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Author: Madeline Laurano

Madeline Laurano is the founder and chief analyst of Aptitude Research. For over 18 years, Madeline’s primary focus has been on the HCM market, specializing in talent acquisition and employee experience. Her work helps companies both validate and re-evaluate their strategies and understand the role technology can play in driving business outcomes. She has watched HCM transform from a back-office function to a strategic company initiative with a focus on partnerships, experience and efficiency.

Before founding Aptitude Research, Madeline held research roles at Aberdeen, Bersin by Deloitte, ERE Media and Brandon Hall Group. She is the co-author of Best Practices in Leading a Global Workforce and is often quoted in leading business publications including The Wall Street Journal, The Boston Globe, Yahoo News, The New York Times and The Financial Times. She is a frequent presenter at industry conferences including the HR Technology Conference and Exposition, SHRM, IHRIM, HCI’s Strategic Talent Acquisition Conference, Unleash, GDS International’s HCM Summit, and HRO Today.

In her spare time, she is a runner, an avid sports fan and juggles a house full of boys (where a spontaneous indoor hockey game is not unheard of!).

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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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Amazon’s 2nd Headquarters: Building the Case for Boston

Last week, Amazon announced the finalists for its 2nd headquarters and Boston is a contender. This is exciting news for a city that has seen significant growth in tech from companies like Wayfair, Tripadvisor, Raytheon, EMC, and Hubspot. According to the SEC, at the end of 2016, Raytheon added over 2000 jobs and Wayfair not far behind with 1791 new tech jobs. Amazon would certainly accelerate this growth and completely change the job market and recruitment landscape in Boston. We believe for the better. And yes, as a Boston-based company, we are slightly biased. Here are a few reasons why we think that Boston is a strong candidate for Amazon and what impact this could have on talent acquisition efforts:

  • Brain Drain: A 2016 study by real estate services firm, CBRE, found that college students with tech degrees are leaving Boston for cities like San Francisco and New York that offer greater opportunities in their field. This is not a new phenomenon. Boston has always struggled to retain students from schools such as MIT, Harvard, Boston University, and Northeastern University – especially in tech. Amazon would offer a huge opportunity for students considering staying in the Northeast. It is planning to add 50,000 high paying jobs and invest $5 billion into the city.
  • Location: The location that Amazon is considering is just minutes from a major international airport. This location makes it incredibly convenient for customers, partners, candidates, and remote workers to meet with Amazon. Anyone owning real estate in Revere or East Boston should hold on tight to their investments.
  • Competition for Talent: Competition for talent is not always a bad thing. Amazon’s presence in Boston will certainly require companies like Wayfair, Raytheon, and even GE to offer better salaries and incentives to their existing employees. Amazon will also bring new talent to the city that will help boost the economy.
  • Diversified Industries: The Boston economy is thriving. According to BLS, Boston unemployment rose 2.3% in October 2017 from a year ago. Boston added nearly 15,000 jobs in that time in a variety of industries including professional services, education and health services, and finance. Amazon’s headquarters will increase Boston’s prowess in tech.

Amazon’s announcement on its 2nd headquarters will be exciting for any of the 20 contenders but Boston is well positioned to make the short list (despite its cold winters). We are watching very closely!

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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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Your Employees are Financially Stressed. So, What are You Going to Do About It?

a person using a tablet to show data and charts while other employees take notes

According to research by the American Psychological Association, 72% of Americans are financially stressed. It goes without saying that financial stress takes a serious toll on an individual’s health, happiness, and overall well-being. But it also has a ripple effect on our workforce. When employees are stressed, productivity, performance, and engagement all plummet. So, what are we doing to help employees manage stress? Not much. New research from Aptitude reveals that 70% of companies have no formal process to manage employee stress. Given the impact of stress on our personal and professional lives, can’t we do better? Can’t we provide employees with the right resources and support to manage their personal finances and pay off debt?

