Aptitude Research
Schedule a Briefing

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

We Are a Tech Company

This phrase seems to be the rally cry for many of today’s largest companies. Financial firms are now competing for tech talent against companies like Google and Facebook. According to CB Insights, Goldman Sachs is hiring more tech talent this year than financial talent with a third of its workforce in engineering roles. JP Morgan has created “Tech Connect” to attract and develop tech talent and Morgan Stanley is upping its game as well. These firms are offering competitive salaries and considering more relaxed work environments that might appeal to the Silicon Valley genre of talent. And they are not alone. According to McKinsey & Company, large companies will make technology-related investments averaging hundreds of millions of dollars and some upwards of a billion dollars in the next five years. Every large company seems to be trying to become a tech company. But what do these firms need to consider if they want to recruit the best of the best?

Here are a few or our recommendations for a more tech-friendly talent acquisition strategy:

–          Invest in Best-of-Class Technology: The top tech talent are not going to want to work for a company that uses outdated or traditional recruitment software. If you are going to be taken seriously as a technology company, consider you own tech investments including your recruitment marketing solutions, employer branding, ATS, and onboarding solutions. These solutions should provider the right candidate communication and a simple, consumer-like experience.

–          Consider Scheduling Tools: Many of the tech companies are startups are experimenting with different scheduling tools such as Olivia, Brazen, and Calendly. Not only do these tools lift the administrative burden for recruiters but they show tech companies that your firm is up-to-date with the latest innovation.

–          Narrow Your Candidate Pool: If you want to be more effective at identifying the best candidates and competing for talent, you may want to consider assessment tools. These solutions can help you identify talent with the right skills, personality, and cultural fit.

–          Invest in Employer Branding: If your company is transforming, you will need to update your employer brand. You will need to showcase why top tech talent would want to work for your firm using video and social channels. It might mean a change in company culture, competitive salaries, or highlighting your existing top talent.

As most companies try to establish themselves as tech companies, they will need to do more to identify and attract top talent. Recruiting in tech is one of the most competitive markets right now and companies that will succeed will need to highlight their brand, connect with candidates in a meaningful way, and use innovative technology.

Categories
Blog

It Is a Good Time to Be in HR Technology

Last week was a big week with some major announcements about investment in HCM. First, Workday announced a $250 million venture fund with investments to go into early and growth stage providers focused on topics such as AI, blockchain, and machine learning. This announcement not only demonstrates Workday’s growing leadership in all things HCM but it also enables startups to develop better products and expand their customer base. Less obvious announcements from last week include Gartner’s decision to sell its talent assessment business (through the acquisition of CEB – which acquired SHL) to private equity firm, Exponent, for $400 million. Not to mention, investment raised by Joveo ($5 million), gr8people ($8 million), and ZipRecruiter ($50 million). Investors recognize the opportunity and the demand for better solutions to attract, engage, and retain talent. And, it is a good time to be in HR Technology.

Here are some of the areas where we see the most investment:

–          Recruitment Marketing: Interest in the recruitment marketing space has not died down. Investors recognize that recruiting is evolving the same way marketing evolved several years ago. They are looking at solutions that offer one platform for engaging, nurturing, and connecting with talent before they ever apply for a job. Research we did last year found that 1 in 3 companies are increasing their spend on solutions that handle everything before someone applies for a job.

–          AI: The topic of AI is pervasive in HCM. Yet, most companies are still confused by what AI is and how it can be used to solve talent management challenges. Companies are curious about the value of AI and what use cases they should consider. But with so many providers entering this space, it is challenging to know who to consider. Hopefully, some of the investment in AI will help to provide clarity around AI and differentiate some of these providers.

–          Blockchain: The topic of blockchain is everywhere and not just because of the buzz around Bitcoin. Essentially, blockchain is a database that is not stored in just one central location but is everywhere- making the data easier to maintain. Sourcecon published a great article recently, where it explains Blockchain in this way:  “Imagine a Google or Excel sheet you’ve shared with your recruiting team to track hiring activities. Your sheet updates automatically in real time, it’s asynchronous, and everyone has access to the ability to update it.”

–          Employee Recognition: At one time, an area where investors seemed to tread lightly, the employee recognition market has really taken off. Investors recognize that employee recognition is the key driver of employee engagement and are looking at solutions that enable social recognition, feedback, and peer-to-peer interaction.

We will continue to watch the investment in this space are we are excited for the opportunity it presents providers and practitioners. Our friend, George LaRocque, does an exceptional job of covering the investment in this space. We also recommend checking out his research and publications on this market.

