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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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Blog Talent Acquisition Strategies

It is a Good Time to Be in TA Tech: Investments, Acquisitions, and Conversational AI

Since we last published the Aptitude Talent Acquisition Index Report last month, providers have taken more investment from venture capital and private equity firms, increased partnerships and alliances, and acquired smaller providers. If you are interested in TA tech, make sure to follow George LaRocque and WorkTech for all of the latest news on investment in this space. Investment increased significantly in 2020 and continues to be a focus in 2021. Unicorns no longer look like unicorns since these mega-rounds of investment have become the norm.

But, how important is investment to buyers? Should it be? According to Aptitude Research, only 13% of companies identified the amount of money a provider has raised as key criteria in decision-making. We think companies should consider a provider’s investment history for the following reasons:

  • It may impact leadership and retention for the provider.
  • Providers may be able to execute on their product roadmaps, or they may change their product roadmaps based on the investor.
  • Customers may experience some growing pains that will impact product, culture, and support.

Investment is not the only big topic in TA tech. Mergers and acquisitions have also increased in the past year. Providers are looking for partners to help expand their global footprint, customer base, or product portfolio. Conversational AI, analytics, video, and branding were driving many of these decisions. ATS providers are looking for opportunities to provide customers with better experiences and more capabilities. A few of the acquisitions included:

Some ecosystem providers and Core HR providers are laser-focused on conversational AI this year. Ceridian announced the acquisition of Ideal. Stepstone announced the acquisition of Mya. And Pandologic announced the acquisition of Wade and Wendy. Pre-pandemic, HireVue acquired AllyO and AMS acquired Karen. Conversational AI is clearly becoming the future of TA tech, and we found that companies that invest in these providers improve efficiency, experience, and quality. The beauty of conversational AI is that it starts working for companies on Day 1, and companies are expanding the use cases into onboarding and employee experience.

We have been busy working on new research on conversational AI, so these acquisitions are top of mind, and I have a few early thoughts…

  1. Chatbot vs. Conversational AI: Many of the misperceptions around conversational AI stem from the belief that it is simply a chatbot. Chatbots are transactional. They provide value in giving responses to candidates in real-time. These responses are typically canned answers to basic questions delivered through text. Conversational AI offers a more sophisticated and more personalized solution to engage candidates through multiple forms of communication. Conversational AI gets smarter through use and connects recruiters and candidates in a more meaningful way. 39% of companies using conversational AI state that the most significant benefit is improving the candidate experience (Aptitude Research). Companies must be careful to recognize the difference between providers offering canned communication and transactional TA and those that are truly conversational and engaging.
  3. Market Potential: Conversational AI is still a growing market. The demand has increased, but companies are still figuring out what they need and what problems these solutions can help solve. The potential is there. Acquisitions (done right) can help some providers reach that potential by empowering them with more resources and expertise to build solutions that companies need. Acquisitions (gone wrong) can have the opposite impact. They can negatively impact potential, create obstacles, and make it difficult for providers to grow. Companies should carefully consider what these acquisitions will mean for existing customers and prospects.
  5. ATS Providers: While many ATS providers have made acquisitions over the past year, few have invested in conversational AI. SmartRecruiters is one exception with the acquisition of Jobpal. It will be interesting to see how the ATS providers respond to these recent acquisitions and look at a build, buy, or borrow strategy for conversational AI moving forward.

We will share our latest recent on conversational AI in the next few weeks, but these recent announcements have given me a lot to consider, and I am looking forward to following this market this year.

Categories
Blog Talent Acquisition Strategies

New Research: Exceptional Experiences in Talent Acquisition

Global TA Day: A Love Letter to Recruiters
Global TA Day: A Love Letter to Recruiters

Experiences define and shape our economy. Consumers are more likely to make additional purchases, refer friends, and remain loyal to a brand when they have an exceptional experience – and a negative experience can wreak havoc on a brand. According to the White House Office of Consumer Affairs study, a dissatisfied customer will tell nine to fifteen people about their poor experience, and approximately 13% of your dissatisfied customers will tell more than 20 people. Companies realize the impact that a positive or negative experience can have on their brand and business success, and have invested in dedicated roles, resources, and technology to help improve customer experiences.

