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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HR Technology Providers: What Your Demo Says About You

Post author By Madeline Laurano
Post date September 1, 2017

I have had some bad demos this summer. I get it. Sometimes things just don’t go right. The connection might be slow. The product isn’t doing what it is supposed to be doing. The conference bridge has issues. It’s not a big deal…technology solutions are entitled to have bad days too. But why does it feel like the quality of demos is not what it used to be? Why does it feel like providers are less prepared when presenting their solutions and articulating their value proposition?

They are not all bad. I have had some really impressive demos recently – including Moovila, Jellyvision, Crowded, and most of the ATS providers that are included in this year’s Index report (they are all demo pros). But, the bad ones stand out. I think as the market is rapidly changing, it might be time to slow down and revisit what matters in a demo (especially before fall conference season).

So, here are my Do’s and Don’ts of presenting an HR Technology Demo:

Do Know Your Audience: Are you showing this solution to a buyer, an analyst, a partner? Not everyone is interested in the same capabilities. Tailor your demo to the right audience and try to understand what capabilities are most important to show.
Don’t Talk About Trends: If the first 30 minutes of your demo is spent talking about “the war for talent”, you are doing something wrong. We all get it. Your customers get it. You don’t need to talk about these very high level trends. Instead, talk about the problem that your solution is solving and what capabilities and differentiators set you apart.
Do Keep It Simple: You don’t want to overwhelm a customer or prospect with every capability or use case on a demo. Understand what is important to that individual before the call and show them the capabilities that best align with their unique needs.
Don’t Forget Your Team: Most demos include some mix of sales, product and possibly leadership. Work as a team on the demo by engaging with your audience and involving everyone on the call.
Do Ask for Feedback: The best demos create a dialogue where you are engaging your audience. It is important to stop and ask for feedback and to check to see if anyone on the call has questions that need to be addressed.

Some of this may sound basic but the way that companies buy HR Technology is changing. In some cases, the demo needs to change as well.

Next week, we will publish the second part of this blog series on demo recommendations for organizations…

Tags engagemnet, HR implementation, HR Technology, Recruitment

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

Post author By Madeline Laurano
Post date July 27, 2017

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…

Tags ATS, HR Technology, Recruitment Technology, talent acquisition

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

Post author By Madeline Laurano
Post date June 23, 2017

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.

Tags HR Technology, interviewing, talent acquisition, video interviewing

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The Talent Acquisition Technology Market is Heating Up

Post author By Madeline Laurano
Post date June 23, 2017

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.

Tags Artificial Intelligence, HR Technology, sourcing, talent acquisition

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New Research: The Future of Talent Acquisition

Post author By Madeline Laurano
Post date June 1, 2017

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:

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.
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%).
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.
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.
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.

Tags AI, HR Technology, recruitment marketing, sourcing, talent acquisition

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Three Misperceptions About AI in Recruitment

Post author By Madeline Laurano
Post date May 4, 2017

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.

Tags AI, HR Technology, talent acquisition

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How to Buy HR Technology: The First Step

Post author By Madeline Laurano
Post date April 24, 2017

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.

Tags change management, HR software, HR Technology, talent acquisition

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Ultimate Software: Fulfilling a Promise of Putting People First

Post author By Madeline Laurano
Post date April 3, 2017

Last week, I attended Ultimate Software’s Connections Conference for the first time and to be honest, I wasn’t exactly sure what to expect. Mollie and I travel to about 25 conferences a year. These events keep us up-to-date on the HCM technology space and they tend to cover the same stuff…product announcements, customer success stories, and company updates. And, no surprise, some do a better job than others. But Ultimate was impressive on all three fronts. This provider lives by a mantra of putting people first and it does so throughout both its customer engagements and product enhancements. It is a company that takes customer success seriously – listening to what customers want and innovating across its suite of products.

Here’s what I learned:

Product Updates

Product announcements took three forms: standard updates to address general customer needs, more innovative and forward thinking announcements (Ultimate invests 20% of its revenue in innovation), and new products.

Standard announcements include branded notifications and customer referral management to its recruitment solution, crossboarding functionality, mobile enhancements, and web-based adjustments to payroll.
Innovation that was announced centers around “Xander”- a people-first AI solution that is embedded in the products to empower managers and teams to improve the decisions they make around their workforce. Xander was inspired by Kanjoya, the disruptive workforce analytics solution that Ultimate acquired last year. It combines statistical data with insight into the emotions and attitudes that managers need to better engage and understand their workforce.
New products include the announcement of a Learning Management System (LMS) focused on leadership and a more flexible workforce.

Customer Success

I was surprised to learn that 51% of Ultimate’s employees are focused on services. They want their customers to be successful and offer robust programs for building talent pipelines, certifications, and leadership development programs. In addition to customer service, Ultimate offers activation, consulting, and free access to learning. On average, customers achieve a $3.88 return on every dollar they have spent.

Company Updates

Ultimate is a leading HCM provider. They have demonstrated product leadership, a commitment to customer satisfaction, and breadth in their suite of solutions. Company success includes financial growth and recognition:

27% recurring revenue growth
#1 Great Places to Work for technology companies
#7 Fortune 100 Best Companies
#2 CEO on Glassdoor

Ultimate is fulfilling its people-first mantra through its services, technology, and engagement of its own employees. Mollie’s upcoming Payroll Index Report will provide a more in-depth analysis of Ultimate next month.

Tags ERP, HR Technology, payroll, Recruitment

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Why We Do Not Rank Vendors in Our Reports

Post author By Madeline Laurano
Post date March 16, 2017

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.

Tags HR Technology, Human Capital Management, Recruitment, talent acquisition

Blog Talent Acquisition Strategies

New Research on Recruitment Marketing: The Aptitude Index Report

Post author By Madeline Laurano
Post date March 9, 2017

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!

Tags HR Technology, recruitment marketing, talent acquisition