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2023 HR Technology Trends and Predictions

Predictions are tricky. It is hard to look at the next 12 months and make assumptions about trends when the future seems uncertain. But, through our research and interviews, we see some obvious priorities and shifts in the market just three weeks into the new year. Earlier this week, someone asked me if the investment in HR Tech will continue at the same pace as in 2021 and 2022. My answer is yes. The pandemic and the past three years have changed how companies view automation and technology. And, as companies prepare for any talent transformation, technology is a critical part of that journey. We found that 70%  of companies will continue to invest the same or increase their investment even with an economic slowdown.

But, even if investment remains high, it will look different. The band-aid approach to technology which characterized the past few years, will be replaced by more strategic investments in providers (partners) that can deliver value and provide the capabilities and services to support transformation.

Here are a few of my thoughts on trends that will dominate 2023:

Skills will continue to be the most significant trend: Skills have the greatest impact on the future of work and employee experience. Skills are THE trend to watch in HR Technology this year, and companies are looking closely at providers in this space. We just published a study with HCI and found that 82% of companies identified skills as a priority, and 54% of companies are increasing their investment in skills this year. The number one driver is to provide more career development opportunities for talent. A skills-based approach to talent enables companies to offer a fairer hiring process, support strategic workforce planning, and make smarter decisions to enrich reskilling and upskilling talent. Skills impact and transform every single aspect of talent acquisition and management and allow employees to be understood in a more meaningful way. The challenge most companies face is that they take a piecemeal approach to skills- separating the strategy, change management, and technology. This approach delays the impact of a skills-based approach and creates frustration. Over the next year, providers must work with companies to provide a more holistic approach to skills.

Talent Intelligence needs a reckoning: Talent intelligence is the new buzzword in HR Tech, but it is also one of the most misunderstood areas. Talent intelligence platforms are AI-driven platforms that help companies understand the potential and learnability of the workforce. They use large data sets and a skills-based approach to look at talent in a complete way. The challenge is that too many providers are using talent intelligence. Sourcing providers, online reference checking providers, and people analytics providers are all rebranding themselves as talent intelligence. The misuse of this category creates confusion with buyers and minimizes the impact of what these platforms can actually do for companies.

Strategic workforce planning will be a priority: It is not a new category, but it has gained momentum over the past year. As companies enter a period of transformation, understanding the supply and demand for talent is critical. But, only 1 in 2 companies use their workforce planning strategy company-wide. Workforce planning only works when companies have the resources and technology to support it. Even when investing in a core system, workforce planning is still manual, and companies rely on excel. The first generation of workforce planning providers (Aruspex, Vemo, Inforhm) provided advanced capabilities that, unfortunately, did not go mainstream. The good news is that we see existing skills-based platforms and new providers focusing on this area. Our following Aptitude Research report will focus on strategic workforce planning- coming soon…

Contingent workforce management needs to be a priority (but will take time): Some research firms estimate that by 2030, 50% of an average organization’s workforce will be comprised of contingent workers. Unfortunately, most HR leaders and TA leaders are hesitant to take ownership of contingent workforce management. A contingent workforce helps companies fill critical talent gaps, reduce costs and increase overall productivity. In a year when agility and resilience are becoming table stakes for businesses, alternative work arrangements are critical to the future of the workplace. Yet, despite the increased investment in contingent labor, companies still need to overcome many of the same challenges. Most companies need more visibility into this critical workforce segment’s use, spending, and performance. Additionally, cost control and fee models are a concern as companies question their staffing agencies and technology partners’ need more expertise in-house. Contingent workforce management is ripe for transformation. Any strategy around DEI, skills, or workforce planning needs to include contingent workers. Companies must examine what is broken to develop deeper insights and a more effective framework. They must reconsider the ownership, fee models, and partnerships that they have in place.

