Global Recruitment Services-Procurement Market Intelligence Report

Category overview for recruitment services

This procurement market intelligence report, which is an integral part of Technavio's category spend intelligence portfolio, reveals that category managers prefer to engage with service providers who possess technological and regulatory know-how, apart from access to vast networks, as this can help enhance the efficiency and compliance of the hiring processes. This report also reveals that the category managers are looking to consolidate their supply base and work with a set of preferred and go-to providers due to increasing budgetary pressure. A detailed study of the demand-supply shifts in this market space exhibits that the global demand for recruitment services is expected to grow during the forecasted period as they will expand into newer geographies and service areas. The suppliers are also looking to incorporate cost-effective onboarding recruitment methods to keep up with the demand.

While analyzing the procurement best practices for category managers, it was also observed that most buyers are compelled to adopt systematic procurement best practices that allow them to gain the advantages of cost savings and access to high-quality talent, irrespective of the industry type. A key procurement strategy followed by suppliers in this market space is the use of employee referral programs as a critical source to hire quality candidates in shorter turnaround times (TATs). Furthermore, the use of referrals also make it easier for candidates to fit in with existing employees, and this can help in their retention.

To meet the requirements of procurement professionals and gain a notable traction in this market space, the suppliers must adopt current recruitment trends that help implement an effective recruitment process such as the use of talent analytics and widening the scope of sourcing candidates. In addition, the buyers must also gain an in-depth understanding of industries before rolling out contracts to recruitment agencies, so that they source the most suitable candidate within the required TAT.

Procurement challenges

According to this procurement report, a major procurement point faced by the buyers in this market space is the increased volatility in the business environment and the gap between hiring volumes and recruitment budgets. It has been noted that the HR recruitment industry witnesses various complexities in workforce planning management such as sudden decisions related to job cuts or scaling up, making it extremely difficult for category managers to plan requirements efficiently.

However, to overcome this critical challenge, industry experts feel that procurement managers should invest in resource planning tools to gain visibility over potential consequences. Moreover, they must also adopt low-cost hiring methods such as utilizing interns or hiring boomerang candidates who have worked previously for the same firm when there is a sudden increase in resource requirements.

This category management report procurement and supply chain clients the scope to drive higher value from the use of recruitment services across various markets.

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