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The Future of Work: A Wish List

At the start of Labor Day weekend, it seems appropriate to reflect on the realities and possibilities of work.  According to the Department of Labor:

“Labor Day is a creation of the labor movement and is dedicated to the social and economic achievements of American workers. It constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity, and well-being of our country.”

Our theme at Aptitude this week has been the future of work but maybe it’s time to take a step back and think about the past. How can we do a better job as employers of paying tribute to the contributions of our workers? A day off is great but why can’t this happen throughout the year on a more consistent basis? So, in the spirit of Labor Day and honoring the past, here is our wish list for the future of work.

–       Recognition: Seventy-five percent (75%) of companies have a formal recognition program according to research we conducted earlier this year. Yet, so few of these companies make sure that recognition is ingrained in the company culture or invest in the right technology to motivate their employees. Recognition, the art of saying “thank you”, needs to be a core part of the work environment.

–       Communication: When asked to identify the top priorities for recruiting and engaging talent, stronger employee communication was top of the list across all industries and company sizes. Today, success is defined by a company’s ability to align strategy and execution, and effective communication is critical to achieving this alignment. In fact, top performing companies are 3 times more likely to invest in communication than their peers.

–       Flexibility: Earlier this week, Amazon announced that it would let some work a 30 day work week. This decision gives employees the freedom to spend less time in the office. Employees want greater flexibility not only with the ability to work from home but around the employer/employee relationship. With the influx of contingent workers in the market, employers that provide greater flexibility will not only see an increase in employee morale and engagement but also, in productivity and performance.

In order to take a look at the future, maybe we need to start by taking a look at the past and getting back to basics. We will be covering these topics in our upcoming Culture Survey later this month. Stay tuned…

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Top 7 Findings on Talent Acquisition in the SMB Market

compass with the arrow pointing towards the word talent

Today is the end of SMB Week at Aptitude Research Partners. Small to mid-sized companies face a unique set of challenges with talent and workforce management and we are excited to share our latest research on this demographic. According to Aptitude Research Partners’ 2016 Hire, Engage and Retain study, nearly 70% of SMB organizations invest in technology that is up to date with consumer technology. The top three investments for SMB organizations include video interviewing, employer branding tools and onboarding solutions. They want tools that improve the candidate experience as well as ensure quality of hire.

Below are the top findings on talent acquisition for SMB companies:

  • Dissatisfied with their Technology: Nearly 50% of SMB companies are dissatisfied with their ATS and looking to change providers compared to 36% of enterprise organizations.
  • Candidate Comes First: Sixty-three percent (63%) of SMB organizations have improved their candidate experience over the past year.
  • Not a Mature Market: 1 out of 3 SMB companies do not currently have an ATS in place. Fifty percent of those companies that do have a system in place are dissatisfied or indifferent with their current provider and looking to make a change.
  • Word of Mouth is the New RFP: One third of SMB companies believe that word of mouth is the most influential factor when making decisions around recruitment technology. Price and demonstrated ROI also play a key role in technology decisions.
  • Opportunity for Best-of-Breed: Fifty-seven (57%) of SMB organizations invest in an ERP provider or Talent Management Suite provider for their ATS. Only 14% of SMB companies are using best of breed providers for their ATS.
  • Implementation Time is Shorter: 85% of SMB providers implement their recruitment solutions in less than 1 year. Forty-seven percent (47%) of these companies believe their provider was a true partner through the implementation process.
  • Need More Change Management: Only 22% of SMB organizations have a change management process in place and only 38% of these companies were satisfied with their provider through the implementation process and would recommend them.

For more insight and research on how SMB companies are using talent and workforce management technology, check out our latest reports at www.aptituderp.com.

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Don’t Call It a Comeback: Salary.com is Packing a Punch in Compensation

everlast boxing gloves tied together and hanging down

It is easy for traditional HCM solution providers to get stuck in a rut. Too often, they have a myopic view of the market and look only at themselves, their competitors, or last year’s trends. When the market changes, they struggle to keep up.

So, imagine a situation where a solution provider took some type of “sabbatical”- leaving the industry, exploring the broader tech world, and testing out innovative solutions outside of HCM. My guess is that we would see a more sophisticated, business-centric solution or at least, something we haven’t seen before. In many ways, this is what happened with Salary.com. You are probably familiar with the Salary.com story. The company was acquired by Kenexa (now IBM) in 2010 for $80 million and then, it was bought back by the original founding team in 2016 with the goal of helping companies pay competitively, improve efficiencies, and enable pay transparency. Nearly 40% of the original Salary.com team has rejoined the founders to develop a comprehensive suite of compensation and data solutions as well as training and implementation services. They have returned to try to innovate a market that has gone stale.