Alumni programs will be invigorated: We are already seeing a renewed focus on alum programs, which will likely continue this year. Alumni programs support recruitment and employee experience. For example, one organization we interviewed fills 10% of its roles with alums. We will likely see more focus on alums from existing ATS providers, CRM providers, and talent intelligence/skills-based platforms.

Pay transparency will be a focus: 1 in 5 workers will now work in a jurisdiction with pay transparency requirements. But, there is a growing tension between job seekers that want pay transparency and employers that do not. It is impacting remote recruiting and how job descriptions are being created and the ridiculous pay ranges included. Vendors are starting to think about balancing the needs of the candidate and employer. My friend and labor economist, Andrew Flowers, often publishes on the topic, and I recommend following his work at Appcast.

Conversational AI will replace ATS in the high-volume: High-volume industries do not need a traditional ATS. It doesn’t support hourly candidates or busy managers. Companies in these industries are looking at the opportunity of conversational AI to replace the ATS and seeing significant outcomes. McDonald’s is one example of a company that reduced time to fill to 2 days using conversational AI through Paradox. I expect more companies to look at this option over the next year.

2023 will no doubt be full of surprises, but I look forward to the innovation, transformation, and partnerships from the providers in this space. One trend worth following is ChatGPT and its use in talent acquisition. I attended a panel on Recruiting Brainfood today, and some use cases include communication, job descriptions, introductions, and recruiter productivity. I don’t see this replacing assessment, as some have suggested, but it presents exciting options for recruiters and candidates looking for more immediate research.

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Tech Hiring Trends and Insights

workers reviewing a sheet

We posted this guest blog with our friends at Relode this week.

The next year will be critical for tech employers looking to attract and hire the skills and talent they need to navigate their changing business needs. With the pandemic, labor shortage, and recent layoffs and hiring freezes, it needs to be clarified to understand where tech hiring stands today and what companies should consider for the future. Many news stories around layoffs and hiring freezes impact some of the largest tech giants. For example, in October, Twitter announced 50% of their workforce was cut at the very end of the month, and Meta and Apply announced layoffs in November. But, the reality of tech hiring is more complicated than what news outlets are highlighting.

According to Appcast’s Recruitonomics, “Information (the BLS category) added a modest 4,000 new jobs in October, despite all the news of layoffs. On the other hand, professional and Business Services (which can also contain tech jobs) added 39,000 new jobs. So overall, the tech sector is a mixed bag.” 

While several large tech giants remain cautious for the next year, many companies continue expanding their workforce in both traditional and non-traditional ways. We found that high-growth tech companies are still increasing their headcount.

A Closer Look at High-Growth Tech Companies

Aptitude Research found that one in two tech companies identify as a high-growth company and most of these companies are tech companies. High-growth companies include any organization performing better or expected to perform better than its industry or the market as a whole. These high-growth companies face unique challenges and opportunities when attracting, engaging, and retaining talent. We found that companies have several business priorities influencing high growth today, including an increase in headcount, global expansion, new market opportunities, and mergers and acquisitions.

According to this study, these companies are two times more likely to increase the number of hires this year. Talent is the most important factor in success. It impacts all other priorities, including their ability to expand globally, enter new markets, and achieve a successful exit. Unfortunately, for many of these companies, the pressure to move quickly makes recruiting and retaining talent challenging, especially in a labor shortage.

As the tech market becomes increasingly more complex and confusing, we identified a few trends influencing tech hiring today:

Invest in More Automation: Companies that want to hire the best tech talent cannot afford to rely on legacy systems and technology. World-class technology is the differentiator and helps tech companies compete for talent. Yet, not all tech companies are making the right investments. 62% of tech companies state that their recruitment activities are too administrative, and only 1 in 2 of these companies are looking outside of their ATS for better options. Tech talent expects solutions that offer a simple and dynamic experience.

Focus on Internal Mobility:  Companies must carefully consider the culture around career development, ensure employees have fair and equitable opportunities and communicate feedback consistently. For tech companies, careful planning and preparation around internal mobility are critical to a talent acquisition strategy. It requires companies to shift how they think about talent and prioritize the individual. Currently, 73% of tech companies are developing a strategy to support internal mobility.

