trust and damaged relationships with both clients and contractors. Similar to many of the topics we’ve discussed thus far, this process is susceptible to human error, and therefore the most effective solution is to eliminate human involvement from it.
Payroll automation is, therefore, a sought-after feature as it both saves time and enhances the company’s performance. With the appropriate set of integrations, its functionality can include invoice automation, expense management, differentiating rates, overtime, and many others. Similar to the shift scheduling feature, payroll automation considers the individual data of each employee and calculates it accordingly. In other words, what would otherwise take accounting hours is sorted out in minutes.
Approval processes are essential in every business: whether they involve timesheets, expenses, deliverables, or anything else needing sign-off before processing. Therefore, it’s no surprise that the latest trend in recruitment software is the capability to execute approval processes as smoothly as possible. Simply put, delays, confusion, and things getting forgotten occur when run through outdated methods such as email threads. The risk of something going awry only increases when it’s a multi-level process involving several approvers. Delays in the approval stage can lead to decreased productivity and frustration.
A feature that transforms an approval process, regardless of how many stages it entails, into a workflow is a valuable addition to the strategy. It is equally beneficial for both external and internal procedures—expenses, timesheets, holiday requests, you name it. When the process is designed to be linear, a designated solution facilitates easy tracking of where it has stalled, allowing for quick resolution of any issues. Furthermore, this prevents duplicate tasks being performed by different individuals, maintains open communication channels, and streamlines progress.
The modern world is fast-paced, and businesses that seek to thrive in it must move quickly as well. With daily data overload and competition at an all-time high, companies have no choice but to depend on software. Recruitment agencies are no exception. However, just as there are many different firms, there are countless solutions that offer even more features. This complexity makes it rather challenging to choose what you need and want.
While we usually do not recommend copying the approaches of other companies, trends present a slightly different scenario. They act as indicators of current industry standards and which functionalities can aid businesses in remaining viable and expanding. As you may have realised, the recruitment software trends we have outlined cater to different types of firms and may be irrelevant for others. Although the features we have identified are currently shaping the industry, do not rush to adopt them - first, consider whether and how your recruitment agency can benefit from them.
And if you’re at a loss, just give us a shout.