This week, Salary.com announced new features to its Compensation Analysis Suite of solutions including configurable dashboards, interactive insights and a mobile application. These new features make it easier for employers to access compensation data the way they need it and essentially, keep their employees happy through better transparency and ease of use. Something, we haven’t seen enough of from existing providers.

Compensation is an interesting market and hasn’t had the attention it deserves considering it is one of the most important aspects of the employer/employee relationship. Employers are being held more accountable while employees expect more. And, so much has changed with the way compensation is managed for organizations. We are seeing an increased emphasis on competitive pay, the need for greater pay transparency, and new regulations around gender pay inequity and executive compensation. It makes sense that the founders of Salary.com, given their expertise, would see the need for a more robust solution in this market.

We are covering the compensation market in our upcoming Culture survey and research that we are publishing soon. So, this is a market we are watching closely and looking forward to sharing our research with you.

 

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Randstad Acquires Monster: The End of the Glory Days

monster job board logo

Ten years ago, I was the Research Director at ERE Media. It was the heyday of recruitment and right before everything in our industry changed (mostly, for the better). Taleo was just plain old Taleo, the largest ATS provider. Jobster and Jason Goldberg were the most interesting names in the space. The blogosphere was filled with controversial and thought-provoking discussions. And Monster was still at the center of it all. Spending tons of money on marketing, flexing its muscles in all things recruitment, and living large. Maybe too large. The value of job boards was becoming questionable and companies started reducing their investments in favor of LinkedIn and niche boards. The writing was on the wall. But, instead of rethinking its strategy, Monster just carried on in a big way. It acquired HotJobs in 2010 for $225 million and then, China HR for $174 million. Instead of reinventing itself, it just kept biggering and biggering.

Over the years, Monster made a few attempts to expand outside of the job board arena including acquiring TalentBin, developing 6Sense and SeeMore (semantic search engines), attempting to play in the CRM and ATS space with the HRSmart acquisition, and more recently, acquiring Jobr (the Tinder of recruitment). But most of its efforts (with the exception of TalentBin- by far, its best decision) fell short. The products did not integrate, the pricing was all wrong and yet, the messaging stayed the same.

The downfall of Monster reminds me of the high school quarterback. Someone that gains so much attention early in his life and then tries to relish those glory days even when the rest of the world has moved on.

So, where do we go from here? Two days ago, Randstad announced its plans to acquire Monster for $429 million – that works out to be $3.40 a share (by the way, Monster’s share price was once $91). In my opinion, the acquisition does not disrupt the market or change the landscape in any major way. What it does do is present a few unique opportunities for Randstad.

  1. Establish Leadership in Technology: Services and technology are becoming more ingrained in all areas of HR Technology and recruitment is no exception. Randstad is working to establish itself as a tech provider with its investments (through its Innovation Fund) in companies like gr8People and RolePoint and its own development of solutions like Talentradar. Yet, when you think of Randstad, you still think of services- RPO and MSP. This acquisition gives them more of a ground to stand on as a recognized technology provider.
  2. Expand its Global Presence: There is no denying that both companies are global companies but the acquisition of Monster gives Randstad even more global recognition. Monster has a presence in over 40 countries and 50,000 employees around the world.
  3. Articulate the Value Proposition: Monster made some bad decisions but it made a few good ones (I mentioned TalentBin above). Its major problem was it could not articulate the value proposition. It couldn’t get out of its own way. It acquired a broad spectrum of talent acquisition providers and developed solutions that would connect employers with job seekers but it wasn’t able to integrate these products or its messaging. It was still stuck in the past. The glory days.

Randstad is an impressive company with an impressive team of industry experts and individuals committed to helping companies recruit better. So, this acquisition may be the best decision Monster has ever made.

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Dog Days of Summer: What’s Keeping Us Busy

woman working from her tablet sitting outside at a wooden table

It has been an exciting summer for us at Aptitude. After several months of hectic travel schedules, Mollie and I have decided to stay local in August. We are busy publishing new research, prepping for the fall conference season, and collecting and analyzing more data. The best thing about less travel is that we get to have some amazing conversations with solution providers, corporations, and the broader HCM community. It has been eye opening and we have learned a lot.