Focus on Speed: It is a common characteristic among all high-growth companies, regardless of their priorities. Companies want to see results, and business success is measured by its ability to adjust to change. As a result, HR and talent acquisition leaders face pressure to adopt new strategies and technology overnight. While this focus on speed has created opportunities, it has also presented challenges with attracting, engaging, and retaining talent. As a result, high-growth companies must carefully balance their focus on speed with their focus on talent.

Embrace the Contingent Workforce: According to Aptitude Research, 82% of tech companies are using contingent or freelance workers, and 1 in 2 companies plan to increase their use of a more flexible workforce next year. Companies must consider talent that will fill critical talent gaps and help companies stay ahead, and talent acquisition strategies must include a complete view of total talent.

Tech hiring remains one of the most misunderstood areas of talent acquisition today. As companies look to another year of unknowns, staying prepared and investing in the right support is critical to effectively attract and retain quality talent and meet changing business goals.

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New Research: Key Recruitment Challenges in Healthcare

The labor shortage and global pandemic have increased the pressure on recruitment in healthcare with no signs of slowing down. While other industries are preparing for an economic downturn and facing possible layoffs, healthcare remains hyper-focused on growth and competing for talent. We looked at how recruitment is impacting healthcare and published these findings with our friends at Relode.

According to the Bureau of Labor Statistics, “overall employment in healthcare occupations is projected to grow 13 percent from 2021 to 2031, much faster than the average for all occupations; this increase is expected to result in about 2 million new jobs over the decade. In addition to new jobs from growth, opportunities arise from the need to replace workers who leave their occupations permanently. About 1.9 million openings each year, on average, are projected to come from growth and replacement needs.”

Attracting, recruiting, and hiring talent is a critical challenge for healthcare organizations across all job roles, from front-line workers to doctors and nurses to medical technicians. Historically, while other industries have quickly adopted new technology, many healthcare companies have responded slower. But the past two years have forced a new reality for healthcare and increased the interest in TA tech, with 85% of healthcare companies increasing their investment or continuing to invest the same.

Here are some key trends impacting talent acquisition in healthcare based on data collected from Aptitude Research.

  • Managing with a Lack of Resources: Many healthcare organizations need more resources or expertise to execute strategic talent acquisition. According to Aptitude Research, 38% of healthcare companies do not have dedicated recruiting and sourcing teams, and 58% of these companies stated that their greatest challenge is a lack of recruiting expertise. The lack of resources is the biggest challenge facing companies today, as 94% of healthcare companies are increasing their hires this year.
  • Improving Candidate Experience through Communication: Candidate communication and experience still need improvement for many healthcare organizations. According to Aptitude Research, 1 in 3 candidates have not heard back from an interview for two or more weeks. Additionally, only 22% of candidates are satisfied with the communication they receive before applying, and only 21% are satisfied with the interview process. Companies must address communication to improve the candidate experience and drop-off rates (40% of candidates are dropping off at the apply phase).
  • Balancing Efficiency and Quality: Healthcare organizations often struggle to balance efficiency and quality. Patient-centered care is critical for these companies, and finding the right talent and efficiency and speed are important when change is constant.  
  • Leveraging Automation: Less than half of healthcare companies are using automation throughout the talent acquisition lifecycle. The top areas where companies are investing in automation are recruitment marketing (37%), screening (44%), interviewing (40%), and onboarding (30%). Surprisingly, only 18% of companies use automation for sourcing when attracting talent is a top priority. Automation can help healthcare organizations lift the administrative burden placed on recruiters and improve candidate communication and engagement.
  • Using Contingent Workers: Over 50% of healthcare organizations have increased the number of contingent or contract workers this year. A flexible and extended workforce helps companies fill critical talent gaps, reduce costs, and improve productivity. It also helps companies adapt and adjust to changing business needs – especially during times of uncertainty. Yet, the challenges remain the same even as the demand for and acceptance of contingent workers increased this past year. Most contingent workforce strategies need more visibility, rely on antiquated technology, and erode business leaders’ confidence. Healthcare organizations understand the value, but they only sometimes see the results. This needs to change as companies continue to adopt a more flexible workforce and companies need to invest in the right partners to support them.

