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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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Countdown to HRTech: Recruitment Marketing and CRM

The last trend I will share in this countdown to the HR Technology Conference focuses on CRM and recruitment marketing. CRM is one of the core systems of a TA tech stack. It is designed to improve the front-end of the recruiting process and tackles most of what the ATS just doesn’t do…engaging with individuals before they apply for a job. The majority of enterprise companies are buying, replacing, or using a CRM this year. And while 81% of companies stated that recruitment marketing looked different since COVID-19, 66% of companies are unhappy with their efforts today (Aptitude Research).

This market is crowded and confusing. A few years ago, we referred to these systems as recruitment marketing platforms, with CRM being the core. Today, companies often refer to CRM and career sites as two distinct investments with different add-ons. Providers and their capabilities are not apples to apples like the ATS market. Every provider seems to be moving in a different direction, creating an even bigger gap between what customers want and what they get. And a few providers seem to be moving far away from CRM and recruitment marketing altogether.

Full disclosure…I love the CRM market, and I love talking about recruitment marketing. We found that 67% of companies spend more on their CRM than on their ATS, which is the most critical investment for some companies. It includes core capabilities (“must-haves”) and advanced capabilities that may or may not be core to the platform (“nice-to-haves”). The most critical capabilities in these systems include career sites, CRM, analytics, apply, job distribution, talent networks, candidate communication, events management, internal mobility, automated scheduling, and employee referrals. These systems have matured over the past few years with intelligent workflows, personalized content driven by AI, omnichannel communication, and more automation.

We are publishing our next Index report this fall on the CRM market and including extensive profiles of the following leading providers: Avature, Beamery, Clinch, Eightfold, Employ, GR8 People, Phenom, Radancy, and Symphony Talent.

Below are some of the findings:

  • Adoption is Low: Adoption is low for many of these systems. A few years ago, we found that only 2% of companies use all the capabilities in their CRM. Not much has changed today. And the fault is not always on the provider. Many companies invest in these systems without considering the resources they need internally, including creative support, administrators, and dedicated recruitment marketing professionals. Companies should consider their target audiences, overall goals and objectives, and key performance indicators before investing in technology. A CRM is not a quick fix. It is a long-term commitment to shifting how companies can engage with talent.
  • Partnerships Matter: A CRM won’t solve every recruitment marketing challenge. And companies have to look at additional support in areas such as programmatic job advertising, employer branding, content management, and conversational AI. Most providers are partnering with an ecosystem of providers and will even white-label some of these partnerships. Companies should carefully consider what and who they are buying. But, customers can also work closely with providers to help influence future partnerships.
  • Career Sites are a Differentiator: Companies looking to invest or replace a CRM often start with the career site. Career sites are an immediate need, and many companies are losing talent at this stage. Career sites may seem like table stakes in recruitment marketing but not every provider offers personalized, dynamic career sites. Also, not every provider includes creative services and these expenses can add up quickly. Some companies are even going to RFP separately for their career site, and CRM needs. There is even a market for providing more engagement on career sites. Providers like Dalia have emerged to help capture talent leaving a career site and send job alerts to keep them engaged.
  • Marketing Automation is a Game Changer: Marketing automation helps companies better engage and nurture talent by automating marketing tasks and letting companies know which candidates are cold, warm, and “ready-now.” It sits at the top of the funnel and manages all interactions with talent, including when they visit a career site, open an email, open a job advertisement, etc. It solves what the ATS, LinkedIn, and CRM cannot do – informing recruiters when someone is ready to be hired and engaging that individual in a meaningful way. Integrating CRM and marketing automation software can increase a company’s recruitment marketing capabilities and improve the experience. Candidate.ID (an iCIMS company) leads the way in recruitment marketing, and they will also be profiled in this report.
  • Sourcing is an Area to Watch: Sourcing providers such as HireEZ , Aliro, and Findem are expanding into outbound recruitment, employee referrals, internal mobility, rediscovery, and candidate outreach in a major way this year. In addition, these providers offer sourcing and engagement solutions that may be an alternative to a traditional CRM.

Only one week left until HRTech. Looking forward to seeing everyone!

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Countdown to HRTech: Internal Mobility

Internal mobility is the next topic for my blog series in the Countdown to the HR Technology Conference. Internal mobility is a strategic priority for any company looking to recruit better, engage, and retain talent. According to Aptitude Research, 70% of companies have increased their investment in internal mobility compared to 58% of companies in 2020. And, 1 in 2 companies has increased the number of internal hires this year.