If you are curious about what we have been up to this week, here are five things that have been keeping us busy:

  1. Research on the Rocks: In case you missed the news, we are now part of the HR Happy Hour Network founded by Steve Boese and Trish McFarlane. Our podcast series, Research on the Rocks, will highlight some of the key findings from our research and interesting trends in HCM technology. Our first episode covers payroll, communication, recruitment marketing, and assessments.
  2. Recruitment Marketing Index and Workforce Management Index: We published our first Talent Acquisition Index report a few weeks ago and we are already well on our way with the next two. The Workforce Management Index will provide insight on areas such as time and labor, scheduling, payroll, and absence management. The Recruitment Marketing Index will provide clarity around a very popular yet confusing space.
  3. Culture Survey: Culture is a powerful force within organizations, but one that remains mysterious to many. This survey will focus on how an organization communicates, what behaviors, skills and achievements it rewards, the work environment and “employee deal” of compensation, reward, and benefits, and even how it assesses talent. We are collecting feedback on the survey now and it will launch at the end of this month.
  4. New Technology: It is an exciting time to be in HR Technology, especially with so many new providers offering solutions that are solving business challenges. We have been conducting briefings with many of the start-ups in the space and we are getting excited for The HR Technology Conference.
  5. New Research: We have new research now available on our website that cover a wide range of HCM topics including: background screening, employee communication, the talent acquisition trifecta, and employee burnout. These are reports all based on data we have collected over the past few months and topics we feel deserve more attention.

So, we have been busy but in a good way. If you have a new company, new product, new strategy or new idea, send us a note. We would love to schedule a call and hear from you.

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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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Don’t Go Changing…The Dangers of Category Creation

A street sign with directions pointing different ways labeled what, where, who, when , why and how

The HCM technology market is competitive and crowded. Providers are trying to gain market share and expand into new territory. Especially, when customers are increasing their investments and 1 in 5 companies (on average) are looking to replace their existing solutions (Aptitude’s 2016 Hire, Engage and Retain study). Given this state of the market, one trend I have noticed is that many providers are trying to get the buyer’s attention by creating new categories. They are coming up with clever names to describe very mature areas of technology investment or in some cases, inventing something new. Sometimes it makes sense but most of the time, it doesn’t. Does anyone really want to invest in an ”employee awesomeness experience excellence platform”?

You get my point.

Below are a few considerations for any solution provider that is thinking about embarking to the land of Category Creation.

  1. Budget: Does this new category align with HR Technology, workforce management or recruitment budgets? If not, buyers are going to have to build a business case for something they don’t have any idea of what the demonstrated ROI is going to be. That’s no fun and sounds like a recipe for failure.
  2. Confusion: The HCM technology market is already filled with confusion. Most companies are still trying to understand the difference between talent acquisition and talent management. Will a  new category exacerbate this confusion or bring clarity? Too often, new categories leave customers unsure of where this technology fits into the broader HCM landscape.
  3. Product vs. Marketing: There are product providers and then there are marketing providers. Which one are you? If you truly believe in your product and the value it provides, then by all means, create a category. But in many cases, providers are putting a marketing spin on a performance management system, LMS or ATS.

If you are set on category creation, then there are a few success stories that might be worth watching. Recruitment marketing is one example. A few years ago, companies had no idea what a recruitment marketing platform would look like. Today, it is a very well-recognized category thanks to providers such as SmashFly that have not only built a strong product but educated customers on the value. HireVue (video interviewing) and Globoforce (social recognition) are a few examples of other providers that have created awareness for new categories that now align with budgets and provide tremendous value.

Companies have a lot to think about when selecting the right technology. They want simple solutions that will help them do their jobs better and improve business results. Fancy names and new categories will not always help them achieve these goals.

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China: Six Reasons HR Technology is a Big Deal

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

My Dad visited China for the first time in 2009. He went for business but had the opportunity to see the Great Wall and many of the popular tourist sites you might expect. He took pictures and shared them- a first for my Dad. And six years later, he still finds a way to bring up China in just about every conversation. I am not exaggerating. It clearly made an impression.

Last week, I had my own experience in China. I was fortunate enough to visit Zhuhai for the inaugural HR Technology China conference hosted by LRP and China Star. With over 6000 registrants and 3500 attendees, I think it is safe to say that the event was a huge success. Every session was standing room only and the conference had captured the attention of Chinese officials, media and universities.

This trip also made an impression on me. Not only because I spent time with some of my favorite people in our industry (Trish McFarlane, Steve Boese, Jason Averbook, Kevin Wheeler, and the amazing LRP team) but also because of the energy and transformation that is happening in a country so rich with history and culture. Now six days later, I am the one who can’t stop talking about China. And… I am going to share a few things I learned last week.

