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Summary and extracts

1 Market Overview

1.1 Definition and presentation

The recruitment market is an ever-evolving sector, encompassing all the services offered by companies specializing in personnel selection and recruitment, activities often outsourced by large companies to ensure that the best talent is hired. The process of selecting the ideal candidate requires a strategic approach, supported by advanced screening and assessment techniques, the success of which can positively affect the company's economic and financial performance, both in the short and long term. HR & Recruitment services are designed to facilitate the hiring of resources in line with business needs and goals, while improving employee engagement and satisfaction.

By 2023, the global HR & Recruitment services industry was worth an estimated $467 billion, with growth driven by the adoption of digital solutions and online platforms. This industry has experienced a significant post-pandemic recovery, with a projected CAGR of 2.5 percent from 2023 to 2032, driven by increased demand for digitized recruiting services and flexible, remote recruitment solutions.

In Italy, the market remains highly fragmented, with many companies preferring to keep the selection process in-house to keep costs down. However, increasing digitization has led to an increase in the use of online platforms such as LinkedIn for recruiting, corporate branding and HR selection. Although the number of digitized recruiting companies is still limited, with about 60 companies active in the online sector, the adoption of digital tools is rapidly increasing, even among Italian SMEs.

A key trend in the market is social recruiting, now essential in the digital age. Social recruiting involves the strategic use of social media to locate, engage and build relationships with potential candidates, subsequently turning them into company resources. The number of companies using social platforms such as LinkedIn, Facebook, Instagram and even TikTok for recruitment activities is growing rapidly, with LinkedIn remaining the leading platform for professional recruiting. This innovative approach has become essential for modern companies, which see social networks as an effective tool for expanding their network and attracting new talent.

1.2 The global market

the global recruitment market is constantly expanding, driven by factors such as increasing labor mobility, digitization of recruitment processes, and growing demand for specialized skills in an increasingly complex and competitive business environment. Companies of all sizes and sectors are facing new challenges in attracting and retaining the talent they need to sustain growth and remain competitive in the marketplace. In this context, the recruiting industry plays a crucial role, with an estimated value of several billion dollars and an annual growth rate that reflects evolving business needs and candidate expectations.

The value of the global recruitment market is projected to grow steadily from **** to ****, from $***.** billion to $***.** billion, an overall increase of **.* percent. The increase is gradual, averaging about $**-** billion more each year. The continued growth suggests a stable and steady expansion of the industry over the period.

Global Recruitment Market Value World,****-****,Billion dollars Value Market Research

1.3 The European market

Priority skills for retraining in Europe from **** to **** see analytical thinking at the top of the list, with **% of preferences, followed by leadership (***). Creative thinking, resilience and flexibility, and curiosity with a willingness to learn come in between **% and **%. Technology skills and talent management are considered important by ** percent, while motivation closes the list with ** percent, tied with talent management.

Skills that will be given the highest priority for retraining and skill upgrading in the next five years Europa,****-****,Percentuale World Economic Forum

The table highlights three aspects related to talent: availability during hiring, existing workforce development, and talent retention. Talent availability during hiring shows a ** percent improvement, while ** percent report a deterioration, with a global average of ** percent. Existing talent development is perceived as improving by only *%, while **% see it as worsening, but has a high global average of **%. Finally, talent retention shows improvement by **% and worsening by **%, with an overall average of **%.

Aspect of Talent Improving (***) Worsening (***) Overall Average (***) Talent availability during recruitment ** ** ** Talent development of existing workforce * ** ** Retention of existing workforce talent ** ** **

1.4 The Italian Market

the turnover of the recruitment, selection, and supply market in Italy has varied from **** to ****. Starting from **.** billion in ****, turnover drops slightly in **** to **.** billion and hits a low of **.** billion in ****. In ****, there is a significant recovery to **.** billion, followed by a further increase peaking at **.** billion in ****. In ****, turnover drops slightly to **.** billion, still closing **.* percent higher than in ****.