But, this level of attention is not given to the candidate experience. According to recent studies by Aptitude Research and Talent Board:

  • Fifty-eight percent (58%) of applicants who are screened out never receive a response (Aptitude Research)
  • One in three recruiters are feeling more burned out this year than ever before (Aptitude Research)
  • From job applicants who had applied over two months ago, 61% had not heard back from the employers (2020 Talent Board Candidate Experience Benchmark Research)

Although the talent acquisition experience has improved over the past few years, it still creates frustration and inefficiencies for both candidates and employers. And while 68% of companies are committed to improving these experiences in 2021, they often fall short.

So what exactly is an exceptional experience in talent acquisition? How can companies create experiences that feel meaningful and personal for candidates through every stage of their journey? Aptitude Research and The Talent Board partnered with Symphony Talent on new research to help define exceptional experience, understand gaps in expectations, and the impact of technology. Below are some of the key findings:

Sustaining an Exceptional Experience Takes Work: Over 1,000 companies have participated in the Talent Board Candidate Experience Benchmark Research Program to date, but only five companies have won CandE Awards eight-to-nine times out of the 10 years since the program was founded — four North American companies (AT&T, Colorado Springs Utilities, Deluxe, and Lockheed Martin), and one in EMEA (Intel). In 2020 alone, employers had to navigate a series of external challenges including COVID-19, while also dealing with a cascade of resulting internal hurdles (budget cuts, reduced recruiting plans and talent investments, and shifts in business).

Companies Should Start With the Employer Experience: Candidates will not have a positive experience if recruiters are unhappy and disengaged. If hiring teams are overworked and overwhelmed, the candidate experience will be negatively impacted. Today’s recruiting and hiring teams are facing an experience crisis and remote work has created additional stress. According to Aptitude Research, recruiters spend up to 16 hours per week scheduling calls and 10 hours looking for candidates in their ATS. Additionally, 32% of recruiters surveyed are looking for other career opportunities. Companies that want to improve their external experiences need to look internally first.

Communication Is the Biggest Missed Opportunity: Candidates want to understand their progress and know where they stand. Companies need to better communicate with candidates earlier in the process when they are first researching the organization, provide a process indicator during the application process, and communicate next steps post-application. Currently, 58% of candidates do not receive any response (Aptitude Research).

 Exceptional Experiences Directly Impact the Bottom Line: A poor candidate experience impacts business performance, including brand and customer retention. Organizations that have improved talent acquisition experiences over the past year have seen improvements to NPS scores, customer retention, and employer brand. Companies that provide a more engaging and human experience see a direct impact on business performance, including a two times improvement on NPS scores.

Companies Are Increasing Their Investment in Automation: Automation can help improve experiences for both employers and candidates. While not new to recruiting, automated processes continued to increase this year to support leaner recruiting teams and more applications, especially with machine learning and other smart technologies. The reality is that most candidates who are interested in a job will research and apply, but never move forward. Most will have little to no human interaction and will be dispositioned automatically. Automation can help provide a fair and equitable experience, and allow companies to provide consistent communications to every candidate.

 

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Blog Talent Acquisition Strategies

Ethical AI: What TA Leaders Need to Know

positive feedback, writing online review with 5 five star rating, reputation management concept

It’s hard to find a conversation in TA tech that does not include AI matching. ATS providers are enhancing their capabilities to connect jobs to candidates and candidates to jobs. Providers like HiredScore and Eightfold have gained momentum in the past year and sourcing providers are going to market more aggressively as matching providers. In our latest TA study, 34% of companies stated that they are using some type of matching, and they are two times more likely to improve diverse sources and three times more likely to improve quality of hire.

Although companies understand the value of AI matching, they do not always know where to go to find a technology partner. Companies and buyers that are committed to ethical AI are looking at stand-alone providers, while companies focused on efficiency AI are looking at their ATS providers. Companies must consider what data they are using to match, the providers’ approach to ethical AI, and what skills are available on candidate profiles.

Last week, I joined Tim Sackett and Tyler Weeks to talk about the growth of AI matching, the importance of ethical AI, and what companies should consider. Here are a few of the questions we discussed:

  • Do TA leaders care about ethical AI? Why should they?
  • What should companies think about when evaluating ethical AI providers?
  • Is it technology providers’ role to bring ethics to TA?
  • What impact will the AI regulations in Europe have on TA tech?

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Blog Uncategorized

Improving the Employee Experience through Corporate Social Responsibility

I recently shared new research on how companies can improve the employee experience with Corporate Social Responsibility (CSR). CSR is the policies and practices that organizations put in place to impact the world positively. It can include volunteering, activism, philanthropy, and donations. After the events of 2020, people want to give back, and they are looking at their employers to help.

