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A Simple Way to Improve Quality in Talent Acquisition

According to our latest talent acquisition survey, forty percent of companies are increasing their headcount this year and as a result, need to think about investing in the right solutions. Many of these companies are thinking differently about some of the basic areas of talent acquisition rather than investing in what seems to be “new”. Companies want solutions that can help ensure quality of hire and provide a better candidate experience. It sounds simple but with thousands of solutions entering the market, finding providers you can trust is more valuable than bells and whistles.

Over 50% of companies said that background screening solutions have the greatest impact on quality. 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. And…over 60% of companies view screening as so strategic that they are moving it up in the process.

Next week I will present on a webinar to discuss how companies are leveraging these solutions to improve both sides of quality: quality of hire and the quality of the candidate experience. Here are some of the topics we covered:

Quality of Hire: Background screening is one way organizations can improve quality of hire by providing another layer of objectivity needed to make better decisions and retain talent. When an organization is able to eliminate applicants that do not fit the position or role in the process, they can focus on the individuals that are more likely to contribute to organizational performance and growth. Organizations that are taking a more strategic approach to background screening – deeply probing into relevant information on candidates and relying on more than single errors to reject candidates – identify quality hires. Companies that invest in screening are three times more likely to track quality of hire.

Quality of the Experience: Aptitude’s research shows that investing in the right provider improves efficiency and the quality of hire and the overall candidate experience. Companies that invest in background screening solutions are viewing it as part of the process and are twice as likely to have improved their overall candidate experience in the past year. A proper and efficient screening process saves candidates the headache of getting too far along in the application process before being rejected. According to research from The Talent Board, on average, over a quarter of the employers surveyed stated that 50-75% of applicants aren’t qualified for the jobs they applied for across job classifications. Companies that invest in screening improve the candidate experience and track it so they can make changes and communicate better in the future.

Companies that invest in a strategic background screening provider are able to trust that the data about candidates is reliable. Thus, the quality of hire and the experience is improved. We hope you join us next week!

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April Acquisitions in Talent Acquisition

According to the PwC Deals report that published yesterday, 506 deals took place involving US tech companies in Q1. To put that in perspective, we are talking about $60 billion exchanged. And, no surprise, several of these deals were in HCM technology. These deal sizes and volume have remained up and the momentum has not slowed down in Q2. We saw some significant acquisitions this month in talent acquisition and talent management. Companies are looking for the right exit strategies and opportunities to expand their customer base and product suites.

Here are a few of the major announcements this month in case you missed them:

-Learning Technology Group (LTG) entered into an agreement to acquire talent management provide PeopleFluent last week. LTG has acquired several leading learning providers over the past few years including NetDimensions and the PeopleFluent acquisition allows it to expand into other areas of talent management as well as some robust solutions in the contingent workforce space. PeopeFluent is no stranger to acquisitions. After acquiring PeopleClick, Authoria was acquired by Bedford Funding which then rebranded as PeopleFluent. (It’s confusing to us too). 

-Gemspring Capital completes its acquisition of TMP. This acquisition doesn’t come as a huge surprise. TMP’s been trying to reinvent itself for the past few years – especially through its TalentBrew product. Gemspring Capital can help to accelerate its transformation into becoming more of a tech company.

–Indeed Acquires Workopolis. The biggest indicator of a provider’s decline is when it starts to acquire companies that do exactly what they do but on a smaller scale. Indeed’s recent acquisition of Canadian job board, Workopolis is a good example (Does anyone remember some of Monster’s acquisitions of several job boards before it started to decline?). Joel Cheesman provides a great overview of the acquisition on ERE.

But how do these acquisitions impact customers? Having your provider acquired is not necessarily a bad thing but there are some things to consider. What is driving the acquisition? Is the provider trying to expand its product suite? Or is this merely an attempt to stay relevant? Customers need to ask the tough questions and start to prepare for possible changes in dedicated representatives, response time, and product updates.

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Best-of-Breed vs. ERP in Talent Acquisition

The debate between ERP and best-of-breed is still very much alive in talent acquisition technology. In our latest survey, companies are two times more likely to invest in best-of-breed providers. These companies recognize that in many cases, best-of-breed solutions are able to provide both seamless integration and depth in functionality. These providers integrate (through an ecosystem or marketplace) with third-party providers such as background screening, assessment, and video interviewing providers, as well as existing HRIS providers. Aptitude’s research found that companies are 4 times more satisfied with a best-of-breed talent acquisition provider than a traditional ERP provider.

Below are three reasons why companies are considering best-of-breed over ERP: expertise, experience, and adoption.