The movement of talent into different positions is not new. Companies have been hyper-focused on internal mobility and career progression during various periods of uncertainty. Internal mobility becomes the go-to strategy when hiring slows down or turnover spikes. But today, companies have adjusted their responsibilities, strategies, and technology. Internal mobility is no longer an isolated activity or a quick fix during a time of transition. It is a critical part of any talent strategy and the intersection between talent acquisition and employee experience.

But, most internal mobility programs fail before they begin. Many companies rely on traditional methods of moving employees across their organization without providing a fair, equitable, and personalized experience. So, internal candidates are treated like strangers. We found that:

  • Only 1 in 2 companies personalize feedback and learning opportunities for internal candidates
  • 55% of internal candidates go through the same interview process as external candidates
  • Only 26% of companies personalize communication with internal candidates

How is Technology Improving Internal Mobility?

Fortunately, the technology landscape to support internal mobility has improved over the past few years. Companies are thinking beyond internal career sites and finding meaningful ways to empower employees. And skills are driving this new approach. Every single provider in this industry seems to be talking about internal mobility. Here are a few providers I have been impressed with this year (in alphabetical order):

  • Beamery: Beamery’s acquisition of Flux earlier this year strengthens its internal mobility capabilities and provides a talent marketplace for internal, external, and contingent talent.
  • Clickboarding: Companies must consider cross-boarding and the intersection of internal mobility and onboarding. Clickboarding provides improved experiences for both new hires and career transitions.
  • Eightfold: Eightfold’s AI-driven talent intelligence platform and skills-based approach gives employees internal career paths to help them reach their goals.
  • Gloat: Gloat’s talent marketplace connects employers with internal and external talent.
  • HiredScore:  Hiredscore looks at all talent options from the ATS, CRM, employees, VMS, and connected external databases to find the fairest slate for each role.
  • PageUp People: PageUp provides capabilities for both promoting internal jobs and personalizing experiences as well as developing employees through skills profiles and communication.
  • Paradox: Paradox’s use cases are expanding to internal mobility and employee experience. It provides employees simple, friendly, and immediate opportunities to learn about career paths and develop the right skills.
  • Phenom: Phenom’s employee experience platform helps employees identify their unique career paths based on their experiences, skills, and goals
  • Worqdrive: Worqdrive is a stand-alone internal mobility provider designed to improve the experience for both employees and recruiting teams.
  • Workday: Workday’s skills-based approach and talent marketplace help companies find the best talent and empower employees to manage their careers.

What are the Key Findings of the Research?

  1. Companies Must Do the Work: Companies should start with their processes, culture, and communication before investing in technology. With both core HR systems and best-of-breed talent acquisition providers offering advanced capabilities, it is tempting for companies to turn to technology before evaluating their own strategies. However, nearly 50% of companies stated that managers make it difficult to support internal mobility. This frustration is a cultural and process-driven challenge rather than a technology challenge.
  2. Internal Candidates Are Treated Like Strangers: Most companies are not personalizing the experience for internal talent. As a result, internal candidates are treated like strangers to their employers and often do not receive a response. Only 26% of companies personalize communication to internal candidates, and 55% of internal candidates go through the same interview process as external candidates. Companies that do not provide a personalized experience for internal candidates risk losing them completely if they do not receive the job.
  1. Companies Have Better Technology Options Today: The technology landscape for internal mobility has become crowded and complex. Only one in two companies are satisfied with the technology they use to support internal mobility. Fortunately, companies have better options to engage internal talent and provide growth opportunities. Companies adopting a skills-based approach should consider providers with robust skill frameworks and AI capabilities that infer skills beyond what is found on a profile.
  1. Ownership Is a Challenge: One in four companies stated that talent acquisition does not want responsibility for internal mobility. It often feels like more work with less direction and reward. Companies must shift the narrative around internal mobility and empower TA leaders with the necessary resources while incentivizing recruiting teams to hire internal and external talent. One company that we interviewed created a role in TA (internal recruiter) and a role in HR (Internal Career Support) to collaborate on internal mobility from both perspectives.
  1. Internal Mobility impacts Diversity, Equity, and Inclusion: Eighty-five percent (85%) of companies stated that DEI is impacted by internal mobility. Companies have an opportunity to provide fair and equitable experiences for all employees with a strategic internal mobility approach. Yet, for companies that do not have a diverse workforce, internal mobility will not improve DEI. When internal mobility is incorporated into talent acquisition efforts, companies have greater visibility of DEI initiatives. 

Internal mobility has been a big focus of our research over the past year. I am excited to share these findings next month at HR Tech!

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Countdown to HRTech: Acquisitions

The TA tech market is not slowing down even during the dog days of summer.