Some companies have responded in a big way:

  • Salesforce: Salesforce helped to ship PPE around the country to health care workers. It also donated $200 million and 1 million hours of volunteer time to support racial equality.
  • DoorDash: In partnership with the United Way, DoorDash donated 1 million pounds of groceries to people in need.
  • New Balance: The retailer shifted its model from shoes to masks to support healthcare workers during the pandemic.
  • Deluxe: Deluxe shifted to virtual volunteer events and raised $235,000 in two weeks.

CSR is a critical part of the employee experience and can help companies recruit, engage, and retain talent. Although 1 in 3 companies are increasing their investment in CSR this year, most programs fall short. Companies are not always sure how to operationalize CSR and engage employees in a meaningful way. They often include CSR messaging on their career sites or employee portals but do not take a strategic approach to communicate opportunities. Only 13% of companies share volunteering opportunities regularly.

For companies prioritizing activism, CSR, and volunteering, below are a few recommendations:

  • Establish Shared Responsibility: For 42% of companies, HR is the primary owner of CSR. The approach is a top-down approach, and most HR professionals do not receive the support, tools, or resources to execute these strategies. Companies serious about CSR should operationalize their model and include champions, employees, and executives to create their programs.
  • Improve Communication: Most companies rely on email to communicate volunteering opportunities. Yet, 61% of companies have not asked employees about volunteering in the past year. Companies need to be transparent about their CSR efforts. They should track engagement and communicate with employees consistently. They should explore video, text, surveys, and dedicated sites as options.
  • Invest in Technology: Only 1 in 5 companies are investing in solutions for CSR or philanthropy today. Technology can help share information on volunteering and giving, track employee engagement, enable Employee Resource Groups (ERGs), identify opportunities, and automate payroll deductions.

A strategic approach to CSR can help create more meaningful experiences for employees and ensure they feel connected and engaged during a year of uncertainty. Companies that want to make a real impact will do more than make statements about philanthropy and start to make commitments.

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Blog Talent Acquisition Strategies

Talent Analytics Part 2: Efficiency

Today, I am joining Eric Sydell, EVP of Innovation at Modern Hire, on a webinar to discuss our latest research on talent analytics. We will be sharing the challenges with data and how companies can use a framework to turn goals and metrics into actions.

One of the topics we will cover is efficiency. Sixty-two percent (62%) of companies state that they are facing pressure to fill positions quickly. Talent acquisition professionals are recruiting, but with limited resources and, in many cases, limited staff. Forty-six (46%) of companies are experiencing layoffs within their talent acquisition teams. Some companies have eliminated specialist roles that may include candidate experience managers and data scientists, while others have reduced the number of coordinators to help with administrative tasks.

Goals

Talent acquisition professionals are under pressure to balance a heavy workload without support, and they must remain flexible. One in four companies stated that it still takes over three months to fill positions.

Metrics

Efficiency metrics are the most common and straightforward metrics that organizations track. Yet, they can vary greatly throughout the organization. Some metrics include:

  • Time to apply: The time it takes from when candidates learn about an opportunity to when they apply for a job.
  • Time to interview: The time it takes from when candidates apply to when they get interviewed.
  • Time to fill: The time it takes from when a job is posted to when it is filled by a candidate.
  • Conversion rates: The rate at which candidates convert from different stages in talent acquisition, from learning about a company to applying for a job, scheduling an interview, and accepting an offer.
  • Recruiter Productivity: The productivity of recruiting teams and time spent on administrative tasks, including finding candidates and scheduling calls and interviews.

Insights

Once companies collect metrics on efficiency, they must understand what impact this has on talent acquisition efforts and why efficiency is a challenge. Below are some considerations to gain better insights on efficiency gaps.

  • Identifying where talent acquisition slows down: Companies should look closely at where inefficiencies occur and if hiring managers or other key stakeholders are involved. Are there delays with scheduling calls and interviews or with communication between recruiters and hiring managers? Understanding where and why talent acquisition is slowing down can help companies improve efficiency.
  • Understanding decision-making: Talent decisions are made differently at every organization. Companies should look at the data they have on hiring decisions and determine how these decisions are made and based on intuition or accurate data.
  • Communicating with candidates more effectively: Inefficiency is often the result of poor communication with candidates. By improving candidate engagement and outreach throughout the process, companies can shorten hiring times.

