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Workday: From System of Record to System of Agents

Workday is expanding its AI-powered agent offerings, into a platform called Workday Agent System of Record. Last year, Workday announced four agents: Recruiting Agents, Talent Mobility Agents, Planning Agents, and Optimize Agents. Now, Workday is adding even more capabilities with the introduction of new agents, including Payroll Agents, Knowledge Agents, Contract Agents, and Auditing Agents. Its Agent System of Record will orchestrate these agents with third-party agents in its marketplace to become essentially a “System of Agents.”

The Agent System of Record is designed to automate a wide range of HR tasks, streamline processes, and improve decision-making—all while maintaining a focus on the human element. These agents are tailored to various HR functions.

How Will Workday Go About This?

Workday’s strategy revolves around creating a unified framework in which AI-powered agents work to assist HR departments and organizations as a whole. These agents will be embedded into Workday’s platform, seamlessly integrated into users’ workflows via Workday Assistant. By interacting with both Workday’s core functions and third-party applications, these agents will support everything from talent acquisition to compliance, financial audits, and payroll management.

The key to this rollout is Workday’s system of record, which serves as the central hub for managing not just human employees but also AI-driven agents. By embedding AI into HR processes, Workday enables organizations to automate repetitive tasks, allowing human employees to focus on more strategic and creative endeavors.

Workday will also ensure that organizations can easily access and manage these agents through the Workday Marketplace, where businesses can integrate third-party agents into their system. This will provide businesses with the flexibility to build a tailored digital workforce, creating a highly customizable and adaptable HR ecosystem.

How Will This Impact the Market?

By integrating a growing suite of AI agents into its platform, Workday is positioning itself as the leader in AI-driven HR management solutions. This shift will likely drive increased demand for AI capabilities within HR departments, as businesses seek to stay ahead of the curve and improve operational efficiency.

One of the most important aspects of this development is how it shifts the responsibility for managing AI from IT to HR. As HR systems evolve to include AI, HR will need to manage not just human employees, but also digital agents, data access, and AI-driven workflows. This is a natural progression, given that HR departments are already responsible for sensitive employee data and compliance, making them the ideal stewards of these digital workers. We addressed this as a major finding in our Aptitude Global Trends report.

Additionally, Workday’s “System of Agents” will impact the market by helping companies scale their workforce without adding operational complexity. The system will simplify the process of integrating AI, empowering organizations to expand their capabilities without the typical barriers to entry associated with new technologies.

The question will be how will other providers in HR Tech approach agents now moving forward? Will they compete with Workday or focus on integration instead?

5 Key Points of This Announcement

New AI Agents Introduced: Workday’s expanding “System of Agents” now includes Recruiting Agents, Talent Mobility Agents, Planning Agents, Optimize Agents, Payroll Agents, Knowledge Agents, Contract Agents, and Auditing Agents. These agents will work across different HR functions to streamline processes, reduce manual effort, and increase accuracy.

HR System of Record: The HR system of record is uniquely suited to manage both human employees and AI agents. HR departments are already responsible for managing sensitive employee data, making them the ideal custodians of AI agents and digital workflows. This creates a seamless ecosystem where data security and AI governance go hand in hand.

Managing Costs: Workday is taking a proactive approach to cost management for AI agents. By tracking AI usage and providing transparency on costs, Workday ensures that businesses can effectively scale their digital workforce while keeping operational costs under control.

Integration Challenges: Integrating AI agents into existing workflows can be complex, but Workday is making the process easier by providing a unified platform that supports both native and third-party agents. Through the Workday Marketplace, organizations can easily integrate and manage these agents, overcoming typical integration barriers.

Improved User Experience: The integration of AI agents will significantly improve the Workday user experience. These agents will reduce the time spent on manual tasks, automate decision-making processes, and enhance overall efficiency, allowing users to focus on higher-level tasks and strategic thinking.

By integrating AI agents into its platform, Workday is enabling organizations to optimize their HR processes, automate routine tasks, and create a more efficient, scalable workforce.

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Paradox Acquires Eqtble: Advancing AI and People Analytics in HR Tech

Today, Paradox announced the acquisition of Eqtble, a people analytics provider. With this move, Paradox is proving that it is far more than just a talent acquisition solution—it is a company with a bold vision for AI-driven workforce intelligence.

We’ve been studying the rapid growth of people analytics and the increasing demand for accessible, real-time workforce insights. Our research shows that 93% of companies are increasing or maintaining their investment in people analytics, but confusion in the market persists. Many companies struggle to navigate complex tools, justify costs, and find solutions that empower HR professionals rather than overwhelm them.