Fortunately, some organizations are committed to doing more. Companies are being more strategic when they think about financial stress and investing in solutions that impact the bottom line. In our latest research, we found that 1 in 4 companies have financial wellness solutions. While it is exciting that companies are embracing financial wellness, many of these solutions do little to help employees manage the stress. Instead, they simply provide information and data without an action plan to help employees as they move forward. Financial wellness is an area that is still emerging and organizations must make better decisions around the providers they consider.

One of the financial wellness providers I have been most impressed with this year is Best Money Moves. Their solution helps organizations tackle the real issues impacting our workforce in a way that maintains employee privacy and empowerment. It is a mobile-first employee benefit solution that helps employees understand and take control of their finances. It also offers “money coaches” to help employees make better decisions about their finances moving forward.

Most companies understand that financial stress has become a crisis and that this is the time to address it. Yet, finding the right solutions can be tricky. Here are a few recommendations to think about as you begin tackling financial stress in your organization:

  • Measure It: Find solutions that do more than just make assumptions or generalize financial stress. Instead, consider solutions that truly measure individual stress levels and provide an action plan to help employees take control of their finances.
  • Keep It Simple: Finances are scary. The worst thing an employer can do is invest in solutions that overcomplicate financial wellness and make it intimidating. Companies should look for solutions that keep it simple and easy for employees to understand what they need to do.
  • Establish Trust: Privacy is a critical consideration in financial wellness. Employees need a solution that they can trust will maintain their privacy and provide the right advice.

We are excited to be providing more research on financial wellness this year and would love to hear what solutions you are using and what challenges you are facing.

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New Year, New Priorities, and New Data

We are ready for a new year. We have been busy planning ahead and we are setting new goals and priorities. It is an exciting time to be in HCM and we are looking forward to the next twelve months.

Here are a few of the things you can expect to see from Aptitude in 2018:

  • New Data: Mollie launched her Impact Survey and she is in the process of analyzing the key findings that include payroll, compensation, and total rewards data. Later this month we are launching our Talent Acquisition and Engagement Survey and will look at investment, integration, and analytics. We will be sharing our findings in early February.
  • New Website: We are all about simplicity this year, and our new website will reflect this commitment. We want to make it as easy as possible for our community to find our research, connect with analysts, and discover our latest thoughts and insights. We will be launching a new website in early Q2.
  • New Content: We are becoming more consistent with the content we publish – not only reports, but also blogs (every Tuesday and Wednesday) and Aptitude Fast Facts; data points we will share on our website and twitter every Monday.
  • New Conversations: Connecting with HR and Talent Acquisition leaders and practitioners is a big part of what we do. We plan to make this an even bigger commitment in 2018 through research advisory councils and new relationships and conversations.
  • New Index Reports: We are updating our Payroll, ATS, and Recruitment Marketing Index Reports. Also, we are tackling RPO and recognition this year. We will share more information on our Index Reports in the next few weeks.

We are excited for everything “new” this year and would love any feedback on our surveys, content, website…anything. Let us know what research you are hoping to see this year!

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Five Talent Acquisition Predictions for 2018

The past year in talent acquisition has been characterized by new trends, new providers, and new investments. While this is an exciting time to be in talent acquisition, all of this change can feel overwhelming.

At Aptitude Research Partners, we are thinking a lot about the future and what 2018 will bring. As companies make more strategic decisions around their technology providers, we have a few predictions.

The Gap in the SMB: With every solution moving up market, we will see a gap in solutions targeting the SMB. Many best-of-breed providers are itching to move upmarket as the growth that many of these providers experienced in the SMB and mid-markets no longer seems to be enough. These providers are flexing their muscles by creating new partnerships, establishing a European presence, and demonstrating security and scalability that enterprise clients require. This mad rush upmarket is leaving a gap that needs to be filled in the SMB.