Turnover market of Personnel recruitment, selection, supply activities, ATECO **.** Italy,****-****,Millions of euros Istat;Company Register

Talent Management Statistics and Strategies

Statistics Details **% of top managers and talent leaders agree that technology adoption has improved talent attraction, engagement and retention. **% of talent leaders say they have invested in technology for internal talent mobility. **% of companies are increasing the budget dedicated to predictive analytics and external market intelligence. **% of top managers and human capital leaders are using AI to identify employees with specific skills. **% of talent leaders expect to face challenges related to inability to attract qualified candidates, increased competition and growing shortage of specialized skills. **% of top managers and human capital leaders say HR strategy aims to have a tangible impact on business performance. **% of employers believe their organization has struck the right balance between remote and hybrid work. **% of ...

1.5 Foreign resident workforce

in this market research, we decided to devote a section usually reserved for import and export issues to Italians living abroad. The choice stems from the fact that, in the recruitment sector, the real center and engine of growth is human capital. Italians abroad, with their skills, experience and international networks, constitute a valuable and strategic resource for the global labor market. The recruiting industry, in fact, does not simply meet labor needs, but focuses on the ability to attract, develop and retain qualified talent. In this context, the involvement and return of Italian professionals abroad can significantly contribute to filling skills gaps in Italy, enriching the economic fabric and stimulating innovation. For this reason, we wanted to analyze how human capital, and in particular that represented by Italians abroad, plays a crucial role in defining the dynamics and future prospects of the recruitment sector.

In ****, Argentina is the leading destination for Italians abroad, accounting for **.** percent of admissions, followed by Germany (***). The United States hosts *.** percent of Italians, while Belgium and Spain host *.** percent and *.** percent, respectively. Australia and Canada record lower percentages, with *.** percent and *.** percent, while Uruguay and Venezuela close the list, each with *.* percent.

Top foreign destinations ...

2 Demand analysis

2.1 The demand for recruitment in Italy

This first demand section was prepared using information from nCoreHR's "HR Managers: Analysis of Challenges and Evolving Prospects" report. This report gathers the opinions of ** HR managers and directors of large companies (***) from various industries, with the aim of highlighting key challenges and future prospects in the field of human resources.

The content of the report provides an overview of central issues such as manager involvement in the selection process, privacy of candidate data in compliance with GDPR, the use of different recruitment platforms (***), and the high costs of the selection process. The impact of technological transformations and hybrid work is also analyzed, highlighting how evolving skill requirements and new worker needs have transformed the labor market environment.

LinkedIn is the most used recruiting channel in Italy in ****, with **.* percent, surpassing events by more than ** percent, which close the ranking at *.* percent. This is followed by job boards, used by ** percent of respondents, and internal referral, which reaches ** percent. The company career page garners **.* percent of preferences, while online advertising and social media such as TikTok and Instagram are chosen by **.* percent and ** percent, respectively.

Which recruiting channels do you (***) use the most to attract candidates? Italy,****,Percentage ncorehr

almost half ...

2.2 Survey of assessment processes and soft skills that companies really examine

The second demand section was developed using Altamira's Competencies Report ****, which focuses on competencies and assessment processes within Italian companies. This document provides a detailed overview of the soft and hard competencies that Italian companies consider most relevant, as well as the assessment tools, including observable behaviors and assessment scales adopted. In addition, the report highlights the importance of soft skills, the continuous updating of skills, and actions for professional development. Compared with the first nCoreHR report, which focused mainly on the general challenges of recruitment and the costs associated with the selection process, the Altamira report delves into aspects related to skills assessment and personnel management within the company. We also chose to use this second report to enrich the study with data on competencies that are increasingly central to companies, allowing for a complementary view that integrates the recruitment perspective with that of internal resource development. Soft skills are rated by almost all companies (***) focus exclusively on hard skills, underscoring the growing importance of soft skills in today's labor market. Skills assessed by type Italy,****,percent Human resources Teamwork emerges as the most sought-after skill, with ** percent of companies rating it essential for internal collaboration. It is followed by ...

2.3 Recruitment clientele: unemployed and inactive

Italy's current employment rate is **.* percent, the highest figure since ****. The first quarter of **** records *.* percentage points higher than the same period in ****. These figures are very encouraging for the market. This growth is driven by female employment, which recorded ** thousand new jobs in the first quarter of ****.

The national labor force is broken down as follows:

Labor force indicators Italy, ****, in % Source: ****

Among inactive people aged **-** in Italy, the main reason for inactivity for men is study (***), suggesting differences in expectations or job search paths.

Inactive **-** year olds by sex and reason for not looking for work Italy, ****, in % Source: ****

The map below shows the unemployment rate by region.