Paradox’s acquisition of Eqtble tackles these challenges. Here are three key themes that make this deal so significant:

1. Paradox is More Than a Point Solution

Many still think of Paradox as just a conversational AI tool for talent acquisition—but this acquisition makes it clear that Paradox is building something much bigger. By integrating Eqtble’s expertise in people data with Paradox’s strength in AI-driven automation, the company is creating a seamless, data-powered HR experience.

This isn’t just about recruiting—it’s about delivering workforce insights that help companies hire smarter, retain talent, and drive better business decisions. The ability to pull data from multiple HR systems and present it in a simple, digestible format will transform how HR leaders operate.

With Eqtble’s deep analytics capabilities and Paradox’s ability to make interactions conversational and frictionless, the potential applications extend beyond TA into performance management, employee experience, and workforce planning.

2. Conversational & Generative AI is the Future of HR Tech

HR technology is often complex and difficult to navigate, but employees and managers today expect intuitive, real-time experiences—just like they have in their everyday lives.

Paradox has always been built on the belief that conversations are the UI of the future. Now, by integrating people analytics into a conversational interface, HR teams can simply ask questions and get actionable insights—without needing to dig through dashboards or run complicated reports.

Think about the impact:

  •  Hiring managers can instantly see why candidates are dropping out of the funnel
  •  HR leaders can identify turnover trends in seconds.
  •  Employees can ask simple questions about pay equity or career growth—and get real answers, without waiting weeks for a report.

This is what the next generation of HR technology looks like: AI that works in the background, delivering insights in a natural, effortless way.

3. People Analytics Should Be Accessible to Everyone

One of the biggest takeaways from our research is that people analytics needs to be democratized. Too often, it’s treated as something that requires a Ph.D. in data science to understand. But in reality, HR teams don’t need more complex dashboards—they need easy access to insights that drive real change.

We found that:

  • 39% of HR leaders say their biggest challenge with people analytics is limited expertise.
  •  Many companies still rely on outdated BI tools or homegrown solutions that are time-consuming and ineffective.
  • Cost remains a major barrier, with companies struggling to justify expensive analytics platforms.

Paradox’s move to acquire Eqtble helps solve many of these challenges. By embedding analytics into a conversational, easy-to-use format, Paradox is ensuring that everyone—not just data scientists—can benefit from workforce intelligence.

This is a major step forward for HR tech. Companies shouldn’t have to choose between powerful insights and user-friendly experiences—they should have both.

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Breaking Through the Noise: How HR Tech Vendors Can Build Better Partnerships in 2025

It has been an interesting year in HRTech. At Aptitude, we do a lot of research and speaking but we spend a lot of time on advisory with corporate clients as well. We have seen some things work for vendors…and others that do not.

The HR technology market is more crowded than ever, and 2025 promises to be a year of both opportunity and challenge for vendors. HR leaders are demanding more from their technology partners—not just in terms of innovation, but also in transparency, outcomes, and partnership.

Here is some advice for vendors looking to stand out in 2025.

1. Stop Copying Your Competitors—Focus on Your Clients

One of the biggest problems in HRTech is the tendency to copycat competitors rather than listening to what clients actually want. Too many vendors repeat the same buzzwords and promises, making it hard for HR leaders to see what truly differentiates one solution from another.

Advice:

  • Listen to Your Clients: Use customer feedback, surveys, and interviews to shape your offerings. Don’t just assume that what works for others will work for you.
  • Be Bold About Your Strengths: Highlight what makes your product unique and relevant to your target audience, even if it’s not the “trendiest” feature on the market.
  • Avoid Empty Buzzwords: Words like “intelligence”, transformative,” “seamless,” and “experience” mean nothing without examples.

2. Clarity Over Complexity

HR leaders are juggling a lot of tools and responsibilities—they don’t have time to decipher vague messaging or sift through overly complex product descriptions.

Advice:

  • Simplify Your Messaging: Be direct about what your product does, how it works, and the specific problems it solves.
  • Show Outcomes, Not Features: Instead of listing technical specs, share stories and data that illustrate the results clients can achieve with your solution.

3. Transparency Builds Trust

HR leaders are making high-stakes decisions when they invest in technology. They need to know what’s coming next and whether your solution can grow with their needs.

Advice:

  • Share Your Roadmap: Clients want to see the future of your product and know that their investment is secure. Regularly update them on new features and upgrades.
  • Be Honest About Limitations: If your product has gaps, acknowledge them and explain how you’re addressing them. Clients will appreciate your honesty and accountability.

4. Prioritize ROI and Outcomes

Every HR team is under pressure to do more with less. They’re not just looking for flashy tools—they need solutions that deliver measurable results and help them make a business case for investment.