Categories
Blog

Improving the Candidate Experience Through Better Communication

Two tin cans connected by a string

I have been thinking a lot about the candidate experience. For the past two years, companies we have surveyed cited improving the candidate experience as a top priority yet, only 40% of companies are actually successful at achieving this goal. If companies spend so much time and energy focused on the candidate experience, where does it go wrong? And, why has something so basic become so complex?

Sure, there is something to be said for the fact that candidates who don’t get an offer, may view the experience as less than stellar. But, overall, companies that have a systematic approach to communicating with every candidate in a way that is frequent and meaningful see results. Communication is the most important element of the candidate experience. When we asked companies what the candidate wants, they said to be notified when they are screened out of the process (52%), to receive information on the company (52%), and to have a single point of communication (50%). Candidates want to be informed and here are some recommendations:

Provide Transparency: Too often, employers try to paint some picture perfect scenario of what life is like at their company. The reality is some jobs are not fun. And working for your company might not be ideal for everybody. Why do we try to pretend differently? The more we can be transparent about the company and the job, the better. Companies should think about creating more meaningful and candid content on career sites and in employer branding efforts. Also, job previews are one way companies can show candidates a more accurate depiction of a job or your company.

Consider Recruitment Marketing: The primary reason that companies fall behind in improving the candidate experience is that they don’t have a mechanism to engage with candidates before they apply. Recruitment marketing is where the candidate experience starts. Companies need the right strategies and a single solution to attract, nurture, and engage with candidates. Many of these solutions give companies a way to provide relevant and meaningful content to candidates to inform them about the company and potential jobs.

Use a Variety of Tools: Companies tend to rely on email as their primary mode of communication with candidates. Yet, few candidates read their communication. Companies should use a variety of communication methods including chat, video, SMS, and phone calls.

Set Expectations: Candidates want to know where they are at in the recruitment process. They want to know if they will hear anything after they apply and how long it will take before they are called in for an interview. Candidates want to know how long background screening will take and when they will find out if they have an offer. It sounds basic but companies do not set expectations and they don’t communicate consistently with everyone that applies.

If you are interested in learning more about ways to improve the candidate experience, The Talent Board conducts some great research every year and the latest research is available now.

Categories
Blog

Amazon’s 2nd Headquarters: Building the Case for Boston

Last week, Amazon announced the finalists for its 2nd headquarters and Boston is a contender. This is exciting news for a city that has seen significant growth in tech from companies like Wayfair, Tripadvisor, Raytheon, EMC, and Hubspot. According to the SEC, at the end of 2016, Raytheon added over 2000 jobs and Wayfair not far behind with 1791 new tech jobs. Amazon would certainly accelerate this growth and completely change the job market and recruitment landscape in Boston. We believe for the better. And yes, as a Boston-based company, we are slightly biased. Here are a few reasons why we think that Boston is a strong candidate for Amazon and what impact this could have on talent acquisition efforts:

  • Brain Drain: A 2016 study by real estate services firm, CBRE, found that college students with tech degrees are leaving Boston for cities like San Francisco and New York that offer greater opportunities in their field. This is not a new phenomenon. Boston has always struggled to retain students from schools such as MIT, Harvard, Boston University, and Northeastern University – especially in tech. Amazon would offer a huge opportunity for students considering staying in the Northeast. It is planning to add 50,000 high paying jobs and invest $5 billion into the city.
  • Location: The location that Amazon is considering is just minutes from a major international airport. This location makes it incredibly convenient for customers, partners, candidates, and remote workers to meet with Amazon. Anyone owning real estate in Revere or East Boston should hold on tight to their investments.
  • Competition for Talent: Competition for talent is not always a bad thing. Amazon’s presence in Boston will certainly require companies like Wayfair, Raytheon, and even GE to offer better salaries and incentives to their existing employees. Amazon will also bring new talent to the city that will help boost the economy.
  • Diversified Industries: The Boston economy is thriving. According to BLS, Boston unemployment rose 2.3% in October 2017 from a year ago. Boston added nearly 15,000 jobs in that time in a variety of industries including professional services, education and health services, and finance. Amazon’s headquarters will increase Boston’s prowess in tech.

Amazon’s announcement on its 2nd headquarters will be exciting for any of the 20 contenders but Boston is well positioned to make the short list (despite its cold winters). We are watching very closely!

