How To Make Productivity Soar: Four Stages of AI TransformationWe’ve been doing a lot of advisory work on skills and job design and now that AI tools have arrived, we’re reinventing work faster than ever. So let me give you some thoughts on this process, and you can also learn more from my recent podcast.
As you know, there are many types of AI business tools: Copilots, Assistants, Agents, Talent Intelligence Systems, and embedded applications. Each of these products are built on an AI-first foundation and they layer on domain expertise, use-case analysis, and iterative design to build smarter and smarter systems.
Self-driving cars started as voice assistants, automatic braking, and lane warnings. Now they keep you in the lane and slow your car when the speed limit changes. And soon enough they’ll be driving for us, so we can sit in the back seat and read a book.
Our HR Assistant Galileo started as a research and problem solving tool, and it’s rapidly becoming an AI coach, benchmarking tool, recruiting, and change management system. So all these tools go from simple use-cases to deeper applications and autonomy over time.
As the tools get smarter and more domain focused we are going to have to rethink our jobs and business processes. And unlike ERP, where we essentially trained people to “adopt” the system, now a lot of the groundbreaking applications come from the bottom up. Individuals will discover capabilities for AI and then apply them in increasingly innovative ways.
And over time, as they get smarter, our jobs move more to “supervisors” and “trainers” of AI, not just consumers. For example if our self-driving car took a bumpy route, we may “retrain it” to take a longer but smoother road.
As I discuss in the podcast, I believe there are four stages of adoption today. And we’re in the middle of doing all four at the same time.
Level 1: Make existing work easier. (Same job, better tools.)
This is where we click on the Microsoft Copilot or Zoom or Teams and the system analyzes a meeting, summarizes emails, or writes a document with our help. We do our jobs the same way we did before, but we now have a “super-productivity” tool to make it easier. These “add-on” use cases are emerging everywhere, and they already feel like a commodity.
In most cases employees see 10-15% or more improvements here, but life isn’t that much different. And sometimes the tool slows us down (Copilot doesn’t create slides well at all yet) and may actually get in the way. But we can expect this mode to continue and most of us figure this out on our own.
Level 2: Major steps eliminated, but the job is the same. (Same job, tools eliminate work.)
At level 2 we automated a lot. Software engineers now use copilots to develop 70% of their code, so they’re spending more time testing and prompting the AI. Their individual coding skills may atrophy, but they can now work on more architectural issues.
The “job” of software engineer may still be the same, but the output is far greater. So we’re making the same pay, doing the same work, but using highly automated tools.
This includes scenarios like chip designers, software engineers, supermarket checkout clerks, nurse scheduling jobs, and even recruiting assistants. Paradox customers, for example, virtually eliminate “scheduling assistants” for recruiting.
At this level companies can see 50-75% productivity improvement, and free time to focus on quality management, customer service, and ongoing improvements to the tools.
Level 3: Re-engineered work, partnered with agents. (New job, redesigned process, agents automate work.)
At level 3 we go further: we re-engineer the process and the work. Imagine how McDonald’s replaced its counter workers with a kiosk, eliminating the “may I take you order please?” role.
This took some major design effort but resulted in a whole new set of roles, workflow, and management structure in the restaurants. The “cost per burger” went down, and the customer experience is almost as good (not quite).
Here we need to be careful because sometimes the “self-service, AI-enabled” experience doesn’t work. A good example is the supermarket self-checkout. It rarely works well and usually takes longer than standing in line. But it will get better, and the resulting experience is faster throughput, more data (the self-service agent might offer you a discount since it knows your buying history), and far superior employee roles.
In level 3 the employees are still involved, and we are more or less “working with the machine,” aiding and supporting the process.
Level 4: Autonomous intelligent agents, people training and managing the AI. (New job, redesigned process, people “manage” the agents.)
At level 4 we go even further. Imagine an AI recruiter (Paradox does this) that could email a hiring manager and his team, gain feedback and requirements on a job and role, consolidate input, and create a total description. This Agent could then review this job against the company culture and pay policies, compare the job against similar jobs in the external market, and tweak the level, job title, and description to be competitive. And then it could start sourcing, and give the hiring manager and human recruiter a set of candidates ranked by various criteria.
That process, which takes dozens of steps for a recruiter, could be fully automated and vastly improved. The Agent could even look at prior hires and get even smarter about who to source based on the success of other candidates.
Now the human job is to “train” and “monitor” and “manage” this AI Agent, who has effectively become a digital employee. (Note: Salesforce is doing a terrific job of building this out for sales and service.)
The Rise of the SuperWorker
Our thesis is that AI is not a “job-replacement” technology, it’s a “SuperWorker empowerment” technology. In other words, most of these scenarios result in higher value jobs, higher pay, and value creation (not cost reduction) in the business.
This is happening fast.
We’re in the middle of a big study in this area and I’ll be explaining this more in our upcoming 2025 Predictions report. The upside of all this will be new and higher paying jobs, faster response to business change, but a lot of IT, design, and data management to do. But based on our research, this is coming soon.
talent intelligence
2024年12月01日
talent intelligence
Cornerstone Galaxy: Acquisition Of SkyHive Could Pay OffCornerstone在人力资源技术领域长期以来一直是学习管理系统(LMS)的领导者。公司最近推出了Galaxy,这是一个集成了人工智能的全新人才管理平台。这一重大进展是在一系列收购之后实现的,尤其是最近收购了SkyHive,显著增强了公司的数据处理能力。Galaxy平台通过提供全面的技能发展、绩效管理和员工晋升系统,为HR技术空间树立了新标准。
Galaxy区别于市场上其他基于技能的或智能平台,例如Eightfold主要从人才获取开始,而Gloat着眼于人才流动性。Galaxy则从另一个角度出发,即员工发展,这是由Cornerstone在学习与发展(L&D)领域深厚的背景所支撑的。Galaxy系统内置了完整的用户界面,能够推断技能,让员工标记和评估自己的技能,帮助员工找到并完成各种学习形式,管理合规性和认证程序,通过任务、评估或管理辅导提升技能。
通过整合性能管理、发展计划、继任计划,以及招聘过程,Galaxy使公司能够通过绩效管理推动技能发展。在收购SkyHive之前,Cornerstone试图仅使用其LMS信息的数据集来实现这一目标,但这些数据并不足以构建完整的人工智能语料库。通过这次收购,Cornerstone获得了一个完整的劳动力市场数据系统、一个公司中立的职位架构以及大量行业技能,使Galaxy能够与其他主要的人才智能和人才市场供应商直接竞争。
Cornerstone spent the last decade acquiring LMS and talent software companies, all in a goal to build an integrated skills platform. Finally, after years of hard work and integration, the company introduces Galaxy, an advanced offering in the world of AI-powered HR systems.