My latest blog in the countdown to #HRTechConf focuses on acquisitions. Just a few weeks ago, I was wondering if we would see any big announcements this month, and then, three major (and surprising) acquisitions were announced. Acquisitions are a natural part of any industry. Providers are looking for partners to help expand their global footprint, customer base, or product portfolio. And, sometimes, they are just simply about revenue. In 2020 and 2021, conversational AI, automation, analytics, video, and branding drove many of these decisions. Each of the acquisitions below enhanced the capabilities of the providers and offered customers something more across TA.

Some of the acquisitions from the past two years include:

This month, acquisitions look a little different. Some were a last-ditch effort to stay afloat, and others were a doubling down of similar solutions.

Here are my initial thoughts about some of the most recent acquisitions:

Employ Acquires Lever

Employ (owned by private equity firm K1 Investments) announced the acquisition of ATS provider Lever. Employ is the combination of Jobvite, JazzHR, and NXTThing but also includes the acquisitions of Talemetry, Talentgy, Canvas, and Rolepoint. The addition of Lever gives the Employ umbrella three ATSs, 2 CRMs, employee referral capabilities, communication, analytics, and an RPO. It is one of the largest end-to-end talent acquisition platforms, but each product and brand will remain separate.

If you are confused, you are not alone.

This is not the first time we have seen ATSs buying ATSs. Typically, one ATS will replace or complement the other, but in this case, three separate ATSs. The plan is to have JazzHR support SMB, Lever the mid-market, and Jobvite the enterprise.

Below are my thoughts on the acquisition:

  • Lever is a solid ATS. I like Lever, and I think Lever is a great ATS for mid-market and high-growth companies. With over 3,000 customers and some big tech brands. Lever’s differentiators include its investment in analytics this year. It offers visual insights and integration with Tableau and other analytics plugins to help companies understand their data and take action. One thing that sets Lever apart from other providers in this report is its company culture. It is the only provider in this report founded by a woman with the highest Glassdoor ratings. It values customer feedback and tries to work that into product enhancements. Was Lever a smart company to acquire? Yes, but the confusing piece is the overlap with Jobvite.
  • Jobvite is not currently an enterprise ATS. Jobvite supports mid-market and a few enterprise clients but does not truly compete against global enterprise ATS providers. Making the jump from mid-market to enterprise is no small task and requires a different approach to sales, marketing, and product.

SilkRoad Acquires Entelo

Onboarding provider, SilkRoad, acquired Entelo, a sourcing provider. This acquisition was the most surprising to me. SilkRoad was once a leading talent management provider that could check every box from recruiting to performance management to compensation. Does anyone remember the Red Carpet? But, what SilkRoad did better than anything else was onboarding. It was one of the first providers to offer forms compliance, tasks management, and a new hire portal. I made a bold decision around six years ago to ditch its talent management suite and focus solely on onboarding and employee experience/transitions. It has remained relatively quiet until this month. The Entelo acquisition puts SilkRoad back in the talent acquisition market with a top-of-the-funnel solution.

Here are my thoughts:

  • Robert Tsao is the right choice. Robert Tsao (ironically was at Jobvite previously) will take over as CEO of SilkRoad. Robert was Entelo’s CEO for the past few years and deeply understands TA tech.
  • Market perception will be a challenge. The market perception of both companies is that they are no longer relevant. Entelo, at one time, was a leading sourcing provider that seemed to lose its way. Customers started looking at providers like SeekOut and HireEZ as better alternatives. The team will have to work on the product and marketing to shift some of this perception and make Entelo relevant again.
  • Not the last stop. My guess is that SilkRoad won’t stop at Entelo, and we will see another acquisition to complete its TA tech portfolio further.

Harver Acquires Pymetrics

This acquisition makes the most sense to me out of the three this month. Pymetrics is a leading assessment provider with some large customers, including Unilever. And Harver has been building a hiring experience empire over the past few years. It made several strategic acquisitions over the past few years, including WePow, Checkster, FurstPerson, and Launch Pad. Its combined offerings include unique differentiators such as a strong experience, a comprehensive suite of solutions, and feedback. Unlike other solutions that stop at the offer, Outmatch includes a feedback loop on hiring decisions to have post-hire data and AI-driven insights to help companies make better decisions for the future. With over 1200 customers across a wide range of industries, Outmatch is best suited for enterprise and global enterprise customers.

Only 4 weeks until the HR Technology Conference! Hope to see you there!

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Countdown to HRTech: Total Talent and Contingent Workforce Management

worker jotting down notes in a notebook during a meeting

One trend I will discuss next month at the HR Technology Conference is total talent and contingent workforce management. This topic is not new in TA tech, but companies now have better technology options to support both traditional and contingent workers. With changes in hiring activities, the shift to remote work, and changing business priorities, the demand for a more flexible workforce has never been greater. According to Aptitude Research, 80% of companies are leveraging contingent workers, and one in three companies increased their investment in 2021. A total talent strategy helps companies fill critical talent gaps, reduce costs, and increase overall productivity. In a year when agility is becoming table stakes for businesses, alternative work arrangements are critical to the future of the workplace.

