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Author: Madeline Laurano

Madeline Laurano is the founder and chief analyst of Aptitude Research. For over 18 years, Madeline’s primary focus has been on the HCM market, specializing in talent acquisition and employee experience. Her work helps companies both validate and re-evaluate their strategies and understand the role technology can play in driving business outcomes. She has watched HCM transform from a back-office function to a strategic company initiative with a focus on partnerships, experience and efficiency.

Before founding Aptitude Research, Madeline held research roles at Aberdeen, Bersin by Deloitte, ERE Media and Brandon Hall Group. She is the co-author of Best Practices in Leading a Global Workforce and is often quoted in leading business publications including The Wall Street Journal, The Boston Globe, Yahoo News, The New York Times and The Financial Times. She is a frequent presenter at industry conferences including the HR Technology Conference and Exposition, SHRM, IHRIM, HCI’s Strategic Talent Acquisition Conference, Unleash, GDS International’s HCM Summit, and HRO Today.

In her spare time, she is a runner, an avid sports fan and juggles a house full of boys (where a spontaneous indoor hockey game is not unheard of!).

Categories
Blog

Chipotle: A Lesson in TA Transformation and Change Management

New Hartford, New York - Aug 18, 2019: Night View of Chipotle Mexican Grill Restaurant, Chipotle is an American Fast Food Brand Specialized in Grill & Mexican Food.

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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Blog

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.

Categories
Blog

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.

Categories
Blog

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.

Categories
Blog

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!

Categories
Blog

A Shifting Landscape: HireEZ Launches a CRM for Recruiters

My feelings about the CRM market are complicated. I know I am not alone.

It is a critical element in the modern technology stack. We found that 76% of enterprise companies use or plan to use a CRM to support their recruitment efforts. To remain competitive in talent acquisition across industries, companies understand the importance of engaging and nurturing talent before they apply for a job.

The potential and opportunities offered by a CRM are immense; but the reality is that many companies fail to recognize its value. Only 1 in 4 companies express high satisfaction with their CRM providers, and only 18% would recommend their CRM to another company. This disparity reveals a significant gap between the potential capabilities of a CRM and the actual value it currently delivers.

The Challenges with the CRM Market:

The current state of the CRM market has three fundamental challenges:

Adoption: Companies often find themselves overspending on CRM capabilities that are not adopted. The investment in functionality that is never used contributes to an inefficient allocation of resources. Currently, 61% of companies spend more on their CRM than on their ATS.

Recruiter Experience: A critical challenge lies in the fact that those purchasing the CRM are not the same individuals using it. The traditional CRM is not tailored to support the workflow or enhance the experience of recruiters. This misalignment leads to a disconnect between user expectations and system capabilities.

ROI Measurement: Companies face a critical issue in not effectively measuring the Return on Investment (ROI) of their CRM investments. The lack of robust evaluation metrics hinders organizations from understanding the true impact and value derived from their CRM implementation. Only 1 in 2 companies measure the ROI of their CRM investments.

These challenges have created frustrations for both buyers and traditional providers that are not able to support customer needs. Fortunately, the CRM market is shifting. Today, HireEZ announced its CRM designed by recruiters for recruiters. As traditional players are expanding their capabilities beyond talent acquisition, a new wave of providers with a heritage in sourcing are entering the market with the goal of providing more cost-friendly options that meet the needs of the modern recruiter.

The Benefits of Integrating Sourcing and CRM Capabilities

Having sourcing capabilities in a CRM is important for several reasons, as it significantly enhances the efficiency and effectiveness of the talent acquisition process. Unfortunately, many companies do not integrate the two. We found that

  • Only 15% of companies say their CRM seamlessly integrates with sourcing.
  • Only 31% of TA leaders and HR leaders want one solution for sourcing and CRM compared to 72% of recruiters that want one provider.

Here are key reasons why sourcing is a crucial component in a CRM system:

Proactive Talent Identification: Sourcing allows recruiters to proactively identify and engage with potential candidates, even before they apply for specific job openings. This proactive approach helps in building a pool of qualified candidates for current and future hiring needs.

Wider Talent Pool: With sourcing capabilities, recruiters can tap into a broader talent pool by searching for candidates through various channels, including social media platforms, professional networks, and external databases. This widens the scope of potential candidates beyond those actively applying for positions.

Building Talent Pipelines: Sourcing is instrumental in building and maintaining talent pipelines. Recruiters can continually identify and engage with potential candidates, categorizing them based on skills, experience, and other criteria. This ensures a steady pool of qualified individuals for various roles, reducing the time and effort required for future hires.

Enhanced Candidate Relationships: Sourcing is not only about finding candidates but also about initiating and nurturing relationships. By proactively engaging with potential candidates, recruiters can establish a positive rapport, making candidates more likely to consider opportunities with the organization.

