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Eightfold AI: What’s Next?

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

Yesterday, Eightfold AI announced a $220M Series E funding doubling its valuation to over $2B. This Series E funding round is led by SoftBank Vision Fund 2 and includes investors from previous rounds, including General Catalyst, Capital One Ventures, Foundation Capital, IVP, and Lightspeed Venture Partners. Total funding raised to date by Eightfold AI is more than $410M, with more than $350M coming in the last several months.

A provider that most people didn’t know existed a few years ago is now the one we can’t stop talking about in the market. All eyes are on Eightfold to see where it is going and who it will compete with next year.

Eightfold is a talent intelligence platform that offers a comprehensive suite of talent acquisition, talent management, and talent analytics solutions. As companies look at skilling and upskilling their workforce, Eightfold provides deep insights across all talent includes employees, contingent workers, and candidates. It has expanded from an AI matching solution to an end-to-end talent platform in a short period. As a result, any conversation around HR technology today involves Eightfold in some way.

I have a few early thoughts on the recent announcement and Eightfold’s growing presence:

What does this mean for the market?

A New Look at Integrated Talent Management: Integrated Talent Management or ITM makes me cringe a little. As an analyst, I spent nearly a decade covering ITM and the benefits it brings to companies. While the idea makes sense, the reality is that most providers could not make this happen. Most providers fell short with numerous acquisitions (that were never integrated) and attempt to offer recruitment, performance management, succession planning, compensation, and learning. Eightfold’s approach is different. It is looking at using an AI-driven platform to help companies recruit, engage, and retain talent in a way that solves for what they need rather than check a box. In addition, having one provider for both pre-hire and post-hire solutions will look different under Eightfold.

TA Tech is Growing: It is a good time to be in TA Technology. This sentiment is the theme of this year. We found that 1 in 4 companies are increasing their investment in technology, and 34% of enterprise companies are using some AI matching capabilities. As companies increase their investment in technology, they will build out tech stacks that can improve efficiency, reduce bias, and enable better decision-making. And, they want to invest in one provider to do most of the work, which makes Eightfold an appealing option.

Talent Intelligence Is a Growing Category: Eightfold is helping to bring awareness to a newer area of HR technology- talent intelligence platforms. This latest round will create more visibility around what these solutions can do and how companies use them today. Eightfold’s position here will also help many of its competitors gain traction in the market.

What this means for the future of Eightfold?

Expanding Partnerships: This latest round of investment will help fuel research and development as well as partnerships with third-party providers. The ecosystem is complex, and many ATS providers have built out marketplaces to support clients. Eightfold is likely to move in a similar direction.

Moving into Contingent Workforce: One of Eightfold’s differentiators supports all talent, including contingent workers. As 1 in 2 companies look to replace their VMS and explore better options, doubling down on contingent workforce capabilities may prove to be a smart decision for Eightfold.

Replacing the ATS: I don’t think most companies aspire to be ATS providers, but with the valuation and investment, Eightfold will likely move in this direction to become the end-to-end recruitment platform and compete (and replace) many ATS providers. I don’t see this happening this year, but I think the ATS providers know this is possible in 2022. Eightfold already appears in many of the competitive CRM deals today.

It is unclear what Eightfold’s plans are for this latest round, but we can expect more research and development and possibly an acquisition or two. A $2B valuation puts tremendous pressure on this provider to acquire new customers and fulfill its product roadmap. Time will tell. I will post an update on any new developments in the next few weeks.

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

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

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

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

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

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

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

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

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

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Blog Talent Acquisition Strategies

Ethical AI: What TA Leaders Need to Know

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

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

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

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

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Improving the Employee Experience through Corporate Social Responsibility

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

Some companies have responded in a big way:

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

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

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

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

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

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

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

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

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

Below are 5 top findings from this research:

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

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

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The Future of AI Matching: A Conversation with Tim Sackett

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

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

Here are some of the questions we addressed:

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

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

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Blog Talent Acquisition Strategies

Case Study: Iceland Uses Automation to Improve the Candidate Experience

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

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

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

Iceland had several objectives when evaluating automation providers, including:

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

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

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

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

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

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

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Blog Talent Acquisition Strategies

Talent Analytics Part 1: Candidate Experience

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

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

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

Goals

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

Metrics

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

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

Insights

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

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

Action Steps

Companies that want to improve the candidate experience should:

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

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

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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.

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Recommendations for Recruiting Remotely

This week I joined Stacey Schmidt at Pegasystems and Andre Boulais at Jobvite to talk about recruiting in a remote world. Companies are rethinking their processes and technology to support virtual recruiting. And, making changes doesn’t require a huge overhaul of your talent acquisition process. In many cases, it requires some small changes and some different tools. Our discussion offered some practical advice for companies looking to support their recruiting teams, hiring managers, and candidates.

Below are some of the highlights we discussed across the full talent acquisition lifecycle:

Recruitment Marketing
• Be genuine: Companies need to be genuine with their messaging and communication. Employers should use social media to be transparent rather than promotional.
• Clean-up Your CRM: Companies can think about organizing their CRM and reengaging talent. They can also think about targeted messaging and reengaging alumni, internal employees, and candidates that did not receive an offer.
• Rethink rejection: Companies need to rethink the rejection process to engage with talent and provide insights to candidates who may not move forward now but could continue to engage as candidates or customers in the future.

Technology: CRM, Social Media, Career Sites

Sourcing
• Look at competitors: If competitors are laying off employees, consider campaigns in your CRM that would reach these candidates.
• Engage talent pipelines: Companies can reach out to talent pipelines via campaigns and refresh old profiles and continue nurturing those relationships.
• Improve employee referrals: Companies can think about the employee referral program to gather leads for prizes and communicate these programs to employees.

Technology: CRM, passive sourcing solutions, employee referral solutions

Screening
• Invest in Conversational AI and Text: Companies should consider conversational AI or chatbots to support initial candidate engagement during the process and collect necessary information on a candidate.
• Invest in video screening capabilities: Video can help companies screen candidates early in the process and allow hiring managers and recruiters to prebuild these videos from home.

Technology: Conversational AI, Text, Video Screening

Assessments
• Consider digital assessments: Companies should consider digital assessments that can provide validity but also improve the candidate experience through a simple process.
• Shorten the assessment: Companies looking to fill positions in a short period of time should consider providers that offer shorter, candidate-friendly assessments.

Technology: Digital assessments, game-based assessments

Interview
• Leverage digital interviewing solutions in place of onsite interviews: Digital interviewing offers the ability to schedule, manage, and track interviews. Companies should look at providers
• Videotape your company: Key team members and employees can share what it is like to work at your company. Companies can do this by keeping the message genuine and encouraging employees to talk about their jobs. Employees can do this from their homes and submit their videos.
• Communicate with candidates: Companies should overcommunicate with candidates on the interview process. They should guide virtual interviewing and tips to be successful during the interview.

Technology: Interview scheduling, Conversational AI, Video interviewing

Offer and Onboard
• Automate forms management: Companies should be investing in a provider to support forms management for all new hires.
• Connect new hires with team members and peers before day one: Companies should create an environment where new hires feel connected through virtual meetings and networking with peers.
• Consider online coaching: New hires can feel supported through online coaching and mentoring programs.

Technology: Onboarding system, Learning solutions, Online coaching

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