North: *.* percent Center: *.*% Mezzogiorno (***): **.* percent

Italy's Mezzogiorno is the region that needs the most help in dynamizing the area.

The graph below shows the age group with the highest unemployment, and also by gender. It turns out that for the **-** age group, males have just under * percentage points less than females, while for the **-** age group the data differ by less than * percentage point. This can be explained by the fact that both sexes, having finished high school, focus equally on finding a job. While for the ...

2.4 Online interest in "The Recruitment."

Online interest in "Human Resources" in Italy showed significant fluctuations between **** and ****. Starting from a value of **.* in October ****, interest rose to a peak of **.* in February ****, then gradually declined to a low of ** in July. Another peak is recorded in August **** with a value of **.*, followed by a decline to ** in October ****. These data suggest a seasonal cyclicality of interest, with increases in the early months of the year and declines during the summer and fall.

Online interest in "Human Resources" Italy,****-****,Google Trends Index Google Trends

Lombardy has the highest level of interest (***) have the lowest values. Northern Italy generally shows greater interest than the South and the islands.

3 Market structure

3.1 Italian Enterprises

the number of enterprises active in recruitment, selection and supply of personnel in Italy showed a slight fluctuation between **** and ****. A decrease is noted from **** (***), probably influenced by the pandemic. From **** onward, the sector resumed steady growth, peaking in **** with **** enterprises, marking an overall increase of *.* percent compared to ****.

Number of Personnel Search, Selection, Supply Activities (***) Italia,****-****,Migliaia Istat;Companies Register

The number of people employed in the personnel search, selection, and supply sector in Italy initially declined from ***,*** in **** to ***,*** in ****, probably due to the pandemic crisis. Since ****, however, the sector has shown a strong recovery, with a continuous increase to ***,*** employed in ****, marking an overall growth of **.* percent from the low in ****.

Employed in Search, Selection, Supply Activities Italia,****-****,Migliaia Istat

From **** to ****, companies operating in the recruitment, selection, and supply of personnel in Italy varied significantly by legal form. Limited liability companies (***) saw moderate growth, while other legal forms, such as non-social cooperative societies and other business forms, maintained a stable or slightly variable presence.

Legal form **** **** **** **** **** Individual entrepreneur, freelancer and self-employed person *** *** *** *** *** General partnership ** ** ** ** ** Limited partnership ** ** ** ** ** Other partnership other than snc and sas * * * * * Joint stock company, limited partnership limited by shares ** ** ** ** ** Limited Liability Company *** *** *** *** *** Social ...

3.2 The value chain

The recruitment value chain is a strategic process that guides the organization in attracting, selecting and integrating top talent, contributing to business success. It starts with recruitment planning, where business needs are analyzed and budgets are set, choosing the most effective channels and strategies to attract ideal candidates. In the attraction phase, the company develops its employer branding and uses channels such as online platforms, job fairs, and internal referrals to build a pipeline of candidates. Selection involves CV screening, structured interviews, testing and reference checks to identify the ideal fit between technical and cultural competencies. After a candidate is chosen, the company makes an offer, negotiates contract details, and once accepted, initiates onboarding to ensure a smooth integration, perhaps assigning a mentor and monitoring the new hire's fit. The measurement and improvement phase allows for the collection of data such as time to hire and acceptance rate, as well as candidate feedback, to improve the efficiency and experience of the process. Finally, a focus on retention through development and career plans ensures that talent is valued and retained, maximizing the long-term contribution of hiring to the company.

3.3 The main market players with (ATECO 78.2)

Adecco Italia Spa:

Part of The Adecco Group, a world leader in HR services, Adecco Italia offers temporary and permanent job administration, search and selection, training and outplacement solutions. With more than *** branches nationwide and about *,*** professionals, it contributes daily to the matching of job supply and demand.

Randstad Italy Spa

Italian branch of the Dutch multinational Randstad, present in ** countries. In Italy, it has about *** branches and more than *,*** employees. It offers administration, search and selection, training and HR consulting services, with a focus on innovation and the use of advanced recruiting technologies.

Gi Group Spa

Italy's first multinational employment company, Gi Group offers administration, search and selection, outplacement, training and HR consulting services. Present in more than ** countries, it is distinguished by a strong focus on social responsibility and sustainability in the world of work.