The Inevitable Acquisition: Market consolidation in talent acquisition technology is inevitable with too many providers doing too many different things. Aptitude’s 2017 research found that over 50% of companies are investing in 3 or more ATS systems and 3 or more primary sourcing tools. As 70% of companies invest in recruitment marketing solutions, ATS providers have an opportunity to make the technology landscape simpler for their customers, and we can expect some acquisitions in this area.

The Rise of Assessments:  While the assessment market is certainly not an emerging category of HR technology, it has evolved quite rapidly in the past year. Yet, at the same time, it is also a market that has sparked some controversy. Many traditional assessment providers are criticized for their high costs and negative experience for both employers and candidates. Too often, they remain a luxury of enterprise organizations recruiting for senior positions. Many new providers, on the other hand, face backlash as companies question the validity and fairness of these solutions and their effectiveness at attracting quality talent. Successful assessments today must balance sophisticated grounding in data science with a simplicity of user experience for both the candidate and the hiring manager.

The Need for Simplicity: We’ve said this before and we’ll say it again. Companies need simpler solutions in talent acquisition. Recruiters have one major problem. They need an easier way to attract, recruit, and hire talent. If a technology provider is not solving that problem, they do not have a viable solution.  According to Aptitude’s 2016 Hire, Engage, Retain survey, only 3% of companies are using the full functionality of their ATS systems. Companies either don’t know the functionality is there or they don’t understand how to use it. Again, many of these solutions are too complicated. If you want to give recruiters and candidates what they need, technology providers need to make it simple.

The Role of the Big Guys: Several big providers made bold moves in talent acquisition this year. Google Hire turned many heads with its launch earlier this year. Workday acquired new customers, making many of the ATS providers nervous. And Microsoft seems committed to its LinkedIn acquisition. All eyes are on the big providers in 2018 and it will be interesting to see what they do.

The next year is likely to present some major changes in the talent acquisition technology market and we are excited to cover it and help provide clarity around the uncertainty.

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HCM Startups: Asking the Tough Questions

worker holding a tablet with data and charts explaining to co-workers

It is a good time to be a startup in HCM technology. With new investment, new priorities, and a new focus on the experience, this market presents some exciting opportunities. In fact, according to CB Insights, the amount of investment in this industry has increased from $400 million in 2012 to just under $2 billion last year. The investment and opportunity seems so promising that entrepreneurs from all walks of life are entering this market with new solutions that promise to change talent and workforce management. Sounds great. Yet “new” is not always better in the world of HCM and companies need to be cautious when investing in startups.

Below are a few questions to consider:

  • Financial Viability: Some startups have every intention of becoming a leading provider in the market with staying power. They are passionate about the work they are doing and the value they provide to your company. Other providers are just hoping to get acquired. They have an exit strategy, and it doesn’t include helping you achieve your goals. When considering startups, you want a provider that is going to be around in the next few years and will partner with you around your unique needs.
  • Integration: Startups don’t always understand the complex HCM ecosystem and how important integration is to corporations. You should consider providers that integrate with more than your HRMS and have a willingness to learn and connect with many partners.
  • Deep Domain Expertise: Startups don’t have to be experts in everything HCM but they should have a strong understanding of their market. They should partner with clients to build out their expertise and be flexible to new challenges that come up. According to Aptitude Research Partners, 56% of companies are investing in providers that can demonstrate deep domain expertise in talent acquisition.
  • Budget: It is easy to get excited by something that is new, but you need to make sure that the startups you are considering align with your HCM budget. Is this something you will need to get buy-in for, or can it replace some of your existing technology?

Investing in a startup can be a positive thing for your company. It can help you reimagine the way you are attracting talent, engaging talent, or even providing benefits. Startups can take your HCM strategy to the next level – but you still need to be judicious about the providers you are considering. You need to ask the tough questions. Sometimes “new” is nothing more than new. Solutions should provide greater efficiency, a strong experience, and a willingness to partner with you as you face challenges.

