1 Global Talent Assessment Market Insight Analysis
The global talent assessment market is valued at $3,453.3 million in 2024 and is expected to grow at a CAGR of 8.46% from 2024 to 2033.
Talent assessments evaluate an individual’s skills, knowledge, and potential to fill a vacant position. Talent assessments are most commonly used during hiring to evaluate candidates, but they can also be used to gauge employees’ learning and development needs. Talent assessment methods include work samples, job simulations, cognitive ability testing, AI-powered video interviews, job trials, and exercises or games.
Figure Global Talent Assessment Market Size (M USD) and CAGR (2024-2033)
2 Talent Assessment Market Growth Drivers and Restraints
In terms of the recruitment process, the demand for efficiency and transparency is growing. In 2023, the average recruitment time in various industries around the world will be extended, which highlights the drawbacks of traditional recruitment methods. Talent assessment can standardize the recruitment process, ensure fair standards, reduce decision-making time, avoid the loss of excellent talents, and improve recruitment efficiency; at the same time, it can also reduce unconscious bias in the recruitment process, promote transparent communication between companies and job seekers, optimize the job search experience, and thus promote market growth.
For example, the rise of remote work and shared office has prompted companies to pay more attention to the adaptability of employees. Talent assessment can measure the ability of candidates in terms of flexibility, remote work skills, etc., to meet the needs of companies for talent screening under the new working model to adapt to the changing work scenarios.
Data security issues have become a major challenge. With the digital development of talent assessment, the risk of data leakage has increased. Many companies rely on external suppliers for talent assessment. Some suppliers have uneven data protection standards. In addition, the popularity of remote work and cloud systems has put candidate data at higher risk, which has reduced trust between employers and candidates and hindered the promotion and use of talent assessment tools.
The more complex the functions of the talent assessment platform and the higher the degree of customization, the higher the cost. Enterprises not only have to pay for software purchases, but also have to bear the costs of integration with other systems, software updates, and personnel training. This puts a lot of economic pressure on small and medium-sized enterprises with limited funds, which affects their adoption of advanced talent assessment technologies.
Traditional talent assessment methods are highly subjective and lack data support. For example, interviews are easily affected by the subjective factors of interviewers, and tests may be inaccurate due to the state and cultural background of candidates. At the same time, there are many assessment tools and methods on the market, and there is a lack of unified standards, which makes it difficult to compare assessment results, and may even cause bias in gender, race, etc., affecting the accuracy and fairness of corporate recruitment decisions and limiting the healthy development of the market.
3 Technological Innovations in the Talent Assessment Market
Artificial intelligence is widely used in the field of talent assessment. Companies use AI to conduct video interviews, and judge candidates’ personalities and abilities by presetting questions and analyzing their voices and facial expressions. They can also use AI to analyze data trends, predict talent needs, and provide support for recruitment decisions. Natural language processing (NLP) algorithms can dig deep into the information in candidates’ resumes and cover letters to more accurately assess their abilities and experience.
Bring a new experience to recruitment. Companies use VR and AR technology to allow candidates to experience the company environment in advance and demonstrate their work abilities in simulated scenarios, so that companies can more intuitively understand candidates’ actual performance and ability to deal with problems, and improve recruitment accuracy.
With the popularization of remote work, online talent assessment has become mainstream. It breaks through geographical restrictions, improves recruitment efficiency, and reduces costs. It can also ensure the authenticity and effectiveness of the assessment by embedding real business scenarios and using software monitoring.
Companies achieve resource integration and business expansion through mergers and acquisitions. For example, in 2023, Mercer acquired The Talent Enterprise (TTE). As the leading talent assessment technology company in the UAE, TTE has a professional team and advanced tools. This acquisition helped Mercer enhance its talent assessment capabilities in the Middle East, expand its market share, and meet the needs of enterprises for human resource transformation. In the same year, Harver cooperated with HackerRank to integrate the assessment advantages of both parties to provide enterprises with solutions for comprehensive assessment of candidates’ soft and hard skills, improve service competitiveness, and better meet the diversified recruitment needs of enterprises.
4 Global Talent Assessment Market Size by Type
Pre-hire Assessment is a crucial segment within the Talent Assessment market, focusing on evaluating candidates’ skills, knowledge, and potential before they are hired. In 2024, the Pre-hire Assessment market generated a revenue of US$ 2,004.56 million, accounting for approximately 58.05% of the total market share. This segment is essential for organizations as it helps streamline the recruitment process by quickly identifying the most suitable candidates from a large pool of applicants. Pre-hire assessments often include cognitive ability tests, personality assessments, work samples, and AI-powered video interviews, which provide valuable insights into a candidate’s fit for a specific role.
The growth of Pre-hire Assessment is driven by several factors. Firstly, organizations are increasingly adopting advanced technologies to enhance the efficiency and accuracy of candidate evaluations. AI and machine learning algorithms, for instance, can analyze vast amounts of data to predict candidate performance and cultural fit. Secondly, the need for transparency and fairness in the recruitment process has led to a higher demand for standardized and objective assessment tools. Pre-hire assessments help eliminate unconscious bias, ensuring that candidates are evaluated based on their skills and potential rather than subjective criteria.