Given the competition for talent and labor shortage still impacting healthcare organizations, incremental improvements to existing processes and systems are not enough. Healthcare companies need to think and act differently – breaking old paradigms and embracing tech in a new way.

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iCIMS Acquires SkillSurvey: The Evolution of Digital Reference Checking

compass with the arrow pointing towards the word talent

This week iCIMS announced the acquisition of SkillSurvey, a digital reference checking provider with over 2000 customers (many in healthcare).

I met SkillSurvey and CEO Ray Bixler in 2009, and I was immediately impressed with both the product and its potential. At the time, SkillSurvey was one of the only providers automating the reference check process. Instead of recruiters calling and waiting for references, SkillSurvey offered a simpler option. First, candidates get an email with a link to complete the references. Then, the candidate forwards the email to three references. And the references answer a few questions online. The entire process takes a few minutes. And not to mention that the references become potential leads in a talent pipeline.

Digital reference checking made recruiters’ lives easier, empowered candidates to control and expedite a frustrating part of the hiring process, and improved efficiency. But, what online reference checking did well was provide some standards around quality of hire.

Companies that improve quality of hire have three common characteristics: invest in technology, use data to make hiring decisions, and gather ongoing feedback. Online reference checking can help inform decisions and give a more precise picture of the quality of a candidate and avoid the syndrome of “getting only positive references.” Companies that invested in online reference check solutions over the past few years saw significant improvements in quality of hire, first-year retention, and first-year performance.

Ten years ago, the only other provider offering these solutions was Checkster (acquired by Harver -formerly Outmatch). With Checkster, Harver now includes a feedback loop on hiring decisions to include post-hire data and AI-driven insights to help companies make better decisions for the future. In addition, we are seeing new providers competing in this space, including Crosschq and Searchlight. As a result, the category has changed, and the products have evolved beyond simple online reference checking, including sourcing and analytics. 

Here are a few thoughts on this category and iCIMS acquisition:

  • Talent Intelligence: Many of these providers are positioning themselves as talent intelligence platforms when they are not. They provide insights into one area of talent acquisition and focus on hiring decisions. Talent intelligence is a broader, more complicated category best suited for the Eightfolds of the world. Quality of hire or talent analytics is a more appropriate description of these providers’ offerings.
  • Plans for iCIMS: iCIMS has made some very smart acquisitions over the past year, including Candidate.ID. This acquisition only furthers its leadership across end-to-end TA, but questions remain around how SkillSurvey will be integrated and the strategy for iCIMS long-term. For example, will they fully integrate these solutions into one platform or continue to sell them as stand-alone and disparate solutions?
  • Future Acquisitions: With Checkster and SkillSurvey acquired, other ATS providers or hiring experience platforms will look at some of their competitors. We should see a few more acquisitions over the next 12 months.

It has been a busy few weeks of acquisitions in HRTech. I look forward to seeing what happens with this latest announcement from iCIMS.

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New Research: Evolution of TA Tech

The talent acquisition technology landscape has shifted significantly with new providers and categories entering the market and AI seems to be the common denominator. Companies are using, on average, 10 or more providers to support everything from recruitment marketing to onboarding. The interest and investment in AI show no signs of stopping, and today’s companies have more options and opportunities than ever before. But navigating this landscape and truly understanding AI’s impact has become increasingly complex even for the most sophisticated buyers. Companies are not always clear what solutions to consider and what drives results.

