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New Research: The Informed Candidate

Today’s candidates are making smarter decisions about what they want from an employer. They are diving deeper into job sites, career sites, and social media to get a clear picture of an organization before making a connection. They want to understand if the skills they have are the skills needed for the job. This more “informed candidate” brings significant benefits to organizations by improving efficiency and helping companies stay more strategic in the hiring process. And it is becoming clear that companies that want to successfully compete for talent need to embrace the informed candidate and manage their online brand to provide the most accurate and relevant information.

According to Aptitude research conducted in 2018, companies define the informed candidates as having the right information for an interview, the right skills for the job, and someone who has conducted his or her own research. When candidates know what to expect, recruiters are able to better meet those expectations and provide a positive experience. Last month, we published some new research on how companies can do a better job engaging the informed candidate. Here are some of the key findings and recommendations:

• Provide Accurate Information: Only 22% of companies communicate with candidates in a timely manner and much of the information provided is not accurate. In fact, only 32% of companies are confident that they know where they are advertising jobs to candidates. Companies need to pay close attention to the information they are providing candidates whether through advertisements, career sites, or even job descriptions. The more accurate and relevant the information, the more likely the candidate will be the right fit.

• Invest in Employer Branding: Thirty-eight percent (38%) of companies say that employer branding is still a significant barrier in the hiring process. In Aptitude Research Partner’s 2018 Hire, Engage and Retain study, companies identified employer branding tools as one of the top 3 most effective sources of hire for every position from executive level roles to hourly workers. Companies that invest in employer branding efforts are empowering the informed candidate with information that can help them through their journey. It gives them information about the company as well as relevant jobs.

• Manage Online Reputation: Candidates are doing their own research and companies should be involved in that process. Eighty percent (80%) of candidates have accurate information from companies that manage their online reputation compared to only 36% of candidates from companies that do not manage their online reputation. Managing an online reputation could include employer branding efforts, social media sites, as well as employee feedback sites. Candidates are 40% more likely to apply for a job at companies where they recognize the brand.

The key to building a successful candidate experience is understanding that it begins well before an individual is actually a “candidate”. It begins during the attract phase of talent acquisition when employers leverage a variety of channels and content to engage and inform both active and passive candidates early in the process. This experience begins when a candidate starts to gather information on a job or an employer.

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Assessments: You Have Better Options

I have been covering the assessment market for the past 15 years. And to be honest…I have done a less than stellar job. Looking back on research from 2005 makes me want to cringe. We are still talking about the same trends, the same providers, and the same challenges. Companies continue to invest heavily in assessments (some close to $2 million) and assessments continue to frustrate recruiters, hiring managers, and candidates. Not much has changed. Overall, most companies feel that assessments are not short enough, not predictive enough, and not candidate-friendly enough. If you have ever taken an assessment, you get it. It is a test and most people don’t like tests.

But the conundrum that companies face is that assessments actually provide tremendous value when used correctly. In an era when everyone wants less bias and more science, assessments are a proven model. In research we conducted earlier this year, assessments are one of the top three investments for talent acquisition leaders and an investment that 30% of companies believe has the greatest impact on quality of hire. It is a market where most companies want to increase their budgets. Unfortunately, they need better options.

Last week, when most of the talent acquisition community was focused on the acquisition of Glassdoor, HireVue announced its own acquisition of MindX– a game-based assessment provider. It is not HireVue’s first acquisition but it may be the best to date. HireVue is establishing itself as a strong contender in assessments and providing companies with exactly what they need…a better option. This acquisition represents a shift in the assessment market where companies are no longer at the mercy of traditional providers.

We are publishing a major piece of research on assessments this month and some of the trends we are seeing include:

–          Experience vs. Validation: The assessment market is not a startup market. Companies need providers with validated solutions and I/Os on staff. Many times, this commitment to validation comes at the expense of a positive experience. The next generation of assessment providers will provide both a positive experience (shorter assessments that are more candidate-friendly) and trusted data and solutions.

–          Lack of Awareness: Most enterprise companies invest heavily in assessments but most have limited knowledge of the providers that play in this market. The assessment market is not small by any means but the number of providers with brand awareness are few and far between. It creates a feeling of “meh” around assessments. Companies have a hard time leaving a provider that they are not satisfied with when they do not know what options are available.

–          Increased Demand for High-Volume: Most companies are increasing their investment for assessments for high-volume positions to help them narrow the funnel and attract quality hires. This is a shift from the heavy investment in custom assessments for executive level positions of the past.

–          Game-based assessments: Companies want game-based assessments for their most critical roles and see value in a better candidate experience and the ability to predict future performance.

We will publish our latest assessment research this month. We have interviewed many talent acquisition leaders this year and feel confident that we will do a better job addressing the real challenges and opportunities in this market.

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A Simple Way to Improve Quality in Talent Acquisition

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

Over 50% of companies said that background screening solutions have the greatest impact on quality. Screening solutions help organizations make better decisions around the talent they are bringing into the organization. Most companies are investing in criminal background checks as well as verification of employment and education. And…over 60% of companies view screening as so strategic that they are moving it up in the process.

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

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

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

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

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April Acquisitions in Talent Acquisition

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

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

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

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

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

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

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Best-of-Breed vs. ERP in Talent Acquisition

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

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

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

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

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Hiring Success 2018: Top 10 Key Takeaways

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

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

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

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

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

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We Are a Tech Company

This phrase seems to be the rally cry for many of today’s largest companies. Financial firms are now competing for tech talent against companies like Google and Facebook. According to CB Insights, Goldman Sachs is hiring more tech talent this year than financial talent with a third of its workforce in engineering roles. JP Morgan has created “Tech Connect” to attract and develop tech talent and Morgan Stanley is upping its game as well. These firms are offering competitive salaries and considering more relaxed work environments that might appeal to the Silicon Valley genre of talent. And they are not alone. According to McKinsey & Company, large companies will make technology-related investments averaging hundreds of millions of dollars and some upwards of a billion dollars in the next five years. Every large company seems to be trying to become a tech company. But what do these firms need to consider if they want to recruit the best of the best?

Here are a few or our recommendations for a more tech-friendly talent acquisition strategy:

–          Invest in Best-of-Class Technology: The top tech talent are not going to want to work for a company that uses outdated or traditional recruitment software. If you are going to be taken seriously as a technology company, consider you own tech investments including your recruitment marketing solutions, employer branding, ATS, and onboarding solutions. These solutions should provider the right candidate communication and a simple, consumer-like experience.

–          Consider Scheduling Tools: Many of the tech companies are startups are experimenting with different scheduling tools such as Olivia, Brazen, and Calendly. Not only do these tools lift the administrative burden for recruiters but they show tech companies that your firm is up-to-date with the latest innovation.

–          Narrow Your Candidate Pool: If you want to be more effective at identifying the best candidates and competing for talent, you may want to consider assessment tools. These solutions can help you identify talent with the right skills, personality, and cultural fit.

–          Invest in Employer Branding: If your company is transforming, you will need to update your employer brand. You will need to showcase why top tech talent would want to work for your firm using video and social channels. It might mean a change in company culture, competitive salaries, or highlighting your existing top talent.

As most companies try to establish themselves as tech companies, they will need to do more to identify and attract top talent. Recruiting in tech is one of the most competitive markets right now and companies that will succeed will need to highlight their brand, connect with candidates in a meaningful way, and use innovative technology.

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Improving the Candidate Experience Through Better Communication

Two tin cans connected by a string

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

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

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

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

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

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

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

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

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

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

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

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

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Why iCIMS’ Acquisition of TextRecruit is a Big Deal

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

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

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

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

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

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

 

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