Today, HireVue announced plans to acquire Modern Hire. This acquisition creates a clear leader in the interview and assessment space with 1150 combined customers (mostly at the Enterprise level- 60% of the Fortune 100) and a strong vision for the future. Both providers have taken similar paths over the past two decades:
– Starting with video interviewing and enhancing communication capabilities
– Moving into assessments (HireVue’s acquisition of MindX and Modern Hire as the merger of Shaker assessments and Montage Talent)
– Strengthening analytics and insights
– Committing to responsible and ethical AI use cases
Hiring is a priority, and companies are increasing their investment in everything that happens, from the first interview to the offer. In February 2020, we found that less than 60% of companies were using or planning to use video interview providers. Three years later, over 80% of companies used or planned 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. They also needed more insights, analytics, and assessments. Today, companies are looking for one provider to tackle everything from the first interview to onboarding. HireVue checks every box. Its solutions include video interviewing, AI-driven assessments, traditional assessments, virtual job tryouts, scheduling automation, conversational AI, and text-based engagement.
Here are a few thoughts on what this means for the market:
The Value of Hiring Experience Platforms: Hiring is one of the most critical and misunderstood talent acquisition areas. Companies invest significantly in recruitment marketing, sourcing, and ATS solutions but often need to pay more attention to the experience and decision-making that begins during the interview and assessment process. This acquisition strengthens HireVue’s dedication to creating a new hiring solution category. It combines years of behavioral science with innovative solutions across interviewing, assessments, communication, and impact/post-hire measurement. Its suite of solutions enables companies to make data-driven decisions and improve the candidate experience through simple and engaging solutions.
The Focus on Quality of Hire: Although efficiency remains critical to TA, the pendulum is swinging back to quality of hire as the number one driver in TA investments in 2023. One reason is the increased focus on retention. With more business leaders aware of TA tech decisions this year, recruitment is the first line of defense for turnover. Identifying quality hires early helps organizations prepare for future needs. Quality of hire and efficiency can sometimes conflict, but companies looking at technology should be able to maintain one over the other.
The Need to Reduce the Number of Hiring Solutions: Over 60% of companies are using more solutions today than before COVID, yet only 11% are satisfied with this technology. The buying behavior over the past three years has shifted, and companies must be careful when evaluating providers and considering true partnerships. Many of these companies want to reduce the number of providers, especially in hiring.
The Impact of AI: AI fundamentally changes 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. In addition, both HireVue and MOdernHire have demonstrated a commitment to ethical and responsible AI.
This announcement is exciting and presents new opportunities for clients, partners, and the ecosystem.