Aptitude Research has identified three trends that are influencing the TA tech market today:

  1. TA tech investment is increasing. As companies increased their investment in talent acquisition technology in 2022, 70% stated they will continue to invest the same or increase this investment during a recession.
  2. Business leaders are more focused on TA tech. Over 50% of companies state that business leaders are more focused on TA tech this year than last. With multiple stakeholders involved in decision making, companies must think more strategically about investments.
  3. AI is here to stay. We have moved past the early fears of AI and employers, recruiters, and candidates are embracing AI-driven solutions. One in two companies believe that AI will improve the candidate experience. Companies must carefully consider the role that AI plays in transforming the TA tech stack and which providers take an ethical approach to AI.

Ten years ago, the talent acquisition technology market was comprised of multiple providers offering clear products in defined categories, including background screening, job boards, applicant tracking systems, assessments, and onboarding. Today, the market has exploded with hundreds more providers and new vendors entering each month. Additionally, the lines have blurred – many offer several solutions in talent acquisition or have created new categories of technology, making the buyer’s decision more complicated.

Our latest research on the evolutions of TA tech highlighted the following key findings:

Quality is a priority. For the first time in two years, quality of hire is the number one driver in technology investments over efficiency for 70% of companies. While efficiency is still critical for companies looking to improve time to fill and recruiter productivity, quality will see a renewed focus over the next year.

Companies are increasing investment even during an economic downturn. Seventy percent (70%) of companies plan to continue to invest the same amount or increase their investment in TA tech even in the event of an economic downturn. With remote work and recruiter experience challenges over the past two years, the demand for technology has never been greater. Companies see the value during both strong and weak economies.

Companies have more solutions but are less happy with them. Over 60% of companies are using more solutions today than before COVID, yet only 11% of companies are satisfied with this technology. The buying behavior over the past two years and companies must be careful when evaluating providers and consider true partnerships. Many of these companies are finding it challenging to implement and adopt these systems.

DEI needs to be more of a priority. Diversity, equity, and inclusion (DEI) was a key driver in technology decisions two years ago. Today, companies identified efficiency, quality, and experience over reducing bias. Companies should not sacrifice reducing bias. The right technology can solve for multiple outcomes in talent acquisition.

Not all AI is the same. Every provider in talent acquisition seems to be tackling AI, but companies must carefully consider the quality of data and ethical AI. Companies must provide due diligence when evaluating providers.

Candidates are embracing AI. One in two companies believe that AI is improving the candidate experience. And, nearly half of companies in this study do not know when they should use AI to support talent acquisition. For many companies, humans are still doing tasks that can be supported through AI, including communication and screening.

The next year will create more challenges and opportunities in TA tech and companies must carefully consider evaluating providers. We are excited about upcoming research reports that include hourly hiring, conversational AI, and the CRM Index.

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HRTech Recap: Key Trends and Leading Providers

This year’s HR Technology Conference did not disappoint.

Last week’s event brought new energy and meaning to an industry that had been disconnected for far too long. In many ways, the conference was a reset and an opportunity for anyone building, buying, or investing in tech to reconnect with people, rethink priorities, and reevaluate solutions.

With startups at center stage in the Pitchfest, and traditional providers reinventing their brands and products, the landscape has completely changed in two years. After reflecting on the past week, a few themes stood out to me – most notably the focus on Women in Tech. The pre-event was standing room only, the Pitchfest had equal representation, and women CEOs and product leaders led many AI innovations. This industry has come a long way.

Below are my thoughts on some major themes and key providers influencing this year’s event.

Skills

The discussion around skills dominated this year’s event. We found that companies that invest in skills development are twice as likely to improve retention and 28% more likely to improve DEI initiatives. Skills are the future of HRTech.

But, not all skills-based providers are created the same. The skills conversation is not a marketing message or an overnight decision. Instead, it is a commitment and an investment by a provider to transform how companies recruit, engage, and retain talent. Unfortunately, some providers misusing terms like talent marketplace and talent intelligence has created confusion around a topic that desperately needs more focus and attention.

