Aptitude Research
Schedule a Briefing

Tag: Recruitment Technology

Categories
Blog Talent Acquisition Strategies

Google Hire: What Went Wrong?

“We’ve made the difficult decision to sunset Hire by Google on September 1, 2020. While Hire has been successful, we’re focusing our resources on other products in the Google Cloud portfolio.”

If you work in talent acquisition, you probably heard the news. Google Hire (once considered “the future of the ATS market”) is shutting down. It comes as a surprise since just last year it was the most popular topic in the ATS industry among thought leaders, competitors, and companies. If anyone could disrupt the talent acquisition market, it had to be Google. The plan was to gain momentum in the SMB market and then eventually move up to the enterprise market. It seemed to be working, and enterprise companies seemed very interested. But two years later, the company decided to sunset the brand and got out of the ATS business.

Before we focus on what went wrong, it is important to start with what went right.

What Made Google Hire Great?

In 2017, Google launched its Hire product and gained immediate attention as being THE de-facto ATS for small companies, inevitably replacing providers like Lever and Workable customers. Its main differentiator was efficiency. Companies could “Hire Faster with Google,” and it was able to prove this through various case studies and ROI examples. Lola reported that they could hire talent in seven days, and Trader Interactive was able to save recruiters five hours a week of administrative work. In a time when showing the value of tech is becoming harder and harder, Google Hire seemed to figure it out. And it wasn’t just efficiency that Google did well. It was also interview scheduling, candidate profile, and analytics. It integrated with the Google Suite of products. It was simple, and based on a candidate-centric model.

So, What Went Wrong?

Although Google’s decision to exit the ATS market may seem sudden, the wheels seemed to come off the bus earlier this year. A few things stand out:

-Google has a long history of killing products, including products that appeared to be successful. Some people call it the Google graveyard. Over the past few years, it has shut down Google Hangouts, Google Trips, Google +, Google Allo, Google Notification Widget (called Mr. Jingles), Google Goggles, and Google Weather. And these are just a few examples. Google Hire now joins this list.

– Bogomil Balkansky, who was the VP of product for Google Hire and connected to most people in the industry, seemed to go on some type of sabbatical last year. Sabbaticals happen especially at companies like Google, and his reasons may have been personal but taking time off when a product is gaining so much traction is unusual.

-Most of Google Hire’s clients appeared to be in the tech market. While having clients at innovative companies is exciting; anyone that has sold tech to tech knows that it is hard work and challenging to scale.

– Google for Jobs started to raise some concerns. Over the past two years, Google has faced over $9 billion in anti-trust fines and Google for Jobs is now under fire for claims that it is unfairly pushing users to its services and away from other third-party sites.

What Happens Next?

Now that the future of the ATS market looks a little different, what can companies expect over the next year?

Current Customers: Google is extending contracts up to a year for current clients. Customers will have a year to figure out where they want to go next.

Competition: The ATS market has always been competitive, but Google’s announcement has added fuel to the fire. Providers like Workable and RecruiterBox are aggressively going after these Google Hire customers. HireHive posted this message on Twitter: “Google Hire is shutting down. Well, at HireHive we’re not planning on ‘sunsetting’ our platform, ever. And we’re offering every Google Hire customer a free account for six months.”

LinkedIn: Last year, LinkedIn announced it plans to develop an ATS for small companies. Google’s exit could allow LinkedIn to gain market share and establish itself as a leader in the ATS space.

Above all else, the Google Hire story highlights the tremendous opportunity providers have in the SMB market. Too often, providers try to move upmarket, chasing large deals and customers. But, what they forget is that SMB companies want to change and either has no system or a homegrown product. Providers that stay committed to this market can achieve significant growth.

 

Categories
Blog Talent Acquisition Strategies

iCIMS Acquires Jibe and Continues its Leadership in All Things Talent Acquisition

If you don’t know the history and the background of iCIMS and CEO, Colin Day. It’s an interesting story. iCIMS is a SaaS talent acquisition provider that has achieved tremendous growth and profitability in a highly competitive industry. Most of its early success stems from its commitment to customer service and Colin’s strong leadership (even through two recessions). While other providers have tried to reinvent the recruitment model favoring what is “new”, iCIMS has focused on what it does best- helping companies attract, recruit and onboard talent. It’s a basic strategy and one that has worked.