Before I explain Galaxy, the history is important. Founded in 1999, Cornerstone started as an e-learning platform company (CyberU). The company established a foothold in the emerging LMS market and grew through strong marketing, sales, and product innovation. Since then the company has gone public, reached a $5.2 billion valuation, and was then acquired by a private equity firm (Aug. 2021, three years ago).
The new management team continued to acquire companies (EdCast, SumTotal, Talespin, and most recently SkyHive) and has now stitched these systems together into a unified platform called Galaxy. Galaxy, as I show below, is a skills-powered integrated talent management platform, built around the core of learning management. And this is what makes it unique.
The other talent intelligence or skills-based platforms started elsewhere. Eightfold started in talent acquisition; Gloat started in talent mobility; SeekOut started in recruiting; Beamery started in CRM; and players like Retrain.ai and NeoBrain started in more vertical domains. Each of these companies use large-scale profile data to infer skills, give companies tools to find and match candidates, and eventually to deliver learning.
Cornerstone, with deep background in L&D, is coming at this from another direction: employee development. The Galaxy system, which is built into a complete user interface, infers skills, lets employees tag and assess their skills, helps employees find and complete many forms of learning, manage compliance and certification programs, and advance skills through gigs, assignments, assessments, or management coaching. And since Cornerstone is an integrated talent suite, the system lets companies drive skills through performance management, development planning, succession planning, and also recruiting.
Before the acquisition of SkyHive, Cornerstone was trying to do this with its own data set of LMS information. This data, which includes billions of learning records, was simply not sufficient to build out the entire AI corpus. By acquiring SkyHive, Cornerstone gained an entire labor market system of data, a company-neutral job architecture, and lots of industry skills. This brings Galaxy into direct competition with the other major talent intelligence and talent marketplace vendors.
I have not yet talked with Galaxy customers, but the user experience is integrated and shows the sophistication of thinking under the covers. Remember that Cornerstone acquired Evolv, Clustree, and EdCast before acquiring SkyHive, so the team has been building AI capabilities and use-cases for several years. And now that Cornerstone has a VR platform for learning, more use-cases are coming.
While I don’t know Cornerstone’s revenues, the leadership team assures me that the company is growing and the profitability is high. This means the company has long-term sustainability and despite its many acquisitions, is likely to evolve to “Oracle-like” status. (Oracle has acquired hundreds of companies over the years and now looks at M&A as one of its core strengths).
Here’s the major play in the market. With 7,000+ customers, Cornerstone has many customers shopping for new tools. If Galaxy is as solid as it looked in the demos, some percentage of these buyers could upgrade to Galaxy and avoid the purchase of Gloat, Eightfold, or another LMS. While we cannot be sure where Galaxy will play, for companies that want to deploy a skills architecture across all talent practices, it looks like a solid option.
Cornerstone Vision:
Cornerstone User Experience
Cornerstone Career and Talent Marketplace
Cornerstone Performance Management
Skills in Goal Management
Why Cornerstone Still Matters
Cornerstone has a massive customer base. The users of Cornerstone, Saba, SumTotal, Lumesse, and Halogen include many of the world’s largest companies and thousands of mid-market organizations as well. These organizations have invested billions of dollars into learning infrastructure, content, and user portals to reach employees. If Cornerstone Galaxy delivers on its promise, the company can help many of these organizations avoid buying lots of standalone new tools. And given Cornerstone’s size, the company could become, as I mentioned above, the “Oracle” of the space.
And note, by the way, that a recent survey by HR.com found that the top rated HR tech issue to address is L&D infrastructure, so this issue is on everyone’s mind.
While the market is highly competitive and there are many skills-based tools in the market, Cornerstone’s focus on L&D is unique. None of the other major LMS vendors have the skills infrastructure of Cornerstone today.
If your skills strategy is focused on building skills, Galaxy may be the answer.
More to come as we talk with more Galaxy customers.
Additional Information
talent intelligence
2024年09月03日
talent intelligence
Josh Bersin: When Will The Trillions Invested In AI Pay Off? Sooner Than You Think.近年来,生成式人工智能(GenAI)的投资已达数万亿美元,但围绕其回报问题的争论不断升级。一些分析师,如麻省理工学院教授达隆·阿西莫格鲁(Daron Acemoglu)和纽约大学心理学与神经科学教授加里·马库斯(Gary Marcus),对AI的经济影响持悲观态度,认为其对美国生产力和GDP增长的推动作用有限,甚至可能导致市场崩溃。相反,另一派如高盛的全球经济学家则乐观地认为,AI有望在未来十年内大幅提高生产力。然而,文章指出,生成式AI的真正价值在于其特定领域的应用。例如,Paradox和Galileo等HR技术平台通过高度专业化的解决方案,显著提升了招聘和人才管理的效率。最终,文章强调,AI行业仍处于早期阶段,成功的关键在于找到具有专注性和精确性的创新解决方案。
In the last few weeks there has been a lot of concern that Gen AI is a “bubble” and companies may never see the return on the $Trillion being spent on infrastructure. Let me cite four analyst’s opinions.
Will Today’s Massive AI Investments Pay Off?
MIT professor Daron Acemoglu estimates that over the next ten years AI will impact less than 5% of all tasks, concluding that AI will only increase US productivity by .5% and GDP growth by .9% over the next decade. As he puts it, the impact of AI is not “a law of nature.”
On a similar vein, Gary Marcus, professor emeritus of psychology and neural science at New York University, believes Gen AI is soon to collapse, and the trillions spent will largely result in a loss of privacy, increase in cyber terror, and a lack of differentiation between providers. The result: a market with low profits and big losses.
Goldman Sachs Head of Equity Research Jim Covello is similarly pessimistic, arguing simply that the $1 Trillion spent on AI is focused on tech that cannot truly automate complex tasks, and that vendors’ over-focus on “human-like features” will miss the boat in delivering business productivity. (He studies stocks, not the economy.)
And Goldman Sachs Global Economist, who is a fan, estimates that AI could automate 25% of work tasks and raise US productivity by 9T and GDP by 6.1% over the next decade. He follows the traditional business meme that “AI changes everything” for the better.
What’s going on? Quite simply this new technology is very expensive to build, so we’re all unsure where the payoffs will be.
Buyers Are Looking For A Return Soon
If we discount the work going on at Google, Meta, Perplexity, and Microsoft to build AI-based search businesses, which make money on advertising (Zuckerberg essentially just said that in a few years AI will guarantee your ad spend pays off), corporate IT managers are asking questions.