  • Expertise: Many best-of-breed solution providers are building expertise into their solutions. These providers understand how to help organizations navigate talent acquisition and have product roadmaps designed for talent acquisition functions. Some providers are demonstrating their deep domain expertise by helping companies improve diversity and inclusion, offering organizations capabilities such as anonymous screening, job description checkers, and bias detection initiatives. These providers are also providing scalability to help support clients as they grow. According to Aptitude’s research, 56% of companies are investing in providers that can demonstrate deep domain expertise in talent acquisition.
  • Experience: Recruiters need an easy way to attract, recruit, and hire talent. If a technology provider is not solving that problem, they do not have a viable solution. Many legacy ERP solutions are too complicated. Best-of-breed technology providers need to make it simple and address the challenges they are facing. According to Aptitude’s research, companies using best-of-breed solutions are improving the experience for recruiters and candidates.
  • Adoption: Less than 20% of companies view their ERP provider as a partner once a solution has been implemented. Companies need to look at not only how their provider will partner with them during implementation, but also throughout the course of their relationship.

We are about to kick-off our recruitment marketing research and this topic of best-of-breed vs. ERP is still a very relevant one as many providers looking at expanding both capabilities and services. We would love to hear your thoughts on this topic!

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Hiring Success 2018: Top 10 Key Takeaways

The ATS market is not really about the ATS anymore. Companies are investing in solutions that are less about compliance and workflow and more about strategic talent acquisition. This is a market where differentiators go beyond product capabilities and include services, customer support, and leadership. This new reality certainly rang true at SmartRecruiter’s Hiring Success event in San Francisco last week. Over 1000 companies came together to discuss topics such as diversity and inclusion, recruitment marketing, and collaboration. Most of the sessions didn’t even mention ATS.

SmartRecruiters’ CEO, Jerome Ternynck, kicked off the conference defining what success looks like including a positive candidate experience, hiring manager accountability, and recruiter efficiency. It was a refreshing and simple message for a very complex topic. In addition to some very meaningful discussions about the role of talent acquisition, SmartRecruiters made some significant product and company announcements last week.

For those of you not there, here are the ten things we think you might want to know:

  1. SmartJobs: SmartRecruiters has launched its own programmatic advertising solution that will help companies with job advertising and attracting talent.
  2. Recruiter Assistant: As most talent acquisition providers are marching down the path of AI, SmartRecruiters is offering its own AI solution to help communicate with candidates and enable better decision making.
  3. SmartStart– If you have been in talent acquisition for the past ten years, SmartRecruiters original vision back in 2008 was to offer a free ATS to companies. They are continuing that commitment with SmartStart, a free ATS for companies with under 250 employees.
  4. CRM: In our latest survey, we found that 1 in 4 companies are looking at their ATS for CRM capabilities. So, it is no surprise that SmartRecruiters has developed a CRM solution to help attract and nurture leads.
  5. Shelley Winner– SmartRecruiters included candidates in their agenda. Shelley Winner presented a truly inspirational story about her candidate journey from prison to her role as an impressive Microsoft product leader.
  6. Leadership: Jerome’s passion for recruitment is hard to deny. He is the type of CEO that greets every customer and employee with a hug. With so many startups and ERPs dipping their toes in talent acquisition, this expertise and commitment to this space is rare. (Dan Finnigan, CEO of Jobvite, and Colin Day, CEO of iCIMS, also fall under this category.):
  7. Ecosystem: Most talent acquisition user conferences do not have a large expo or partner presence. Hiring Success was an exception. Many of the leading talent acquisition providers were in attendance at this conference both in sessions and in the expo.
  8. Diverse Industries: It is hard to find a company in the Bay area that is growing outside of the tech market. So, it was encouraging to see a wide mix of industries including retail, hospitality, professional services, and healthcare.
  9. Moving Up Market: Like many of their peers, SmartRecruiters is moving up market with significant customer wins in the past year including Adidas and Avery Denison. Avery Denison said that integration with LinkedIn and Workday were key factors in their decision to move to SmartRecruiters.
  10. Nor’easter: With 18 inches of snow headed for the east coast last week, I was very happy to be in San Francisco and in no rush to go home.

It is amazing to see how much talent acquisition has evolved in the past few years and how companies are thinking more strategically about the way they recruit and hire talent. These conferences are a reminder of how critical talent acquisition is in both hiring success and organizational success.