But iCIMS’ success is not just the result of its customer support, it has also taken significant risks.  In 2012, I met with Colin and CMO, Susan Vitale, in Boston. They were about to announce the decision to ditch iCIMS’ talent management products in favor of a talent acquisition suite. It seemed like a crazy idea when every other vendor was “biggering” and “biggering” into all things HCM. iCIMS was scaling back to focus solely on talent acquisition. Colin recognized that talent acquisition deserved its own suite of solutions and its own conversation. And, he was right.   

While many other providers struggled with acquisitions and customer churn, iCIMS continued a path of steady growth eventually moving up market to support some global enterprise clients. It acquired Jobmagic and TextRecruit and built out a marketplace to provider connectors with third-party providers. The recent acquisition of Jibe further supports its vision for an end-to-end platform.

Below are my thoughts on what this acquisition means for the market and what customers and prospects should consider:

–          Recruitment Marketing Platforms: Recruitment marketing continues to be a top investment for enterprise organizations and the value of having one provider for both CRM and ATS is clear. Similar to K1’s acquisition of Talemetry and Jobvite, one provider offers more consistency of data and experience. It isn’t long before we will see other recruitment marketing providers getting acquired.

–          Customer Support: Many of the recruitment marketing providers have neglected customer support. They have angry clients and angry former clients. It’s not pretty but it’s true. This is a market with significant market churn as customers look for better partners. I can name a handful of companies that I work with that will not even take a briefing from some of the providers in this space. Jibe has remained under the radar but has maintained its customer support. Johnson & Johnson is an example of a long-time customer that improved its job discovery of critical roles to a 41% increase in high-quality job applicants per search.

–          Enterprise Growth: Recruitment marketing is an enterprise market- at least for now. Large companies want solutions that can help them enhance their branding and engage with talent before they apply. As iCIMS looks to move up market, having a recruitment marketing provider with demonstrated support for enterprise companies is critical.

–          Branding: Acquiring a new company can create growing pains in terms of product and development and branding. This acquisition is not iCIMS first rodeo. It has learned some lessons with the TextRecruit acquisition and plans to make this a smoother process. We can expect a consistent experience and brand for customers.  

It is a great time to be in talent acquisition. Companies want better solutions and providers are making smarter decisions about where and how they should grow. We should expect to see more acquisitions in the recruitment marketing space over the next year and I am looking forward to seeing how this announcement unfolds.

Categories
Blog

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!

Categories
Blog

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

businessman selecting change from a panel with other business options

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

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

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

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

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

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

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

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

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

Categories
Blog Talent Acquisition Strategies

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

The Aptitude Index Report for the Talent Acquisition Systems from 2016

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

(Check out our video describing the report here)

If you are still unsure about what the Index is or how you can use it, the information below might help.

Who is Included? We looked at the leading talent acquisition system providers including: ADP, Cornerstone OnDemand, Greenhouse Software, iBM Kenexa BrassRing, iCIMS, Lever, Lumesse, Newton Software, Oracle, PeopleFluent, SAP, SilkRoad, SmartRecruiters, Workday

What is it? It provides an overview of the market and helps companies rethink the evaluation criteria used to select partners and what providers might meet their unique requirements. As the market becomes more complex, organizations must take a step back and reexamine what is driving success and ask new questions around technology decisions. The final section of this report includes profiles of ATS providers describing their attributes along these criteria. The appendix includes a list of providers in the ecosystem that partner with talent acquisition systems.

When does it publish? Today!

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

Why should we care? Companies spend a lot of money on talent acquisition technology. It is hard to figure out if you are getting value from your providers and what solutions might match your unique hiring needs. Today, the decision to purchase technology is not just about price and product capabilities. It involves services, leadership, culture, and viability of these providers.

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

 

Categories
Blog Talent Acquisition Strategies

Stop Being So Fancy

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

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

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

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

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

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

 

Categories
Blog Talent Acquisition Strategies

Raytheon: Improving the Candidate Experience through Better Communication

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

As customers, we want to feel important. We expect a customer experience that is personal, simple and human. Fortunately, most companies are committed to meeting these needs. If I think about the sites I visit regularly (Adidas, Fiverr, Amazon or even sites for my kid’s activities), they all share two things in common. First, they offer real-time chat options and second, they ask for feedback about the experience. Chat and messaging help us feel supported in a friendly and familiar way. Feedback is important because we want to know that our opinions matter. Again, customers want to feel important.