But, even with the increased investment in contingent labor, companies still face many of the same challenges. Most companies lack visibility into the use, spend, and performance of this workforce segment. And, cost control and fee models are a concern as companies question their staffing agencies and technology partners’ lack the expertise in-house. For most companies, it remains unclear who owns total talent strategies. The approach to contingent workers has been reactionary, with companies responding to immediate needs and ignoring long-term implications. As a result, the question, “Are we doing this right?” is becoming even more difficult.

Several trends are influencing total talent this year:

  • Thirty-four percent (34%) of companies are shifting their technology for contingent workers this year. Companies are looking at other options for technology to manage contingent workers better.
  • One in two companies doesn’t know what they spend on contingent workers. Companies lack visibility into contingent workers. Spend is a significant challenge for companies as they increase investment.
  • One in four companies states that technology is their biggest challenge in managing contingent workers. Companies are shifting their strategies and ownership from procurement to HR yet still rely on legacy and outdated systems to manage these workers.

The traditional technology market for contingent workforce management is not designed for talent acquisition or HR. The VMS remains the bread and butter of contingent workforce management, but only 29% of companies are satisfied with their existing provider. Fortunately, companies have better technology options, including talent marketplaces to connect workers with employers, total talent solutions, and extended workforce solutions. These providers are looking to disrupt the contingent model and offer better solutions and experiences. And most RPOs are doubling down on their total talent offerings this year.

Below are a few providers helping companies improve their approach to total talent and contingent workforce management (alphabetically).

Beamery: Beamery’s recent acquisition of Flux, an internal mobility platform, has strengthened its talent marketplace to support internal, external, and contingent/gig workers. It identifies skills and adjacent skills so contingent workers can learn and companies can upskill talent.

Eightfold: Eightfold Talent Flex is an AI-powered solution for HR and procurement to efficiently source and manage high-quality contingent workforces based on capabilities and potential. It helps companies find the best channels, reduce costs, and stay compliant.

GR8 People: GR8 People is one of the few CRM and ATS providers that can support total talent. It provides one platform and a simple and efficient experience for every type of talent. For this reason, it is the preferred partner for many of the leading RPOs.

HiredScore: HiredScore’s AI brings together talent acquisition and extended workforce to help companies find the best talent in a fair, supplier-neutral, and efficient way. It automatically routes talent to the best role, including rehires, so that companies can minimize the cost per vacancy.

Utmost: Utmost is a Workday partner and an extended workforce platform that supports the entire workforce and provides complete visibility into all workers — be it full-time, contractor, independent contractor, gig workers, freelancers, and more. It provides consistency in areas such as total talent, spend on workers, classification of workers and worker type, strategic workforce planning, total DEI impact on all workers, and risk mitigation.

Companies like Relode and Bounty Jobs also support total talent needs by offering a platform for contingent and direct hires.

As HR and talent leaders are responsible for total talent, this will be an important trend to follow. I am looking forward to seeing many of these providers at HR Tech!

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New Research: Onboarding and the New Hire Experience

Onboarding is a critical aspect of any talent strategy. It is the first impression between an employee and employer and the transition between talent acquisition and talent management. According to our latest research, onboarding has a significant impact on retention, employer branding, and quality of hire.

Retention: Eighty-six percent (86%) of employers believe that new hires make the decision to stay at a company in their first 90 days.

Employer Branding: Three-quarters (75%) of new hires share their first day of work experience on social channels.

Quality of Hire: Eighty-three percent (83%) of employers believe managers know if a new hire is a quality hire within the first 90 days.

But, as companies prepare for the future of work and invest in talent transformation, onboarding is often overlooked. Companies are twice as likely to spend on talent acquisition and employee experience than onboarding, and 42% of companies do not have a dedicated onboarding solution. Only 26% of companies are fully automating the onboarding process. Lack of clear ownership, limited technology capabilities, and poorly defined metrics make it difficult for companies to adjust their onboarding strategies. If companies want to maximize their investment in talent acquisition and employee experience, onboarding must be a priority.

On August 11, I am sharing our latest research on this topic with Clickboarding. Here are some of the key findings:

Companies are not investing enough in onboarding. While 73% of companies have increased their investment in talent acquisition technology over the past year and 64% have increased their investment in employee experience, less than 30% are increasing their investment in onboarding solutions. Many of these companies are relying on traditional technology that does not support the future of work or changing expectations of new hires. This disconnect between the importance of onboarding and the willingness to invest in solutions results in a process that is inconsistent and transactional.