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Willis Towers Watson: HR Technology, Consulting, and Data

When you think of Willis Towers Watson, “software” is probably not the first thing that comes to mind. As a leading consulting provider with over 40,000 employees in 140 countries, corporations use Willis Towers Watson’s services to help them grow, develop and retain talent. This firm has a reputation for expertise and excellence in delivering HR solutions to complex organizations. But, what might surprise you (and it surprised me) is its’ commitment to innovation and world-class technology. Willis Towers Watson has a suite of solutions that includes compensation software, assessments, engagement solutions, HR portals, and analytics. These are not traditional or outdated solutions but rather solutions that provide a modern, simple experience and innovative, next generation capabilities. What sets it apart and why I was so impressed with this provider is the combination of software, services, and reliable data. It doesn’t excel in just one of these areas. It provides expertise in all three and offers its customers what seems to be so rare in HR technology…a true partnership.

Each month, we select a different provider to profile that has impressed us and Willis Towers Watson is this month’s selection. Below are some of the more innovative solutions:

–          Compensation Software: Compensation is a top priority for organizations this year. When we asked companies what they are looking for in a provider, 1 in 2 companies said the ability to support growth at their organization. Companies want a partner that understands the complexities of compensation management, the dynamics of an evolving market, and can provide the expertise and insight to help them make more strategic decisions. Willis Towers Watson offers a solution to help companies design and analyze and manage their compensation programs with capabilities that include competitive benchmarking, salary structure design, job leveling (to achieve a balance across an organization), and reporting and analytics.

–          Engagement Solutions: Engaging employees is one of the greatest challenges facing HR professionals today. According to our 2018 Hire, Engage, and Retain survey, companies that invest in engagement software are 4 times more likely to retain employees and 2 times more likely to improve organizational performance. Willis Towers Watson offers more than just surveys. It offers solutions that measure engagement efforts and create an action plan to improve engagement efforts. It offers pulse surveys – a high growth area of HR tech that 1 in 2 companies plan to increase investment in over the next year. One global consumer goods company decided to implement pulse surveys to better understand local concerns and compare that to the larger employee engagement survey.

–          HR Portal: The HR Portal software has several benefits including a better approach for employee communication and engagement. This solution is personalized to the individual so he or she receives information that is relevant and unique to them. The portal is branded to reflect company goals and objectives and includes case management, total rewards dashboards, and analytics.  One financial services client with over 80,000 employees uses HR Portal to increase employee participation in total rewards programs and showcase the company brand.

HR technology seems divided between traditional providers (with outdated technology) that are able to support complex global organizations and startups that offer more innovation but lack the security and flexibility that large organizations need. Willis Towers Watson is proving that organizations do not need to sacrifice one for the other. They can have the expertise and the innovation across a suite of solutions.

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The Impact of Recognition on the Employee Experience

A group of co-workers smiling and working together around a table

Companies recognize the impact of experience on growth and profitability and are changing the way they engage and support customers. They are placing a heavy focus on the individual – creating a more meaningful relationship. This is our experience as consumers and it is starting into the workforce. Today’s companies must prioritize the employee and invest in the right strategies and technology to support these efforts.

The employee experience directly impacts business results. Yet, the challenge that most companies face is they do not know where to start. Despite being a top priority, only 34% of companies have improved the employee experience in 2017 – a decline from over 60% of companies in 2016. Organizations can no longer afford a negative employee experience and they need to begin to rethink their initiatives- particularly recognition.

Aptitude Research Partners found that 42% of companies plan to invest in recognition in 2018. Companies that leverage the right strategies and technology to recognize and motivate their employees are more likely to improve the employee experience. Recognition is one of the most powerful tools available to organizations yet it is often overlooked. When employees feel recognized and empowered, they are more likely to contribute to organizational goals, achieve performance objectives, and stay with their employer.

Companies that want to make more strategic decisions around employee recognition and the technology they use should consider the following:

Invest in Social Recognition: Companies that invest in social recognition software are able to create a culture where managers and peers are consistently recognizing each other in a frequent and meaningful way.

Empower Managers:  Managers often lack the tools and resources they need to recognize their employees. By providing solutions that empower managers to recognize employees and hold them accountable will improve the overall employee experience.

Measure the Results: Recognition will not impact the overall employee experience unless organizations have a systematic way to measure recognition efforts and adjust their programs accordingly.

Keep It Simple: Recognition should not be complex. Both processes and technology should provide a simple experience where recognition is easy to execute, track, and manage.

Tomorrow I am presenting on a webinar with SHRM and Achievers to talk about the impact recognition has on the employee experience and the steps companies need to do to create a culture where employees are recognized in a meaningful way. I hope you can join us at 2pm EST tomorrow!