Below are a few providers I met with that are leading the way in skills:

  • Beamery: Beamery has unveiled its Universal Skills Platform as a foundational layer to its solutions. Its acquisition of Flux helped to strengthen its skills approach around internal mobility and the ability to connect the right talent to the right opportunities.
  • Eightfold: All eyes were on Eightfold again this year. Its skills-based approach and deep learning AI allow companies to understand talent’s full potential better. Eightfold has over 1B profiles and 1M skills, making it one of the largest skills-based providers in HR tech.
  • Reejig: Reejig is a skills-based platform designed for every type of talent. It has a complete skills ontology that aligns with a company’s job architecture and includes a consumer-grade nudge engine.
  • Workday: Workday made a major announcement last week by allowing companies to bring skills data in and out of Workday. With technology designed in collaboration with customers and partnerships, including Aon, Degreed, and SkyHive, the Workday skills ecosystem helps organizations import relevant skills data from third-party systems.

Hiring Platforms (Interview and Assessments)

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.

Below are a few providers that I met with this year include:

  • Criteria Corp: I was surprised and impressed with Criteria Corp. Founded over 15 years ago; it has grown to over 4500 customers with offices in North America and Australia. It provides pre-hire assessments early in the process and structured interview capabilities. It has made several acquisitions over the past few years and is definitely worth watching for anyone interested in this space.
  • Indeed: Indeed was another surprise this year. As one of the largest providers in TA tech, their enterprise solutions include over 200 assessments, including video job simulations.
  • HireVue: HireVue provides an OnDemand Video Interviewing (VI) platform, structured interviewing solutions powered by text (Builder), technical and game-based assessments, HireVue Hiring Assistant, and complex scheduling capabilities.
  • Modern Hire: Modern Hire has over 15 million candidates and enables over 1 million hires in over 20 languages in 200 countries and territories. Modern Hire combines assessments, interview technology, advanced analytics, and artificial intelligence into one solution.
  • Pillar: Pillar is an interview platform that enables companies to reduce bias in the interview process and improve efficiency through structured interviews, analytics, and coaching.
  • Sapia: Sapia combines science with experience in a smart interview platform that includes chat interviews, video interviews, analytics, and assessments. It helps companies improve the candidate experience, quality of hire, and decision-making.
  • TaTio: TaTio (formerly Skillset) is a job simulator that matches candidates to the right opportunities. It was one of the providers in this year’s Pitchfest, and it includes an AI-based job simulator that enables candidates to try out the core tasks of a specific position before they apply for a job.

Also, providers like CrossChq and Searchlight had a large presence at the event. While they do not provide interviewing solutions, their combination of reference checking and predictive analytics improves decision-making and quality of hire.

DEI

One area of HR Tech that I was most disappointed in was DEI. Every provider seems to use DEI as a marketing tagline, yet few offer real capabilities or solutions. Some others have even moved on from DEI to adopt the latest trend. DEI was a key driver in technology decisions two years ago. Today, companies identified efficiency, quality, and experience over reducing bias. However, companies should not sacrifice reducing bias. The right technology can solve multiple outcomes, but companies must be careful when evaluating providers.

Two providers that I will highlight are Textio and iShield. Both use AI to identify language that may be exclusive or filled with bias. In addition, Textio launched a performance management solution last week, and iShield (another Pitchfest contender) integrates with Slack and Teams.

Employee Experience

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 rooted in inclusivity, humanity, dignity, and trust. This area of HR Technology has grown significantly over the past few years, and we found that 64% of companies are increasing their investment in experience solutions.

