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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!).

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Three Misperceptions About AI in Recruitment

robotic claw pulling up the right candidate

Are you confused by AI or unsure if your role is in jeopardy? Well, you are not alone. We launched our latest talent acquisition survey last week and found that 60% of companies are uncertain about AI and its impact on talent acquisition. And…43% of talent acquisition professionals fear they will lose their jobs.

While many of the concerns around AI are valid considering all of the misinformation in the market, AI can actually help to improve the overall talent acquisition function and empower recruiters to make better decisions on how they identify, engage and hire talent.

AI is a big focus in our research this year and we are going to share key findings on a webinar today at 2pm EST hosted by Symphony Talent. Some of the misperceptions we plan to address include:

Myth #1: Replacing the Role of the Recruiter: Sometimes referred to as “Augmented Intelligence” or “Artificial Assistant”, AI can be a recruiter’s best friend, rather than his or her biggest enemy. AI cannot replace a recruiter’s ability to detect emotional intelligence or personality traits in candidates. Recruiters can measure emotional quotients of candidates in areas such as self-awareness, empathy, social awareness, and relationship management. While AI can effectively filter candidates with the required competencies and experience for a job, recruiters can spend more time analyzing the human element that is critical for measuring organization fit.

Myth #2: Confusing Data with AI: Data is the foundation of AI. Without a large of amount of historical data and context, AI is not effective. Data gives recruiters insight to make the best decisions possible. Yet, too often, companies confuse data and AI as one in the same. AI puts data into action by giving that data context. Currently, most companies are not effective at taking action on data. The most valuable area of AI is in expert solutions. An expert system is a system that employs knowledge about its application domain and makes inferences to solve problems that would otherwise require human competence or expertise.

Myth #3: Believing AI hurts the Candidate Experience: Companies have a tendency to think of AI as a barrier to a positive candidate experience. They characterize interaction with the technology as impersonal. According to Aptitude Research Partners, companies with AI capabilities in place are 3 times more likely to improve the candidate experience. Candidates want better communication and feedback, and AI solutions make that communication mandatory and consistent.

Join us today at 11am PST/ 2pm EST to talk about AI and its role in empowering recruitment.

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How to Buy HR Technology: The First Step

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

Companies are changing the way they buy HR technology. Evaluating and selecting the right provider has become much less about product capabilities and much more about a true partnership.  And that’s a good thing. In fact, according to research we conducted last year, nearly 80% of companies said that “word of mouth” and “reference calls” are the most influential factors in making decisions- not RFPs or demos. Companies want solutions that they know will deliver results.

So, if selecting technology is more than just feature and functionality, what should companies consider when evaluating a provider? What should they look for in a true partner? On June 6, I am excited to attend Jobvite’s Recruiter Nation event to share some of our latest research on how companies are buying HR technology. Some of the topics covered during this session will include company background and culture, services and support, product roadmap, and staying power. This session will help empower buyers to ask the hard questions and think about what is important beyond what they can find on a demo or a company website.

But, the first step companies need to consider is understanding their own unique requirements. Word of mouth is not enough and relying on referrals can create barriers to creating a long, meaningful relationship with a solution provider. Before companies look outside, they need to take the time to understand their own needs.

Below are some recommendations on getting started with an Internal Needs Analysis:

  • What It Is: Internal Needs Analysis is an exploration of an organization’s strengths and weaknesses focusing on internal factors. Companies should consider what past obstacles they may have faced when selecting technology, who is involved in the selecting process, and what processes are currently in place.
  • Why It Is Important: Companies need to understand what requirements they have before they can begin to know what technology providers they need. This step is critical to helping companies stay prepared and making the selection process much simpler.
  • How to Do It: Companies can begin an internal needs analysis with SWOT analysis, interviews with key stakeholders, assessment of existing technology solutions, budget planning, long-term vision planning, alignment with corporate objectives, or readiness assessments.

As the HR technology market changes, the selection process must also evolve. I hope you will join me in June to talk about key recommendations and action steps for making the best decision around your technology.

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Ultimate Software: Fulfilling a Promise of Putting People First

Ultimate Software logo

Last week, I attended Ultimate Software’s Connections Conference for the first time and to be honest, I wasn’t exactly sure what to expect. Mollie and I travel to about 25 conferences a year. These events keep us up-to-date on the HCM technology space and they tend to cover the same stuff…product announcements, customer success stories, and company updates. And, no surprise, some do a better job than others. But Ultimate was impressive on all three fronts. This provider lives by a mantra of putting people first and it does so throughout both its customer engagements and product enhancements. It is a company that takes customer success seriously – listening to what customers want and innovating across its suite of products.

