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New Research: Talent Acquisition Trends 2018

We launched our talent acquisition survey last week and we have been busy analyzing the results. Forty percent (40%) of companies are increasing their headcount this year and as a result, talent acquisition leaders are looking closely at what strategies and technology they have in place. Background screening, internal mobility, candidate communication, and recruitment marketing are all recurring themes as we look at the early findings. Especially in high-volume industries such as retail and hospitality, organizations need solutions that will help them quickly identify quality hires and provide a more meaningful candidate experience.

We have lots of new research and data we will be publishing over the next few weeks but here is a sneak peek at some of the early findings:

Background Screening Has the Greatest Impact on Quality of Hire: Over 50% of companies said that background screening solutions have the greatest impact on quality of hire. Screening solutions help organizations make better decisions around the talent they are bringing into the organization. Most companies are investing in criminal background checks as well as verification of employment and education. Over 60% of companies view screening as so strategic that they are moving it up in the process.

LinkedIn is Losing Some Love: Companies are still leveraging LinkedIn and identify it as top area of investment for the next year. But, some companies are beginning to question the value of the tech giant. One in 5 companies that use LinkedIn do not believe it is effective at sourcing passive candidates. One in 4 companies that use LinkedIn believe it is too expensive and are unsure about alternative sourcing solutions.

Candidate Communication is Still Immature: It is the most basic area of talent acquisition. Yet, most companies still fall behind in their ability to communicate effectively with candidates. Only 11% of companies are providing transparency on the status of the application (a significant decrease from 32% in 2017) and only 24% of companies are providing candidates with information relevant to the job.

ATS and Recruitment Marketing: More companies are looking at the value of one provider for recruitment marketing and ATS. One in 4 companies use a single provider for both and these providers cited a consistent experience, bundled pricing, and integrated data as major drivers for investing in end-to-end talent acquisition. We are expecting to see an acquisition or two in the recruitment marketing space in the next year or two.

Yes, we have lots of data on AI, GDPR, Blockchain and all the other trends you might expect in talent acquisition. If you would like to schedule some time to talk through our early findings, we would love to hear from you!

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We Are a Tech Company

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

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

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

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

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

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

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

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Improving the Candidate Experience Through Better Communication

Two tin cans connected by a string

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

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

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

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

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

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

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

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Why iCIMS’ Acquisition of TextRecruit is a Big Deal

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

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

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

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

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

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

 

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New Research: Talent Acquisition Systems 2017

talent acquisition systems 2017 mockup

It has been over a year since we published our first ATS Index report and what a year it has been. Over the past year, providers have enhanced interview management capabilities, dabbled with Artificial Intelligence (AI), provided more options for employee referrals, and improved analytics and dashboards. It has been a busy time.

The biggest shift in the past year is the realization that the Applicant Tracking System (ATS) as a stand-alone product is not enough. In order to be efficient and provide a positive candidate experience, organizations need capabilities that engage talent both before they apply for a job and after they accept an offer. The providers we included in this year report offer much more than an ATS and several offer end-to-end talent acquisition solutions. The list of this year’s providers includes: ADP, Cornerstone OnDemand, gr8 People, Greenhouse, IBM, iCIMS, Jobvite, Lever, Newton Software,  Oracle, PeopleFluent, SAP, SmartRecruiters, Symphony Talent, and Workday.

We have made some significant improvements to this year’s report including

  • Integration: As more providers are offering ecosystems and marketplaces, we included more information on how providers are integrating with third-party providers and what their platforms offer for integration and support.
  • Security: Few providers in this report can truly support a global enterprise client. As companies look to expand globally, we believe that security is an important differentiator.
  • Advanced Capabilities: We evaluated providers based on some of the advanced capabilities we are seeing in the market, including events management, internal mobility, employee referrals, and CRM capabilities.
  • SWOT Analysis: We replaced the customer journey section of the report with a SWOT analysis to show where providers have strengths, weaknesses, opportunities, and threats.
  • Investment: Many of the providers in this report have received a considerable amount of investment. We called this out in the beginning of each profile, as financial viability is a key differentiator.
  • More Analyst Insight: We included more insight into what impressed us about each provider and what companies should consider when evaluating these solutions.
  • New Providers: This year gr8 People and Symphony Talent were both included in this report.

We are excited for all of the change in the market and we would love to hear any feedback on the report.