Action Steps

Companies that gain insight into their efficiency gaps can take the following actions:

  • Invest in candidate-first solutions: Candidates want simple and intuitive solutions that provide better engagement and efficiency. Companies that consider solutions designed with the candidate in mind will see overall improvements to efficiency gaps.
  • Create a seamless experience: Companies must ensure that their hiring solutions are seamless, integrate with the ATS, and not make candidates go from place to place to click links, enter information, or re-enter information to complete stages. Companies must ask for is job-relevant or otherwise necessary and predictive of job success and provides results and recommendations to hiring teams in a cohesive, logical way.
  • Invest in scheduling: Interview scheduling takes recruiters, on average, sixteen hours a week to complete. Companies need a more strategic approach to scheduling and should consider solutions that automate the scheduling process to save time and improve recruiter productivity.

The research report covers candidate experience, DEI, efficiency, and quality of hire. I hope you can join us today!

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Blog Talent Acquisition Strategies

New Research: TA Buyer’s Guide Top 10 Findings (Part 1)

Eightfold AI: What’s Next?
Eightfold AI: What’s Next?

I am excited to announce that we published our annual talent acquisition buyer’s guide report this week sponsored by Verified First. It serves as a resource for anyone interested in learning more about the trends impacting technology and the requirements critical to making decisions. The talent acquisition technology market is constantly changing, and staying ahead of trends is becoming more challenging. Organizations need to evaluate providers based on a new set of criteria that encourages partnership and collaboration between the business and the solutions. Trust in the company, product, and roadmap is a critical part of the buyer’s journey and a key differentiator when evaluating solutions.

Evaluating technology is not as easy as it used to be. Ten years ago, the talent acquisition technology market was comprised of multiple providers offering clear products in defined categories such as background screening, job boards, applicant tracking systems (ATS), assessments, and onboarding. Today, the market has exploded with hundreds more providers and new ones entering each month. Additionally, the lines have blurred. Many of these providers offer several solutions in talent acquisition or have created new categories of technology, making a buyer’s decision much more complicated.

Below are 5 top findings from this research:

  • Efficiency is driving decisions. Companies have stated that improving efficiency is the key driver when evaluating technology providers. Companies are looking at providers to improve time to fill, increase recruiter productivity and improve overall decision-making in talent acquisition technology. Improved efficiency benefits the candidate and the employer by helping candidates receive communication, stay informed and move through the process.
  • Talent Acquisition Technology Investment Continues to Increase. Although some technology investment has slowed down over the past year, one in four companies are increasing their TA investment, and 44% of companies invested in new technology in 2020. Companies are looking at providers to support the challenges they face but often do not consider how they will work with the existing technology infrastructure.
  • Companies need to measure ROI early. Only 1 in 2 companies measure the ROI of their technology investment. As talent acquisition is being held more accountable to the business, showing the value and the timeframe is critical. Measuring and demonstrating ROI is a crucial part of any technology decision and does not need to happen after a company makes its investment – it should actually be considered before.
  • True partnership helps to improve adoption. Adoption is a challenge in talent acquisition technology. Only 3% of companies use all the ATS functionality and only 2% in their CRMs. Companies need to look at how their provider will partner with them during implementation and how they will make that relationship stick after year one, year two, and beyond. Companies should consider their change management resources, and customer advisory boards and councils, customer feedback sessions, and “Idea Labs,” where customers are free to voice concerns and connect with other customers.
  • Companies are looking to replace solutions this year. The top areas of TA tech replacement this year include ATS, CRM, background screening, and assessments. Before evaluating technology options, organizations should conduct an internal needs analysis and be prepared to answer some questions internally. Companies need to identify and communicate expectations before evaluating solutions. Before signing on with a provider, companies should ask how confident the provider is in meeting these expectations and what plans they have in place to meet and even exceed them.

TA buyers face more difficult decisions today with new providers, new categories, and new pressures. The TA tech market changes rapidly, and companies must balance their own unique requirements with the providers that will partner with them. This report can help companies at any stage of their TA tech buyer’s journey.