  1. HR is a Big Deal. China accounts for up to one-third of the global growth in recent years and the business of talent is taken very seriously. Unlike in the US, where HR professionals are looking for ways to gain the support of business, HR is valued in China. Companies invest resources and technology to making sure they are recruiting, developing and retaining talent.
  2. Talent Acquisition is the Priority. As companies expand and look to compete for quality hires, talent acquisition is a priority. Identifying and attracting talent was a topic discussed throughout every session of the conference as companies look to hire the best talent and compete with large MNCs or foreign-based firms. Currently, only 20% of Chinese graduates are staying overseas. The majority of students are returning to China to seek employment.
  3. Services Are Where It’s At. HR professionals are eager to invest in new technology but first need to understand their processes. The demand for HR services in China seems to be greater than in the US. Conference attendees wanted to simplify some of the trends so they could make the best decisions around their technology.
  4. Branding is a City Thing: Employer Branding is a major component of any recruitment strategy for companies in China but the focus is on the city even more than the company. At the conference, both delegates and companies in attendance were creating a strong connection between talent and the city of Zhuhai through videos, marketing and messaging. A large technology firm I met with a few years ago was focused on branding efforts that would highlight the different cities in China instead of the overall company.
  5. The Student Population is Impressive: Many students from the local university in Zhuhai attended the conference. These individuals were eager to learn and connect with other attendees and presenters. They were passionate about the topics and ambitious about their future careers in the workforce.
  6. Social Media is Powerful: Although many of the popular social media sites we use on a daily basis are blocked in China including Facebook and Twitter, social media is a big part of HR. These companies leverage many social media sites including WeChat and LinkedIn. Over 50% of companies are using social media in their talent acquisition efforts.

This event was an amazing experience and I am grateful to LRP and China Star for the opportunity to attend. I will be posting a summary of my presentation on Employer Branding in China next week.

 

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Marketplace or Market Hype? Three Ways to Tell the Difference

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

Who doesn’t love the concept of a Marketplace? As consumers, marketplaces allow us to make a dinner reservation, order food or even get a ride to the airport. They connect us with providers, reduce the friction of buying and selling, and help us navigate through a very complex ecosystem of providers.

Fortunately, there is no shortage of marketplaces in HCM technology. Providers such as ADP, SmartRecruiters, iCIMS and Newton Software now offer valuable marketplaces to help their customers make better decisions. Even emerging providers recognize the value of linking customers with the right providers. In fact, nearly half of the 169 recruiting startups on the AngelList from August-September of last year were marketplaces (analysis from Ray Tenenbaum, CEO of Great Hires).

While the concept of a marketplace in HCM makes sense, the reality is that not all marketplaces are created the same. Many providers that have announced a “marketplace” are offering nothing more than a list of partners and an open API. How can companies decipher between a true marketplace and market hype?

Below are three ways companies can tell the difference:

  1. Customer Experience is The Priority: In order to be a true marketplace, you can’t just categorize or aggregate the market, you need to enhance it. Providers have to create value for their customers and improve their experience. An HCM marketplace should allow customers to easily search for providers, view ratings or feedback and easily make purchases. Users should not have to leave the marketplace to do any research on providers.
  2. Certification Is a Critical Part of the Process: The marketplace should be selective about who is and who is not included. Some marketplace providers are so eager to include as many companies as possible (remember- most get money from the providers they include) that they lose their value. A certification process allows a marketplace provider to set the criteria for who can be included and let the customer know that “This is who we trust. So, you can trust them too.”
  3. Insights Instead of Information: A marketplace should provide insights about the providers included so customers can make better decisions. Some marketplaces simply list providers under categories and include a brief description that can be found on their website. The HCM ecosystem is complex and the marketplace should help companies determine what providers can help meet their needs.

The concept of a marketplace can provide tremendous value to both providers and customers when it focuses on the experience. If we think about how marketplaces help us as consumers to make quick and educated decisions, the same should be true in the world of HCM.

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The Human Capital Experience Economy: What Does It Look Like?

three people overlooking a city from a skydeck

Would you pay more for a good experience? Would you be more likely to come back again? You probably already do. We live in a world where experience trumps everything – including cost and quality. According to a study by the White House Office of Consumer Affairs, 80% of US consumers would pay more for a product or service to ensure a superior customer experience. It is the experience that gives companies a competitive edge even when their products fall short. It creates loyalty and a powerful commitment to a certain company or brand.

Companies recognize the impact of experience on their growth and profitability and are making changes to how they communicate with, engage, and support their customers. In fact, according to Aptitude Research Partners’ 2016 Hire, Engage, and Retain research, 60% of companies have an executive level customer experience role in place. But, creating an engaging experience does not and should not end with the customer. It must extend into our workforce. Surprisingly, only 37% of companies have an executive level role focused on the internal culture and experience of the workforce. Just as companies are prioritizing customers, they must also focus on the experience for the individual candidate, employee, manager, contingent worker, and leader in order to ensure continued economic success.

The elements of this important balance are at the core of Aptitude’s new Human Capital Experience Economy model- take a look here:

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