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Improving the Candidate Experience Through Better Communication

Two tin cans connected by a string

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

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

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

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

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

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

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

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Why iCIMS’ Acquisition of TextRecruit is a Big Deal

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

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

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

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

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

 

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New Research: The Future of Talent Acquisition

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Talent acquisition leaders face new pressures, new responsibilities, and new technology options. The competition for talent is getting more intense and companies are struggling to plan for the future. We launched our latest research on talent acquisition last month to better understand these priorities, technology investments, and buying behaviors. We are finally reaching a point where companies are thinking more strategically about the way they invest in technology and partner with providers.

Below are some key takeaways from the research:

  1. The Need for Greater Simplicity: The technology landscape in talent acquisition has become complex and confusing. And companies are not always confident if they are seeing any value from their technology decisions. According to our latest research, 50% of companies are investing in three or more ATS systems, over 60% of companies are investment in three or more sourcing solutions, and 70% are investing in three general job boards. That’s a lot. Companies need to make smarter decisions around the technology they are using and challenge providers to work as partners.
  2. The Candidate Experience is About Better Communication: The candidate experience is defining the future of talent acquisition. Yet, few companies understand what they can do to improve the candidate experience. Candidates, above all else, want communication and feedback on the process. Aptitude research shows that what candidates want most is to be notified if they are screened out (52%), information on the company culture (52%), and a single point of contact in the process (50%).
  3. Internal Mobility is a Priority: In order for talent acquisition to be successful, organizations must think about both internal and external talent. According to research Aptitude launched this month, over 70% of companies plan to increase their investment in solutions and strategies to support the process of moving talent from role to role. Internal mobility is a strategic priority for companies that want to improve the quality of hires and at the same time save costs. These companies recognize that in order for talent acquisition to align with business goals, internal talent can’t be ignored.
  4. AI is Still Misunderstood: According to Aptitude’s research, over 60% of companies are confused by AI. Additionally, many solution providers are misrepresenting themselves and their products, adding to the confusion and giving AI a negative reputation. As talent acquisition departments mature in their adoption of technology, the understanding of AI needs to change.
  5. Technology Must Be a Partnership: Companies are looking for partners that can support them post selection. Only 20% of companies are satisfied with their current recruitment providers. Companies are beginning to think about the right cultural fit, customer support and experience when they make technology decisions.

So, hopefully this gives you a glimpse into some of the findings from our latest research. We will be publishing new studies this summer on onboarding, candidate engagement, sourcing and updating our ATS Index report with a few new players.

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New Research on Recruitment Marketing: The Aptitude Index Report

recruitment marketing index from 2017 displayed on a smartphone

Last year we started our research and analysis of the recruitment marketing space. To be honest, I wasn’t sure what to expect. The market is fragmented. Buyers have misperceptions. And some providers are misrepresenting themselves. But over the past few months, I have learned a lot. I have learned who the leading providers are, how they are differentiating themselves, and what business value they offer to organizations. Most importantly, I learned that recruitment marketing is the key to transforming talent acquisition and organizations that invest in these systems have a clear advantage when competing for talent.

We are very excited to announce the launch of the Aptitude Index on recruitment marketing today. This is a comprehensive study of the leading 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 provides information that is not necessarily available in a demo or on a website. We spent over 6 months interviewing customers, demoing solutions, getting briefings from providers and we are ready to share our findings.

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 recruitment marketing providers including: Clinch, iCIMS, Jobvite, Phenom People, SmartRecruiters, SmashFly, Symphony Talent, Talemetry, and TalentBrew.

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 these recruitment marketing providers describing their differentiators along these criteria. The appendix includes a list of providers in the ecosystem that partner with recruitment marketing platforms.

When does it publish? Today!

Where can we find it? Download your copy here.

Why should I 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.

Check it out and let us know what you think!

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Top Trends from the Recruitment Marketing Index

recruitment marketing index 2017 mockup

Recruitment marketing is one of the most misunderstood markets in talent acquisition. Companies are increasing their investment in solutions that can help them engage and connect with individuals before they apply. But, too often, they don’t know what they are looking for in a provider. It doesn’t help when some solution providers are competing in a market where they do not belong.

Recruitment marketing has been an important research initiative for us this year. We are very excited to launch our latest index report on the recruitment marketing space this Thursday, March 9. Not only do we define what a recruitment marketing platform is but we are providing in-depth analysis and highlighting key differentiators of the leading providers in this space. This is not a ranking report. It’s a report to provide clarity around a market that plays a critical part of any talent acquisition strategy.

Below are some of the Top Trends we found in this year’s report.