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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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It Is a Good Time to Be in HR Technology

Last week was a big week with some major announcements about investment in HCM. First, Workday announced a $250 million venture fund with investments to go into early and growth stage providers focused on topics such as AI, blockchain, and machine learning. This announcement not only demonstrates Workday’s growing leadership in all things HCM but it also enables startups to develop better products and expand their customer base. Less obvious announcements from last week include Gartner’s decision to sell its talent assessment business (through the acquisition of CEB – which acquired SHL) to private equity firm, Exponent, for $400 million. Not to mention, investment raised by Joveo ($5 million), gr8people ($8 million), and ZipRecruiter ($50 million). Investors recognize the opportunity and the demand for better solutions to attract, engage, and retain talent. And, it is a good time to be in HR Technology.

Here are some of the areas where we see the most investment:

–          Recruitment Marketing: Interest in the recruitment marketing space has not died down. Investors recognize that recruiting is evolving the same way marketing evolved several years ago. They are looking at solutions that offer one platform for engaging, nurturing, and connecting with talent before they ever apply for a job. Research we did last year found that 1 in 3 companies are increasing their spend on solutions that handle everything before someone applies for a job.

–          AI: The topic of AI is pervasive in HCM. Yet, most companies are still confused by what AI is and how it can be used to solve talent management challenges. Companies are curious about the value of AI and what use cases they should consider. But with so many providers entering this space, it is challenging to know who to consider. Hopefully, some of the investment in AI will help to provide clarity around AI and differentiate some of these providers.

–          Blockchain: The topic of blockchain is everywhere and not just because of the buzz around Bitcoin. Essentially, blockchain is a database that is not stored in just one central location but is everywhere- making the data easier to maintain. Sourcecon published a great article recently, where it explains Blockchain in this way:  “Imagine a Google or Excel sheet you’ve shared with your recruiting team to track hiring activities. Your sheet updates automatically in real time, it’s asynchronous, and everyone has access to the ability to update it.”

–          Employee Recognition: At one time, an area where investors seemed to tread lightly, the employee recognition market has really taken off. Investors recognize that employee recognition is the key driver of employee engagement and are looking at solutions that enable social recognition, feedback, and peer-to-peer interaction.

We will continue to watch the investment in this space are we are excited for the opportunity it presents providers and practitioners. Our friend, George LaRocque, does an exceptional job of covering the investment in this space. We also recommend checking out his research and publications on this market.

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AI, Voice Activated-Assistants, Robots: Does Any of It Matter?

In talent acquisition, we hear a lot about things like AI, voice activated assistants, and robots. Will recruiters be replaced by AI? Will home voice activated assistants liked Google Home and Alexa become part of our workforce? What jobs are in danger? Providers are talking about it and many talent acquisition leaders are asking for it. I get it. Technology is changing. And we need to keep up and prepare for the future. But in research we did last year, 60% of companies are still confused about AI and its value in recruitment. By focusing so much on the unknown, are we losing sight of the basic challenges with attracting and recruiting talent? Are we losing sight of what really matters?

Recruiters face some serious challenges (improving the candidate experience, attracting talent, hiring quality talent to name a few) and companies need to consider solutions that actually address those challenges. We have become so focused on what’s “new” that we are missing what’s valuable.  What solutions can actually help recruit better? When we ask companies about their top investments and where they see value, this is what they say:

  • Background Screening: It may not seem like the most exciting area of talent acquisition but for many companies it is the most important investment. Many companies have had the same provider longer than they have had their ATS. It is also the top investment with nearly 80% of companies using some type of background screening provider. In 2018, companies need to consider not only what type of screening is important but also what providers that they can trust.
  • Assessments: When using the right provider, assessments can provide tremendous value to talent acquisition by helping organizations improve the quality of hire. The challenge that most companies face is that they have been leveraging very traditional assessments that provide a poor experience for the candidate and take too long to complete. Companies need to consider validated providers that will partner with companies to create a better experience.
  • Online Reference Checks: It is surprising to me that more companies are not investing in providers like SkillSurvey and Checkster. There is tremendous value in online reference checking in reducing time to fill, improving quality of hire, and giving companies an additional talent pool where they can source candidates. These solutions along with background screening and assessments address real challenges in recruitment.
  • Communication Tools: The candidate experience is essentially about communication. Organizations need to give candidates the information they need to feel engaged and prepared. They need to provide more meaningful communication through multiple channels including chat, video, messaging, or event a phone call.
  • Predictive Analytics: I recently moderated a panel with Dr. Anton Smessaert from Visier where every question I have ever had about predictive analytics was answered in 45 minutes. Predictive analytics can help companies understand patterns of data and help guide them to make better decisions about talent. But people need to be the ones to make those decisions. He will explain this much more eloquently than I can but predictive analytics is valuable and you need a provider you can trust.

We are launching our 2018 talent acquisition survey in a few weeks and would love to hear what your priorities are in the next year.

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