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Author: Madeline Laurano

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

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

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

Categories
Blog 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.

Categories
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.

Categories
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.

Categories
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.

Categories
Blog Talent Acquisition Strategies

Talent Acquisition Trifecta: Looking Beyond the ATS

The Talent Acquisition Technology Landscape has become crowded, complicated, and overwhelming. With thousands of providers in the market and new categories that seem to emerge every month, it is difficult for companies to understand what they need to be successful. Not long ago, companies relied solely on their ATS providers or their job boards to manage recruitment. Today, technology choices seem endless. As a result, many companies are making uneducated decisions that can prove costly and damaging to the overall talent acquisition function. In fact, 2 out of 5 companies are either dissatisfied or indifferent to their current technology.

On November 18 at 2 pm EST, I will be presenting some of our latest research on talent acquisition technology focused on the trifecta (CRM, ATS, and Onboarding). This webinar, sponsored by Oracle, is based on new research conducted in 2020 will look at the talent acquisition trifecta and how companies are seeing positive results and measuring ROI by thinking more broadly about their recruitment technology investment.

What is the Talent Acquisition Trifecta:

Talent acquisition deserves its suite of solutions and its technology stack. Strategic talent acquisition is achieved when companies invest in three major technology areas, including a recruitment marketing platform, traditional ATS, and an onboarding system. As the pressure to identify talent intensifies, companies need these systems to handle every stage of the candidate’s journey from a lead (recruitment marketing) to the applicant (ATS) to new hire (onboarding).

Leading companies are beginning to take a step back, reexamining their recruitment processes, and providing more emphasis on the idea of an integrated talent acquisition tech stack. They are finding that the Applicant Tracking System (ATS) as a stand-alone product is not enough. To be efficient and provide a positive candidate experience, organizations need capabilities that engage talent both before applying for a job and after they accept an offer. Consistency in this experience throughout every stage of the candidate’s journey has become essential in talent acquisition.

Why Does It Matter?

Talent acquisition is more complicated than performance, learning, succession, and compensation combined. The buyer is different. The user is different. The experience is different. When organizations invest in solutions that are committed to talent acquisition, the overall talent acquisition strategy improves dramatically. Not only does the task of identifying, attracting, hiring, and onboarding talent becomes less complicated, but organizations are more likely to identify quality talent and improve the candidate experience.

I am excited to share the latest research on the talent acquisition trifecta this month, and I hope you can join the discussion.

Categories
Blog Talent Acquisition Strategies

HireVue Acquires AllyO: A New Look at Conversational AI

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

Companies are increasing their investment in conversational AI for talent acquisition. In research we conducted earlier this year, 36% of companies invest or plan to invest in these solutions this year compared to 7% in 2019. The value goes beyond speed and efficiency. Conversational AI improves the overall experience and helps to keep candidates engaged throughout the process. When recruiting and hiring teams are asked to do more with less, this is non-negotiable.

From an analyst’s perspective, this has been an exciting tech area to watch over the past year. Customers are more innovative in how they use these solutions. Providers are expanding their capabilities, and investors are looking for new opportunities. Companies in a variety of industries are looking at how these solutions can improve their talent acquisition efforts. All eyes are on conversational AI.

And yesterday, HireVue announced plans to acquire AllyO, a leading conversational AI provider that offers interview scheduling, onboarding, and employee experience capabilities. The acquisition helps to strengthen HireVue’s interview and assessment offerings with an improved experience.

Here are some of my thoughts on the acquisition:

  • Expanded Use-Cases: Some of the misperceptions of conversational AI are around the use cases. Companies tend to think that these solutions can help anyone applying for a job or anyone interested in learning more about the company. Conversational AI provides value throughout the entire candidate’s journey from apply to onboard and even employee experience. This acquisition by an interview and assessment provider will allow clients to engage with candidates and simplify scheduling and screening in the interview to hire stages.
  • Omni-Channel Communication: Candidate communication is a priority for companies, but what works for one candidate or one job might not work for another. Companies need a broad set of communication tools to engage with candidates where they are most comfortable, including video, chat, messaging, and text. This acquisition gives HireVue clients a broader set of communication tools to reach talent.
  • Future Acquisitions: The question remains…Is the future of conversational AI in a stand-alone market or part of a larger talent acquisition suite? When one provider gets acquired, others tend to follow. It will be interesting to watch how HireVue integrates with AllyO and how customers respond.

We will keep you posted as we continue to learn more, but overall, this acquisition further validates the staying power of conversational AI and TA’s future.

Categories
Blog Talent Acquisition Strategies Uncategorized

Jobvite Acquires Talentegy: Improving the Candidate Experience Through Analytics

This week, Jobvite announced the acquisition of Talentegy, a leading talent analytics platform designed to help companies improve the candidate and employee experience. This announcement follows a busy summer for Jobvite with the acquisition of Predictive Partner and launch of AI Innovation Lab, which includes new capabilities for analytics. While many of its competitors have halted investments this year, Jobvite continues its commitment to enhancing capabilities and providing a more comprehensive end-to-end talent acquisition platform.