Advice:

  • Provide Clear ROI Metrics: Show how your product reduces time-to-hire, improves retention, saves costs, or drives productivity. Use client success stories to back up your claims.
  • Focus on Problem-Solving: Instead of leading with what your product can do, lead with what it will solve. HR leaders need partners who address real challenges.

5. Strong Implementation is a Dealbreaker

The best product in the world means nothing if it’s poorly implemented. You may think this falls solely on the client but it does not. A product that doesn’t work because of poor implementation will ultimately reflect poorly on you. Support them in this process.

Advice:

  • Own the Implementation Process: Guide clients every step of the way, providing hands-on support and clear timelines.
  • Measure Success Post-Implementation: Follow up to ensure the product is being used effectively and that clients are achieving the outcomes they expected.

7. Leverage Strategic Partnerships

No single vendor can do everything, and that’s okay. The best HR tech providers recognize their limitations and form partnerships to deliver more comprehensive solutions.

Advice:

  • Fill Your Gaps Strategically: Partner with complementary providers to offer clients a seamless experience without overextending your resources.
  • Collaborate on Innovation: Joint partnerships with other vendors can lead to new features and integrations that benefit everyone.

8. Rethink Services—Deliver What You Promise

If you offer managed services or HR support, make sure you’re delivering real value. Misleading clients about the scope of your services will erode trust and damage your reputation.

Advice:

  • Define Your Services Clearly: Be explicit about what’s included, and don’t overpromise. You don’t want to charge for services and not provide them at the end of the day.
  • Focus on Adding Value: Go beyond the basics by offering strategic advice and actionable insights.

2025 is the year for HR tech vendors to rise above the noise. By focusing on clarity, transparency, and client outcomes, you can build trust and loyalty in an increasingly competitive market. Stop copying your competitors and start listening to your clients. Be honest about what you offer, invest in implementation, and prioritize long-term relationships over quick wins.

HR leaders are looking for partners, not just products.

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Chipotle: A Lesson in TA Transformation and Change Management

Chipotle’s recent adoption of Paradox’s AI-powered hiring platform is more than an HRTech investment—it’s a strategic shift in how the quick-service restaurant (QSR) sector approaches hiring, employee engagement, and business growth. As companies like Chipotle evolve with smarter recruitment technology, they’re setting a new standard for efficiency and impact in high-volume hiring. Here are some of the standout lessons from Chipotle’s journey with Paradox and what it means for the future of talent acquisition.

1.  High-Volume Hiring Has Better Options: Traditional ATS systems have not been able to support high-volume hiring needs in a way that provides a positive experience to hourly workers. Today, there are better options, and we found that 1 in 3 high-volume companies are looking to replace their ATS. They want more personalization, consistency and an overall faster process that only comes from automation.

2.  Change Management Done Right: Managers Want to Adopt It Now

In an industry where rapid adoption can be challenging, Chipotle’s rollout of Paradox has been a change management success story. Managers have embraced the platform enthusiastically, even requesting to start using it immediately. This high level of buy-in is essential, as frontline managers are integral to hiring success. The swift adoption mirrors what McDonald’s experienced in its own shift to Paradox, underscoring that when the value is clear, buy-in follows.

3. A Catalyst for Business Transformation Beyond HR

While Chipotle’s adoption of Paradox is making waves in HR, it’s also part of a larger, company-wide transformation. This effort is not just about hiring efficiencies; it’s part of a broader business initiative that includes improving the customer experience, driving revenue, and expanding the brand’s reach. Finance, HR, and communications teams have all collaborated to bring about this shift, illustrating the power of cross-functional partnerships. Chipotle’s commitment to advanced technology reflects a holistic strategy where recruitment innovation goes hand-in-hand with brand growth and financial performance.

4. Automating for Efficiency, But Humans Still Drive Final Decisions

One of the key strengths of Paradox’s platform is its ability to automate time-intensive hiring processes, such as application screening and interview scheduling. However, it’s important to note that human decision-makers retain control over final interview and hiring choices. This balance between AI-driven efficiency and human judgment allows Chipotle to streamline its hiring process while preserving the personal touch essential to selecting team members aligned with its culture and values.

5. Achieving a 75% Reduction in Time to Hire: Significant ROI for QSR

Reducing time to hire by 75% isn’t just a noteworthy metric; it’s a game-changer in the QSR world, where speed is vital. This reduction directly translates to cost savings, better staffing coverage, and improved customer service—all critical components for restaurants. With hiring streamlined, Chipotle is able to meet its staffing demands faster, ensuring that locations remain well-staffed and prepared to serve customers during peak times. For QSRs operating on tight margins, the efficiency gains from AI technology represent a strong return on investment.