An article in Business Insider pointed to a large Pharma company that cancelled their Microsoft Copilot licenses because the tool was not adding any significant value (Chevron’s CIO was quoted similarly in The Information).
Another quoted a Chief Marketing Officer who stated Google Gemini’s email marketing tool and the new AI-powered ad-buying tool performed worse than the human workers it was intended to replace (or support).
Given that these tools almost double the “price per user” for the productivity suites, I think it’s fair that CIOs, CMOs, to expect them to pay for themselves fairly quickly.
What’s Going On? The Big Wins Will Be Domain Specific
As with all new technologies that enter the market quickly, “the blush on the rose” is over. We’ve been dazzled by the power of ChatGPT and now we’re searching for real solutions to problems. And unlike the internet, where research was funded by the government, there’s going to be a lag (and some risk) between the trillions we spend and the trillions we save.
Given that ChatGPT is less than two years old and OpenAI has morphed from a research company into a product company, it’s easy to see what’s happening. Every vendor and tool provider is narrowing its AI “strategy” and not just pasting little AI “stars” on their websites, looking for useful things to do. And this process may take a few years.
In the world of HR, I think we can all agree that a “push the button job description generator” is a bit of a commodity. However if the AI analyzes the job title, identifies the skills needed through a large skills engine, and tunes the job description by company size, industry, and role, then it’s a fantastic solution. (Galileo does this, as does SeekOut, SAP, and some other vendors.)
The more “specific” and “narrow” the AI is, the more useful it becomes. Generic LLMs that aren’t highly trained, optimized, and tuned to your company, business, and job are simply not going to command high prices. So while we all thought ChatGPT was Nirvana, we’re now figuring out that highly specialized solutions are the answer.
Let me give you some examples.
The first is the platform built by Paradox, a pioneering company that started work on AI-based recruiting agents in 2016. Paradox, now valued at around $2 Billion, delivers an end-to-end recruitment platform that automates the entire process of candidate marketing, candidate experience, assessment, selection, interview scheduling, hiring, and onboarding. Most people believe its a “Chatbot” but in reality it’s an AI-powered end-to-end system that radically simplifies and speeds the recruitment process in a groundbreaking way. Companies like 7-11, FedEx, GM, and others see massive improvements in operational efficiency and both candidates, managers, and recruiter adore it. It took Paradox eight years to build this level of integrated solution.
The second is our platform Galileo. Galileo, which is now licensed by more than 10,000 HR professionals, is a highly tuned AI agent specifically designed to help HR professionals (leaders, business partners, consultants, recruiters, and other roles) do the “complex work” HR professionals do. It’s not a generic LLM: it’s a highly specialized solution designed specifically for HR professionals, and we’ve added specialized content partners and are building special integrations with other HR platforms. Our clients tell us it’s saving them 1-2 hours a day.
The third is the platform HiredScore, that was recently acquired by Workday. Founded in 2012, the HiredScore team built tools to help identify “fit” between individuals and jobs, and tuned its AI to be highly explainable, unbiased, and very easy to use. It took Athena Karp and the team a few years to nail down the use-cases and user interface but now HiredScore is considered one of the most powerful recruitment “orchestration” tools in the market, and is also used for internal hiring and many other applications. Every customer I talk with tells me it’s essential and saves them months of manual, error-prone effort.
The fourth is the platform Eightfold, which was invented in 2016 as a way to build “Google-scale” matching between job seekers and jobs. Through many years of engineering, product management, and ongoing sales process the company has become the leader in a new space called “Talent Intelligence,” now a billion dollar rapid-growing category. The company is about ten years old and now has some of the world’s largest companies building their hiring, career management, and talent management processes using AI. Companies like EY, Bayer, and Chevron now use it for all their strategic talent programs.
Each of these vendors, including others like Gloat, Sana, Arist, Lightcast, Draup, Uplimit, Firstup, and hundreds of others have patiently taken the power of Generative AI and applied it with laser precision to their solutions. Each of these companies is different, and as we work with them we see lightning bolts of innovation: not in AI itself, but in finding new ways to solve problems and do what I call “crawling up the value curve.”
This is the path for AI in the coming years. As with all new technologies, the “trough of disappointment” is always followed by the “bowling pin” of hitting the nail on the head. Innovators, entrepreneurs, and startup founders are the ones who will take GenAI and apply it in unique ways to solve problems. And soon enough, “AI-powered” will be a phrase we barely even need to say.
The Best Solutions Will Be Narrow Not Wide
GenAI solutions require a large “platform” of data, infrastructure, and software. That alone is not where the value resides. Rather, the big productivity advantages come after years of effort, focusing the data sets and working with customers to find the features, UI designs, and data sets that add enormous value. And we are still in the early stages.
If you want to learn more about HR Technology and AI, join me at the HR Technology Conference on September 24-25 in Vegas, or at Unleash in Paris in October 16-17. While I can’t predict who will win the core AI platform game (Microsoft, OpenAI, Google, Meta, Amazon will fight it out), I can predicts this: Generative AI will deliver massive improvements in business productivity. You just have to shop around a bit and wait for just the right solutions to arrive.
是时候重塑人才招聘了 -Research Shows It’s Time To Reinvent Talent AcquisitionJosh Bersin 的文章 "研究表明,是时候重塑人才招聘了 "强调了人才招聘亟需进行的变革。由于只有 32% 的人力资源高管参与战略规划,而且许多人觉得自己只是个接单员,因此这篇文章呼吁进行战略改革。在劳动力短缺和急需技能型招聘的情况下,目前削减成本和减少招聘力度的方法与对技能型专业人才日益增长的需求相矛盾。文章敦促企业将人才招聘作为一项重要的战略职能,利用现代技术并将其与学习和发展相结合,以提高效率并关注内部人才流动。
原文如下:
This week we published a disappointing research study, Talent Acquisition at a Crossroads. The study, conducted in partnership with AMS, points out that talent acquisition leaders (this is a senior position) are largely left out of their company’s strategic planning process and many feel they operate as “order takers.”
In today’s world of labor and skills shortages, this is a wakeup call for change.
Here’s the data:
Among these 130+ HR executives only 32% are involved in any form of strategic workforce planning, 42% believe their company has no workforce plan at all, and 46% say “they’re running around to keep up.” And when layoffs do occur, often the recruiters go first. (Witness Tesla this week.)
All this is happening in a world where 58% of companies feel skills shortages are significantly impacting their business plans, more than three-quarters believe they must transform their talent practices to grow, and “skills-based hiring” is a top priority yet difficult to implement.
