Aptitude Research
Schedule a Briefing

Tag: talent acquisition

Categories
Blog

Three Misperceptions About AI in Recruitment

robotic claw pulling up the right candidate

Are you confused by AI or unsure if your role is in jeopardy? Well, you are not alone. We launched our latest talent acquisition survey last week and found that 60% of companies are uncertain about AI and its impact on talent acquisition. And…43% of talent acquisition professionals fear they will lose their jobs.

While many of the concerns around AI are valid considering all of the misinformation in the market, AI can actually help to improve the overall talent acquisition function and empower recruiters to make better decisions on how they identify, engage and hire talent.

AI is a big focus in our research this year and we are going to share key findings on a webinar today at 2pm EST hosted by Symphony Talent. Some of the misperceptions we plan to address include:

Myth #1: Replacing the Role of the Recruiter: Sometimes referred to as “Augmented Intelligence” or “Artificial Assistant”, AI can be a recruiter’s best friend, rather than his or her biggest enemy. AI cannot replace a recruiter’s ability to detect emotional intelligence or personality traits in candidates. Recruiters can measure emotional quotients of candidates in areas such as self-awareness, empathy, social awareness, and relationship management. While AI can effectively filter candidates with the required competencies and experience for a job, recruiters can spend more time analyzing the human element that is critical for measuring organization fit.

Myth #2: Confusing Data with AI: Data is the foundation of AI. Without a large of amount of historical data and context, AI is not effective. Data gives recruiters insight to make the best decisions possible. Yet, too often, companies confuse data and AI as one in the same. AI puts data into action by giving that data context. Currently, most companies are not effective at taking action on data. The most valuable area of AI is in expert solutions. An expert system is a system that employs knowledge about its application domain and makes inferences to solve problems that would otherwise require human competence or expertise.

Myth #3: Believing AI hurts the Candidate Experience: Companies have a tendency to think of AI as a barrier to a positive candidate experience. They characterize interaction with the technology as impersonal. According to Aptitude Research Partners, companies with AI capabilities in place are 3 times more likely to improve the candidate experience. Candidates want better communication and feedback, and AI solutions make that communication mandatory and consistent.

Join us today at 11am PST/ 2pm EST to talk about AI and its role in empowering recruitment.

Categories
Blog

How to Buy HR Technology: The First Step

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

Companies are changing the way they buy HR technology. Evaluating and selecting the right provider has become much less about product capabilities and much more about a true partnership.  And that’s a good thing. In fact, according to research we conducted last year, nearly 80% of companies said that “word of mouth” and “reference calls” are the most influential factors in making decisions- not RFPs or demos. Companies want solutions that they know will deliver results.

So, if selecting technology is more than just feature and functionality, what should companies consider when evaluating a provider? What should they look for in a true partner? On June 6, I am excited to attend Jobvite’s Recruiter Nation event to share some of our latest research on how companies are buying HR technology. Some of the topics covered during this session will include company background and culture, services and support, product roadmap, and staying power. This session will help empower buyers to ask the hard questions and think about what is important beyond what they can find on a demo or a company website.

But, the first step companies need to consider is understanding their own unique requirements. Word of mouth is not enough and relying on referrals can create barriers to creating a long, meaningful relationship with a solution provider. Before companies look outside, they need to take the time to understand their own needs.

Below are some recommendations on getting started with an Internal Needs Analysis:

  • What It Is: Internal Needs Analysis is an exploration of an organization’s strengths and weaknesses focusing on internal factors. Companies should consider what past obstacles they may have faced when selecting technology, who is involved in the selecting process, and what processes are currently in place.
  • Why It Is Important: Companies need to understand what requirements they have before they can begin to know what technology providers they need. This step is critical to helping companies stay prepared and making the selection process much simpler.
  • How to Do It: Companies can begin an internal needs analysis with SWOT analysis, interviews with key stakeholders, assessment of existing technology solutions, budget planning, long-term vision planning, alignment with corporate objectives, or readiness assessments.

As the HR technology market changes, the selection process must also evolve. I hope you will join me in June to talk about key recommendations and action steps for making the best decision around your technology.

Categories
Blog

Why We Do Not Rank Vendors in Our Reports

recruitment marketing index from 2017 displayed on a smartphone

When Mollie and I founded Aptitude Research Partners, we did so because of a massive need in the Human Capital Management market for a more productive conversation between HCM technology users and providers. Our goal from day one has been to move the dialogue beyond feature and function, to what really matters.

The mission of our business is to enable a new conversation where organizations have the insight to better understand their own HCM needs, and providers can clearly highlight their differentiators in order to create stronger relationships and improve the overall employee experience.

The Experience Economy, as we call it, is a delicate balance. Each member plays a distinct role. As far as we are concerned, as analysts, we take on the role of a kind of Sherpa leading both vendors and practitioners up the mountain to new heights.

 (See mountainous logo, etc… now it makes sense!)

It’s a role we take quite seriously.

And unlike the traditional analyst ranking models made popular by Gartner’s Magic Quadrant or Forrester’s Wave,TM  we do things a bit differently. We feel it’s critical to maintain objectivity to truly add value to both parties.

That is why we do not rank vendors in our reports

To-date we have published two Index Reports, one last year on Talent Acquisition Systems and one this month on Recruitment Marketing. The Indexes are an expression of that new conversation.