6. Leading the Industry in Smarter Hiring Technology

Chipotle’s adoption of Paradox underscores a significant industry trend Aptitude Research has identified: one in three high-volume companies is considering replacing their traditional ATS, and 62% of hourly workers report never receiving a call back after applying for jobs. Chipotle’s approach tackles both issues head-on, allowing the company to engage with candidates promptly and create a positive, responsive hiring experience. This strategy not only helps attract talent but also serves as a powerful statement to the industry about the evolving role of technology in QSR hiring.

Chipotle’s integration of Paradox is more than a recruitment strategy—it’s a blueprint for how companies can use technology to drive holistic business success. Chipotle’s example demonstrates that investing in intelligent, automated solutions pays off in higher engagement, faster hires, and meaningful cost savings. With this approach, Chipotle is setting a new standard for QSRs, showing that when technology and strategy align, the results can redefine an entire industry.

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Conference Season Recap: AI, Transformation, and Back to Basics

As we close out conference season, several key themes emerged around the HR technology landscape—mostly the growing influence of AI. Companies and vendors are struggling with what “AI” really means, especially as it shifts from an emerging technology to an essential part of HR transformation. Some companies are eagerly embracing AI, while others are cautiously observing from the sidelines. Despite the momentum, there’s still a need for clarity around the role of AI in reducing bias, its applications, and data governance. Former Commissioner of the EEOC, Keith Sonderling, put it best when he advised HR leaders to ask two critical questions about AI: Where is the data coming from? (on the vendor) and How is the data being used? (on the employer).

As we enter an era of rapid transformation, it’s time to move forward with AI—responsibly and thoughtfully.

Here are my top takeaways from this year’s conference season:

1.  Generative AI: Co-Pilots, Agents, and Assistants- oh my!

Generative AI is dominating the conversation. S&P Global named it their top HR tech priority for 2024, and vendors across the board—Eightfold, Crosschq, SmartRecruiters, LinkedIn, Visier, ServiceNow, One Model, and more—have unveiled new generative AI tools. But with new solutions come new questions: What distinguishes an agent from a copilot? Should companies build their own agent or choose a provider? How do we set expectations for AI in HR, especially around privacy and data use? And what role will Microsoft play in integrating these copilots, if any? The real question is whether companies will be willing to invest in these tools—and how much they’re willing to spend. Or is the expectation that it will be included in the product? Either way, the potential is tremendous with providing a better experience, better decision-making, and seamless integration across systems. What makes these solutions exciting and work is that they have to operate in the workflow of the user experiences.

2. HR Transformation: Back to the Basics

Transformation isn’t just about cutting costs or headcount. For many companies, it’s a return to the baiscs—focusing on integration, ROI, and change management. At HR Tech, I moderated a panel with Kelly Cartwright (Splunk), Melissa Thompson (Ford), and Jennifer Tracy (Spectrum), where we discussed transformation as a continuous journey, not a project with a start and stop. Similar conversations took place in Tim Sackett’s panel with Marriott and Compass- both using Paradox. Companies investing in transformation are also redefining ROI beyond traditional metrics like time-to-fill, recognizing that AI is critical to long-term success.

3. Skills Are Essential—And Here to Stay

The skills conversation may feel exhaustive, but it’s critical. With 90% of companies creating new roles in 2024, a skills-based approach isn’t just about layoffs; it’s also about providing equitable opportunities for employees. Providers are stepping up to simplify the skills journey, making it easier for companies to incorporate skills frameworks now rather than waiting years. At Unleash, I had the chance to speak with Antony Shields, Transformation Partner at EY, who emphasized that meeting companies where they are is key to moving forward. EY partners with Eightfold to support their skills journey.

4. The ATS Market Is Evolving Rapidly

A significant portion of companies are replacing their ATS, and they have more options than ever. It’s not just traditional best of breed providers or HCM providers. Paradox introduced an ATS that’s already being used by companies like McDonald’s and Lowe’s for high-volume hiring. This week Chipotle announced it will be using Paradox to support 3500 restaurants. Eightfold also announced an ATS to enhance talent intelligence, while payroll providers continue to expand their solutions. SmartRecruiters announced Winston, a digital agent which changes the whole ATS experience. This shift in the ATS landscape highlights a growing demand for solutions that are more adaptive and capable of integrating with broader HR strategies.

5. Interview Intelligence and Scheduling: The Game Changer

Scheduling is more than just logistics; it’s about transformation in how interviews are conducted and evaluated. Splunk called interview intelligence through Pillar a “game changer” for improving hiring practices, and our recent research with Pillar shows that companies using interview intelligence see a 65% improvement in turnover compared to just 25% for those who don’t. Many vendors, including HireBrain, the winner of the pitchfest, are pushing this trend forward. Interview scheduling platforms are now offering real-time insights and actionable data, essential for the behavior change required to enhance the interview process.