Here’s what I learned:

Product Updates

Product announcements took three forms: standard updates to address general customer needs, more innovative and forward thinking announcements (Ultimate invests 20% of its revenue in innovation), and new products.

  • Standard announcements include branded notifications and customer referral management to its recruitment solution, crossboarding functionality, mobile enhancements, and web-based adjustments to payroll.
  • Innovation that was announced centers around “Xander”- a people-first AI solution that is embedded in the products to empower managers and teams to improve the decisions they make around their workforce. Xander was inspired by Kanjoya, the disruptive workforce analytics solution that Ultimate acquired last year. It combines statistical data with insight into the emotions and attitudes that managers need to better engage and understand their workforce.
  • New products include the announcement of a Learning Management System (LMS) focused on leadership and a more flexible workforce.

Customer Success

I was surprised to learn that 51% of Ultimate’s employees are focused on services. They want their customers to be successful and offer robust programs for building talent pipelines, certifications, and leadership development programs. In addition to customer service, Ultimate offers activation, consulting, and free access to learning. On average, customers achieve a $3.88 return on every dollar they have spent.

Company Updates

Ultimate is a leading HCM provider. They have demonstrated product leadership, a commitment to customer satisfaction, and breadth in their suite of solutions. Company success includes financial growth and recognition:

  • 27% recurring revenue growth
  • #1 Great Places to Work for technology companies
  • #7 Fortune 100 Best Companies
  • #2 CEO on Glassdoor

Ultimate is fulfilling its people-first mantra through its services, technology, and engagement of its own employees. Mollie’s upcoming Payroll Index Report will provide a more in-depth analysis of Ultimate next month.

 

 

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Why We Do Not Rank Vendors in Our Reports

recruitment marketing index from 2017 displayed on a smartphone

When Mollie and I founded Aptitude Research Partners, we did so because of a massive need in the Human Capital Management market for a more productive conversation between HCM technology users and providers. Our goal from day one has been to move the dialogue beyond feature and function, to what really matters.

The mission of our business is to enable a new conversation where organizations have the insight to better understand their own HCM needs, and providers can clearly highlight their differentiators in order to create stronger relationships and improve the overall employee experience.

The Experience Economy, as we call it, is a delicate balance. Each member plays a distinct role. As far as we are concerned, as analysts, we take on the role of a kind of Sherpa leading both vendors and practitioners up the mountain to new heights.

 (See mountainous logo, etc… now it makes sense!)

It’s a role we take quite seriously.

And unlike the traditional analyst ranking models made popular by Gartner’s Magic Quadrant or Forrester’s Wave,TM  we do things a bit differently. We feel it’s critical to maintain objectivity to truly add value to both parties.

That is why we do not rank vendors in our reports

To-date we have published two Index Reports, one last year on Talent Acquisition Systems and one this month on Recruitment Marketing. The Indexes are an expression of that new conversation.

[Update: Now three Index Reports. Read our latest Index Report on Payroll Solution providers.]

They bring the concepts of the HCM technology landscape (our perspective of the vendor landscape) and an understanding of the buyer’s journey (detailing what matters to practitioners) together. The reports explore key trends, meaningful differentiators, and provide our opinion on how to think about the process of matching organizations with the right provider with a unique look at the top players in the space.

It is NOT a stack-ranked list of providers, or a shopper’s comparison guide. This is important. Instead, it provides an overview of the market and helps companies rethink how they determine their own needs, the evaluation criteria used to select partners, and what providers might meet their unique requirements.

As the market becomes more complex, organizations must take a step back and reexamine what is driving success, and ask new questions around technology decisions. The profiles of providers in these reports describe their attributes along these criteria. The insights are based on survey data from hundreds of technology users, in-depth demos and conversations with providers, and our own experience and expertise in the HCM space.

It is our hope that these reports help to simplify the confusion, and focus in on the real, practical questions users and buyers ask every day as they prepare to evaluate technology.

We’re always listening. Reach out on Twitter and Facebook, on our blog, or by emailing us at hello@aptituderp.com.

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Blog Talent Acquisition Strategies

New Research on Recruitment Marketing: The Aptitude Index Report

recruitment marketing index from 2017 displayed on a smartphone

Last year we started our research and analysis of the recruitment marketing space. To be honest, I wasn’t sure what to expect. The market is fragmented. Buyers have misperceptions. And some providers are misrepresenting themselves. But over the past few months, I have learned a lot. I have learned who the leading providers are, how they are differentiating themselves, and what business value they offer to organizations. Most importantly, I learned that recruitment marketing is the key to transforming talent acquisition and organizations that invest in these systems have a clear advantage when competing for talent.