[Update: Now three Index Reports. Read our latest Index Report on Payroll Solution providers.]

They bring the concepts of the HCM technology landscape (our perspective of the vendor landscape) and an understanding of the buyer’s journey (detailing what matters to practitioners) together. The reports explore key trends, meaningful differentiators, and provide our opinion on how to think about the process of matching organizations with the right provider with a unique look at the top players in the space.

It is NOT a stack-ranked list of providers, or a shopper’s comparison guide. This is important. Instead, it provides an overview of the market and helps companies rethink how they determine their own needs, 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 profiles of providers in these reports describe their attributes along these criteria. The insights are based on survey data from hundreds of technology users, in-depth demos and conversations with providers, and our own experience and expertise in the HCM space.

It is our hope that these reports help to simplify the confusion, and focus in on the real, practical questions users and buyers ask every day as they prepare to evaluate technology.

We’re always listening. Reach out on Twitter and Facebook, on our blog, or by emailing us at hello@aptituderp.com.

Categories
Blog Talent Acquisition Strategies

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!

Categories
Blog

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.

Categories
Blog

Assessments: A New Landscape

For whatever reason, the assessment market is hot again. It could be the fact that organizations need help making better hiring decisions. Or, the fact that old and new providers are going to market with more “selection science”, “predictive selection”, or just plain-old assessment solutions. In any case, we found that the number two priority for talent acquisition professionals is investing in pre-hire assessments (just behind improving the candidate experience). And this sentiment certainly rang true at the various conferences and meetings we have had over the past few months. Assessments are on the rise.

But, the market has changed. Organizations have more options today and don’t need to rely solely on stand-alone solutions. With nearly 80% of companies planning to invest in assessments in the next 12 months, this shift brings promise to a market that had gone stale.

We are about to publish new research on the current state of assessments including some of the leading providers in the space. Below are some of the categories these providers fall under:

  • Suite Providers: Broader talent management providers and HCM providers that are integrating assessments into their existing products and offerings. These assessments are often predictive in nature and provide insight about how an individual may perform on the job. Many of the larger HCM providers and talent acquisition platform providers are entering this market by offering validated assessments that are integrated with their existing product suite and embedded in their products. In fact, 48% of companies said that this integration is a key criteria in selection.
  • Stand-alone Providers: Traditional stand-alone assessment providers that offer validated assessments either as online or manual tools. These providers focus on skills and personality assessments and may or may not offer post-hire assessments. When we asked companies to identify their primary reason for investing in these solutions, they cited the need to make better decisions around talent.
  • Next Generation Providers: Innovative providers that are helping organizations identify quality of hire while improving the candidate experience. Currently, 1 in 4 organizations are considering mobile in the key criteria for selecting a provider.

We are excited to launch our assessment research next week and look forward to continuing to follow this dynamic market.

Categories
Blog

The HR Technology Conference 2016: Slow Down to Speed Up

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

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.

Categories
Blog

HR Technology Conference: 5 Reasons We are Excited to Attend

tortoise toy ahead of a hare toy

It is hard to believe that the HR Technology Conference is just one week away. This will be my 10th year attending the event and I have been spending the past few days reflecting on the past and considering the future. So much has changed in this industry over the past decade. Some of the largest providers have been acquired (Taleo, SuccessFactors, Kenexa and now Monster) and many exciting startups seem to be taking center stage. Providers are going to market with solutions that not only lift the administrative burden off of HR departments but also, provide a meaningful experience for candidates, employees and managers. The value proposition for many of these solutions has never been greater.

As we start to plan for next week, below are five things we are most excited about:

  1. Startup Pavilion: “The value of an idea lies in the using of it.” – Thomas Edison, General Electric Co-founder. The startups at the conference will not disappoint. Over 50 companies will be participating in this year’s Startup Pavilion including onboarding, assessment, performance management and benefits companies. They are all rethinking the way companies rely on technology to manage their workforce and enhance the employee or candidate experiences.
  2. Next Great Technology: Speaking of startups…on Tuesday, October 4 at 3:30pm, I will be participating in The Next Great Technology session where participants will be able to hear and vote on 8 of the most exciting providers in the market today. Check out HighGround (performance management) and Clinch (recruitment marketing) who will be featured during this session.
  3. Performance Management: Are companies really ready to throw out traditional performance management practices and systems and replace them with more innovate and effective options. We think so. We have seen companies such as GE and Lionsgate rethink their approach for performance and invest in new solutions. Many providers are offering viable options- something we have not seen for a long time.
  4. Candidate Experience: Every talent acquisition provider is prioritizing the candidate experience in all aspects of recruitment. And while we are excited to hear what new technology is improving candidate feedback, we are most excited to hear from industry expert Gerry Crispin– who has spearheaded this movement. (He was also our last guest on the Research on the Rocks podcast).
  5. Conversations: Last year, we set off on a journey to start a new conversation in HCM. This year, we are excited to continue that conversation by reconnecting with familiar faces and making new friends in this very exciting market. We hope to see you there!
Categories
Blog

Top 7 Findings on Talent Acquisition in the SMB Market

compass with the arrow pointing towards the word talent

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

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

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

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

Categories
Blog

Randstad Acquires Monster: The End of the Glory Days

monster job board logo

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

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

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

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

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

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

LinkedIn Twitter Email
Top
Aptitude Research