Favorite Announcements This Year

With so much innovation, several announcements stood out:

  1. HireEZ – Launched a new CRM feature to enhance sourcing capabilities.
  2. Paradox – Entered the ATS market and offering career sites as well as recent Chipotle announcement.
  3. Eightfold – Released Talent Design and Talent Tracking for an enhanced talent intelligence experience.
  4. One Model – Introduced the Co-Pilot tool for advanced AI-driven insights.
  5. Service Now– Now Assist the digital agent that creates generative AI experiences.
  6. Phenom – Expanded into Onboarding to streamline the new hire experience from offer to day one.
  7. eQ8 – Debuted Wombat, a strategic workforce planning app focused on making it accessible and easier for every company.
  8. Greenhouse – Announced its Verified and Pave products this year- continuing to innovate in the ATS market.
  9. SmartRecruiters – Unveiled Winston, an AI recruiting agent to automate candidate engagement.
  10. Workday – Acquired HiredScore, adding AI-powered sourcing to its portfolio.

As we look ahead, it’s clear that AI, skills, and transformation are reshaping the HR tech landscape. Whether companies choose to dive in or proceed with caution, the potential for AI and other innovations to drive meaningful change is undeniable. It’s time for HR leaders to embrace these technologies thoughtfully, ensuring that each tool aligns with broader organizational goals.

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The Impact of Interview Intelligence

One of the most popular topics at this year’s HR Tech Conference was Interview Intelligence. It came up during the Pitchfest, the TA Tech Expert panel, and was highlighted by Splunk as one of the most impactful areas of TA today. But, despite the buzz around this growing category, interviews are often neglected in favor of other investments like job advertising and recruitment marketing. Companies spend millions on advertising and ignore the interview process.

Interview Intelligence platforms offer the following capabilities:

•             Interview guides: Interview guides that are dynamic and powered by AI that provide consistency and guidance through the process. Companies have the option if they want to record interviews or not.

•             Interview transcription and analysis: Automated insights that identify trends, strengths, and areas for improvement.

•             Interviewer performance feedback: Analysis of interviewer behavior, including bias detection and question consistency.

•             Structured interview processes: Standardization that ensures fairness and comparability between candidates.

•             Data-driven decision making: Summaries and key insights to help recruiters make objective, evidence-based decisions.

In our Interview Intelligence Report sponsored by Pillar, we identified several key findings that show the growing interest in this category. Here are the top 10 insights from our research:

1. 82% of Recruiters Have Lost Quality Talent Due to a Poor Interview Process

Despite their best efforts in recruitment marketing, companies are losing top candidates during the interview stage. Interview Intelligence helps prevent this by standardizing interviews and providing consistency across teams​.

2. Only 19% of Hiring Managers Follow Interviewer Recommendations

Without a data-driven approach, many hiring decisions are based on gut instinct rather than structured feedback. Interview Intelligence platforms ensure decisions are made using real-time insights, improving hiring accuracy​.

3. 54% of Candidates Report Experiencing Bias in the Interview Process

Bias continues to plague the interview process. With Interview Intelligence, companies can reduce unconscious bias by offering AI-driven feedback and standardized interview questions​.

4. 42% of Companies Conduct 5 or More Interviews per Candidate

Long, drawn-out interview processes not only frustrate candidates but also prolong time-to-hire. Interview Intelligence helps streamline interviews, reduce redundant rounds, and speed up the hiring process​.

5. Companies Using Interview Intelligence See a 67% Improvement in Turnover Reduction

Turnover is costly, and poor hiring decisions can lead to high turnover rates. Interview Intelligence helps reduce turnover by ensuring better alignment between candidates and company needs​.

6. 70% of Companies Using Interview Intelligence Report Improved First-Year Performance

First-year performance is crucial for new hires. Organizations leveraging Interview Intelligence report better new hire outcomes, thanks to more informed and data-driven hiring decisions​.

7. 74% of Recruiters Experience Time Savings with Interview Intelligence

Interview Intelligence automates time-consuming tasks like scheduling and note-taking, allowing recruiters to focus on more strategic aspects of hiring​.

8. 68% of Companies Report Higher Quality of Hire with Interview Intelligence

The quality of hire improves when interviewers can rely on structured data and insights. Interview Intelligence ensures that hiring managers make better-informed decisions, resulting in stronger performance outcomes​.

9. 64% of Companies Using Interview Intelligence Report Improved DEI Outcomes

As DEI remains a priority, Interview Intelligence helps standardize interview processes and reduce bias, leading to more diverse and inclusive hiring practices​.

10. Only 16% of Companies are Recording Interviews.

Companies that can record and transcribe interviews are able to capture insights, create accountability, and make better hiring decisions. Companies using interview intelligence can start by just transcribing and add recordings.