Here’s the paradox: companies are cutting their talent acquisition spending at the same time CEOs feel that skills shortages are getting worse. What’s going on?
Talent Acquisition Needs A Reinvention
Let’s just face it: recruiting as a business function has to change. Once considered the “staffing department,” where companies posted jobs and scanned resumes, talent acquisition has become highly strategic operation. What skills do we need? How do we find people who will fit our culture? What internal candidates should fill our key positions? Who are the right leaders for us to hire?
Unfortunately, almost 80% of talent acquisition functions are quite tactical. PwC’s CEO survey found that CEOs rate “hiring” as the third most bureaucratic process in their companies, tied with “too many emails” and “too many meetings” as a time-wasting process. And that explains why two-thirds of TA leaders are being asked to cut costs.
I had a conversation last week with a former TA leader for one of the Big Three automakers. He told me that in the fervor to hire staff for EV engineering he was asked to hire “any engineer he could find, regardless of skill,” because the company was in such a hurry. No time for skills assessment, competitive planning, or even location analysis. Just “go out there and hire engineers.”
We have been studying the auto industry as part of our GWI study and found that important EV roles (reliability engineer or power plant engineer, for example), are quite specialized and hard to find. Strategic recruiting departments need to understand these roles and source these individuals carefully. Just hiring engineering grads from a local community college is not going to move this needle.
(Consider the data by Draup on what these roles are. Talent Acquisition teams with talent intelligence skills can pinpoint who to hire.)
And it gets worse. In our Dynamic Organization research we found that high performing companies focus heavily on internal hiring, talent intelligence tools to find hidden talent, and continuous internal development to fill skills gaps. We can’t simply throw job requisitions over to the recruiting function any more: the people we need may be buried inside the company.
This week Tesla announced a layoff of 10% of their workforce. Was their time to balance and redeploy talent internally? Absolutely not. According to my sources every business unit had to let 10% go, and and many of the people being fired were talent acquisition leaders, the very people who help with these issues.
We talk with many HR executives and there is an enlightened group. Companies that understand this issue (about one in eight) have elevated Talent Acquisition to a strategic function, they merge or integrate TA with L&D, and they redefine their recruiters as “talent advisors.” Mastercard, as a leader, just renamed their recruiters as “Career Coaches,” demonstrating their role in helping people find the right jobs.
Despite the onslaught of AI, this role is becoming even more human-centric. High-powered recruiting teams source internal candidates, understand company culture, and have a deep knowledge of jobs, roles, and organizational dynamics. When well supported and trained, these professionals are strategic advisors, not just “recruiters.” And companies that understand this often outsource or automate much of the administration in recruiting.
Technology plays a major role in this reinvention. Most large companies have dozens of legacy systems, many of which make the candidate experience difficult. When organizations focus on modernizing and streamlining their technology, talent acquisition can become 10-100X more efficient. This, in turn, gives recruiters and talent advisors the time to search for the right skills, carefully select the best candidates, and focus on internal hiring and development as a strategy.
Technology Is Here But Not The Entire Answer
Of all the HR technology markets, recruiting is the most innovative of all. New AI-powered systems like HiredScore (just acquired by Workday), Paradox (leader in conversational AI), Eightfold, Gloat, Draup, and Lightcast (pioneers in talent intelligence), and many others can reduce time to hire from months to weeks and weeks to days. But none of this technology works if the Talent Acquisition team is left on an island.
In the last year I have met with more than 50 heads of talent acquisition and once the door is closed and we talk honestly, they always tell me the same thing. “We are not treated as a strategic function, we are being asked to cut costs, and we are constantly running from fire to fire to keep executives happy.” This type of “service-delivery” focus simply will not work in the new economy.
What should companies do? As part of our Systemic HR initiative, we help companies evolve their TA Function to operate in a more strategic way. Organizations like Bayer, Verizon, and many others have elevated the role of recruiter to talent advisor, they’re building skills in talent intelligence, and they’re integrating the recruiting function with L&D, career management, and employee engagement.
I’ve always felt that recruiting is the most important things HR professionals do. If we can’t get the “right” people into the company, no amount of management can recover. But what does “right” mean? And how can we source, locate, and attract these particular people?
This is a highly strategic operation, and one that must integrate with internal mobility, culture, and employee experience. I encourage you to read our Systemic HR research, join our Academy, or reach out to us or AMS for advice. In this new era of talent and skills shortages, we simply cannot run recruiting in this tactical way any longer.
talent intelligence
2024年04月24日
talent intelligence
Josh Bersin 谈Workday的创新论坛:Why I’m Bullish On Workday Again: The Innovation Summit本周Workday创新峰会揭示了公司由产品主导向市场主导的战略转型。Workday一直以云技术为核心,自主开发了面向对象的数据系统和全球安全架构。然而,随着市场的演进和竞争的加剧,公司在新任CEO Carl Eschenbach的领导下,开始转向市场导向的商业模式。
在这次转型中,Workday开始拓宽其业务模型,更加开放地与合作伙伴合作。公司不再限制API的使用和合作伙伴的接入,而是致力于构建一个像苹果iPhone那样的开放平台,允许更多的行业应用集成到其系统中。这一策略旨在提供更加灵活和综合的企业解决方案,以适应不同行业的需求。
同时,Workday也大力投入到人工智能技术的开发中,推出了基于企业自有数据的微型机器学习模型(micro-LLMs),并在全球范围内调整这些模型以满足本地客户的需求。此外,Workday正在将其人才智能市场向外扩展,通过与多个行业解决方案提供商的合作,强化其在健康护理和金融等领域的业务。
AI技术的应用不仅仅限于技术层面的改进,Workday还通过这些技术优化了用户体验,使得各种任务的完成变得更加便捷。例如,在Workday平台上,用户可以看到AI图标,通过点击即可获得智能辅助完成工作。
在人才管理方面,Workday引入了许多新功能,如智能工作架构中心(Intelligent Job Architecture Hub)以及加强的Workday人才市场,这些都是为了帮助企业简化和改进职位描述和技能需求。
此外,Workday的领导层也展现出了更开放和实用的态度,这对公司未来的发展是一个积极的信号。总的来说,Workday的这一系列战略调整,旨在更好地适应快速变化的市场需求,提高公司的竞争力和市场份额。
Josh Bersin 写了这篇文章,强烈推荐给大家了解下:以下是中英文的供参考
This week I attended the Workday Innovation Summit and there’s a lot to discuss. Having just celebrated its 19th birthday, the company is embarking on a major transformation . And it’s not just product innovation that’s happening, the company is greatly expanding its business model.