Categories
Blog

AI, Voice Activated-Assistants, Robots: Does Any of It Matter?

In talent acquisition, we hear a lot about things like AI, voice activated assistants, and robots. Will recruiters be replaced by AI? Will home voice activated assistants liked Google Home and Alexa become part of our workforce? What jobs are in danger? Providers are talking about it and many talent acquisition leaders are asking for it. I get it. Technology is changing. And we need to keep up and prepare for the future. But in research we did last year, 60% of companies are still confused about AI and its value in recruitment. By focusing so much on the unknown, are we losing sight of the basic challenges with attracting and recruiting talent? Are we losing sight of what really matters?

Recruiters face some serious challenges (improving the candidate experience, attracting talent, hiring quality talent to name a few) and companies need to consider solutions that actually address those challenges. We have become so focused on what’s “new” that we are missing what’s valuable.  What solutions can actually help recruit better? When we ask companies about their top investments and where they see value, this is what they say:

  • Background Screening: It may not seem like the most exciting area of talent acquisition but for many companies it is the most important investment. Many companies have had the same provider longer than they have had their ATS. It is also the top investment with nearly 80% of companies using some type of background screening provider. In 2018, companies need to consider not only what type of screening is important but also what providers that they can trust.
  • Assessments: When using the right provider, assessments can provide tremendous value to talent acquisition by helping organizations improve the quality of hire. The challenge that most companies face is that they have been leveraging very traditional assessments that provide a poor experience for the candidate and take too long to complete. Companies need to consider validated providers that will partner with companies to create a better experience.
  • Online Reference Checks: It is surprising to me that more companies are not investing in providers like SkillSurvey and Checkster. There is tremendous value in online reference checking in reducing time to fill, improving quality of hire, and giving companies an additional talent pool where they can source candidates. These solutions along with background screening and assessments address real challenges in recruitment.
  • Communication Tools: The candidate experience is essentially about communication. Organizations need to give candidates the information they need to feel engaged and prepared. They need to provide more meaningful communication through multiple channels including chat, video, messaging, or event a phone call.
  • Predictive Analytics: I recently moderated a panel with Dr. Anton Smessaert from Visier where every question I have ever had about predictive analytics was answered in 45 minutes. Predictive analytics can help companies understand patterns of data and help guide them to make better decisions about talent. But people need to be the ones to make those decisions. He will explain this much more eloquently than I can but predictive analytics is valuable and you need a provider you can trust.

We are launching our 2018 talent acquisition survey in a few weeks and would love to hear what your priorities are in the next year.

Categories
Blog

Why iCIMS’ Acquisition of TextRecruit is a Big Deal

silhouettes of people discussing and sharing ideas with ideas floating above their heads

When you think about iCIMS, “risk taker” might not be the first thing that comes to mind. But the NJ-based provider has demonstrated its ability to push the envelope and drive change more than many of its Silicon Valley peers. And its recent acquisition of TextRecruit, the mobile recruiting platform, is no exception. Colin Day, CEO, has taken significant risks over the past 10 years, including turning down investors and potential acquisitions in favor of organic and consistent growth. iCIMS has taken risks with its messaging, marketplace, and products – including moving away from an integrated Talent Management suite in 2012 to refocus on strategic talent acquisition.

iCIMS understands that Talent Acquisition is complex enough to deserve its own suite of solutions and its own conversation. Its acquisition of TextRecruit continues this commitment to helping companies attract and recruit talent.

If you are unfamiliar with TextRecruit and wondering what this means for Talent Acquisition…here are a few reasons why we think this is a big deal:

  • Product Leadership: iCIMS is much more than just an ATS. By announcing that TextRecruit will continue to operate as a wholly-owned subsidiary, servicing and integrating with other systems based on their clients’ needs. It is expanding its customer base and leadership in Talent Acquisition.
  • Enterprise Market: iCIMS, like many other next generation Talent Acquisition systems, has been making a play to move up market. TextRecruit, with over 400 enterprise customers (including several existing iCIMS clients) gives iCIMS more credibility in the enterprise market.
  • Candidate Communication: According to research Aptitude Research Partners conducted in 2016, 47% of employees are not even opening their emails from HR departments. Companies need to find new ways to communicate with candidates via text, AI, and chat. TextRecruit will give iCIMS’ customers that option.
  • Market Consolidation: Consolidation is inevitable for Talent Acquisition. Companies are using too many providers to do too much of the same thing. iCIMS is the first provider to make a significant acquisition and setting the stage for end-to-end Talent Acquisition.

iCIMS’ strength is in its deep expertise in Talent Acquisition and its exceptional customer service. As it continues to move up market and expand with this new acquisition, maintaining strong customer satisfaction and high customer retention will be challenging but critical to its continued success. 2018 is already proving to be an interesting year in Talent Acquisition technology.

