HR Management Software companies have grown exponentially over the years expanding with the growth of businesses and commercial activities. These placement agencies have reached various milestones with their necessity in today’s world! With the high demand for their expertise, placement agencies are bound to make a giant leap shortly. Have you ever pondered on why placement agencies are making big strides and are highly in demand? There are remarkable statistics that support their growth and the incredible work they have been doing for corporate industries.
Let’s interest you in an interesting fact, over the previous five years, the industries have witnessed a growth of placement agencies at an exponential rate of 20-25% per year. This escalating graph has no intention of coming down to a stooping slope. HR Management Software solutions all over the world have been a boon to several corporations as they have become the trendsetters of restoring productivity in the workplace, enhancing the work performance of employees, providing recognized employment, filtering through the best talent by ensuring reasonable remuneration, annual benefits, and health benefits for employees.
With their wide networks and ability to attract highly talented passive candidates, corporations have now started to realize that some things can be executed to their best extent through the hands of experts only! Besides, you would want to cut down on all of your expenses and time spent on hiring an in-house HR department.
Latest statistics and trends of HR Management Software companies:
Here are some of the notable trends that have been observed and reported by researchers and industry experts:
Considering the vast population of India, more than 50% are below the age of 25 and more than 65% are below the age of 35, which is why the market size of placement agencies is growing with their expertise of acting as the perfect middlemen for job seekers and employers!
Over the years, the Indian staffing industry was INR 26,650 crore in 2014 and is growing between 10-15%. HR Management software companies too have revived the seamless service providers to have a culture of excellence.
India has a huge talent pool of almost around 50% of the population that consists of highly educated individuals mostly below the age of 30. This leaves a wide gap open for middle management within all the sectors and position levels. There are skill shortages in specialized markets that require skilled expertise in sectors like FMCG and Hospitality and Retail that expand and cover the workplace sector.
According to the current market research, ‘Attrition’ is generally quite high with employees that look towards changing every 2-3 years to gain a salary hike and experience in a different company. The recently developed patterns suggest that most of these companies prefer employees that have international experience and have a long-term career plan.
Factors That Contribute to the Rise of HR Software Companies
Wide skill gap
In India, particular employers and industry leaders are struggling to find candidates that have on-job skills since there is a wide talent and skill gap witnessed after their educational qualifications. Findings report that around 39% of the employers in India find it extremely challenging to attract the best talent with the set of skills that the companies need! It has been reported that 90% of these jobs in the market are highly skill-based but only 2% of the population possess the required skill. This undoubtedly poses a threat to the country due to the lack of skilled workers in the industry thus necessitating the need for HR Management software companies.
The upscaling of Gig Economy
The gig economy all across the world is expected to grow and rise! A recent study conducted by McKinsey states an estimation of about 20% – 30% of the workforce is involved in independent, self-employed workers in the developed market. Due to this very reason, the talent strategy of the organizations will have to change with changing times. Temporary staffing provided by HR software companies through skilled recruiting will soon become the new norm of corporate industries.
Technical Staffing and Placement
It is reported that AI can automate up to 75 percent of the recruitment process. With the advancement of technology, the patterns of work have experienced a dynamic shift. Employees need to be updated with cloud-based software to work remotely and having a great career without technology seems unreal in a world of practicality. Companies that require IT recruitment and staffing enable these well-equipped placement agencies.
According to the Indian Staffing Federation, at present, the industries have around 15 leading firms that account for Rs. 270 billion in revenues which are then expected to grow at 12 percent this year and 10 percent in the next year. In such circumstances, placement agencies providing their services are gradually gaining paramount importance over the year amongst the corporate.
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