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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…

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People Not Paper: Children’s Mercy Hospital Disrupts Talent Acquisition

Children's Mercy Hospitals and Clinic of Kansas City logo

Last week, I attended HireVue’s Digital Disruption event in Park City, Utah. This conference is one that stands out from the rest- not just because of the incredible venue but because of the content, partners, and customers. These attendees are not HR generalists or entry level recruiters. They are senior talent acquisition leaders from companies such as The Estee Lauder Companies, JPMorgan Chase, Unilever, and UnitedHealth Group. For many of these leaders, this event is the only one they attend all year.

I learned a lot. I learned how these companies view the current talent acquisition technology market. I learned that what’s important is finding a partner not a provider. I learned that the talent acquisition technology buyer is becoming more sophisticated than ever before and I learned that when we talk about “disruption”, it begins with these companies.

Children’s Mercy Hospital is a perfect example of this disruption. They are flipping the recruitment model to interview candidates before they even apply for a job. Through HireVue’s “Introduce Yourself” product, Children’s Mercy invites anyone interested to interview right on the career page. Candidates are then interviewed by the children at the hospital- instead of hiring managers or recruiters. Candidates immediately build a connection with the hospital and get a sense of the company culture. Over the past year, Children’s Mercy achieved the following results:

• Improved Candidate Experience: Candidates have more fun during the interview process and the experience is more personal and meaningful. The experience of including children in the videos is extended beyond the interview process into the offer messaging and onboarding phases.
• Increased Diversity Efforts: One unexpected outcome of flipping the recruitment model is the increase in diversity hires. Since using “Introduce Yourself”, Children’s Mercy has 28% diverse hires.
• Increased Number of Hires: Children’s Mercy was able to significantly increase the number of hires they made using “Introduce Yourself” to 285 hires last year.

Molly Weaver, Talent Acquisition Director at Mercy Hospital, shared the following recommendations for any organization looking to disrupt talent acquisition and become more creative in the way they engage candidates:

• Embed culture in the interview process: Children’s Mercy connects with candidates by showcasing the company culture and providing transparency into the key values of the organization.
• Get ready to talk about “people not paper”: Recruiters at Children’s Mercy do not talk about applications. They talk about people and make a connection with the individual.
• Try a video first strategy: Children’s Mercy recommends that companies try a day, a week, or a month if they are hesitant to commit to a new model for recruitment.
• Track your results: In order to gain buy-in, companies must be able to measure their results and share them with key stakeholders.
• Be a superhero to hiring managers: Children’s Mercy was able to improve hiring manager satisfaction by finding people that they don’t even need.

As talent acquisition departments mature, they are rethinking traditional strategies and technology options. Children’s Mercy is one example of a company that is connecting with candidates and driving results. Check out their career page and see some of the “Introduce Yourself” videos. I promise you will be inspired.

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The Talent Acquisition Technology Market is Heating Up

compass with the arrow pointing towards the word talent

According to CB Insights, HR Tech deals reached a record high in 2016 with $1.96B invested across 350 deals from January to October. And, no surprise, most of those deals were in talent acquisition technology. Compare that to 2012 (with only $400M of investment in HR technology) and it becomes clear that this market is not slowing down anytime soon.

In fact, it really began to heat up this month. Every day seems to be marked by a new round of investment for some of the leading startups in this space. Not to mention the other major announcements – CareerBuilder got acquired and all eyes are on Google. It is an exciting time to be in talent acquisition technology.

Below are some of the major announcements this month:

• Entelo: Entelo is a leader in the talent acquisition technology market and has become a critical part of any forward-thinking recruitment or sourcing strategy. What makes it standout is not only a stellar product (inbound and outbound recruitment) but also, its approach to employees, partners, and customers. Last week, it announced $20M in Series C funding led by U.S. Venture Partners.
• Yello: One of the more impressive companies I have met with this year, Yello has a product suite that includes a CRM, scheduling, video interviewing, events management, campus recruiting, and employee referrals. This week they raised $31M in Series C funding from JMI Equity.
• Textio: The augmented writing platform helps companies create more effective job postings. Textio claims to predict the performance of these postings by analyzing the outcomes of 10 million postings each month. This week, it announced $20M in Series B funding led by Scale Venture Partners.
• Workey: This AI recruitment solution is helping companies reduce or replace their cost on third-party recruitment companies. Earlier this month, it announced $8M in Series A funding led by PICO Partners.

What’s driving this focus on talent acquisition technology? Why are investors watching this market so closely and what does it mean for you? A few factors to consider:

• Business Pressure: Talent acquisition is elevated to more of a business priority. Companies are making more strategic decisions around where they spend their dollars and what value they are seeing from these solutions.
• Importance of the Ecosystem: The modern talent acquisition landscape is comprised of three core systems (recruitment marketing, ATS, and onboarding) and an ecosystem of providers that integrate with those systems. This ecosystem is helping to drive change and improve talent acquisition efforts and this is where most of the investment is happening.
• Focus on the Candidate: For over 70% of companies, the candidate experience is the top priority. Traditional recruitment providers are not designed to enhance the candidate experience. Startups and third-party providers are leading in this area.

One important question that customers must ask is “Where does this investment go?” Customers need to consider if these providers are going to develop the product, enhance sales and marketing, or strengthen customer support. Ideally, they would do all three but it can be hard to tell. It is important to ask your providers tough questions about their investments and partner with them as they grow over the next year.

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New Research: The Future of Talent Acquisition

highway on a mountain overlooking a sunset and a person jogging in the distance

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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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.

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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.

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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.

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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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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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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.

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