Rediscover Talent: Companies can rediscover talent in their ATS without having to manually search for candidates by engaging and nurturing talent frequently.

We are finalizing our Aptitude Index report on the CRM market and the shifting landscape is a big focus. We are including providers of these next generation CRMs.

Categories
Blog

Recruitment and Retention: Two Sides of the Same Coin

Our latest report in partnership with Plum focuses on the link between recruitment and retention. I will be sharing these results on a webinar with my friend, Chad Sowash on November 28 at 11am EST.

Every trend that we have covered this year has impacted on both recruitment and retention. Yet only 41% of talent professionals consider retention during the recruitment process.

A well-executed recruitment process helps companies recruit talent who are not only qualified but also aligned with the company’s values and vision. This alignment increases the likelihood of retaining top talent, as employees are more likely to stay committed to an organization that reflects their personal and professional aspirations. Conversely, effective retention strategies make it easier to see a return on the investment made during recruitment, as it reduces turnover and improves productivity and engagement.

Companies need a holistic approach to talent—one that recognizes the interconnectedness of these functions. And…it starts with a conversation around data.

Sophisticated talent acquisition and HR leaders are actively reassessing their strategies, technology infrastructure, and performance metrics to better prepare for the future. It has become increasingly evident that the practices that brought success a few years ago are no longer sufficient for the challenges we face today. Companies must adopt a more strategic and nuanced approach, cultivating a deeper understanding of the data that drives success and performance.

Success in talent acquisition is no longer gauged solely by the speed and cost-effectiveness of filling positions; rather, it hinges on the ability to link recruitment and retention- making informed, equitable, and intelligent decisions using accurate data. Aptitude Research found that companies that align recruitment and retention goals see the following:

  • 2X improvement in retention
  • 2X improvement in quality of hire
  • 3X improvement in productivity

In this report, we look at the close relationship between recruitment and retention and highlight the role of data and technology in reshaping how companies prepare for their future talent needs. I hope you can join us on November 28 as we share these results and talk about the shifts in the role of the recruiter, data, and technology.

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Key Takeaways from HRTech: Unlocking the Future

It’s been over a week since the HR Technology Conference, and I am still processing the innovation and energy from this year’s event. The expo was bigger and busier than ever, case study sessions delivered ROI metrics, and many demo sessions and product spotlights were standing room only (a sign that buying behavior is strong).

The ideas, breakthroughs, and networking opportunities provided a glimpse into the future of HR Tech and its evolving landscape. I am impressed with both the vendor community and the sophistication of HR Leaders. Much of the innovation in this space results from the partnerships and collaboration between customers and providers. There is more alignment between the two. In a year of uncertainty marked by labor market fluctuations, the trends emerging from this conference may not have delivered seismic shifts, but they represent the gradual, deliberate construction of what lies ahead. We are at the beginning of something big, and it’s an exciting time to be in HRTech.

AI and skills dominated the stage at this year’s event, whether you love or hate it. However, the paramount lesson that emerged is crystal clear – companies must become champions of change to thrive in the coming year. Companies must embrace transformation, maintain agility, strategize responses, and harness the power of data and insights to chart the right course forward. Embracing AI and leveraging a skills-based approach are non-negotiable.

A few themes from this year’s event and the providers that are leading the way:

A Shift Back to Quality of Hire

Success in talent acquisition is no longer gauged solely by the speed and cost-effectiveness of filling positions; instead, it hinges on the ability to link recruitment and retention- making informed, equitable, and intelligent decisions using accurate data. Aptitude Research just published a report in partnership with Plum that found that companies that align recruitment and retention goals see the following:

  • 2X improvement in retention
  • 2X improvement in quality of hire
  • 3X improvement in productivity

Quality of hire is the holy grail of talent acquisition. Every company wants it, but only some know how to measure and improve it. Fortunately, several vendors are doubling down in this area to help support companies on this journey, including Plum and Crosschq. They understand quality of hire starts with quality data.

HireVue announced a new category of Human Potential Intelligence- allowing companies to look at the full picture of a candidate, not just what is on a resume or CV. Their amazing client Spectrum discussed the art and science of linking recruitment and retention through data focused on quality and the Fit Finder product on the career site they use to help ensure quality of hire early in the process.

ATS Disruption

Never in my life did I think a big trend from HRTech would be innovation in the ATS industry, but here we are… This year has brought major shifts in the ATS landscape yet the same constant question of best of breed vs. HRMS. There is no clear answer, but it is safe to say that both are being disrupted.