 

Categories
Blog

Your Employees are Financially Stressed. So, What are You Going to Do About It?

a person using a tablet to show data and charts while other employees take notes

According to research by the American Psychological Association, 72% of Americans are financially stressed. It goes without saying that financial stress takes a serious toll on an individual’s health, happiness, and overall well-being. But it also has a ripple effect on our workforce. When employees are stressed, productivity, performance, and engagement all plummet. So, what are we doing to help employees manage stress? Not much. New research from Aptitude reveals that 70% of companies have no formal process to manage employee stress. Given the impact of stress on our personal and professional lives, can’t we do better? Can’t we provide employees with the right resources and support to manage their personal finances and pay off debt?

Fortunately, some organizations are committed to doing more. Companies are being more strategic when they think about financial stress and investing in solutions that impact the bottom line. In our latest research, we found that 1 in 4 companies have financial wellness solutions. While it is exciting that companies are embracing financial wellness, many of these solutions do little to help employees manage the stress. Instead, they simply provide information and data without an action plan to help employees as they move forward. Financial wellness is an area that is still emerging and organizations must make better decisions around the providers they consider.

One of the financial wellness providers I have been most impressed with this year is Best Money Moves. Their solution helps organizations tackle the real issues impacting our workforce in a way that maintains employee privacy and empowerment. It is a mobile-first employee benefit solution that helps employees understand and take control of their finances. It also offers “money coaches” to help employees make better decisions about their finances moving forward.

Most companies understand that financial stress has become a crisis and that this is the time to address it. Yet, finding the right solutions can be tricky. Here are a few recommendations to think about as you begin tackling financial stress in your organization:

  • Measure It: Find solutions that do more than just make assumptions or generalize financial stress. Instead, consider solutions that truly measure individual stress levels and provide an action plan to help employees take control of their finances.
  • Keep It Simple: Finances are scary. The worst thing an employer can do is invest in solutions that overcomplicate financial wellness and make it intimidating. Companies should look for solutions that keep it simple and easy for employees to understand what they need to do.
  • Establish Trust: Privacy is a critical consideration in financial wellness. Employees need a solution that they can trust will maintain their privacy and provide the right advice.

We are excited to be providing more research on financial wellness this year and would love to hear what solutions you are using and what challenges you are facing.

Categories
Blog

New Year, New Priorities, and New Data

We are ready for a new year. We have been busy planning ahead and we are setting new goals and priorities. It is an exciting time to be in HCM and we are looking forward to the next twelve months.

Here are a few of the things you can expect to see from Aptitude in 2018:

  • New Data: Mollie launched her Impact Survey and she is in the process of analyzing the key findings that include payroll, compensation, and total rewards data. Later this month we are launching our Talent Acquisition and Engagement Survey and will look at investment, integration, and analytics. We will be sharing our findings in early February.
  • New Website: We are all about simplicity this year, and our new website will reflect this commitment. We want to make it as easy as possible for our community to find our research, connect with analysts, and discover our latest thoughts and insights. We will be launching a new website in early Q2.
  • New Content: We are becoming more consistent with the content we publish – not only reports, but also blogs (every Tuesday and Wednesday) and Aptitude Fast Facts; data points we will share on our website and twitter every Monday.
  • New Conversations: Connecting with HR and Talent Acquisition leaders and practitioners is a big part of what we do. We plan to make this an even bigger commitment in 2018 through research advisory councils and new relationships and conversations.
  • New Index Reports: We are updating our Payroll, ATS, and Recruitment Marketing Index Reports. Also, we are tackling RPO and recognition this year. We will share more information on our Index Reports in the next few weeks.

We are excited for everything “new” this year and would love any feedback on our surveys, content, website…anything. Let us know what research you are hoping to see this year!

Categories
Blog

Five Talent Acquisition Predictions for 2018

The past year in talent acquisition has been characterized by new trends, new providers, and new investments. While this is an exciting time to be in talent acquisition, all of this change can feel overwhelming.

At Aptitude Research Partners, we are thinking a lot about the future and what 2018 will bring. As companies make more strategic decisions around their technology providers, we have a few predictions.