The Need for Greater Simplicity: Despite the growth in this market, most companies are unsure how they should leverage a recruitment marketing platform. Many of these solutions are designed for modern marketers, and recruiters can be wary of changing processes and adopting new technology. While the functionality of a recruitment marketing platform is user-friendly, these solutions are not always intuitive for talent acquisition professionals. Too often, organizations invest in a recruitment marketing platform and use limited functionality. Providers need to help their customers by finding the balance between robust marketing functionality and a simple user experience.

Services Take Two Forms: Services are now becoming embedded in many technology deals. Customers have specific expectations about what they will get from their providers and, in order to keep customer satisfaction high, services need to be included. Services are either tactical (running campaigns, events, content) or transformational (change management, process optimization or adoption, and ongoing support).

The Cost is Justified: Some organizations are hesitant to purchase a recruitment marketing platform because of the cost of investing in these systems. Some companies spend more on their recruitment marketing solution than they do on the ATS. The cost becomes justified when considering the value of these solutions in replacing not only disparate technology providers but also services and advertising providers. By consolidating all the spending that goes into attracting talent, many organizations actually find that they are reducing costs.

The Opportunity in the Mid-Market: The majority of the providers in this report are targeting the same market: enterprise and global enterprise. Enterprise companies such as GE, PwC, Schneider Electric, and others have been quick to adopt these solutions. Yet, midmarket organizations with 2500 employees or less have many of the same challenges when competing for talent. These solutions can provide immediate value to the candidate experience, efficiency, and time-to-fill, and it is just a matter of time before providers start to move down market.

Artificial Intelligence is a Must-Have: Artificial intelligence (AI) is not a fad or a passing trend in recruitment marketing. Providers are using AI to help companies stay informed about what content engages candidates, the campaigns that are most effective, and the likelihood of someone applying for a position. These systems use AI to help recruiters and candidates make better decisions around the right fit for their organization – while optimizing cost and results.

Check back with us Thursday to see the nine providers that met with criteria for this year’s report and how you can download your copy for free.

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A Look Back and a Look Ahead

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

Paul Theroux said that winter is a time of recovery and preparation. Now at the end of January, these words feel particularly relevant as we reflect on what we have learned over the past year and plan for the future.

And, no, this is not a political post.

It is a post about HCM technology – a look back at 2016 and a look ahead to 2017.  As companies increase their investment in HCM technology, making decisions around what solutions will drive business outcomes has not been easy. Companies have to navigate a complex and evolving landscape while determining their own unique requirements. They have to consider future shifts in the market while honoring the specific needs of the past.

Below are some of the lessons we learned last year and what we have planned for the next month or two this year.

A Look Back: The Year of Simplicity

  • Simplicity Overshadows Innovation: HCM has become incredibly complex over the past few years. With new categories, new products and new providers, companies feel overwhelmed when evaluating and selecting providers. In an effort to innovate, many solution providers have lost sight of the simplicity that users are looking for in their products. Corporations want solutions that will ensure high adoption, less training, and a positive experience.
  • AI is Still Misunderstood: It is hard to talk about trends in HCM technology without talking about the emergence of Artificial Intelligence in everything from recruitment to learning to scheduling. Both old and new providers are going to market with AI solutions – promising this will be the future of HR. While many of these advancements help to improve the experience and efficiency of HR and recruiters, there is still much confusion about what this means for the future of our workforce.
  • Assessments are on the Rise: The demand for pre-hire assessments has never been greater. Companies face intense pressure in talent acquisition and they need proven solutions that will help them find the best fit. According to research conducted by Aptitude in 2016, nearly 80% of companies of all sizes plan to invest in assessments in the next 12 months.
  • Strategic Payroll is the Key to the Employer/Employee Relationship: Organizations in Aptitude’s 2016 Workforce Management study utilizing third-party payroll solutions had on average 13% fewer payroll errors than organizations using homegrown or manual solutions. Accuracy isn’t just important for ensuring perfect paychecks. If there is ever an audit or a grievance, accurate time and pay data is essential, as is being able to find it in timely manner.

A Look to the Future: The Year of Change

  • Recruitment Marketing Index: We are working hard on our recruitment marketing index that will publish at the end of February. Recruitment Marketing is one of the fastest growing markets and we are excited to provide clarity around the leading providers in the space.
  • Hire, Engage, Retain Survey: We plan to launch our Hire, Engage, Retain survey next month with a heavy emphasis on buying behavior, market trends, and areas of opportunity. We want to make sure we are collecting information that can help provide insights to companies looking to make better investments in 2017.
  • Payroll Index: Payroll has evolved over the past few years and providers are innovating the experience for administrators, managers and employees. Mollie is finishing up our Payroll Index and we are excited to publish that report in March.
  • Aptitude Interviews: Last year, we published the first of our Most Fascinating Leaders interview series. We plan to continue to publish these interviews this year.