Workday Has Been A Product Led Company
Much of Workday’s success goes back to its focus on being “born for the cloud.” Rather than build business apps in a typical database-centric architecture, Workday developed its own object-oriented data system, integrated workflow system, and global security architecture from scratch. Nobody knew the cloud would be so big nor that we’d have “superscalers” like Google, Microsoft, and Amazon as platforms. Nor could we predict the advent of global data governance, AI, or data and apps distributed across thousands of servers.
Well Workday, led by Aneel Bhusri, pulled this off. And not only did they sell architecture, they sold “the Power of One.” In Workday, unlike other ERP business systems, all the applications were designed to work together. No acquisitions, no integrations, no open systems: just a beautifully designed, easy-to-use, scalable enterprise application. (I noted that it reminded me of the i-Phone at the time: beautiful, easy to use, and closed.)
This “beautiful walled garden” served Workday well. While Oracle, SAP, and other vendors struggled to redesign their client-server apps and acquire missing pieces, Workday grew like wildfire and is now a global ERP vendor with more than $7.3 Billion in recurring revenue, 10,000+ enterprise and mid-market customers, and a brand known for trust, customer focus, and quality. And all this happened with a founding team that was largely still in place.
Last year Workday’s co-founder and CEO Aneel Bhusri decided it was time to step back and the company brought in Carl Eschenbach to be CEO. And now things are starting to change. The company is becoming a “markets-led” business.
The “product-led” focus for Workday was both good and bad. Workday was not easy to integrate, there were few APIs for developers, and the company limited its partners. As part of its mission to be pure, Workday prevented many vendors from “partnering” and forced integrators to pay large fees and certify dedicated teams. This “scarcity” strategy created high demand and high prices, and customers actually appreciated it.
All was good, until things started to change. Today, with many competing vendors at all levels of the ERP stack, Workday is becoming more pragmatic. And as I’ll explain below, they’re changing their message from “The Power of One” to “Workday is a Platform.”
Workday Is Becoming A Markets-Led Company
The HCM and Financials market is complex. There are dozens of sub-markets, application areas, and industry solutions to address. An HR system designed for a large hospital system is unlikely to need the same features as a system for a global insurance company. So Workday started to realize its system, while integrated and highly functional, couldn’t keep up.
And within HR itself there are hundreds of vendors who sell recruiting tools, career systems, learning platforms, engagement tools, mobile apps, benefits, and data analytics systems. And each of these sub-markets are being transformed by AI. (Our upcoming research on Talent Intelligence, for example, will show you how fragmented this is.)
Workday was having a hard time keeping up. The company embarked on a series of acquisitions (Platfora, Mediacore, Adaptive Insights, VNDLY, Peakon, HiredScore, and others). This forced the product teams to focus on user interface and architectural integration, somewhat slowing the feature expansion. And many partners who wanted to integrate with Workday (which customers demand) were ignored.
Well under Carl’s leadership, all this is changing. Workday is now fully open to partners, ISV’s, resellers, and industry solutions. Almost 25% of the entire Innovation Summit was focused on Workday’s open partner strategy. And the big message was this: Workday is not a “system,” it’s a “platform.”
What does this mean? It means that if you buy Workday you’re buying a platform like the i-Phone. It works amazingly well, it’s safe, and will sport a family of industry apps to help you build a total solution. This worked for Apple and Salesforce and it’s likely to work well for Workday. SAP has a similar offering, but its level of integration is far more complex. This lets Workday move deeply into new domains and sub markets. (Workday highlighted its new integrations with Shiftwizard in healthcare, Auditoria and Kyriba in finance, and many others. These are not just ISV relationships: Workday is reselling these products.
But there’s much more.
Workday Unveils Its AI Strategy
At last year’s event Workday really waffled about AI. They gave us a lot of arm waving discussions of “Workday AI” but it didn’t make a lot of sense. Well they’ve figured it out, so let me briefly explain.
Enterprises don’t want AI for its own sake and they definitely don’t want crowdsourced data which creates legal risk. They want AI solutions that work on their own data.
Well Workday has now embarked on a wide variety of AI features, each delivered through its own “micro-LLMs” trained on a company’s own data. (Very similar to how we implement Galileo, our AI HR expert assistant.) And for larger AI capabilities they use a global LLM with local weights and biases for each client. (This is similar to how the Microsoft Copilot works.) So your enterprise data trains your “version” of Workday without sharing any data with others.
In some cases (the Skills Cloud, for example), customers can opt to share data anonymously. This lets Workday build a “global skills database” which everyone can share. Vendors like Eightfold, Lightcast, and Draup do this at a massive scale (far beyond what Workday does today), so Workday is now moving into this “talent intelligence” market. (Lightcast is now a Workday Skills Cloud partner.)
Many of these features are simple (rewriting a job description or matching invoices to purchase orders) but powerful. All over Workday you now see a little AI icon to help you complete a task. In fact Workday has already re-engineered about 280 different tasks and is working on around 2,000 in total.
Customers constantly tell me Workday is difficult to use, and it’s largely just because the system is quite complex. These AI-enhanced experiences are slowly going to make the system more and more “I-Phone like.”
Many New Talent Features
Now that the product teams have a strong underlying architecture, they’re going crazy with features. Workday is introducing a new “Intelligent Job Architecture Hub,” for example, to help companies simplify and improve job names, levels, descriptions, and skills. (It also shows trending skills in the external market.) Everyone is going to use this.
The Workday Talent Marketplace, which is not widely used yet, is being enhanced through HiredScore: employees will get Teams or Slack messages recommending jobs. This is an example of “orchestration,” a new buzz-word among AI systems. (Imagine AI booking your trip including hotels, air, car, etc.)
The Workday Manager Hub now shows managers detailed employee engagement data (Peakon has more than 18 billion responses now) and will gives managers “Conversation Starters” to help them start performance coaching, all based on feedback from other employees.
There is a major focus on contingent, gig, and contract workers. For the first time I believe Workday can handle most professional services businesses (including pricing projects based on staff pricing), healthcare and retail (AI-powered scheduling and shift management), and many deskless worker needs. It turns out that healthcare and retail are two of Workday’s biggest industries, so these talent-constrained industries are now a good market.
Let me talk briefly about HiredScore. This company built an in-line “talent orchestration system” that uses AI to show recruiters who is most suited for a job, explain why it made its decisions, and use this data to find and source internal candidates automatically. While this type of technology is widely used in systems like Eightfold, Beamery, Phenom, and others, the HiredScore system is workflow-oriented. Recruiters love it and it greatly improves hiring speed, quality, and internal mobility.