A few providers that I met with include:

  • Click Boarding: Employee experience begins with onboarding. we found that 86% of new hires make their decision to stay in the first 90 days. Click Boarding is an employee experience platform providing onboarding solutions that impact employee growth and retention.
  • Guild: Guild is a women-owned career opportunity platform. It is designed to provide every employee access to learning and career growth and streamline the cumbersome administration of education benefits. Learners have access to over 2,000 programs that Guild curated from various learning providers, and 70% of its learners are the first people to seek higher education opportunities in their families.
  • Paradox: Paradox is a conversational AI provider expanding from talent acquisition to employee experience. Its solution better engages talent with 24/7 response times and personalization. Companies use Paradox for many use cases in the employee experience, including onboarding and internal mobility.
  • Phenom: Phenom fits into several of the categories listed above. It made several announcements last week, including an HRIS platform. Its talent experience platform supports candidates, employees, recruiters, HR, and managers with a broad suite of solutions and an intelligence and integration layer.
  • Spotlyfe: The winner of the Pitchfest, Spotlyfe is a people-first platform that allows employees to work smarter and live better lives. It includes intentions, gratitude, and analytics.
  • TeamSense: TeamSense was part of the Pitchfest and offered a text-based solution for front-line workers to improve communication and provide better engagement through channels that are more accessible.

 Recruitment Marketing

 It is designed to improve the front-end of the recruiting process and tackles most of what the ATS doesn’t do…engaging with individuals before they apply for a job. 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.

Below are a few providers I met with last week:

  • Built-In: Built-In connects tech talent to the right technology companies. Its content and community give tech professionals insights into hiring companies nationwide.
  • Candidate ID (an iCIMS company): Candidate.ID brings marketing automation to talent pipelining and recruiting ‘in-demand’ talent. It supports enterprise organizations by engaging, nurturing, and converting ready-now talent through use cases that include alums, internal hires, contingent workers, diversity hires, early-career hires, and referrals.
  • GR8 People: Gr8 People is a global technology platform that supports end-to-end talent acquisition and helps companies source, attract, engage and hire every workforce type in one experience. Built with automated workflows, it provides personalized experiences for every user.
  • Symphony Talent: Symphony Talent is a recruitment marketing platform and an employer brand partner. It offers technology solutions that include CRM, programmatic advertising, career sites, assessments, and analytics. Its’ service offerings help companies with EVP strategy, career site design, and content marketing.

Big thanks to everyone who made this conference a success! See you next year!

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Strategies for Improving Candidate Communication

Conversational AI: Transforming Talent Acquisition
Conversational AI: Transforming Talent Acquisition

Every candidate deserves a fair, consistent, and human experience. Candidates want to know that they are being considered for a role, and they want to receive feedback on where they stand in the process. At a very basic level, candidates want to be treated like people. Unfortunately, companies do not always have time to engage with candidates in a way that is consistent and fair. As a result, most of today’s challenges with candidate experience start with communication.  Communication should be consistent across your hiring process, from pre-application to onboarding. The good news is that companies can improve communication by using a mix of automated tools and human interaction (especially in later stages).

I am looking forward to presenting some of our research on candidate communication and the impact on talent acquisition during a webinar with Clinch tomorrow. Below are a few topics we will cover:

  • Omni-Channel Communication: Most companies rely on email as their primary form of communication in talent acquisition. Yet, mobile usage has increased over the past year and 43% of candidates do not always open their emails. Email limits how a company can engage with talent, slowing down time to fill, and providing a negative experience for both recruiters and candidates. Companies must consider an omni-channel email approach that includes text, messaging, and conversational AI.
  • Measuring Communication Efforts: Communication efforts can make a significant improvement on candidate engagement and overall TA efficiency. Companies should consider measuring traditional metrics as well as response times, time to respond, and engagement levels.
  • Candidate Expectations Have Shifted: Candidates expect consistent communication throughout the entire TA process. Communication does not happen at one stage in talent acquisition. It must be a constant throughout the candidate journey.
  • Mobile Comes First: Candidate behavior has changed since the pandemic. More people are working remotely, and candidates rely on their mobile device to research jobs, connect with brands, and apply for a job. According to this study, 62% of candidates are using their mobile device more this year than last. Candidates want to be able to use one device to communicate with a potential employer, and text meets the needs of the mobile-only mindset by providing faster response and personalized engagement in real-time.

I am looking forward to sharing new research and trends on candidate communication tomorrow. I hope you can join!

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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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