And, the timing is right. The ATS no longer defines the talent acquisition market. Companies need different capabilities to engage talent, improve the candidate experience, and measure their effectiveness. This acquisition is significant because it represents the future of talent acquisition technology and redefines these platforms through the lens of analytics, technology, and partnership.

What is Talentegy?

Talentegy was created to help companies provide more engaging user experiences. It tracks user activity across all talent systems (CRM, career sites, HRIS, etc.) and enables companies to measure what’s working and what’s not working to maximize these experiences. Some of its differentiators include:

  • Companies do not need IT involvement or in-depth integrations. Talentegy brings multiple systems in one view through its Smart Tag capabilities.
  • Talent acquisition leaders receive automated alerts when candidate and employee engagement is not working. They can then adjust their strategies.
  • Talentegy offers surveys that collect feedback on candidate and employee experiences to inform talent acquisition leaders better.

What Does This Mean for Jobvite?

Jobvite has invested in robust data analytics this year, and Talentegy continues that strategy. It will allow Jobvite to help companies understand what needs to change and how to improve the candidate experience. Customers can leverage the Talentegy solution as a standalone product or purchase it as an add-on to Jobvite’s current Analytics offering. Jobvite will also incorporate Talentegy product capabilities into its existing suite of solutions.

Acquisitions are not easy. They can create new opportunities for customers, but they can also create frustrations or disruptions. Add a pandemic, and they become even more challenging. Jobvite has done well. It has made very strategic decisions around its investments and its impact on its culture. It continues to expand its offerings while maintaining a commitment to its employees and customers. And it is helping to make the TA tech industry as exciting as it was in 2019.

Categories
Blog Talent Acquisition Strategies

Modern Hire Acquires Sonru and Expands Its Global Reach

compass with the arrow pointing towards the word talent

Modern Hire announced the acquisition of Sonru, a global video interview provider based in Ireland. This acquisition further demonstrates Modern Hire’s commitment to improving talent acquisition through technology, science, and insights. While some HR technology providers are slowing down this year, Modern Hire is ramping up to build a more comprehensive solution and expand globally.

According to our latest research, interview management (52%) and selection (42%) are the most impacted by COVID-19. As companies transform their talent acquisition functions this year, the value proposition for these capabilities has never been more significant.

I have spent time with both companies (and their customers), and below are my thoughts on this latest announcement.

A Shared Commitment

As most talent acquisition technology providers were scrambling to build recruitment marketing capabilities over the past decade, Modern Hire and Sonru remained focused on interviewing, assessments, and hiring.

When Montage and Shaker International merged to form Modern Hire in 2019, the goal was to help companies improve efficiencies and provide a better experience through deep functionality and science. As competitors (including video interviewing and some traditional assessment providers) lost favor in the market, Modern Hire maintained and strengthened its reputation and customer retention.

We interviewed P&G last year, and it was able to achieve the following results through a partnership with Modern Hire.

Expand the funnel of diverse and highly qualified talent by 7%.

Shorten the interview process by ~2.5 months

Cost savings of 80% per assessment

Sonru has had similar success with steady growth and over 400 customers globally, including a strong presence in Europe and APAC. I met with Sonru in Dublin in 2018, and the cultures of both companies align in, and the way they approach client success is similar.  They have built expertise and improved customer experience in critical areas of talent acquisition.

A Look to the Future:

Science: Modern Hire is built on data and science. It has over 15 million candidates and enables over 1 million hires in over 20 languages in 200 countries and territories. The acquisition of Sonru expands its reach and strengthens its commitment to insights.

Global Footprint: Sonru has a strong presence in EMEA and APAC. Customers come from various industries, including several Fortune Global 500 companies such as DHL, Nestlé, Qatar Airways, Rolls-Royce, UBS, and Westpac.

Comprehensive Solution: We see companies shift courses rapidly from a stand-alone interview and assessment tools to more comprehensive solutions to improve quality of hire and the overall experience. Bringing Sonru under the Modern Hire brand greatly expands Modern Hire’s reach and market share while signaling high demand for the talent acquisition industry.

Over the next year, Modern Hire will be focused on integration and client success. This announcement is more than acquiring new technology. It is an acquisition that will expand its reach while strengthening its client support model and operational model.

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Blog

New Research on Returning to Work: Safety, Childcare, Communication, and Recognition

The “return to work” conversations have left employees feeling vulnerable and concerned about their future. For most companies, questions about childcare, safety, and communication have not been answered. And, as the uncertainty continues, it is having a devastating impact on the employee experience.

Aptitude Research has launched a major study to look at how employers are supporting their workforce during this time and how employees are responding.

We found some significant gaps in what employers and employees had to say around:

  • Productivity: 85% of employees say they are working more during this pandemic, while nearly 50% of employers say that employees are working less.
  • Flexibility: Only 32% of employees are getting more flexibility during this time, even though 55% of employers state that they offer more flexibility.
  • Wellbeing: 62% of companies state that they are investing in employee wellbeing yet, 64% do not feel valued by their employer.