And by the way, despite lots of complaints from users, Workday Recruiting is starting to dominate the ATS market. With more than 4,000 customers it’s becoming a more “safe buy” as companies rationalize their old ATS systems.
As David Somers (head of product) put it, HiredScore is the acquisition that “keeps on giving.” In other words the AI team at HiredScore is now going to work with Workday’s Skills Cloud team to evolve and improve that system. The Skills Cloud, while beautifully visioned and named, has had limited success. With HiredScore’s help (and the leadership of Athena Karp, founder and CEO), this system will get more attention. (That includes more content partnerships and a broader set of tools.)
This means Workday’s recruiting system (which is one of the most critical business systems in today’s talent shortages) is now highly coupled with the internal mobility and job architecture system, something customers desperately want. I still believe systems like Eightfold and Gloat are far more advanced, but Workday is catching up.
Management Culture And Trust
And then there’s the biggest issue of all: Workday’s leadership. I spent some time chatting with Carl Eschenbach and he has a very different persona than Aneel Bhusri. Carl clearly wants Workday to go after new markets: new geographies (EMEA, Asia, Japan), new industries (healthcare, pharma, retail), the mid-market segment, and channel partners. Workday is now actively searching for resellers, mid-market integrators, and ISVs to round out the solution.
As always, the leadership team at Workday is highly aligned and much more pragmatic. Many times I would attend a Workday event and feel a slight sense of arrogance at the top. As with all successful software companies, it’s easy to think you’re always right when things are going well.
I believe this has changed. I actually found Workday to be humble, attentive to new issues, and open-minded to new ideas, new partners, and self-inspection. This, to me, is a bullish sign. And from top to bottom the company is focused on trust, AI safety, and customer service.
One more thing I want to point out: the “Workday as a Platform” idea. The company now realizes that this highly proprietary, business-optimized system can no longer be sold as a beautifully walled garden. The company is building a massive set of easy to use development tools, expanded APIs, and programs to attract software developers, partners, and integrators. Now, when customers ass for functionality Workday can look for a partner to resell or embed. The company is losing its “if we didn’t build it we don’t trust it” mentality.
I also believe this leadership team really likes each other. As many of you know, team culture is massively important in the tech space. Things change so fast and there are so many competitors the company has to stay aligned. I sense everyone really understands what’s going on.
Growth Potential
Will Workday accelerate its growth above its respectable 17% per year? Well the company has challenges. Many of its legacy clients have found a plethora of advanced tools around Workday and I know large companies that are switching back to SAP. And despite all the new features, Workday is an older, complicated, rigid system.
That all said, I think the company is managing its transformation well. Let’s watch to see how all this plays out.
本周我参加了Workday创新峰会,有很多内容值得讨论。在刚刚庆祝了其成立19周年之际,该公司正在进行重大转型。而且,不仅仅是产品创新在进行,公司的业务模式也在大幅扩展。
Workday一直是一家以产品为导向的公司
Workday的成功很大程度上归功于其专注于“为云而生”。Workday没有采用典型的以数据库为中心的架构来构建商业应用程序,而是从零开始开发了自己的面向对象的数据系统、集成的工作流系统和全球安全架构。没有人知道云计算会如此重要,也没有人预料到我们会有像Google、Microsoft和Amazon这样的“超级计算”平台。我们也无法预测全球数据治理、AI或者跨数千服务器分布的数据和应用程序的出现。
在Aneel Bhusri的领导下,Workday做到了这一点。他们不仅销售架构,还销售了“一体化的力量”。在Workday中,不同于其他ERP商业系统,所有应用程序都被设计为可以协同工作。没有收购,没有集成,没有开放系统:只有一个设计精美、易于使用、可扩展的企业应用程序。(我注意到这让我想起了当时的iPhone:美观、易用且封闭。)
这个“美丽的围墙花园”为Workday服务良好。而Oracle、SAP和其他供应商在重新设计其客户端-服务器应用程序和获取缺失部分时挣扎,Workday却如野火般成长,现在已成为一家全球ERP供应商,拥有超过73亿美元的经常性收入、超过10,000个企业和中端市场客户,以及以信任、客户关注和质量而闻名的品牌。而且,这一切都是在创始团队基本上仍在位的情况下发生的。
去年,Workday的联合创始人兼CEO Aneel Bhusri认为是时候退居幕后了,公司聘请了Carl Eschenbach担任CEO。现在,事情开始改变。该公司正在成为一家“以市场为导向”的企业。