We are very excited to announce the launch of the Aptitude Index on recruitment marketing today. This is a comprehensive study of the leading providers and their unique differentiators. It is not a ranking report. It is not a traditional buyer’s guide. It is not a magic quadrant. Instead, it provides in-depth analysis of the market and provides information that is not necessarily available in a demo or on a website. We spent over 6 months interviewing customers, demoing solutions, getting briefings from providers and we are ready to share our findings.

If you are still unsure about what the Index is or how you can use it, the information below might help.

Who is Included? We looked at the leading recruitment marketing providers including: Clinch, iCIMS, Jobvite, Phenom People, SmartRecruiters, SmashFly, Symphony Talent, Talemetry, and TalentBrew.

What is it? It provides an overview of the market and helps companies rethink the evaluation criteria used to select partners, and what providers might meet their unique requirements. As the market becomes more complex, organizations must take a step back and reexamine what is driving success, and ask new questions around technology decisions. The final section of this report includes profiles of these recruitment marketing providers describing their differentiators along these criteria. The appendix includes a list of providers in the ecosystem that partner with recruitment marketing platforms.

When does it publish? Today!

Where can we find it? Download your copy here.

Why should I care? Companies spend a lot of money on talent acquisition technology. It is hard to figure out if you are getting value from your providers and what solutions might match your unique hiring needs. Today, the decision to purchase technology is not just about price and product capabilities. It involves services, leadership, culture and viability of these providers.

Check it out and let us know what you think!

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Top Trends from the Recruitment Marketing Index

recruitment marketing index 2017 mockup

Recruitment marketing is one of the most misunderstood markets in talent acquisition. Companies are increasing their investment in solutions that can help them engage and connect with individuals before they apply. But, too often, they don’t know what they are looking for in a provider. It doesn’t help when some solution providers are competing in a market where they do not belong.

Recruitment marketing has been an important research initiative for us this year. We are very excited to launch our latest index report on the recruitment marketing space this Thursday, March 9. Not only do we define what a recruitment marketing platform is but we are providing in-depth analysis and highlighting key differentiators of the leading providers in this space. This is not a ranking report. It’s a report to provide clarity around a market that plays a critical part of any talent acquisition strategy.

Below are some of the Top Trends we found in this year’s report.

The Need for Greater Simplicity: Despite the growth in this market, most companies are unsure how they should leverage a recruitment marketing platform. Many of these solutions are designed for modern marketers, and recruiters can be wary of changing processes and adopting new technology. While the functionality of a recruitment marketing platform is user-friendly, these solutions are not always intuitive for talent acquisition professionals. Too often, organizations invest in a recruitment marketing platform and use limited functionality. Providers need to help their customers by finding the balance between robust marketing functionality and a simple user experience.

Services Take Two Forms: Services are now becoming embedded in many technology deals. Customers have specific expectations about what they will get from their providers and, in order to keep customer satisfaction high, services need to be included. Services are either tactical (running campaigns, events, content) or transformational (change management, process optimization or adoption, and ongoing support).

The Cost is Justified: Some organizations are hesitant to purchase a recruitment marketing platform because of the cost of investing in these systems. Some companies spend more on their recruitment marketing solution than they do on the ATS. The cost becomes justified when considering the value of these solutions in replacing not only disparate technology providers but also services and advertising providers. By consolidating all the spending that goes into attracting talent, many organizations actually find that they are reducing costs.

The Opportunity in the Mid-Market: The majority of the providers in this report are targeting the same market: enterprise and global enterprise. Enterprise companies such as GE, PwC, Schneider Electric, and others have been quick to adopt these solutions. Yet, midmarket organizations with 2500 employees or less have many of the same challenges when competing for talent. These solutions can provide immediate value to the candidate experience, efficiency, and time-to-fill, and it is just a matter of time before providers start to move down market.

Artificial Intelligence is a Must-Have: Artificial intelligence (AI) is not a fad or a passing trend in recruitment marketing. Providers are using AI to help companies stay informed about what content engages candidates, the campaigns that are most effective, and the likelihood of someone applying for a position. These systems use AI to help recruiters and candidates make better decisions around the right fit for their organization – while optimizing cost and results.

Check back with us Thursday to see the nine providers that met with criteria for this year’s report and how you can download your copy for free.