The Gap in the SMB: With every solution moving up market, we will see a gap in solutions targeting the SMB. Many best-of-breed providers are itching to move upmarket as the growth that many of these providers experienced in the SMB and mid-markets no longer seems to be enough. These providers are flexing their muscles by creating new partnerships, establishing a European presence, and demonstrating security and scalability that enterprise clients require. This mad rush upmarket is leaving a gap that needs to be filled in the SMB.

The Inevitable Acquisition: Market consolidation in talent acquisition technology is inevitable with too many providers doing too many different things. Aptitude’s 2017 research found that over 50% of companies are investing in 3 or more ATS systems and 3 or more primary sourcing tools. As 70% of companies invest in recruitment marketing solutions, ATS providers have an opportunity to make the technology landscape simpler for their customers, and we can expect some acquisitions in this area.

The Rise of Assessments:  While the assessment market is certainly not an emerging category of HR technology, it has evolved quite rapidly in the past year. Yet, at the same time, it is also a market that has sparked some controversy. Many traditional assessment providers are criticized for their high costs and negative experience for both employers and candidates. Too often, they remain a luxury of enterprise organizations recruiting for senior positions. Many new providers, on the other hand, face backlash as companies question the validity and fairness of these solutions and their effectiveness at attracting quality talent. Successful assessments today must balance sophisticated grounding in data science with a simplicity of user experience for both the candidate and the hiring manager.

The Need for Simplicity: We’ve said this before and we’ll say it again. Companies need simpler solutions in talent acquisition. Recruiters have one major problem. They need an easier way to attract, recruit, and hire talent. If a technology provider is not solving that problem, they do not have a viable solution.  According to Aptitude’s 2016 Hire, Engage, Retain survey, only 3% of companies are using the full functionality of their ATS systems. Companies either don’t know the functionality is there or they don’t understand how to use it. Again, many of these solutions are too complicated. If you want to give recruiters and candidates what they need, technology providers need to make it simple.

The Role of the Big Guys: Several big providers made bold moves in talent acquisition this year. Google Hire turned many heads with its launch earlier this year. Workday acquired new customers, making many of the ATS providers nervous. And Microsoft seems committed to its LinkedIn acquisition. All eyes are on the big providers in 2018 and it will be interesting to see what they do.

The next year is likely to present some major changes in the talent acquisition technology market and we are excited to cover it and help provide clarity around the uncertainty.

Categories
Blog

HCM Startups: Asking the Tough Questions

worker holding a tablet with data and charts explaining to co-workers

It is a good time to be a startup in HCM technology. With new investment, new priorities, and a new focus on the experience, this market presents some exciting opportunities. In fact, according to CB Insights, the amount of investment in this industry has increased from $400 million in 2012 to just under $2 billion last year. The investment and opportunity seems so promising that entrepreneurs from all walks of life are entering this market with new solutions that promise to change talent and workforce management. Sounds great. Yet “new” is not always better in the world of HCM and companies need to be cautious when investing in startups.

Below are a few questions to consider:

  • Financial Viability: Some startups have every intention of becoming a leading provider in the market with staying power. They are passionate about the work they are doing and the value they provide to your company. Other providers are just hoping to get acquired. They have an exit strategy, and it doesn’t include helping you achieve your goals. When considering startups, you want a provider that is going to be around in the next few years and will partner with you around your unique needs.
  • Integration: Startups don’t always understand the complex HCM ecosystem and how important integration is to corporations. You should consider providers that integrate with more than your HRMS and have a willingness to learn and connect with many partners.
  • Deep Domain Expertise: Startups don’t have to be experts in everything HCM but they should have a strong understanding of their market. They should partner with clients to build out their expertise and be flexible to new challenges that come up. According to Aptitude Research Partners, 56% of companies are investing in providers that can demonstrate deep domain expertise in talent acquisition.
  • Budget: It is easy to get excited by something that is new, but you need to make sure that the startups you are considering align with your HCM budget. Is this something you will need to get buy-in for, or can it replace some of your existing technology?

Investing in a startup can be a positive thing for your company. It can help you reimagine the way you are attracting talent, engaging talent, or even providing benefits. Startups can take your HCM strategy to the next level – but you still need to be judicious about the providers you are considering. You need to ask the tough questions. Sometimes “new” is nothing more than new. Solutions should provide greater efficiency, a strong experience, and a willingness to partner with you as you face challenges.

LinkedIn Twitter Email
Top
Aptitude Research