The same is true for our workforce. Candidates and employees also want an experience that is personal, simple and human. Why should messaging and feedback be limited to just the consumer world? The good news is that more solutions are becoming candidate-centric and employee-centric – committed to providing the same experience we see in the customer world to our workforce. In my opinion, the key to making candidates happy is making solutions simple. One candidate-centric provider that has really impressed me this year is Brazen. They are able to put the individual first by providing exactly what candidates want…communication and feedback. Brazen offers a simple solution for attracting and engaging passive talent through real-time messaging.

Raytheon has been using Brazen for the past four years to improve the candidate experience. With so many positions available and too many applicants, providing a 1:1 engagement was a challenge for the defense contractor. With Brazen, Raytheon is now able to provide a more personal experience through individual chat-based events. Candidates are attracted to Raytheon and then have the option to schedule a chat with a recruiter or hiring manager to learn more about the organization and the recruitment process. The process of looking for a job is transformed from scary and unknown to friendly and familiar.

Below are a few ways that Raytheon is using the solution:

  1. Enterprise Tool: To support its four business units, Raytheon has been leveraging Brazen for over 4 years to schedule chats with candidates that typically last for 20 minutes.
  2. Targeted Events: Raytheon uses Brazen to schedule very specific, targeted events for military hires or women (just two examples). These events go into greater detail about the culture and work environment at Raytheon. These events are also much longer – sometimes lasting between sixty to ninety minutes. The military events attract 60-140 candidates and are held 8-10 times a year.
  3. Target Specific Jobs and Roles: Raytheon uses Brazen to target specific types of roles, locations and market to a specific demographic.

Through this solution, Raytheon has been able to identify candidates quickly, engage with them in a meaningful way and gather more information to make better decisions about candidates. They have also been able to save money that would be spent flying candidates to meet with recruiters and hiring managers. Overall, it has proved to be a win-win for both candidates and recruiters.

In a world where experience is defining our workforce, we need more solutions that make communication easy and simple.

Categories
Blog

Just In: New Data on Talent Acquisition Technology

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

Our first Aptitude survey is off to a great start with close to 300 responses. The goal of this research is to explore how companies are leveraging technology to improve the way they hire, engage and retain talent. We are looking at the challenges and strategies through every stage of the customer’s journey from readiness to selection, implementation and adoption. The good news is that with so many new products and services, it is an exciting time to be an HR technology buyer. The bad news is that most companies still struggle when making decisions on what technology will best meet their unique needs.

We are committed to helping companies navigate through the customer journey and understand how to identify their own priorities. Below is a sneak peek at some of the data that aligns with the customer journey.

  • Readiness: Readiness involves understanding your organization’s true business needs, requirements and limitations, as well as the underlying talent strategy. Companies must think about what technology they currently have in place and what changes will help them achieve their business objectives. Currently, only 3% of companies are using the full functionality of their ATS and one third of companies are still using their ERP.
  • Selection: Selecting the right provider involves more than product capabilities. It is the process for identifying the best partner. Companies have to look at differentiators and how they help to meet their own business needs. Eighty percent of companies rely on word of mouth to help make decisions. Key criteria for selecting an ATS includes:
    • Product Capabilities- 65%
    • Price – 63%
    • Demonstrated ROI- 60%
    • Approach to integration- 56%
    • Demonstrated expertise in a related industry- 56%
    • Financial Viability – 54%
    • Relationship management Resources- 52%
  • Implementation: Implementation is often when the relationship with a vendor goes wrong. The process of getting the solution operational in your unique business context. Thirty-four (34%) of companies implement their system in 90 days or less.
  • Adoption: Organizational change management is critical to success, and planning for how to support user adoption is a key to unlocking technology ROI. Adoption is the true sign of how successful the customer journey has been. Only 20%of companies have a change management strategy in place and only 43% of companies view their providers as a partner.

Over the next few weeks, we will be publishing highlights from this research and recommendations for companies looking to better understand the technology landscape and their own customer journey.

 

 

LinkedIn Twitter Email
Top
Aptitude Research