One thing that both employers and employees agree on is the amount of stress in the workforce. 71% of employees state that they are more stressed during this year, and 95% of employers agree. Employers need to rethink how they are supporting employees today, including communication, safety, and wellbeing. I am excited to share the first look at this research this Wednesday, July 15, at 2 pm EST.

Below are a few of the topics:

Employee Safety: Although 49% of employers say that employee safety is their top priority,  nearly 40% of employees do not feel safe returning. When asked what companies are doing to ensure safety, 58% are providing masks and protective equipment, and only 21% have redesigned their office spaces to provide a safer environment. Most companies are frequently communicating with employees about safety, but few are taking action.

Childcare/Homeschooling: Companies can’t talk about “returning to work” until they address the reality of “returning to school.” And, most families are still uncertain about the future of childcare. Employers do not typically address childcare issues, and most employees do not feel safe talking about their needs with their managers. In today’s environment, companies must think about how childcare impacts the employee experience. Currently, 1 in 3 employees do not feel comfortable talking about childcare, and only 11% of employers ask employees how to support their childcare needs.

Communication: One of the most basic strategies companies can use today is to communicate frequently with employees. Seventy-three (73%) of employees we surveyed said that the only communication they are receiving is email, and 60% said they would prefer other forms of communication. Companies need to rethink the tone, frequency, and method of communication.

Recognition: One of the most concerning findings from this research study is that 61% of employees do not feel recognized today, and 78% do not feel recognized by leadership. Employees work long hours, adjust to change and new technology, and sacrifice their health and time with family. Yet, most employees do not feel appreciated. 1 in 2 employees has not received any recognition since the pandemic started.

These topics impact employees both personally and professionally. I hope you will join us for this important conversation, and I am excited to share this latest research project with you.

Categories
Blog Talent Acquisition Strategies Uncategorized

New Research: Conversational AI in Talent Acquisition

One of the biggest changes in talent acquisition technology over the past year has been the uptick in conversational AI. Companies are looking for better ways to communicate with candidates, improve efficiencies, and offer simplicity- especially through the past three months.

I am excited about Aptitude’s latest research report on this topic in partnership with Paradox. Currently, 38% of companies are investing in conversational AI compared to 7% last year.

Below are some of the key findings from this research:

1. Conversational AI is more than a chatbot. Many of the misperceptions around conversational AI stem from the belief that it is simply a chatbot. Chatbots 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. In fact, 39% of companies using conversational AI state that the most significant benefit is improving the candidate experience (Aptitude Research). By referring to this technology as “chatbots,” companies miss the many use cases for engaging talent and the numerous benefits beyond saving time.

2. Companies that use Conversational AI see high adoption and satisfaction. Low adoption and poor satisfaction are two common complaints with talent acquisition technology. According to Aptitude Research, 79% of companies see the value in their conversational AI investment. One reason is that these companies see greater adoption across their talent acquisition teams. While companies are using only 3% of their ATS functionality and only 2% of their recruitment marketing functionality, nearly 60% of companies are using all of the capabilities in their conversational AI solutions (Aptitude Research). Conversational AI is intuitive and straightforward when compared to many other areas of talent acquisition technology.

3. The Conversational AI market is growing. Conversational AI is quickly becoming a crowded market; many providers seem to have a chatbot, which creates confusion and misperceptions about how to evaluate and select a partner. While several of the ERP and ATS providers have chatbots or are looking to build chatbots, conversational AI solutions are few and far between. Companies that want to transform talent acquisition through better engagement and an improved experience are looking at stand-alone providers. According to Aptitude Research, nearly 60% of companies are looking at stand-alone providers over their ATS providers.

4. The investment remains steady during this global pandemic. While other areas of talent acquisition technology have been slowing down during today’s global pandemic, the investment in conversational AI remains strong, with over 30% of companies still investing or planning to invest in these solutions in the next year. As companies face new realities with remote recruiting, candidate communication, and the future of work, conversational AI solutions can support companies through this uncertainty.

5. Companies should look beyond candidates. When considering conversational AI, most companies think about the apply process or the screening process. Yet, many companies are expanding their use of these solutions into areas such as interviewing, onboarding, and the employee experience. The benefits of consistent communication, real-time feedback, and 24/7 access should benefit more than candidates. It should reach employees and HR teams as well. Companies are exploring the use of conversational AI to support the full employee experience. McDonald’s just announced plans to hire 260,000 people this summer and conversational AI is a big part of its’ story.

6. Companies across many industries are leveraging these solutions. Conversational AI is disrupting many industries. The belief is that these solutions are only suited for retail and restaurants. Aptitude Research found that the most significant growth was also in financial services, healthcare, and aerospace.

This report is available today and includes the business impact of conversational AI, use cases beyond talent acquisition, and a McDonald’s case study.

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