Onboarding is not orientation. Onboarding needs to start before day one and extend beyond 30 days. Unfortunately, for many companies, onboarding is still an orientation. One in five companies stated that they have employees that do not show up on day one, and half stated that they had new hires not show up on day two. These individuals are often deciding about an employer even before they start. Companies can provide communication, forms, and information before someone joins so they are engaged before day one. Additionally, companies must extend onboarding beyond the first 30 days. Forty-nine percent (49%) of companies only include onboarding for two weeks.

Technology can impact engagement and compliance. Companies using technology are three times more likely to improve first year retention and two times more likely to improve new hire engagement. When considering capabilities, companies focus more on forms and compliance when evaluating providers than the new hire experience. Companies should not have to sacrifice one for the other.

Automation provides consistency. Automation enables onboarding for everyone. Hourly workers and gig workers get the same personalized experience and dedication as senior executives and the same opportunities to receive communication and stay connected to their employer. 76% of companies believe automation would significantly improve the new hire experience, yet only 20% of companies are automating all aspects of onboarding.

I hope you can join us for the webinar on August 11. Everyone that attends will get a copy of the report.

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Countdown to HR Technology Conference: High-Volume Recruiting

Only six weeks until the HR Technology Conference, and one trend that we have focused on over the past two years is high-volume hiring. We found that 65% of companies have high-volume recruitment needs today. And this percentage continues to increase. Unfortunately, high volume is one area most traditional ATS systems fail to address. Instead, they focus on professional hiring and ignore the experience, capabilities, and solutions needed to attract, recruit, and hire this forgotten workforce. For example, in our high-volume research this year, only 27% of companies know if their hourly workers have transportation to an interview. Only 33% know if candidates have access to a laptop. Yet, most solutions do not consider the unique needs of these candidates.  

High-volume companies must find quality talent while managing hundreds, or even thousands, of applicants. Unlike traditional corporate hiring, high-volume needs are extremely time-sensitive with speed-defining success. Over the past year, high-volume hiring intensified as many companies were forced to reduce time to fill from several weeks to several days. The experience needs to be simple, frictionless, and mobile-first.

Fortunately, some technology providers are focused on improving high-volume recruiting – this is where we see most of the disruption in talent acquisition. Paradox is one provider that offers a completely reimagined experience for high-volume candidates. Through conversational AI, it provides an alternative to an ATS. It allows companies to advertise jobs, engage with talent, offers a simple apply process, screen candidates, schedule interviews, assess candidates, and initiate onboarding all through a single, mobile-first experience. Paradox is also hosting a career site for companies, including McDonald’s.

AMS Hourly, Fountain, and TalentReef also offer a better alternative for high-volume hiring needs and include end-to-end capabilities from recruitment marketing to onboarding.

Text recruiting is another way that companies are improving high volume hiring. Candidate behavior has changed since the pandemic and 62% of candidates are using their mobile device more this year than last. Hourly candidates want to be able to use one device to communicate with company, and text meets the needs of the mobile-only mindset by providing faster response and personalized engagement in real-time. Providers like Emissary offer simple end-to-end text recruiting solutions that integrate with ATS providers.

Programmatic job advertising is another TA technology category that improves high-volume recruiting. It streamlines and automates advertising of jobs and provides visibility into how companies should spend their advertising dollars- a huge expense for high-volume industries. It saves hiring teams time, reduces costs, and helps to target the right talent. Some of the leading providers include Appcast, Joveo, and Pandologic.

And, there is even a HRMS focused on high-volume that will be at HR Tech...Harri.

These are just a few of the providers improving high-volume hiring. Here are a few trends impacting high-volume recruiting:

“High Volume” Is a Broad Category: The greatest confusion around high-volume recruitment is the definition. Companies often consider a narrow definition of high-volume recruitment limited to hourly or gig workers. For example, one in three companies defines “high volume” as hourly recruitment. The reality is that high-volume hiring is broader and impacts 65% of companies. It includes any company filling over 1,000 positions in a short period of time. As hiring ramps up this year, this study found that companies in various industries (including aerospace and defense, financial services, technology, and healthcare) identified high-volume needs.

A Traditional ATS Is Not Enough: Sixty-five percent (65%) of companies with high-volume recruitment needs are not satisfied with their current ATS. Most traditional ATS systems are designed for corporate hiring and lack capabilities to support high-volume recruitment such as programmatic advertising, scheduling, or communication. High-volume recruitment technology must be simple, intuitive, and mobile responsive. Eighty-two percent (82%) of companies with high-volume hiring needs are increasing their investment in technology this year.