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Blog Talent Acquisition Strategies

The Future of AI Matching: A Conversation with Tim Sackett

It is hard to find a conversation in TA tech that doesn’t include AI matching. ATS providers are enhancing their capabilities to connect jobs to candidates and candidates to jobs. Providers like HiredScore and Eightfold have gained a lot of momentum in the past year. While SeekOut, a search and sourcing provider, announced that it raised $65 million in Series B funding expanding its matching capabilities. All eyes are on AI matching. In our latest study, 34% of companies stated that they are using some type of matching and they are two times more likely to improve diverse sources and three times more likely to improve quality of hire.

Although companies understand the value of AI-matching, they don’t always know where to go to find a technology partner. My friend, Tim Sackett (a true expert on all things TA) and I had a discussion on AI matching last week.

Here are some of the questions we addressed:

  • Should AI matching come from an ATS provider or a stand-alone provider?
  • What are the benefits of AI matching? Why is everyone interested?
  • Are providers truly considering ethical AI? Are companies?
  • Should matching be employer-driven (matching candidates to jobs) or candidate-driven (matching jobs to candidates)?
  • What else is going on in TA tech today?

We would love to know if you agree or disagree and what your thoughts are on the SeekOut announcement or TA tech.

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Blog Talent Acquisition Strategies

Case Study: Iceland Uses Automation to Improve the Candidate Experience

Earlier this year, we published a report on candidate-first automation and the importance of trust, feedback, connection, and inclusivity. For most companies, the value of automation is perceived through the recruiter and hiring manager experience. And, the candidate is often ignored. Recruitment automation is more than simply moving candidates through the process quickly. Automation should enable companies to communicate in a meaningful and inclusive way, personalize all feedback, and build trust between candidates and employers. Companies that invest in automation and view it through a candidate-centric lens are two times more likely to improve the candidate experience.

A candidate-first approach to automation does not replace the human experience. It enhances it by giving candidates the confidence and the support they need through every stage of talent acquisition. To achieve this goal, companies need to shift their view of automation and invest in fair, consistent, and human.

This report included a case study on Iceland, a British food retailer with over 900 stores in the UK and a global export business that employs over 30,000 people. In early 2020, Iceland received over five hundred thousand applications in 4 months. It needed to automate candidate screening but found that few solutions ensured a positive candidate experience.

Iceland had several objectives when evaluating automation providers, including:

Save store managers’ time: It wanted to deliver a level of fairness to candidates and a level of consistency for store managers to reduce the amount of time they spent on recruitment. Iceland saved over 8,000 hours in screening time over three months, equivalent to £170k in savings.

Improve the candidate experience: Iceland also was committed to improving the candidate experience. It wanted to give candidates more consistency and create greater engagement. And, more importantly, it wanted to give something back to the candidates.

Iceland felt a duty to provide candidates with feedback. It partnered with PredictiveHire  to help candidates understand their strengths and development needs. 100% of applicants received feedback, and as a result:

  • 80% are more confident
  • 77% are more likely to recommend Iceland as an employer

Candidates are engaged far more with the brand and feel like they are getting something back. They genuinely feel like the process is more human which is reflected in 99% positive candidate sentiment from the more than 50,000 applications a week.

This latest research featuring Iceland, Automation with Humanity: Putting the Candidate First, is available on our website.

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Blog Talent Acquisition Strategies

Talent Analytics Part 1: Candidate Experience

We published our latest research today, Redefining Success: Talent Analytics for the Future, sponsored by Modern Hire. Talent analytics is not a new topic in HR but I have been spending a lot of time thinking about why science doesn’t play more of a role in our talent acquisition decisions. Even with increased pressure and more accountability, we still make decisions based on guy rather than data.

One of the reasons that I am excited about this report is because it includes a framework for taking goals and turning them into actions for efficiency, candidate experience, quality of hire, and DEI.

Here are recommendations for companies looking to improve the candidate experience this year using this framework.

Goals

The candidate experience is a priority for companies looking to compete for talent, enhance their brand and strengthen customer retention. Despite an increased focus on experience, companies still struggle with understanding how to improve it. Companies need to create a candidate-first approach to better engage candidates and ensure quality of hire.

Metrics

Even with increased unemployment, the candidate experience continues to be a priority for organizations, and the way that companies manage their workforce during this challenging period will impact how candidates view their brand. As a result, the candidate experience needs to focus on safety and communication but also on efficiency.