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New Research on the Employee Experience

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

In this economy, the employee experience is everything. It is the experience that gives companies a competitive edge even when their products fall short. It creates loyalty and a powerful commitment to a certain company or brand.

Yet, when it comes to creating, maintaining and measuring a positive employee experience, most companies fall short. According to Gallup, 70% of the US workforce is actively disengaged and US companies are losing north of $500 billion in profits each year due to loss of productivity. According to Harvard Business Review, organizations with low engagement report up to a 65% increase in turnover. Clearly, something needs to change.

I am excited about new research that we worked on with our friends George LaRocque (Founder, #HRWins) and Ben Eubanks (Principal Analyst, Lighthouse Research and Advisory) for Talmetrix that talks about the strategies for improving the employee experience.

Here are a few highlights from the research:

  1. Define Culture: Culture is the foundation and the most critical step in creating a positive employee experience. It includes the set of beliefs and behaviors that shape a team and all of their interactions. Studies show that companies with performance-enhancing cultures far out-perform those without it in terms of revenue growth, stock price growth, and net income growth.
  2. Measure the Experience: Don’t expect to make changes and improvements without a strategy for measuring the employee experience. Aptitude’s 2016 Hire, Engage and Retain Survey found that 81% of top-performing companies measure the experience of candidates, employees, managers, and leaders.
  3. Strengthen Employee Communication and Collaboration: Communication received by an employee during all interactions with the employer affects their feeling of engagement and leads to particular behaviors. Communication is most effective when it is personal and shouldn’t be done through email alone. Companies need to find what type of communication works for engaging employees.
  4. Use Data to Drive Decisions: While an increasing number of companies are recognizing the need for better analytics and insights, the majority are still utilizing ad-hoc approaches to collecting data, pulling reports, and analyzing. Data needs to drive decisions around how to engage with talent and provide a more meaningful relationship between companies and employees.

As you start planning for how to improve the employee experience in 2018, check out the research and let us know what you think.

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New Research: Talent Acquisition Systems 2017

talent acquisition systems 2017 mockup

It has been over a year since we published our first ATS Index report and what a year it has been. Over the past year, providers have enhanced interview management capabilities, dabbled with Artificial Intelligence (AI), provided more options for employee referrals, and improved analytics and dashboards. It has been a busy time.

The biggest shift in the past year is the realization that the Applicant Tracking System (ATS) as a stand-alone product is not enough. In order to be efficient and provide a positive candidate experience, organizations need capabilities that engage talent both before they apply for a job and after they accept an offer. The providers we included in this year report offer much more than an ATS and several offer end-to-end talent acquisition solutions. The list of this year’s providers includes: ADP, Cornerstone OnDemand, gr8 People, Greenhouse, IBM, iCIMS, Jobvite, Lever, Newton Software,  Oracle, PeopleFluent, SAP, SmartRecruiters, Symphony Talent, and Workday.

We have made some significant improvements to this year’s report including

  • Integration: As more providers are offering ecosystems and marketplaces, we included more information on how providers are integrating with third-party providers and what their platforms offer for integration and support.
  • Security: Few providers in this report can truly support a global enterprise client. As companies look to expand globally, we believe that security is an important differentiator.
  • Advanced Capabilities: We evaluated providers based on some of the advanced capabilities we are seeing in the market, including events management, internal mobility, employee referrals, and CRM capabilities.
  • SWOT Analysis: We replaced the customer journey section of the report with a SWOT analysis to show where providers have strengths, weaknesses, opportunities, and threats.
  • Investment: Many of the providers in this report have received a considerable amount of investment. We called this out in the beginning of each profile, as financial viability is a key differentiator.
  • More Analyst Insight: We included more insight into what impressed us about each provider and what companies should consider when evaluating these solutions.
  • New Providers: This year gr8 People and Symphony Talent were both included in this report.

We are excited for all of the change in the market and we would love to hear any feedback on the report.

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