Post-hire Assessment, on the other hand, focuses on evaluating employees’ performance and development needs after they have been hired. In 2024, the Post-hire Assessment market had a revenue of US$ 1,448.74 million, representing 41.95% of the total market share. This segment is vital for organizations as it helps in understanding how well an employee integrates into their role and the company culture. Post-hire assessments are used to identify areas for improvement, set performance goals, and facilitate targeted interventions for employee growth and development.
The growth of Post-hire Assessment is driven by the increasing emphasis on continuous learning and development within organizations. As the nature of work evolves, particularly with the rise of flexible working models and the gig economy, employers need to ensure that their workforce remains adaptable and skilled. Post-hire assessments provide valuable insights into employees’ strengths and weaknesses, enabling organizations to tailor training programs and career development plans accordingly. Additionally, the use of advanced analytics and data-driven insights in Post-hire Assessment helps organizations make informed decisions about promotions, succession planning, and talent retention.
Table Global Talent Assessment Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Pre-hire Assessment | 2004.56 | 58.05% |
Post-hire Assessment | 1448.74 | 41.95% |
5 Global Talent Assessment Market Size by Application
In 2024, the entrance assessment services segment had a market revenue of US$ 1406.49 million. It held a significant market share of approximately 40.73% in the global talent assessment market. These services assist with onboarding planning, helping companies understand how to better integrate new employees. The high market share and revenue are attributed to the crucial role entrance assessments play in ensuring that new hires are a good fit for the company from the start.
For example, they can evaluate a candidate’s basic skills, knowledge, and cultural fit, which are essential for a successful onboarding process. The market for entrance assessment services is expected to grow at a CAGR of 10.14% from 2023 – 2030, reaching US$ 2507.29 million by 2030. This growth is driven by the increasing emphasis on effective onboarding to reduce employee turnover and improve productivity.
The recruitment & promotion assessment services segment had a market revenue of US$ 1082.83 million in 2024, accounting for about 31.36% of the global market share. These services are used to ensure that candidates have the necessary skills for a job during the hiring process and to objectively evaluate employee performance for promotion decisions.
Employers rely on these assessments to make informed decisions about talent acquisition and career progression within the company. The segment is expected to grow at a CAGR of 7.43% from 2023 – 2030, reaching US$ 1665.34 million by 2030. As companies become more competitive and focus on promoting from within, the demand for accurate recruitment and promotion assessment services is likely to increase.
Certification assessment services had a market revenue of US$ 622.56 million in 2024, with a market share of around 18.03%. Professional certification bodies increasingly rely on these services to evaluate and certify individuals in various professions. The market share and revenue are influenced by the growing importance of professional certifications in the job market. For instance, in fields such as IT, finance, and healthcare, certifications are often a requirement for certain positions. The segment is projected to grow at a CAGR of 7.26% from 2023 – 2030, reaching US$ 946.55 million by 2030, as more industries recognize the value of standardized certification processes.
Table Global Talent Assessment Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Entrance Assessment Services | 1406.49 | 40.73% |
Recruitment & Promotion Assessment Services | 1082.83 | 31.36% |
Certification Assessment Services | 622.56 | 18.03% |
Others | 341.42 | 9.89% |
6 Global Talent Assessment Market Size by Region
In 2024, the North American talent assessment market had a revenue of US$ 1394.78 million, accounting for about 40.39% of the global market share. The United States was the dominant market within North America, with a revenue of US$ 1262.02 million, contributing significantly to the regional total. Canada also had a share, with a revenue of US$ 132.76 million.
The North American market benefits from a highly developed economy, a large number of companies across various industries, and a strong emphasis on human resources management. The region has a well – established recruitment and assessment infrastructure, and companies are early adopters of new talent assessment technologies. For example, many North American companies are at the forefront of using AI – based assessment tools to improve the efficiency and accuracy of their recruitment processes.
The European market had a revenue of US$ 995.72 million in 2024, holding a market share of around 28.83%. Countries like Germany, France, the UK, and Italy are major contributors to the European market. Europe has a diverse business landscape, with a mix of large multinational corporations and small – to – medium – sized enterprises. Additionally, European companies are increasingly focusing on compliance and ethical recruitment practices, which drives the adoption of standardized talent assessment solutions.
In 2024, the Chinese talent assessment market had a revenue of US$ 330.38 million, representing approximately 9.57% of the global market share. China’s market is growing rapidly, with a CAGR of 10.54% from 2024 – 2030. The growth is fueled by the expansion of the Chinese economy, the increasing number of companies, and the growing awareness of the importance of talent assessment in improving recruitment quality. Chinese companies are becoming more sophisticated in their talent acquisition strategies, and there is a growing preference for local and international talent assessment solutions that can adapt to the unique characteristics of the Chinese labor market.