Workday的“以产品为导向”的重点既有好处也有坏处。Workday不容易集成,开发者可用的API很少,公司也限制了其合作伙伴。作为其保持纯净使命的一部分,Workday阻止了许多供应商的“合作”,并迫使集成商支付高额费用并认证专门团队。这种“稀缺”策略创造了高需求和高价格,而客户实际上对此感到满意。
一切都很好,直到情况开始改变。如今,随着ERP堆栈各层面的竞争供应商越来越多,Workday正在变得更加务实。正如我将在下文中解释的那样,他们正在将信息从“一体化的力量”变为“Workday是一个平台”。
Workday正在成为一家以市场为导向的公司
人力资源管理(HCM)和财务市场非常复杂。有数十个子市场、应用领域和行业解决方案需要解决。一个为大型医院系统设计的HR系统不太可能需要与为全球保险公司设计的系统相同的功能。因此,Workday开始意识到,尽管其系统集成且功能强大,但它无法跟上。
而且,在HR本身,有数百家供应商销售招聘工具、职业系统、学习平台、参与工具、移动应用程序、福利和数据分析系统。每一个子市场都在被AI转型。(例如,我们即将发布的关于人才智能的研究将向您展示这是多么的碎片化。)
Workday很难跟上。该公司开始了一系列收购(Platfora、Mediacore、Adaptive Insights、VNDLY、Peakon、HiredScore等)。这迫使产品团队专注于用户界面和架构集成,从而在某种程度上减缓了功能扩展。许多希望与Workday集成的合作伙伴(客户需求)被忽视了。
在Carl的领导下,所有这些都在改变。Workday现在对合作伙伴、独立软件供应商、经销商和行业解决方案完全开放。整个创新峰会将近25%的时间专注于Workday的开放合作伙伴策略。而且重要的信息是:Workday不是一个“系统”,它是一个“平台”。
这是什么意思?这意味着如果您购买Workday,您就是在购买一个像iPhone那样的平台。它运行非常好,安全,并将配备一系列行业应用程序以帮助您构建完整解决方案。这对Apple和Salesforce有效,对Workday来说可能也会很有效。SAP也有类似的产品,但其集成程度要复杂得多。这让Workday能够深入新的领域和子市场。(Workday突出显示了其在医疗保健领域与Shiftwizard、在财务领域与Auditoria和Kyriba的新集成等。这些不仅仅是独立软件供应商关系:Workday正在转售这些产品。
但还有更多。
Workday公开其AI战略
在去年的活动中,Workday对AI真的犹豫不决。他们给了我们很多关于“Workday AI”的手势讨论,但这并没有太多意义。好吧,他们已经想通了,让我简单解释一下。
企业并不是因为AI本身而想要AI,他们绝对不想要可能产生法律风险的众包数据。他们想要的是可以在自己的数据上运行的AI解决方案。
现在,Workday已经开始了各种AI功能,每个功能都通过其自己的“微型大语言模型”交付,这些模型是在公司自己的数据上训练的。(这与我们实现的Galileo,我们的AI HR专家助手非常相似。)对于更大的AI功能,他们使用一个全球大语言模型,为每个客户本地调整权重和偏差。(这与Microsoft Copilot的工作方式类似。)因此,您的企业数据训练您的“版本”的Workday,而不与其他人共享任何数据。
在某些情况下(例如技能云),客户可以选择匿名分享数据。这让Workday能够构建一个“全球技能数据库”,每个人都可以分享。像Eightfold、Lightcast和Draup这样的供应商在大规模(远超Workday目前的做法)上做到了这一点,所以Workday现在正在进入这个“人才智能”市场。(Lightcast现在是Workday技能云的合作伙伴。)
这些功能中的许多都很简单(重写工作描述或将发票与采购订单匹配),但功能强大。在Workday的各个地方,您现在都可以看到一个小AI图标,帮助您完成任务。事实上,Workday已经重新设计了大约280个不同的任务,并且正在处理大约2,000个总任务。
客户不断告诉我Workday很难使用,这主要是因为系统相当复杂。这些通过AI增强的体验将逐渐使系统越来越像“iPhone”。
许多新的人才功能
现在产品团队拥有了强大的底层架构,他们正疯狂地推出功能。例如,Workday正在推出一个新的“智能工作架构中心”,以帮助公司简化并改进工作名称、级别、描述和技能。(它还显示外部市场中的趋势技能。)每个人都将使用这个。
Workday人才市场尚未广泛使用,现在正在通过HiredScore进行增强:员工将通过Teams或Slack消息获得推荐工作。这是“编排”的一个例子,这是AI系统中的一个新的流行词。(想象一下AI预订您的旅行,包括酒店、飞机、汽车等。)
Workday经理中心现在向经理们显示详细的员工参与数据(Peakon现在有超过180亿的反馈)并将给经理提供“对话开始器”,以帮助他们开始绩效辅导,所有这些都基于其他员工的反馈。
还有一个主要关注点是临时工、零工和合同工。我相信Workday首次可以处理大多数专业服务业务(包括基于员工定价的定价项目)、医疗保健和零售(AI驱动的排班和班次管理),以及许多无固定工作场所的工人的需求。事实证明,医疗保健和零售是Workday的两个最大行业,所以这些人才匮乏的行业现在是一个好市场。
让我简要谈谈HiredScore。这家公司建立了一个内嵌的“人才编排系统”,使用AI向招聘人员展示最适合某个职位的人员,解释为什么会做出这样的决定,并使用这些数据来找到并自动获取内部候选人。虽然这种技术在Eightfold、Beamery、Phenom等系统中广泛使用,但HiredScore系统是以工作流为导向的。招聘人员非常喜欢它,它极大地提高了招聘的速度、质量和内部流动性。
顺便说一句,尽管用户有很多抱怨,Workday招聘正在开始主导ATS市场。现在已有超过4,000个客户,随着公司对旧ATS系统进行合理化,它正在成为一个更“安全的购买”。
正如产品负责人David Somers所说,HiredScore是一笔“源源不断的收益”。换句话说,HiredScore的AI团队现在将与Workday的技能云团队合作,以发展和改进该系统。技能云虽然构想得很美,名字很漂亮,但成功有限。在HiredScore的帮助下(以及创始人兼CEO Athena Karp的领导下),这个系统将得到更多关注。(这包括更多的内容合作伙伴和一套更广泛的工具。)
这意味着Workday的招聘系统(这是当今人才短缺中最关键的商业系统之一)现在与内部流动性和工作架构系统高度耦合,这正是客户迫切需要的。我仍然认为像Eightfold和Gloat这样的系统更先进,但Workday正在迎头赶上。
管理文化和信任
然后是最大的问题之一:Workday的领导层。我花了一些时间与Carl Eschenbach聊天,他与Aneel Bhusri的个性非常不同。Carl明确希望Workday进军新市场:新地理区域(EMEA、亚洲、日本)、新行业(医疗保健、制药、零售)、中端市场细分市场和渠道合作伙伴。Workday现在正在积极寻找经销商、中端市场集成商和独立软件供应商来完善解决方案。
一如既往,Workday的领导团队高度一致,更加务实。很多时候,我参加Workday的活动,都能感受到顶层有些自负。就像所有成功的软件公司一样,当事情进展顺利时,很容易认为自己总是对的。
我认为这已经改变了。我实际上发现Workday很谦虚,对新问题很关注,对新想法、新合作伙伴和自我检查持开放态度。对我来说,这是一个看涨的信号。而且从上到下,公司都专注于信任、AI安全和客户服务。
我还想指出一件事:关于“Workday作为一个平台”的想法。该公司现在意识到,这种高度专有的、业务优化的系统不再能作为一个美丽的围墙花园来销售。公司正在构建一套大型的易于使用的开发工具、扩展的API和吸引软件开发者、合作伙伴和集成商的计划。现在,当客户询问功能时,Workday可以寻找一个合作伙伴来转售或嵌入。公司正在失去“如果我们没有构建它,我们就不信任它”的心态。
我还相信这个领导团队真的很喜欢彼此。正如你们许多人所知,团队文化在科技领域非常重要。事情变化如此之快,竞争对手如此之多,公司必须保持一致。我感觉每个人都真正理解发生了什么。
增长潜力
Workday能否将其每年17%的尊重增长率加速?好吧,公司面临挑战。它的许多老客户发现在Workday周围有大量的先进工具,我知道一些大公司正在回归SAP。尽管所有这些新功能,Workday仍然是一个较老、复杂、僵化的系统。
话虽如此,我认为公司正在很好地管理其转型。让我们拭目以待,看看这一切将如何发展。
Workday收购HiredScore的意义,这可能颠覆人力资源科技领域Workday计划收购HiredScore,这是人力资源技术领域的一次重大变革。HiredScore是一家领先的基于AI的招聘匹配工具提供商,此举将大大增强Workday在人才智能和招聘方面的能力。这次收购预计将整合HiredScore的专长到Workday的系统中,显著改善其应聘者追踪系统(ATS)、技能云和整体人才智能产品。此战略性收购可能会重塑人力资源软件市场,迫使其他供应商加速他们的AI计划,可能激发一轮新的收购热潮。
以下是原文:
This week Workday announced intent to acquire HiredScore, a leading provider of AI-based matching tools for recruiting (called “talent orchestration”). While it wasn’t discussed much in the earnings call, this deal is a big positive for Workday and could have many implications for the HR Tech market.