So, that’s what we are working on here at Aptitude. We would love to hear from you about any new products, new strategies or new ideas.

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The HR Technology Conference 2016: Slow Down to Speed Up

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In HR technology, competitive advantage is too often confused with how fast a solution provider innovates and launches new capabilities. Categories are created and products are enhanced with very little consideration for what customers actually want or need. The pressure to “speed up” has created confusion in a market that is already crowded and complex.

But, at this year’s HR Technology Conference, the tone seemed different. Solution providers are slowing down, being more thoughtful with product launches, and getting back to the basics. They are thinking about what will help customers improve the way they recruit, develop, and manage their workforce. They are thinking about the employee, the manager, and the candidate. And, while future-looking topics like AI, machine learning and robotics were undeniably mainstream, there was still a heavy focus on simplicity. Both traditional solution providers and startups are tackling fundamental areas of HCM such as assessments, performance management and recruitment. And, surprisingly, this is where much of the product leadership is happening…in the basics.

The simplicity at this year’s conference represents a refreshing shift in a market that has a history of overcomplicating even the most basic of processes. Below are some of the categories and providers that stood out this year:

Assessments

Assessments are a critical part of the hiring process with 79% of companies using some type of pre-hire assessment. Our research shows that assessments are top on the list of investments for companies this year. While stand-alone assessments are still on the rise, established suite providers and talent acquisition platforms are focusing heavily on this market- providing validated assessments and improving the candidate experience. Below are a few providers we are paying attention to:

  • The Chemistry Group: One of the darlings of the Great New Tech session, The Chemistry Group is a next generation assessment provider taping into social profiles and rich candidate data to help employers make better hiring decisions.
  • Cornerstone OnDemand: Cornerstone’s Selection solution allows companies to uncover candidates who are the right fit at any point of the application. Using realistic job previews, job simulations, and assessments, Cornerstone Selection makes it easier to exclude applicants early in the process.
  • HireVue: For anyone that has ever wanted a shorter, simpler, and more candidate-friendly assessment, HireVue’s digital assessment will meet those needs. Its’ assessment product significantly improves the way that employers can identify the right fit while improving the candidate experience.
  • Infor: Assessments are a priority for Infor’s HCM suite. The provider has invested heavily in behavioral and cultural assessments and is pushing these assessments in the rest of its products. It does this so seamlessly that companies are able to get a better grasp of areas such as flight risk, predictive performance, and team development.
  • SMD: SMD (Strategic Management Decisions) was one of the most interesting briefings we had last week. This company is a cloud-based survey, assessment, and analytics provider that promises clients a 10% turnover reduction guarantee.

Performance Management

Companies are finally replacing traditional performance management practices and technology with solutions that provide ongoing feedback, enhanced collaboration, and a positive employee experience. Providers are weaving performance in the form of recognition, wellness, and communication. And, the result is happier employees, a stronger company culture, and improved business outcomes. Below are a few providers, we believe are adding value to this market:

  • ADP: With a new take on performance management and an improved manager and employee experience, ADP is reimaging performance management and enabling greater transparency and feedback.
  • HighGround: Another startup in the Next Great Technology session, HighGround links performance and engagement by offering companies one platform for performance, recognition and employee communication.
  • GuideSpark: Companies that effectively communicate with employees are 4 times more likely to engage employees and 3 times more likely to improve quality of hire. GuideSpark’s communication platform helps companies such as Lionsgate to replace broken performance management systems with ongoing conversations, content and analytics.

Recruitment Marketing

Often referred to as the “pre-applicant platform,” these solutions manage outbound sourcing, inbound recruitment marketing, and employer branding. They integrate with any ATS but essentially, they do what the ATS has never been able to do. Below are a few providers that impressed us last week:

  • Clinch: One of the best products I have come across this year in the recruitment marketing space (and another nominee in the Next Great Technology session). Clinch helps recruiters think more like marketers by helping them easily publish content, attract passive talent, and understand what sources are the most valuable.
  • Entelo: As a leading talent acquisition provider, Entelo is the one provider that offers a unified talent pipeline. They offer outbound recruitment to help companies attract talent and inbound recruitment (through their award-winning Stack product) to help companies rank and prioritize resumes.
  • Phenom People: Calling itself a “Talent Relationship Platform”, Phenom People differentiates itself by using AI to learn about an individual and the touchpoints an organization makes and then provides insights back to recruiters and candidates.
  • Qwalify: Another provider that was nominated as a Great New Technology at the conference, Qwalify is much more than a talent community. Its’ Talent Dojo solution is an engagement-based recruitment platform which helps companies communicate with current and future talent relationships.
  • SmashFly: Smashfly sets the bar high in recruitment marketing. It is helping organizations through a complete recruitment marketing platform of inbound recruitment marketing, outbound sourcing and employer branding. It offers the scalability, services, and security that enterprise companies are demanding.
  • Talemetry: Talemetry leverages a company’s existing recruiting system investment and deeply integrates it with a unified modern recruitment marketing platform. The recruitment marketing solution is now offering auto-sourcing and has strengthened its services over the past year.

Applicant Tracking Systems

Today, the talent acquisition system remains the backbone of a modern recruitment function. Yet, Aptitude Research found that two out of five companies are still unhappy or indifferent with their provider. And…companies are only using 3% of its functionality. So, in the world of recruitment, the need for simplicity has never been greater. Last week, we met with ATS providers that are breaking the mold. Below are our list of some of the providers that impressed us in recruitment:

  • iCIMS: As a provider that has always prioritized customer satisfaction, iCIMS truly understands what clients want from an ATS. The iCIMS Mobile Hiring Manager App. enables hiring managers to take immediate action on job candidates from virtually anywhere, alleviating “log jams” in the hiring process and reducing time to fill.
  • Jobvite: Jobvite is one of the leading talent acquisition providers in the market and differentiates itself by offering solutions to handle every aspect of talent acquisition including recruitment marketing, ATS, and onboarding functionality. Its’ priorities over the next 12 months include mobile, analytics and collaborative hiring.
  • Lever: The fast-growing ATS provider is only 3 years old but has already secured itself as a staple in the talent acquisition tech community. While many providers have taken steps to offer a CRM module as an option in their product portfolio, Lever includes its CRM (its Nurture product) and ATS as a single solution.
  • ZipRecruiter: One of the greatest success stories of the past year has been the growth of ZipRecruiter. Well known for its marketing and advertising, ZipRecruiter is more than just a job distribution tool. It offers companies in the SMB market, a full ATS to help with high-volume, quality of hire and velocity.

Artificial Intelligence

It is hard to talk about this year’s conference without mentioning the role of AI. Companies want solutions that can give them greater insight on the individual and greater communication with candidates and employees. A few of the companies leading the way in AI include:

  • gr8People: This provider is offering recruitment automation through every stage of the talent acquisition process from recruitment marketing to onboarding.
  • Olivia: The big topic of the conference was Olivia, the bot that asks candidates a few simple questions and then sets them on a more personalized experience in the hiring process.
  • Works Applications: The leading Japanese provider is leveraging bots to better engage candidates and help provide feedback on the hiring process.

We will follow these providers and more this year and next and will be profiling them in our upcoming Aptitude Index reports. Also, we would love to hear from you about what providers were most interesting to you at the HR Technology Conference.

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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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The Power of Recruitment Marketing

A digital layout withs someone selected cartoon figures as ideal candidates

When we asked organizations to identify their priorities for talent acquisition investment, recruitment marketing was top of the list. Companies want solutions that can handle the top of the funnel or the pre-applicant workflow. It is not a new request. Companies didn’t just decide they needed a solution to attract, engage or nurture leads. They just didn’t have any good options in the past. Today, recruitment marketing is a critical component of any talent acquisition technology strategy.

The challenge most companies face is understanding what recruitment marketing is and how it can help drive overall recruitment success.  Often referred to as the “pre-applicant platform”, recruitment marketing includes capabilities that maintain the employer brand, foster candidate relationships and enhance messaging and communication efforts. While recruitment marketing can transform a talent acquisition function, the real value is found in a solution that integrates and supports the overall talent acquisition strategy.

Next Tuesday, June 21, I will be presenting a webinar with Charlie Nelson at SmartRecruiters to discuss the power of recruitment marketing. Below are a few topics we plan to cover.

  • The current state of Recruitment Marketing and the key drivers for investing in a technology partner;
  • The role recruitment marketing plays in the current talent acquisition landscape;
  • The key strategies to integrate recruitment marketing efforts with overall talent acquisition efforts;
  • An action plan to help companies get the most value out of their recruitment marketing strategies and investments.

This topic has gained a lot of momentum over the past year and I hope you can join us and share your thoughts on this space.

 

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Greenhouse and the Era of Next Generation ATS Providers

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

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

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

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

What It Needs to Consider Moving Forward?

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

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

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