Asia (excluding China) had a market revenue of US$ 505.53 million in 2024, with a market share of about 14.64%. Countries in this region, such as Japan, South Korea, Southeast Asian nations, and India, are experiencing economic growth and an increasing demand for talent assessment services. In Japan and South Korea, for example, companies are highly competitive and are using talent assessment to identify and develop top – notch talent. In India, the booming IT and outsourcing industries are driving the need for accurate talent assessment to meet the demands of a large and diverse workforce.
The Middle East, Africa, and Latin America region had a combined revenue of US$ 226.88 million in 2024, accounting for around 6.57% of the global market share. In the Middle East, countries like the UAE are investing in talent assessment to support their growing economies and attract international talent. In Latin America, as economies develop and companies expand, the demand for talent assessment services is also on the rise. Africa, with its emerging markets, is gradually recognizing the value of talent assessment in building a skilled workforce, although the market is still in a relatively early stage of development compared to other regions.
Figure Global Talent Assessment Market Size (M USD) by Region in 2024
7 Global Talent Assessment Market Analysis by Major Players
SHL
Company Introduction and Business Overview:
SHL is a leading global provider of talent assessment solutions, founded in 1977 and headquartered in the UK. The company specializes in using advanced psychometric assessments, AI, and data analytics to evaluate candidates’ skills, personality traits, and potential. SHL’s solutions are widely used across various industries, including finance, technology, healthcare, and manufacturing, to streamline recruitment and enhance employee development.
SHL’s business model focuses on delivering comprehensive talent assessment services that cater to both pre-hire and post-hire needs. The company leverages cutting-edge technology to create assessments that are not only accurate but also unbiased, ensuring that organizations can make informed hiring decisions. SHL’s offerings include cognitive ability tests, personality assessments, situational judgment tests, and AI-powered video interviews. Additionally, SHL provides detailed analytics and reporting tools that help organizations gain valuable insights into candidate and employee performance. In 2024, SHL generated a revenue of US$ 334.28 million, maintaining its position as the market leader in the global Talent Assessment industry.
Products:
SHL’s product portfolio includes a wide range of assessment tools designed to meet diverse organizational needs. Key products include SHL Verify, a suite of cognitive ability tests that measure critical thinking, numerical reasoning, and verbal comprehension; SHL Personality Questionnaire (OPQ), a comprehensive personality assessment that evaluates traits such as teamwork, leadership, and adaptability; and SHL Talent Suite, an integrated platform that combines multiple assessment tools to provide a holistic view of candidates’ skills and potential.
AON
Company Introduction and Business Overview:
AON, founded in 1982 and headquartered in the UK, is a global provider of talent assessment and human capital solutions. The company offers a wide range of services, including risk management, insurance brokerage, and talent assessment tools designed to optimize organizational performance and employee development. AON’s talent assessment solutions are renowned for their scientific rigor and ability to provide actionable insights.
AON’s business strategy centers on delivering integrated talent management solutions that help organizations attract, develop, and retain top talent. The company’s assessment tools are designed to evaluate a wide range of skills and competencies, from cognitive abilities to behavioral traits. AON’s offerings include pre-employment assessments, leadership assessments, and development assessments tailored to meet specific organizational needs. Additionally, AON provides consulting services to help organizations implement effective talent strategies and improve overall workforce productivity. In 2024, AON achieved a revenue of US$ 301.64 million in the Talent Assessment market, reflecting its continued innovation in assessment technology.
Products:
AON’s product portfolio includes Assessment Solutions, a suite of pre-employment tests that measure cognitive abilities, technical skills, and personality traits; Leadership Assessments, tools designed to evaluate leadership potential and identify areas for development; Development Assessments, solutions that help organizations create personalized development plans for employees; and Insight Platform, an analytics tool that provides detailed reports and insights based on assessment data.
Mercer
Company Introduction and Business Overview:
Mercer, founded in 1945 and headquartered in the USA, is a global consulting leader in talent, health, retirement, and investments. Mercer’s talent assessment solutions are designed to help organizations optimize their workforce by providing data-driven insights into candidate and employee performance. The company’s offerings include a wide range of assessment tools and consulting services tailored to meet diverse organizational needs.
Mercer’s business model focuses on delivering comprehensive talent management solutions that integrate assessment tools with strategic consulting services. The company’s assessment solutions are designed to evaluate a wide range of skills and competencies, from cognitive abilities to behavioral traits. Mercer’s offerings include pre-employment assessments, leadership assessments, and development assessments tailored to meet specific organizational needs. Additionally, Mercer provides consulting services to help organizations implement effective talent strategies and improve overall workforce productivity. In 2024, Mercer generated a revenue of US$ 251.49 million in the Talent Assessment market, leveraging its comprehensive talent solutions and strong market presence.
Products:
Mercer’s product portfolio includes Mercer | Mettl, a suite of pre-employment tests that measure cognitive abilities, technical skills, and personality traits; Leadership Assessments, tools designed to evaluate leadership potential and identify areas for development; Development Assessments, solutions that help organizations create personalized development plans for employees; and Insight Platform, an analytics tool that provides detailed reports and insights based on assessment data.