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The Seven Year Itch: What Will Happen to Taleo’s Customers in 2018?

businessman selecting change from a panel with other business options

2018 promises to be a pivotal year in talent acquisition technology. I’m not talking about the amount of new providers, AI discussions, or strides to improve the candidate experience. I’m talking about the fact that many of Taleo’s (now Oracle) key customers will be nearing the end of their seven year contracts. It is the elephant in the ATS room these days. Providers are eagerly anticipating some type of mass exodus of enterprise clients and hoping to gain more market share. But the question remains: are these customers really going to leave Taleo, and if so, where will they go?

The answer is not as simple as we might think. Sure, we can expect some customer churn. Today’s companies have options and the next generation of ATS providers have been building out capabilities and trying to move up market. Not to mention Workday’s growing presence in ATS deals. But the reality is that many companies are planning to stick with Taleo. They need a provider that can support a global enterprise organization, provide the scalability and security they need, and one that can integrate with their HRMS. In the ATS world, global providers are few and far between.

In conversations this year, we found out that many companies have lowered their expectations for their ATS and are focusing more on recruitment marketing and the ecosystem of providers that integrate with their core systems. The ecosystem is where they see innovation and transformation. Yet, the challenge is that many of these providers are still learning how to support a global enterprise client and don’t necessarily have a ton of experience.

Below are some of the key criteria that are important for a global talent acquisition department (for both ATS and ecosystem providers):

–          Security and Scalability: It goes without saying that security and scalability are the most important considerations for global talent acquisition. These systems must be able to scale with increased demands and provide the security that will satisfy both HR and IT.

–          Resources: A large global organization needs more than a few representatives to support their complex requirements. They need a dedicated team of representatives that can work with them from selection through implementation and help tackle challenges with adoption. They need the right resources who will be willing to listen and execute.

–          Integrations: Integrations are particularly complex for large organizations — especially when you think about the amount of data that these organizations need to manage. Companies should look at providers that have a strategy around integrations and a history of working with clients to ensure that integrations go smoothly.

–          Partnership: In talent acquisition technology, companies need to think less about selecting a system and more about selecting a partner who will support them. Providers need to listen to their clients’ needs and be open to making adjustments to the product and their roadmap.

Aptitude is in the process of updating our ATS Index this summer and many of these themes and differentiators will be addressed in more detail in this year’s report. Stay tuned…

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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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Blog Talent Acquisition Strategies

New Research on the Talent Acquisition Market: The Aptitude Index Report

The Aptitude Index Report for the Talent Acquisition Systems from 2016

If you read Mollie’s blog post on Monday, you can probably sense that we are very excited to announce the launch of the Aptitude Index report today. This is a comprehensive study of the leading talent acquisition system 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 information that is not necessarily available in a demo or on a website. We spent over 8 months interviewing customers, demoing solutions, and getting briefings from providers. We are ready to share our findings. I learned a lot and I am very impressed by how far the ATS market has come in just the past year.

(Check out our video describing the report here)

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 talent acquisition system providers including: ADP, Cornerstone OnDemand, Greenhouse Software, iBM Kenexa BrassRing, iCIMS, Lever, Lumesse, Newton Software, Oracle, PeopleFluent, SAP, SilkRoad, SmartRecruiters, Workday

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 ATS providers describing their attributes along these criteria. The appendix includes a list of providers in the ecosystem that partner with talent acquisition systems.

When does it publish? Today!

Where can we find it? Download a copy here: http://aptituderesearchpartners.com/ATS-Index-2016

Why should we 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.

We launched this report to start a new conversation around talent acquisition systems. One that looks beyond just functionality and instead at what providers will serve as true partners. Check it out and let us know what you think!

 

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Greenhouse and the Era of Next Generation ATS Providers

Many people holding up tablets in front of their faces with their pictures on the back

Greenhouse is on a fast growth curve. It has made a name in an industry that is crowded, confusing and incredibly competitive. This next generation talent acquisition system is growing at 200% annually with $60 Million in funding and over 2000 customers (mid-market). It is interesting to me because it is not necessarily disrupting the ATS market but it is thinking about recruitment differently. I learned a lot about Greenhouse at its user conference last week where I had the opportunity to meet with the Executive team and some of its customers. Below are a few reasons why I believe it has been successful and a few things it might need to consider for the future.

Why So Much Growth in Such a Short Period of Time?