Quality Is as Important as Efficiency: Companies face pressure to fill high-volume positions as quickly as possible. As a result, efficiency becomes the priority for many organizations with high-volume needs. They want to improve and streamline the talent acquisition process to reduce time to fill. Despite this focus on efficiency, 61% of companies stated that quality of hire is the most critical metric for success. Companies must ensure they are engaging and hiring the right talent as they focus on improving the time it takes to fill positions.

High volume is a critical topic in talent acquisition, especially as companies prepare for more change next year. I look forward to learning more about how companies tackle their challenges and new technology providers in this space.

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Countdown to the HR Technology Conference: Interviewing and Assessments

Yello and WayUp Merger: A New Look at Early Talent
Yello and WayUp Merger: A New Look at Early Talent

Only seven more weeks until the HR Technology Conference, I am finalizing my presentation and thinking through the constant change in our industry. Over the past year, one trend that has emerged is the increased investment in hiring experience platforms (interviewing and assessment). This category has exploded over the past few years- partly because of the push for remote work and the need to reduce bias and improve decision-making. Companies spend millions of dollars on recruitment marketing and EVP strategies and often neglect interviews. Our latest interview study found that 1 in 2 companies lost quality talent due to poor interview processes.

Providers such as Modern Hire, HireVue, and Outmatch helped to define this category by offering a suite of solutions (through some acquisitions) that include everything from first interview to assessment to offer. Some of these providers are even expanding into onboarding. But, over the past few years, this category has been growing as companies recognize hiring decisions will not come from an ATS. Providers such as Sapia, Humanly, Wedge, CodeSignal, Talview, and Vervoe provide companies with interviewing and assessment solutions that improve experience, quality, and efficiency. Paradox (through the acquisition of Traitify) offers capabilities to schedule interviews and provide a validated, candidate-friendly assessment all through conversational AI.

Although every provider seems to call the interview to assessment offering something different, hiring experience is a category to watch.

Here are a few trends I will cover:

One in four candidates drops off at the interview stage. Companies that improve candidate engagement and the application process will still see candidates drop off if hiring is a negative experience. Companies must provide consistency, transparency, and fairness throughout the hiring process to ensure that candidates are not dropping off at this stage. Delays and poor communication can result in companies losing quality talent. Aptitude Research found that 52% of companies have an interview process that lasts four to six weeks.

Companies do not trust the data to inform hiring. Companies are dissatisfied with their data’s quality, accuracy, and integrity. One reason is that companies are not starting with the right data and rely solely on resumes or candidate profiles to inform decisions. Fifty-seven percent (57%) do not have the data they need to decide on talent. They need a consistent process and quality data to gain deeper insights into candidates and make smarter, confident, and bias-free talent decisions. Data to drive hiring decisions will come from interviewing and assessment providers.

Companies use too many systems: Most companies leverage multiple solutions to support hiring activities, and 62% use two or more assessment providers. These systems provide different experiences and data management. Companies cannot make decisions on talent when they do not have consistent data to support those decisions.

The ATS is not enough. Companies are looking outside of their ATS for hiring support. Traditional recruitment technology focuses on compliance and applicant workflow. It does not always support hiring activities. As a result, companies invest in several solutions to support hiring or rely on a manual process to make hiring and selection decisions. Companies identified lack of integration, issues with data quality, and lack of candidate insights as the top frustrations with technology that supports hiring.

Companies are relying on interview and assessment data more this year. Companies are using interview and assessment data to inform decisions more in 2022 than in 2020. Unfortunately, this data is often inconsistent or only available for some candidates. Companies rely less on the resume as the primary data source but must continue to draw deeper insights and more consistent data.

AI is changing hiring. AI is fundamentally changing every aspect of HR, and there is growing curiosity and appetite to understand it. According to Aptitude Research, 63% of companies are investing or planning to invest in AI solutions this year, compared to 42% in 2020.AI can play a critical role in helping companies use data to inform decision-making and even humanize the process. Recruiters and candidates are becoming more comfortable using AI in talent acquisition and the impact on hiring.

As companies look at their TA tech stack, hiring experience platforms are becoming a core investment area along with an ATS and CRM. I look forward to meeting with some of these providers at the HR Technology Conference.

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Countdown to the HR Technology Conference: Skills-Based Hiring

It is hard to believe that the HR Technology Conference is only 8 weeks away. I love this conference and the opportunity to reconnect with friends and learn about new (and old) technology providers. I am thrilled to be presenting new research at the event and I will be posting a series of blogs leading up to September on TA tech trends.

This first post will focus on a topic that is gaining momentum in talent acquisition… skills-based hiring. Every provider seems to be using skills in their marketing messaging, but few providers have invested in a robust skills ontology and capabilities to improve both the employer and candidate experiences.

