”Change predictions are less to do with what might happen, but more about what influencers believe will happen, and thus are prioritized today to make it happen”
AllyO interviewed 25 HR leaders, 5 industry influencers, and 10 HR technology and Venture Capital (VC) / Private Equity (PE) Investment leaders to identify what they believe would change by 2022. Here is a summary of what was repeated predicted.
”My functional counterparts are measured on leading indicators like sales pipeline and NPS, while I am evaluated on lagging indicators like fill rate and time to fill”
-VP, Talent Acquisition of Fortune 500 Manufacturing Company
The ability to track all data in an organized manner, run historic and predictive analytics on it, leverage A.I. for feedback and optimization, and extraction of tactical insights is going to become the strongest weapon for HR leadership as they are able to guide operational planning and goal setting via talent acquisition and employee management. The success of meeting hiring goals will soon serve as predictions for quarterly earnings. The talent pipeline will be valued much more closely to sales pipeline.
Modern technologies like A.I. would allow for administrative tasks to be automated in an engaging manner, just like we’ve seen in IT, customer support, and marketing & sales functions. This would allow for fewer administrators and coordinators in the HR function, and reinvestment of the dollars saved in skill development of human intelligence to convert candidates to hires, answer critical challenges in employee management, and HR playing an increasing strategic role.
With the noisy and undifferentiated marketing from solution providers, the over-commercialization of HR conferences, and urgency to innovate, HR leaders would need to build their cohort of trusted advisors and consultants who can clear the noise for them, help them prioritize and pick the right investments for their desired goals.
”We’re at a rare moment when Private Equity has almost the same amount of investable capital as the venture guys … and remember, Private Equity loves cost cutting solutions that target cost centers like HR, because they relate to it and can use it across their portfolio”
– Managing Director, Private Equity Partner focused on mid-market companies
Investors are sitting on over $100B of investable capital and have over invested in most other functions like marketing and sales. It is now the time for them to invest in relatively smaller but critical functions like HR via investments in incubation, growth, or acquisition.
Applicant Tracking Systems (ATS) weren’t built for candidate experience anyways. Conversational tools will take over the entire candidate experience lifecycle with hooks to the ATS so that while data is stored as needed for compliance, I/O of it is handled by a different system(s).
HR Tech is notorious for overcorrection and quick commoditization. The theme these days is chatbot A.I. in recruitment. With massive surplus of investor capital, and availability of foundational libraries and platforms to A.I., commoditization of chatbots in recruitment, just like we observed for job boards and ATSs, is likely to happen within the next 5 years.
Job boards sit at one end of the talent acquisition spectrum and only have this direction to go into and assume what their customers are willing to pay for it. The RPO and staffing companies that do that make 10-20 times more money than job boards. In fact primary job boards like Indeed, Monster, and Glassdoor are already owned by these companies. The perception is that job boards will make this leap by using artificial intelligence to (1) engagingly correspond with applicants and employers at scale (at AllyO we call this a conversational job board); (2) acquire data about applicants across the web; (3) run predictive analytics on this data to qualify and promote some applicants over others
”I just helped an influential TA leader with their 2 year plan, and I can tell you unlike the last one, job boards and ATSs did not make it to the priority list”
-Talent Management Consultant
With the ATS and job-boards commoditizing, the big recruiting opportunity lies in differentiation of candidate experience. With advanced A.I. and marketing technologies, Talent Acquisition teams will spend a lot more on A.I. based 24/7 conversational systems and recruiting marketing so that they can provide and track candidate experience like never before.
There would be tools that become the single point of contact for applicants throughout the hiring process. The same tool will be easier to extend to talent management, as the new employees will respond to it better given existing relationship. The data generated from both organization’s processes will feed into each other to make their individual processes better. So the candidate-employee experience tool and underlying data based intelligence will need to be shared across these two historically separate organizations
With the acquisition of Glassdoor by Recruit, primarily for their job-board, we’ll see a new employer branding and public review platforms emerge that will be more organized, credible, and more effectively guide talent decision-making in picking employers
AllyO is an AI technology company founded a simple mission – make recruiting delightful and efficient for everyone. It addresses the traditional inefficiencies of lost applicants and conversions due to poor candidate experience, high cost of recruiting due to overburdening of menial tasks on hiring teams, and lack of visibility and control for HR leadership. It utilizes deep workflow conversational AI to fully automate end to end recruiting workflow by intelligently engaging via texting over mobile and web. AllyO is used by Fortune 500 enterprises that have experienced 2-6X increase in applicant capture and conversion rate, 91% application completion rate, and over 50% reduction in cost and time to hire. AllyO is backed by leading investors such as Google, Randstad, Bain Capital Ventures and Cervin Ventures.
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