Interview Intelligence is changing talent acquisition. These platforms integrate with exisitn ATS and work tech providers and provide deeper insights on decision-making. Companies that implement this technology see tangible improvements in turnover, first-year performance, and quality of hire. By investing in Interview Intelligence, organizations can stop relying on gut feelings and start making data-driven decisions that improve efficiency, reduce bias, and lead to better outcomes.

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Phenom Enhances Employee Onboarding with the Acquisition of Tydy

Today, Phenom announced the acquisition of Tydy, a global preboarding and onboarding provider. Tydy connects tools, processes and people to generate workflows that are personalized for each user. This announcement is Phenom’s fifth acquisition to date – rounding out its TA platform and expanding further into employee experience technology.

Kyle and I had the opportunity to interview Mahe Bayireddi about the acquisition and understand how Tydy will support Phenom’s product strategy.

Onboarding is the most critical part of any talent strategy. It is the first impression between an employee and employer and the transition between talent acquisition and talent management. When companies get onboarding wrong, it impacts revenue, retention, and productivity. According to Aptitude Research, onboarding has a significant impact on retention, employer branding, and quality of hire.

  • Retention: Eighty-six percent (86%) of employers believe that new hires make the decision to stay at a company in their first 90 days.
  • Employer Branding: Three-quarters (75%) of new hires share their first day of work experience on social channels.
  • Quality of Hire: Eighty-three percent (83%) of employers believe managers know if a new hire is a quality hire within the first 90 days.

But, as companies prepare for the future of work and invest in talent transformation, onboarding is often overlooked. Companies are twice as likely to spend on talent acquisition and employee experience than onboarding, and 42% of companies do not have a dedicated onboarding solution. Only 26% of companies are fully automating the onboarding process.

This acquisition highlights the importance of onboarding and the role it plays in connecting candidate and employee experiences.

Why This Acquisition Makes Sense

Phenom’s acquisition of Tydy underscores its dedication to enhancing employee experiences through personalized and automated solutions. Tydy’s innovative onboarding platform is designed to streamline the onboarding process, making it more efficient and engaging for new hires. By integrating Tydy’s technology into its existing TXM platform, Phenom aims to provide a seamless, end-to-end experience for employees from the moment they receive their offer letter.

It is not just a check the box acquisition, it is part of a strategic vision and commitment to providing exceptional experiences.

Tydy’s platform is known for its ability to deliver personalized onboarding journeys tailored to the unique needs of each employee. This aligns with Phenom’s commitment to personalization, ensuring that new hires receive relevant information, training, and support based on their role, location, and individual preferences.

What Customers Can Expect

With the integration of Tydy into Phenom’s platform, customers can expect a more robust and comprehensive onboarding solution. One of the key benefits of this acquisition is that Phenom’s platform is built on a single code base, ensuring a seamless and cohesive experience for users. Unlike a Frankenstein model, where disparate systems are pieced together, Phenom’s unified platform offers consistency in experience.

Founded in 2019 and adopted by companies in more than 30 countries, Tydy connects tools, processes, and people to generate workflows that are seamless, efficient, and personalized for each user. Several of the world’s largest brands use Tydy’s Employee Data Platform (EDP) to reduce manual effort from HR, IT, and Operations teams, easily achieve compliance through automation, and decrease the amount of time it takes to onboard employees.

Customers can look forward to a streamlined onboarding process that reduces administrative burdens and accelerates time-to-productivity for new hires. The combined capabilities of Phenom and Tydy will provide HR teams with powerful tools to automate tasks, track progress, and engage new employees effectively.

Phenom’s acquisition of Tydy marks a significant milestone in its journey to improve the employee experience. By combining Tydy’s innovative onboarding solutions with Phenom’s comprehensive platform, organizations can look forward to a more engaging, personalized, and effective onboarding process that supports their overall talent management strategy.

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The ATS Market: A Changing Landscape

The Applicant Tracking System (ATS) market has long been the cornerstone of recruitment technology. For companies with over 100 employees, having an ATS is almost a given. The market for the past 10 years has been uneventful. Companies buy an ATS, replace their ATS, and complain about their ATS.

This year, however, the landscape of ATS providers is rapidly evolving, driven by growing dissatisfaction among users and significant gaps in traditional systems. As new providers enter the market with innovative solutions, it’s an exciting time to be looking at the bread and butter of recruitment technology.