Skills are quickly becoming the currency for the future of work. A skills-based approach can help connect talent to the right opportunities, personalize the experience, and provide more visibility into the capabilities of the workforce. Employers benefit from improved efficiency and stronger talent pools, while individuals benefit from greater opportunities to control their career paths. Skills provide a roadmap for the future and a bridge between talent acquisition and talent management.

We published a study (in partnership with Beamery) and found that companies that invest in skills development are:

  • Twice as likely to improve retention
  • Thirty-four percent (34%) more likely to improve quality of hire
  • Twenty-eight percent (28%) more likely to improve DEI initiatives

Skills level the playing field for both internal and external talent. Evaluating skills means looking      beyond what is found on a resume or employee profile to get deeper insights about the individual. But, many companies are not always clear where to start with skills development. Lack of ownership and confusion around how technology fits in have added to this uncertainty. Talent marketplaces are gaining momentum as the vehicle to deliver a skills-based approach, yet not every company understands the impact of these solutions. For companies to compete for talent and provide fair and equitable experiences, skills must be part of the equation.

Here are some of the key findings from our research…

The Demand for Skills Is Being Driven From the Top: The focus on skills development is being driven by executives and CHROs. According to this study, 65% of CHROs say that upskilling and reskilling is the most important priority for 2022. CHROs are two times more likely to be involved in technology decisions that focus on skills than other areas of TA technology and 75% are interested in talent marketplaces to deliver on a skills strategy. CHROs are setting the course but oftentimes, talent acquisition and talent management must execute the strategy. Realistic expectations and clear communication will help these leaders achieve results and provide a more successful approach to skills.

Skills Unify a Talent Strategy: With equal pressure to recruit and retain, talent acquisition and talent management often still operate in silos with competing interests. A skills-based approach helps unify talent acquisition and talent management initiatives – providing consistency in data and experiences. Companies must empower their talent teams with a focus on skills. According to this study, companies with a skills-based approach see greater collaboration between talent acquisition and talent management.

Not All Providers Are Approaching Skills the Same Way: Technology allows companies to scale their approach to skills, provide opportunities and personalization to every individual, and leverage artificial intelligence (AI) and machine learning (ML) to draw deeper insights. Most importantly, it provides context to skills by inferring insights about the individual and employer. Although several technology solutions are aiming to address skills today, not every solution provides value. A successful skills-based approach requires a commitment from a solution provider to build a skills ontology, invest in talent intelligence, and apply AI inference so that skills are dynamic and personalized. With companies increasing their investment in skills, they must carefully consider providers that demonstrate expertise.

A Skills-Based Approach Benefits Employers and Individuals: Skills are not just a benefit to an organization. They give employees the resources they need to manage their careers and provide more opportunities for personalization and inclusivity. To truly understand an individual, however, companies should not stop with skills. They should consider the qualities that will make someone successful and happy in the work they are doing.

Skills Can Greatly Impact Internal Mobility Efforts:  The most obvious use case for a skills-based approach is internal mobility. Companies are looking for better ways to promote and develop their workforce while supporting talent acquisition initiatives. With 70% of companies increasing their investment in internal mobility efforts, many are just promoting jobs or leveraging internal career sites. Skills offer a more substantial approach to internal mobility by providing employers with a deeper understanding of their workforce and empowering individuals with the tools they need to be successful.

Providers to watch (in alphabetical order): Beamery, Boostrs, Eightfold, HiredScore, Oracle, TaTio, TechWolf, Workday

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New Research: Key Trends in Interviewing

For most companies, interviewing is still broken. According to our latest research report, one in three companies are not confident in their interview process today and one in two companies have lost quality hires due to a poor interview process this year. Companies face several challenges with interviews, including a lengthy process, too many interviews, inconsistency, lack of objective data, and bias. These challenges not only impact the efficiency of talent acquisition efforts but the overall candidate experience. As a result, only 24% of candidates are happy with the interview process. The challenges with interviewing are not new and the pandemic did not bring much change.

Here are some findings about what goes wrong and how technology can help.

Where Does the Interview Process Go Wrong?

Interview Process Is Too Long: The interview process can be frustrating for both employers and candidates. Companies that create lengthy interview processes do not necessarily collect data that can inform decision making. A longer interview process does not equate to more effective hiring. It puts a company at risk for losing talent. Forty percent (40%) of candidates stated that it was over two weeks since they heard anything from an employer after their first interview, and 52% of companies state that the interview process lasts four to six weeks.

Too Many Interviews: Over half of companies make candidates go through four or more interviews. For companies looking to reduce time to fill, too many interviews can impact efficiency as well as experience. Companies are at risk of losing quality talent when the interview process is delayed or too many interviewers are introduced.