Let me explain. (I have not been briefed by Workday yet, so more information will come as I learn more.)
Right now there is a massive marketplace war for high-powered AI-based recruiting tools (estimated at $30.1 billion). Historically dominated by applicant tracking systems (ATS), this market provides essential technology to help every company grow.
The ATS market, which is more than 25 years old, has been rapidly transformed with high-powered AI tools that help with candidate matching, search, skills inference, and sourcing. And now that AI tools are readily available, these systems are becoming big data platforms loaded with billions of employee profiles, running complex AI models to help match people to jobs, projects, and gigs.
Most ATS vendors (including Workday) have slowly extended into this space through matching. The original idea of a resume parser (software that reads a resume and scores it against a job description) has evolved into complex text analysis and AI-powered inference technology, forcing ATS vendors to invest.
As the ATS vendors enhance their AI capabilities, a parallel universe of AI-first Talent Intelligence vendors emerged. These vendors, like Eightfold, Gloat, Beamery, Phenom, Seekout, Skyhive, Retrain, and Techwolf are building skills-centric big data platforms to match people to jobs, gigs, and mentors. These systems do much more than rate matches: they identify skills, find adjacent skills, match people to careers, find mentors, and more. They are essentially open big-data AI platforms built on vector databases that can be used for many enterprise apps (job architecture design, skills planning, internal mobility, pay equity analysis, etc.). In many ways they represent the future of HR Tech.
(Read our Talent Intelligence Primer for more.)
As the Talent Intelligence vendors grow, they start to deliver “HCM-threatening” platforms that impinge on the HCM “System of Record” idea. If you have all your employees, candidates, alumni, and prospects in Eightfold, Phenom, Seekout, or Gloat, for example, Workday or SAP look like a tactical payroll and workflow management system. (ServiceNow also understands this, and is building talent intelligence into its workflow platform.)
Up until now the big HCM vendors like Workday, Oracle, and SAP have struggled to build these new systems, largely because their original architectures were not AI-based. So they’ve attracted customers with offerings like the Workday Skills Cloud or SAP Opportunity Marketplace that aren’t fully completed yet. We have talked with dozens of Workday Skills Cloud customers, for example, and they see it as an important “skills system of record,” but its real AI matching and inference capabilities have been limited.
Along comes HiredScore, a well respected AI-based matching system with 150 employees and 40+ seasoned AI engineers in Israel. These folks are experts at candidate matching (quite a complex problem), and they’ve built a very innovative “orchestration” system to help line managers coordinate activities with HR business partners and recruiters (more on this later). While I’m sure they’ll continue to build out HiredScore, they can also contribute to Workday’s overall talent intelligence offering, improving the entire system – including the Skills Cloud, Workday Learning, Workday’s Talent Marketplace.
As large as the recruiting software market is, the market for internal career tools, talent mobility, skills inference, and corporate learning is five times bigger. This acquisition gives Workday a shot in the arm to accelerate its entire AI platform strategy. (As the Identified acquisition did back in 2014. Identified was the roots of the Workday Skills Cloud.)
Market Implications Of This Move
This move could change the market for HR software in a few significant ways.
First, Workday Recruiting customers will be thrilled. Workday’s ATS now benefits from a first class matching and candidate scoring solution. This helps Workday compete with the bigger ATS players and gives Workday a new revenue source as they sell HiredScore to the existing 4,000+ Workday ATS customers. (Similar to the Peakon acquisition in Employee Experience.) And the talent orchestration features (kind of like a “staffing copilot”) gives Workday a very unique feature set.
Second, this forces Workday’s talent intelligence partners to step up their game. Remember when Apple acquired Dark Sky, the most compelling micro-weather app on the market? Once they integrated it into Apple’s other apps, the market for third party weather apps went away. Workday could limit its partner network to avoid letting HiredScore competitors into the ecosystem.
Third, this forces HCM vendors to accelerate their AI. Since HiredScore is such a well-respected product (every client we talk with adores it), it will become part of Workday demos and sales proposals quickly. Workday’s HCM competitors will start scratching around to find a similarly mature AI vendor to acquire. And that could kick off another round of acquisitions, similar to the frenzy that took place in the mid 2010s.
Finally, there’s one more scenario, and I give this good odds. Not to be outdone by Workday, the Talent Intelligence vendors may just expand their ATS capability and decide to go “full stack.” I wouldn’t be surprised to see this happen.
Why Is AI-Based Candidate Matching So Important
Why is this technology so important? Well if you’ve ever tried to recruit on Indeed or LinkedIn, you know why. The quality and reliability of “candidate matching technology” is a lynchpin of a talent platform. Just as Google Search crushed Yahoo, Excite, and Inktomi, a powerful next-gen matching tool adds an enormous amount of value. Not only does it speed talent acquisition, it fuels all the internal mobility, career portals, skills, and eventually learning and pay systems.
Why do I say this? A “match” is a sophisticated problem. Unlike a Google search which looks at text and traffic, when you search for a person to fill a role you have to think about dozens of complex relationships. What are this person’s skills and capabilities? What are their credentials or certifications? Who else are they connected with? How likely will they fit into the job, role, and company? What is the impact of their industry experience? What tools and technologies do they understand?
And it gets much more complex. The Heidrick Navigator platform (built on Eightfold), uses AI to assess functional skills for management and leadership, identifies a person’s “ability to drive results,” and more. This important application of AI powers many of the most important decisions we make in business.
That’s why the Talent Intelligence space is growing so fast. As of this week there are more than 1,800 Director or VPs of “Talent Intelligence” in LinkedIn, and that number is up almost six-fold from one year ago.
Can Workday take the lead in this emerging space? It’s impossible to tell at this point, but the horses have left the gate and the race is on. This deal sets the players in the right lanes and feels like the earthquake to shake things up.