The State of the ATS Market

The ATS market is facing three undeniable truths:

  1. Widespread Dissatisfaction: Many companies are unhappy with their current ATS. Issues range from user-unfriendly interfaces to limited functionalities that fail to meet modern recruitment needs. We found that less than half of companies are happy with their ATS.
  2. High Replacement Rates: Aptitude Research found that 1 in 4 companies are looking to replace their ATS within the year. This statistic underscores a significant shift in how businesses are approaching their recruitment technology.
  3. Gaps in Functionality: Traditional ATS platforms often lack critical capabilities in candidate relationship management (CRM), frontline worker support, and effective candidate communication. These gaps are increasingly difficult to overlook in today’s competitive job market.

Historical Options: Best of Breed vs. HCM Suites

Historically, companies choosing an ATS had two main options:

  1. Best of Breed: These are specialized ATS providers focusing solely on recruitment technology. While they traditionally offered advanced features and superior user experiences, many have struggled to keep pace with evolving demands. Some have been acquired by private equity firms (iCIMS and Jobvite and Lever), which has often led to a shift in focus away from end-users.
  2. HCM Suites: Large enterprise software providers like Workday, UKG, Oracle and SAP fall into this category. These providers have been winning deals over many of the best of breed providers for integration, advancements in AI, and the ability to integrate ATS capabilities into broader HR functions.

Current Landscape and Emerging Trends

The dissatisfaction with current ATS options and the gaps in traditional systems have paved the way for new providers and innovative solutions to emerge. Key trends include:

  1. Recruiter Experience: Greenhouse stands out in the best of breed category by maintaining a strong focus on both the candidate and recruiter experience. And, one of the few best of breed ATS providers still committed to DEI initiatives with recent announcements that include resume anonymization and enhancements to its scorecard funcationality. While it primarily serves the lower enterprise and mid-market segments, its commitment to the recruiter sets it apart.
  2. Integrated CRM and Communication Tools: Modern ATS providers are increasingly incorporating CRM capabilities and enhanced communication tools to improve engagement with candidates throughout the hiring process. This shift addresses one of the major gaps in traditional systems. But for many of these providers, CRM is just a check the box and lacks meaningful functionality.
  3. Support for Frontline Workers: There is a growing recognition of the need to support frontline workers, who often have different recruitment needs compared to office-based roles. New ATS solutions are emerging that cater specifically to these requirements, offering more tailored functionalities. We found that 1 in 2 companies with frontline workers are reevaluating their ATS and now they have better options (hello Paradox!).

New Entrants and Latest Announcements

Several players have recently entered the ATS market, bringing fresh perspectives and innovative solutions. The categories are not clearly best of breed vs. HCM suite anymore. Companies have options that not only fill the gaps with traditional systems but offer advanced capabilities that range from skills to communication to AI.

These new announcements change the buying behavior around recruitment technology. It makes the ATS not the core component and shifts the value to areas of TA tech that can drive real transformation.

These include:

  • Paradox: Paradox launched an ATS for frontline workers and has been supporting companies like McDonald’s with end-to-end recruitment.
  • Gem: Gem added ATS to its suite of solutions that includes CRM and sourcing and analytics.
  • Eightfold: Eightfold announced the first AI-native and talent intelligence ATS system two weeks ago at its Cultivate event to expand its TA solutions.
  • Payroll Providers: Every SMB or mid-market payroll provider seems to be expanding its suite into broad HCM that includes ATS. These providers offer a simple option and integrated capabilities.

These are just a few of the ATS announcements this year and we expect to see more. This disruption is addressing longstanding issues and introducing advanced capabilities that cater to the modern recruitment landscape.

The ATS market is undergoing a significant transformation. With a clear trend towards improving user experience, integrating advanced communication tools, leveraging AI, and supporting diverse worker types, the future of ATS looks promising. As new providers continue to innovate, we can expect a more dynamic and effective recruitment technology landscape, better suited to the demands of today’s employers and job seekers.

Categories
Blog Learning Cultures

New Research: Nurturing a Strong Learning Culture in Today’s Organizations

We’re thrilled to announce the release of our newest research report on learning cultures! This collaborative effort brought together the expertise of our team, including the brilliant Laurie Ruettimann, and our amazing partner, Learnerbly.

One of the key highlights of this report is the introduction of a comprehensive maturity model—a tool designed to assist companies in assessing their current position and charting a course for future growth. With this model, companies can gain a clear understanding of where they stand and identify specific areas where they need to focus their efforts to enhance their learning cultures.

We found that 67% of companies are ramping up their investments in learning and development initiatives this year. This surge underscores a growing recognition among businesses of all sizes: continuous learning is essential for staying competitive and agile in the dynamic business landscape.

However, despite the increasing investment in learning initiatives, there’s a glaring gap between intention and execution. Less than half of companies express confidence in the effectiveness of their learning cultures, and only one in three are satisfied with their providers. This disconnect exposes a critical gap between investment and perceived value, highlighting the need for a paradigm shift in how organizations approach learning and development.