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A Look Back and a Look Ahead

A hiker atop a mountain looking out at other mountains and lakes

Paul Theroux said that winter is a time of recovery and preparation. Now at the end of January, these words feel particularly relevant as we reflect on what we have learned over the past year and plan for the future.

And, no, this is not a political post.

It is a post about HCM technology – a look back at 2016 and a look ahead to 2017.  As companies increase their investment in HCM technology, making decisions around what solutions will drive business outcomes has not been easy. Companies have to navigate a complex and evolving landscape while determining their own unique requirements. They have to consider future shifts in the market while honoring the specific needs of the past.

Below are some of the lessons we learned last year and what we have planned for the next month or two this year.

A Look Back: The Year of Simplicity

  • Simplicity Overshadows Innovation: HCM has become incredibly complex over the past few years. With new categories, new products and new providers, companies feel overwhelmed when evaluating and selecting providers. In an effort to innovate, many solution providers have lost sight of the simplicity that users are looking for in their products. Corporations want solutions that will ensure high adoption, less training, and a positive experience.
  • AI is Still Misunderstood: It is hard to talk about trends in HCM technology without talking about the emergence of Artificial Intelligence in everything from recruitment to learning to scheduling. Both old and new providers are going to market with AI solutions – promising this will be the future of HR. While many of these advancements help to improve the experience and efficiency of HR and recruiters, there is still much confusion about what this means for the future of our workforce.
  • Assessments are on the Rise: The demand for pre-hire assessments has never been greater. Companies face intense pressure in talent acquisition and they need proven solutions that will help them find the best fit. According to research conducted by Aptitude in 2016, nearly 80% of companies of all sizes plan to invest in assessments in the next 12 months.
  • Strategic Payroll is the Key to the Employer/Employee Relationship: Organizations in Aptitude’s 2016 Workforce Management study utilizing third-party payroll solutions had on average 13% fewer payroll errors than organizations using homegrown or manual solutions. Accuracy isn’t just important for ensuring perfect paychecks. If there is ever an audit or a grievance, accurate time and pay data is essential, as is being able to find it in timely manner.

A Look to the Future: The Year of Change

  • Recruitment Marketing Index: We are working hard on our recruitment marketing index that will publish at the end of February. Recruitment Marketing is one of the fastest growing markets and we are excited to provide clarity around the leading providers in the space.
  • Hire, Engage, Retain Survey: We plan to launch our Hire, Engage, Retain survey next month with a heavy emphasis on buying behavior, market trends, and areas of opportunity. We want to make sure we are collecting information that can help provide insights to companies looking to make better investments in 2017.
  • Payroll Index: Payroll has evolved over the past few years and providers are innovating the experience for administrators, managers and employees. Mollie is finishing up our Payroll Index and we are excited to publish that report in March.
  • Aptitude Interviews: Last year, we published the first of our Most Fascinating Leaders interview series. We plan to continue to publish these interviews this year.

So, that’s what we are working on here at Aptitude. We would love to hear from you about any new products, new strategies or new ideas.

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Top 10 Headlines of 2016

HCM technology is a dynamic market and this year did not disappoint. Providers announced new capabilities and products that covered everything from predictive analytics to data visualization to artificial intelligence. Partnerships were created, services were enhanced, and acquisitions were made. And after years of feeling left behind, HCM seems to have finally caught up to other areas of the business in terms of an improved experience and enhanced value.

Looking back, we have compiled the top ten headlines that we covered this year.