Inconsistent Interviews: When companies lack a strategy for interviews, hiring managers and recruiters often go rogue and ask questions or conduct interviews with little guidance. Inconsistency in the interview process can create inequity and damage the employer brand.

Data-Driven Decisions: Organizations feel pressure to act quickly and may make decisions based on gut. Companies are not relying on data and insights to drive these decisions because they don’t have information beyond the resume, which only provides a limited, often biased view of a candidate.

Bias in the Interview: Companies must recognize and acknowledge bias in the hiring process. Only 30% of companies identified bias as a top challenge in talent acquisition, yet one in three candidates have experienced bias in the interview process. Relying only on human interviews creates inconsistent hiring standards and introduces bias. 

How Can Smart Technology and AI Help?

The right technology can help companies address the challenges they face with interviewing to:

  • Empower recruiters and hiring managers to make smarter decisions
  • Improve recruiter productivity
  • Improve hiring diversity by using blind smart interview technology from the start
  • Create consumer-grade candidate experiences through the convenience of a smart interviewer

The pandemic accelerated the investment in digital interview solutions. In February 2020, less than 60% of companies were using or planning to use video interview providers. One year later, over 80% of companies were using or planning to use a broader set of intelligent interview platforms. Video was the tool of choice at the beginning of the pandemic for asynchronous hiring. The problem was that many of these solutions merely replaced face-to-face interactions, with a less human way of interviewing. Many candidates do not feel comfortable with the format of a video interview, especially if they are timed. For many companies, abandonment rates are high on video.

Today, there are technology choices available that remove that cognitive load and deliver on candidate expectations. AI is fundamentally changing every aspect of HR and there is growing curiosity and appetite to understand it. According to Aptitude Research, 63% of companies are investing or planning to invest in AI solutions this year, compared to 42% in 2020. This study found that 39% of companies believe it brings positive benefits, and 32% of companies are starting to leverage AI in interviewing.

If you are interested in the full report (sponsored by Sapia), you can download it for free here.

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Humanity in the Workforce: The Impact on Hybrid Work, Mental Health and Childcare

The events of the past two years have reshaped the future of work and the relationship between the employer and employee. According to new research that we are publishing next week, companies have responded to today’s reality by increasing their focus on employee experience. One in three companies have increased their spend on the employee experience and 47% of companies are investing in new solutions to support these objectives. Companies across all industries are looking for an immediate solution to solve retention and improve performance.

Unfortunately, despite this increased investment, most companies are falling short. They are taking a one-size-fits-all approach and treating employees like transactions instead of humans. Companies today must rethink their approach to talent and humanize work. They must focus on the individual, build more meaningful relationships, and provide an experience that is rooted in inclusivity, humanity, dignity, and trust.

Several factors are influencing human-centered work, including remote and hybrid work models, mental health, and new responsibilities of caregivers.

Hybrid work models  

Not every company is clear on their future workforce model, and the next year will likely bring more change and uncertainty. Companies that listen to their employees, adjust to the unknown, and provide transparency will build better relationships with talent. Aptitude Research found a mix of work models that are impacting organizations and the future of work Whether working from home or adjusting to new office rules, employees often feel lost and isolated in these models. 52% of companies have a hybrid model. Companies must provide a different level of care and compassion to remote or hybrid models.

Mental Health

On average, companies in this study stated that 36% of their workforce faces mental health challenges. Although companies have responded to the topic of mental health in the workforce by providing days and weeks off, collectively, it is not enough. Only 24% of companies have asked employees if they need support in the past six months and only 36% of companies provide mental health benefits. Organizations need to change the stigma and ideas around mental health. Employees are asking for more support and organizations need to provide a more human response.

Caregiving

The role of caretakers evolved during the pandemic as more employees were faced with having to care for children, elders, and other family members themselves while balancing a new work dynamic. Every employee is impacted by care, yet employers do not typically address childcare issues and most employees do not feel safe talking about their needs with their managers. In today’s environment, companies must think about how care impacts the employee experience. Currently, one in three employees do not feel comfortable talking about childcare and only 11% of employers are asking employees how to support their caregiving needs.

According to this study, companies are not taking active steps to acknowledge these new responsibilities of their workforce or to provide the support that employees need during these times. The most common action that employers take is providing leave to care for family members (paid and unpaid). Only 30% of companies offer clear career advancement opportunities for caregivers and only 36% of companies offer three or more months of parental leave. The pressure that employees feel in their personal lives is impacting their decisions to stay with an employer and in some cases, possibly leave the workforce.

I am excited to share our latest report on humanity in the workforce next week!

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