Manpower Srl

Part of ManpowerGroup, offers temporary and permanent employment, training and skills development solutions. In Italy, it has an extensive network of branches and a deep knowledge of the local labor market, supporting both companies and candidates in their professional growth.

Umana Spa

Italian employment agency offering administration, search and selection, training and outplacement services. With more than *** branches nationwide, it stands out ...

4 Supply analysis

4.1 Prices of recruitment agencies

From **** to the first quarter of ****, producer prices for personnel search, selection and supply (***) services in Italy showed overall growth. Between **** and ****, prices remained relatively stable, with slight fluctuations around the ***-point threshold. However, starting in mid-****, a more pronounced increase is observed, culminating in a value of ***.* in the first quarter of ****.

Trends in producer prices of services (***) Italia,****-****,Euro Istat

4.2 Recruitment Costs

In terms of KPIs, the results of a talent acquisition can be measured by the quality of the selected candidates, their ability to successfully integrate into the company, their contribution to the company's results, and their long-term retention in the organization.

In terms of ROI, well-done talent acquisition could lead to reduced business costs, increased productivity, higher customer satisfaction, and better company reputation.

In addition, successful recruitment can help reduce turnover rates and create a positive work environment, which are essential elements in improving company retention and protecting the company from talemt shortage.

In assessing recruitment costs, companies use an indicator called the Recruitment Cost Ratio (***), which allows them to measure the impact of recruitment expenses on the total compensation offered to new hires. The formula used to calculate the RCR is as follows:

In this formula, the numerator represents all recruiting costs incurred by the company to select and hire the candidate, including both direct costs (***). The denominator, on the other hand, is the total compensation that will be offered to the selected candidate, considering the annual compensation package complete with benefits and incentives.

Multiplying the result by *** gives a percentage that indicates the proportion of selection costs to the ...

4.3 The prices charged

Companies use a recruiting agency or company when they feel they do not have time to be able to do the recruiting process themselves.

A recruitment agency charges high prices to secure and secure the best candidates and thus be able to offer the company contacting them the best deal.

Generally, all recruiting firms take a commission ranging from ** to ** percent. This percentage is calculated on the annual salary payable to the new recruit.

Thus, for the profile of a person with an annual salary of ** ***€, the commission due to the recruitment agency ranges between * ***€ and ** ***€.

Thus, for a company looking for a new profile to add to the company, the total costs will be:

Internal recruiting costs: this covers all expenses at recruitment, such as the compensation of the recruiter (***). External recruitment costs: this refers to the costs of the recruitment agency. Bonuses: refers to any bonuses agreed upon with the candidate, often to encourage contract signing. Relocation/transfer: this category includes relocation, travel and related costs. These are flexible costs that are often underestimated in recruiting cost analysis.

[***]

5 Regulations

5.1 Regulation of the Recruitment sector

In Italy, the recruitment and selection sector is regulated by a series of regulations that ensure ethics and transparency in the labor market. Legislative Decree ***/****, known as the Biagi Law, is one of the main pieces of legislation in this area, introducing reforms that regulate labor administration and intermediation agencies. This decree, together with Article * of the Workers' Statute (***), establishes the prohibition of remote monitoring of workers, thus protecting candidates in the selection stages and guaranteeing their privacy.

Recruitment agencies must obtain authorization from the Ministry of Labor and Social Policy to operate legally and must be registered in the Register of Employment Agencies, meeting specific financial, professional and organizational requirements. The Code of Ethics for Employment Agencies mandates ethical practices, such as transparency to candidates and non-discrimination based on gender, ethnicity, age, or other personal characteristics.

In addition, as of ****, the General Data Protection Regulation (***)also include relevant provisions, establishing the rights and duties of both workers and companies.

For example, Article **** of the Civil Code defines the classification of workers and their basic rights, while CCNLs regulate working conditions and minimum wages. Finally, Italian regulations incentivize recruitment agencies and employers to promote continuing education and retraining to ensure an ...

6 Positioning of actors

6.1 Segmentation of actors

  • PageGroup (Michael Page)
  • Hays
  • Robert Half International
  • Robert Walters
  • WalterJames
  • Mosaïk RH
  • Orientation Durable
  • Korn Ferry
  • Egon Zehnder
  • Adecco Group
  • Eric Salmon & Partners

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