  • Candidate satisfaction: How satisfied are candidates with various stages of the talent acquisition process?
  • Candidate safety: Are candidates safe, and is their health and wellbeing considered during the screening, interviewing, and hiring phases?
  • Candidate engagement: Are candidates engaged throughout the process?
  • Candidate feedback: Are you collecting data on the candidate experience and asking for feedback through the process?
  • Time-to-fill: Are you moving candidates along through the process?
  • Time-to-respond: Once you decide if a candidate does not move forward, how long does it take to respond?

Insights

Companies can improve candidate experience when they enhance communication and collect feedback. Companies state that the candidate experience is a priority, yet communication with most candidates has remained unchanged. Below are some considerations to gain better insights:

  • Communicate throughout the entire candidate lifecycle: Communication is not an isolated activity and needs to integrate with existing recruitment strategies so that it is frequent and consistent.
  • Interrupt bias early: Certain attributes in a resume can introduce bias into the talent acquisition process early. Companies need to remove those attributes and stop bias early in the process. Blind screening and blind interviews can help companies to apply an equal experience to all candidates.
  • Use objective data: Companies tend to decide on candidates based on the resume or those attributes they recognize. Without objective data, not every candidate is going to get a fair opportunity.

Action Steps

Companies that want to improve the candidate experience should:

  • Understand what candidates want: Companies must consider the unique expectations and experiences of candidates. Collecting feedback and going through the candidate journey can help companies with a candidate-first approach to automation.
  • Use data to build trust: Both employers and candidates need to trust the data and methodologies for the technology they are using. Companies looking at automation should consider providers that will partner with them and provide transparency.

As companies look to improve the candidate experience, they need a better understanding of what data they have and what insights they can gather to drive change. If you are interested in a new approach to talent analytics, this report will help you get started.

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Blog Workforce

Workday Acquires Peakon: Employee Experience Matters

Yesterday, Workday announced plans to acquire Peakon, an employee engagement provider, in an all-cash deal worth $700 million. Peakon is an employee engagement survey platform that collects feedback and measures employee sentiment in real-time. For anyone following the engagement survey market, this acquisition is no surprise. Companies spend millions each year on surveys, and pressure from C-level executives has increased this investment recently. If an executive is concerned about the company brand, personal reputation, or employee retention, surveys are the go-to response.

Over the past few years, companies have switched from the expensive, traditional consulting model (Aon, Willis Towers Watson, and Gallup) to SaaS providers that offer real-time insights and a better experience. Providers like Glint, CultureIQ, CultureAmp, SurveyMonkey, Perceptyx, and of course Qualtrics have thrived in this market. And 2020 was no exception. Even the traditional consulting firms have invested more heavily in technology. Willis Towers Watson (now merged with Aon) has experienced significant growth in its pulse surveys and engagement survey platform.

But, the engagement survey market is not just a tech play. It requires deep domain expertise, services, and some significant hand-holding as companies look to take these insights and turn them into action. Some providers have focused so heavily on the tech component that they lose sight of the partnership. Providers that have balanced both will see the most success (CultureiQ and Perceptyx are two examples).

So, what does this acquisition mean for the market?

  • 2020 has accelerated the demand for a better experience. The events of 2020 have forced companies to engage with employees in new ways. According to a study we did this summer, 1 in 3 companies increased their investment in surveys. And, many companies had to think differently about the insights they were collecting. Questions around safety, childcare, and mental health are a critical part of the employee experience today.
  • More acquisitions will follow. Qualtrics also made news this week and went public, just two years after SAP acquired it for $8 billion. All eyes are on engagement surveys and people analytics right now and providers like Oracle should be evaluating their options.
  • Engagement surveys need to align with business priorities. One key differentiator of Peakon is that companies can integrate employee engagement data with other key performance indicators like customer retention in one dashboard. The future of engagement surveys is not just in measurement but in the actions and alignment with overall business priorities.
  • Acquisitions are part of Workday’s strategy. Peakon is undoubtedly not the first major acquisition that Workday has made in the HCM space. It continues to become a leading provider in this market through its development, partnerships, investments, and acquisitions. I don’t expect this to be the last major announcement from Workday this year.
  • Partnerships will continue to be a differentiator. The speed and engagement that these next-generation survey providers offer are valuable for any company looking to engage its workforce. Still, companies should not lose sight of the importance of partnership. Understanding what support, expertise, and change management is available should be an important consideration when evaluating these providers.

The next year will be interesting. Companies will continue to invest in these providers, and we can expect more acquisitions. But, whatever happens, this is an impressive market to watch, and it is reassuring to know that companies are committed to understanding their workforce.

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