  • Workday continues to win market share over its competitors. It has made significant advances in its core recruitment capabilities through the use of generative AI (for job descriptions and communication) and its Engagement solutions, which provide simple campaign functionality before the apply process.
  • Gem launched an ATS – rounding out its suite of products to include sourcing, CRM, and ATS. This combination provides companies in the mid-market and smaller enterprises with one platform to do everything from sourcing to offer.
  • Paradox launched the first conversational ATS. Companies such as McDonald’s use Paradox as an ATS for hourly candidates to improve efficiency and experience.
  • Greenhouse declared its POV on AI in hiring and the existing capability within Greenhouse Recruiting. It also announced a new set of candidate interview experience survey data.
  • Employ has clear messaging now around its ATS products, differentiators, and value in the market.

And…we will see more announcements in the ATS market going into 2024. Everyone is winning in the ATS market, with 1 in 3 companies replacing their ATS this year.

Skills-Based Everything

A skills-based approach levels the playing field for internal and external talent and contingent workers. Evaluating skills means looking at what is beyond the resume and seeing talent for potential, learnability, and opportunities. Yet, despite these benefits, companies are sometimes clear where to start with skills development. Lack of ownership and confusion around how technology fits in have added to this uncertainty. This study found that the greatest challenge for a skills-based strategy is change management (42%), and 39% of companies stated that they need a way to assess skills within their organization. Too often, companies understand and support a skills-based approach, but they get stuck on executing a strategy. They take a piecemeal approach to skills and must look more holistically at strategy, change management, and technology.

Some companies such as Reejig, Techwolf, Beamery, Eightfold, Phenom, Workday, SAP, and Visier are helping companies execute this skills strategy using the power of AI and talent intelligence that does not require companies to start from scratch manually. Eightfold’s talent intelligence platform is expanding with benefits beyond HR with the launch of its resource management solution to support project-based work. It applies skills to the workforce to the best-fit projects and engagements, improving resource utilization and staff engagements.

Frontline Workers

The largest workforce segment, comprised of 82 million workers, still needs to be addressed in the push for talent acquisition transformation. Employers needed more tools to attract, recruit, and hire hourly workers, while candidates received more communication. According to Aptitude, 62% of hourly workers have not received a response or communication. I can’t stress this enough…hourly workers need a better candidate experience. It is not the same as professional hiring.

The good news is that companies are seeing tremendous innovation in recruiting and retaining this forgotten workforce. Paradox is one example of a provider disrupting this space, but GoHire, Fountain, and Jobsync are a few others. Also, one of the biggest announcements from HR Tech was Harri, an HRIS focused on hourly, raising $43M in Series B. Harri is innovating across all areas of talent and introducing engagement and employee experience offerings tailored to the unique needs of hourly workers.

CRM is Changing

The CRM market continues to amaze me! We have providers looking to leave the CRM space and focus on bigger things like skills and workforce planning, and…we have providers (ATS and sourcing providers) looking to enter the CRM market and offer more straightforward solutions for better experiences and adoption. And at the same time, companies are still buying and replacing CRMs. This market is not apples to apples. Every provider is going about CRM uniquely, which makes evaluating and implementing solutions incredibly challenging. Kyle and I are focused on wrapping up our CRM Index report for this year, and it is a LOT! If you want to make sense of the landscape, here is a quick preview. We have three categories of providers: Sourcing providers (offering CRM and recruitment marketing automation capabilities including HireEZ, SeekOut, and Findem), Traditional CRM and Recruitment Marketing providers that have a heritage in this space, and Talent Intelligence platforms that go beyond CRM to offer skills and AI-based platforms.

Well-being Has Evolved

A few months ago, I started a blog about how companies seem to be deprioritizing employee well-being. Well, I was wrong. Well-being took center stage this year on Day 2 of the Pitchfest, with providers like Wellbeing.ai, Aragon, and First30 offering employee well-being solutions. In the past, employee well-being was often confined to basic healthcare benefits, but it has since expanded to encompass holistic physical, mental, financial, and emotional health. HR tech tools have played a pivotal role in this evolution, offering a range of innovative solutions, from wellness apps and wearables to AI-powered mental health support platforms. This shift is not just a response to the growing awareness of the importance of employee happiness but also a recognition that a healthier, more engaged workforce is a more productive and sustainable one. My friends at Best Money Moves offer an amazing solution for financial well-being. And this year, we were introduced to the idea of digital well-being through the Digital Wellness Institute.

Also, last but not least, everything at this year’s event was generative AI related. The potential impact on the future of work is tremendous. Generative AI improves efficiency (automating many administrative tasks), quality (enhancing the quality of content generated), and experience (providing faster results and more immediate answers). But it also has risks, including questions about how the data is captured, security and data privacy, and overall decision-making. Over the past few months, many vendors have made announcements about how generative AI and GPT-4 are enhancing their products. Some are making announcements that will provide immediate benefits to recruiting teams, candidates, and employees. 

It was a great event and we are already looking forward to next year!

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