  1. Microsoft Acquires LinkedIn: Undoubtedly, the biggest news in the industry was Microsoft’s acquisition of social media giant and recruitment solution, LinkedIn. The acquisition presents an interesting shift in talent acquisition yet leaves many recruiters with questions that are still unanswered.
  2. Randstad Acquires Monster: Randstad announced its plans to acquire Monster for $429 million – that works out to be $3.40 a share (by the way, Monster’s share price was once $91). In my opinion, the acquisition does not disrupt the market or change the landscape in any major way. What it does do is present a few unique opportunities for Randstad.
  3. Salary.com Founders Buy the Company Back from IBM: The company was acquired by Kenexa (now IBM) in 2010 for $80 million and then, it was bought back by the original founding team in 2016 with the goal of helping companies pay competitively, improve efficiencies, and enable pay transparency. Nearly 40% of the original Salary.com team has returned to develop a comprehensive suite of compensation and data solutions as well as training and implementation services. They have returned to try to innovate a market that has gone stale.
  4. Infor Gets $2 Billion from Koch Equity Investments: This investment is one of the largest in technology this year. Infor plans to invest in its cloud-based ERP solution and other industry applications including HCM. We expect to see Infor establishing itself as a leading provider in this market.
  5. SnagaJob Acquires PeopleMatter: SnagaJob began as a job board focused on the hourly retail, hospitality, and food service industry. Its acquisition in 2016 of PeopleMatter brought them a unique combination of hiring, assessment, learning, and scheduling capabilities focused on the same industry segment. Their goal is to hire and schedule best- fit workers using a data-driven approach.
  6. Ultimate Acquires Kanjoya: Ultimate continues to expand into all aspects of HCM including its acquisition of cloud-based workforce intelligence and analytics provider, Kanjoya.
  7. Zenefits Fails Again: After a tumultuous year of compliance and culture issues that led to the resignation of Conrad Parker, Zenefits continues to face more turmoil. For example, in Washington State, Zenefits now has to charge companies $5 per employee.
  8. ADP Innovates Performance Management: With a new take on performance management and an improved manager and employee experience, ADP is reimagining performance management and enabling greater transparency and feedback.
  9. Mercer Acquires Thomsons Online Benefits: Mercer expands further into HCM by acquiring Thomsons Online Benefits.
  10. Recruitment Marketing Becomes an Established Category: SmashFly raised $22 million in Series B funding today led by Bessemer Venture Partners (an investor in Cornerstone OnDemand and LinkedIn). They have also had tremendous success by tripling the number of net new customers (mid-market and enterprise) over the past year. Other providers such as Clinch, Talemetry and Phenom People are offering impressive solutions that make this market one worth watching.
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Employee Recognition: Thinking Beyond the Holidays

finger pointing to a button on a keyboard that reads engage

During the holiday season, most companies find some way to recognize their employees. This recognition may come from gift certificates, company parties, or extra vacation days. And while the intentions are genuine, showing appreciating only once a year does very little to boost morale, motivate employees, or improve engagement efforts.  We found that most companies are still fairly immature in their recognition efforts. According to our recent culture survey, managers lack the right tools and strategies.

  • 52% of leaders recognize employees
  • 44% of companies encourage peer recognition
  • 40% of managers are trained on recognition

Strategic recognition can have a dramatic impact on business results – helping companies improve retention, productivity and performance. In fact, companies with strategic recognition are three times more likely to have an engaged workforce and two times more likely to improve quality of hire. But in order for companies to mature in the way they appreciate employees, recognition needs to be Consistent, Frequent, and Meaningful.

Companies also need to have the right tools and technology in place. One in four organizations plan to invest in social recognition solutions over the next 12 months. The recognition technology market has evolved from a stand-alone module to a suite of solutions that align with performance and engagement. These solutions give hope to a market that is ready for change. Tomorrow during a webinar, I will sharing some of our recent research on recognition and providing some strategies for improving recognition and investing in the right provider. Please join me at 11am EST!

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Assessments: A New Landscape

For whatever reason, the assessment market is hot again. It could be the fact that organizations need help making better hiring decisions. Or, the fact that old and new providers are going to market with more “selection science”, “predictive selection”, or just plain-old assessment solutions. In any case, we found that the number two priority for talent acquisition professionals is investing in pre-hire assessments (just behind improving the candidate experience). And this sentiment certainly rang true at the various conferences and meetings we have had over the past few months. Assessments are on the rise.

But, the market has changed. Organizations have more options today and don’t need to rely solely on stand-alone solutions. With nearly 80% of companies planning to invest in assessments in the next 12 months, this shift brings promise to a market that had gone stale.

We are about to publish new research on the current state of assessments including some of the leading providers in the space. Below are some of the categories these providers fall under:

  • Suite Providers: Broader talent management providers and HCM providers that are integrating assessments into their existing products and offerings. These assessments are often predictive in nature and provide insight about how an individual may perform on the job. Many of the larger HCM providers and talent acquisition platform providers are entering this market by offering validated assessments that are integrated with their existing product suite and embedded in their products. In fact, 48% of companies said that this integration is a key criteria in selection.
  • Stand-alone Providers: Traditional stand-alone assessment providers that offer validated assessments either as online or manual tools. These providers focus on skills and personality assessments and may or may not offer post-hire assessments. When we asked companies to identify their primary reason for investing in these solutions, they cited the need to make better decisions around talent.
  • Next Generation Providers: Innovative providers that are helping organizations identify quality of hire while improving the candidate experience. Currently, 1 in 4 organizations are considering mobile in the key criteria for selecting a provider.

We are excited to launch our assessment research next week and look forward to continuing to follow this dynamic market.

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