  • Productizing Best Practices: Greenhouse with its scorecard functionality and its focus on best-practices is a product that guides recruiters and hiring managers to make the right decisions. It doesn’t force them into the decisions but it shows them what the obvious answers are and then let’s them decide. The job of a talent acquisition professional has become so complex that this level of simplicity and guidance goes a long way. Box, one if its customers at the event, said it was able to provide a simple experience for recruiters, improve how recruiting teams work together and cut time to fill from 60 to 28 days.
  • The Demand for Best of Breed: According to research we’ve conducted this year, 50% of the companies that are unhappy with their ATS are using an ERP. Companies today are looking at best of breed providers and no longer have to sacrifice integration for deep functionality. Stitchfix stated that when considering an ERP and Greenhouse, the partnerships and integration  with third-party providers helped influence its decision to go with best of breed.
  • Happy Partners: In conversations with several companies in San Francisco, Greenhouse has a reputation for being a good partner. Why is this important? Well, the next generation talent acquisition platform is dependent on an ecosystem of providers to support everything from sourcing to screening to interviewing candidates. This ecosystem is the lifeline of an ATS and having strong partnerships in place can greatly improve the customer’s experience.

What It Needs to Consider Moving Forward?

  • Move Out of Tech: Right now, Greenhouse has nearly 60% of its customers in the technology industry (including eretail and fintech). When we ask companies what influences the recruitment tech decisions, “word of mouth” was number one. While it is great that tech companies are so impressed with Greenhouse, it will need to expand outside of tech to sustain its growth and rethink its messaging and even sales strategy.
  • Expand in Recruitment Marketing: Next Generation TA platforms are defined as having 3 critical systems: a Recruitment Marketing platform, ATS and onboarding system. Greenhouse has the ATS and onboarding but needs to build recruitment marketing especially as it comes head to head with providers such as iCIMS, Lever, and SmartRecruiters.
  • A Stronger Message: As competition continues to heat up in this market. Messaging around making recruitment better and easier gets overplayed. Greenhouse will need to be very clear on its differentiators as it moves up market and into other verticals.

Greenhouse is one of the providers we are including in our upcoming Index report. Stay tuned…

Categories
Blog Talent Acquisition Strategies

Stop Being So Fancy

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

Talent acquisition is incredibly complex. Recruiters are facing new responsibilities, new pressures and new challenges. But what surprises me is that many of the talent acquisition technology providers- with all of their products and enhancements- are adding to the complexity not alleviating it. The large, traditional Applicant Tracking Systems (ATS) are so quick to transform recruitment technology into more of a finance or business solution that they seem to have forgotten their audience. And, in the rush to innovate, the recruiter’s needs have gone ignored.

Recruiters have one major problem. They need an easier way to attract, recruit and hire talent. If a technology provider is not solving that problem, they do not have a viable solution. According to Aptitude’s 2016 Hire, Engage and Retain survey, only 3% of companies are using the full functionality of their ATS system. Companies either don’t know the functionality is there or they don’t understand how to use it. Again, many of these solutions are too complicated. If you want to give recruiters and candidates what they need- technology providers need to make it simple.

Below are a few ways that recruitment technology providers can get back to the basics:

  • Don’t Overcomplicate Analytics: The use of statistical algorithms and machine learning can help organizations perform in the future. And yes, predictive analytics can help transform a talent acquisition department into a more strategic function. But the reality is that most recruiters still struggle with basic reporting. When talent acquisition providers overcomplicate analytics, recruiters will shy away. Providers should focus on providing information that will help recruiters do their job and make better decisions (ie, data around conversion rates and pipeline analytics).
  • Keep Users on the Platform: I have said this before and I will say it again. Recruiters should not have to leave their ATS to perform core aspects of talent acquisition. Scheduling interviews, viewing documents such as a resume or sending an email to a candidate should all be down in the platform.
  • Make Communication Easy: Communication is important. Ninety-three (93%)of companies say it is a priority for the upcoming year but few recruiters and hiring managers have the time to send out personal communication to candidates. More systems are including a library of templates throughout the recruiting process to communicate with candidates and even create a cadence of that communication. It may not sound sexy, but having templates for reaching out to candidates is becoming a critical tool for recruiters. Leveraging a template- can take less than a minute to send compared to a personal email that could take 15 or 20 minutes to write.
  • Understand the Value of Your Marketplace: One reason that talent acquisition has become so complex is that there are so many categories of technology and new providers entering the market. It is challenging to understand the ecosystem of talent acquisition and how these solutions integrate with an ATS. The goal of a marketplace should be to help customers make quick decisions and quick transactions on the third-party solutions.

The more complex talent acquisition becomes, the more simple technology should be. Recruiters don’t need the extra pressure and stress from a solutions that they don’t understand how to use. As we finish up briefings for our Aptitude Index reports, simplicity and ease of use are key differentiators.

 

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