The significance of cultivating a strong learning culture extends beyond organizational growth—it profoundly impacts the employee experience. By fostering a learning-centric environment, companies empower employees to acquire new skills, stay engaged, and enhance performance. Yet, despite these benefits, many organizations lag behind in their approach to learning and development, treating it merely as a business benefit rather than a tool to empower individuals.

To bridge this gap, organizations must embrace a transformative approach to learning and development—one that prioritizes alignment, personalization, and inclusivity. These pillars serve as the foundation for nurturing a comprehensive learning environment that resonates with individual employee needs and fosters an inclusive and engaging atmosphere.

Personalization: Only 42% of companies personalize the learning journey for their employees. Recognizing that learning is not one-size-fits-all, organizations need to tailor learning experiences to meet the diverse needs and preferences of their workforce.

Inclusivity: Despite the pivotal role of inclusivity in fostering a diverse and equitable learning culture, only half of companies state that their learning cultures are accessible to all employees. Prioritizing inclusivity requires addressing barriers to participation and ensuring equal opportunities for all employees to engage in learning and development activities.

Alignment: One in four companies believe their investment in learning is wasted, highlighting the importance of aligning learning programs with both employer and employee expectations. By ensuring that learning initiatives address the specific needs and skill gaps of their workforce, organizations can maximize the impact of their learning investments.

Addressing the challenges of low engagement, wasted spend, and the need for greater inclusivity in learning initiatives requires organizations to take a critical look at their learning cultures and drive meaningful change. By embracing a holistic approach to learning and development—one that prioritizes alignment, personalization, and inclusivity—organizations can cultivate a learning environment that empowers individuals, drives organizational success, and fosters a culture of continuous growth and improvement.

The report is available now on the Aptitude site.

Categories
Blog

New Research and Trends in People Analytics

I have been focused on the people analytics space for the past few months.  We conducted a big survey, took lots of briefings, and interviewed companies doing it right. It was full of surprises.

 We found that 93% of companies are increasing their investment or continuing to invest the same in people analytics this year and only 28% are not happy with their existing providers. The demand within this market is undeniable, but there is a tremendous amount of confusion and misinformation. And some providers are doing more harm than good by inadvertently discouraging rather than empowering HR professionals.

I was in NYC with HireRoad a few weeks ago presenting some of these findings and was impressed with the simplicity of the people analytics product and their approach to customer success. We will publish more over the next month, but I wanted to share some of the big takeaways:

  • Companies Have Better Options: Just a few years back, companies interested in people analytics were often forced to cobble together homegrown solutions and various business intelligence (BI) tools. This process was typically labor-intensive and caused internal headaches. Today, companies have far better options. Best of breed providers are offering streamlined solutions that empower companies to seamlessly share real-time data, visualize insights, and gain meaningful answers with ease. Our research revealed that 30% of companies are leveraging best-of-breed providers, 15% are still relying on BI tools, a surprising 28% are persevering with in-house solutions (yes, you read that right!), while 18% are sticking with existing human capital management (HCM) providers. The good news is that best of breed providers are targeting mid-market companies as well.
  • Cost Matters: Our research uncovered that the primary factor influencing investment decisions in people analytics was cost-effectiveness, over product capabilities and support. For businesses lacking a dedicated budget or formal people analytics function, creating a compelling business case can pose a significant challenge. Adding to the complexity, many providers are hiking up prices with various add-ons, leaving buyers confused over what’s actually included. Consequently, a considerable number of companies we spoke with are eyeing a provider switch within the next year. Building trust is paramount in any partnership with a people analytics provider yet understanding the return on investment (ROI) often fall short.
  • Navigating Buyer Confusion: In the people analytics landscape, providers are going after different buyers. Some are focusing on people analytics functions, others are targeting HR, while a few are setting their sights on managers. With every provider singing a different tune, it’s confusing to know who exactly the target audience is. Within the people analytics community, there are undoubtedly some of the most passionate and educated experts driving the conversation forward. However, there’s also an untapped opportunity to support HR buyers who may be feeling out of their comfort zone when it comes to people analytics. By offering simple solutions that build confidence, providers can empower HR professionals to navigate this complexity. We found that 39% of HR leaders cited limited expertise as their greatest challenge with people analytics.
  • Customer Support is a Differentiator: While technology and real-time data are crucial components, it’s the quality of customer support provided that also sets a provider apart. From initial onboarding and implementation to ongoing support and training, services ensure that organizations can effectively leverage the insights from their data. Expert guidance and personalized support empower HR teams to make informed decisions that drive organizational success.

We will be publishing this research soon. If you are a company investing in this area or a provider offering a product, we would love to hear from you!