Analyst Perspectives

This analyst perspective (presentation) covers how Compensation Management, related enabling technologies and data strategies continue to evolve, particularly in the context of prominent business issues facing all organizations today.

Maximizing the performance and value of people in the workforce should be a primary focus for any business these days. It is a complex task, especially for larger organizations, and chances for success can be increased by investment in human capital management (HCM) applications. In this competitive software market SAP is making a strong push, aided by acquisitions in the last three years of SuccessFactors for talent management and more recently Fieldglass for contingent labor management....

It is more important than ever for businesses to attract and retain the best talent, and managing compensation effectively is an essential tool for doing so. Obviously companies must pay well to compete, but managing salary, merit pay, variable pay and incentives for employees, tracking their hiring anniversaries and conducting accurate performance appraisals make total compensation management a complex process. All of this must be managed within budget and policy guidelines. As organizations...

Now available from Ventana Research is our Value Index on Total Compensation Management for 2014.  Total compensation management directly addresses one of an organization’s largest investments – employee pay. As such it is a critical activity for supporting other human capital management and talent management processes.

Ultimate Software is one of the larger players in the market for human capital management (HCM) software, with roots in providing human resources and payroll management products. Recently I attended its annual Connections conference. Last year the company focused attention on expansion of its global capabilities, which I analyzed, while this year it highlighted broadening and modernizing of the product suite.

Human capital will continue to be an organization’s largest investment in 2014 and if productive will be one of its most valuable assets and differentiators. It also continues to rank as top priority by CEOs across the industry. We anticipate that businesses that take advantage of the innovative technology now available for human capital management (HCM) will gain a competitive advantage. Ventana Research will track these technological advances and how they are put to use by organizations that...

It should be no surprise for those who work in sales that increasing outcomes collectively is not always easy. Sales teams and individuals work under pressure to perform at high levels, selling more than they did in the previous period or more than the person who previously had responsibility for a territory. Today’s economic and competitive environments demand that everyone work not just faster but smarter in their sales efforts. To excel in this environment requires not just wise use of time...

Mercer is a global consulting company that has more than 19,000 employees in more than 40 countries. One of the company’s major consulting practices is talent management. My colleague Mark Smith assessed Mercer’s survey delivery product WIN for compensation management in September 2011. Mercer recently held an analyst day in Boston where speakers discussed the launch of a new internal group focused on talent management and a new talent management suite sold as part of its consulting services.

Sales organizations and individuals strive to reach their quotas and get paid the maximum commissions for their performance. In support of these goals, software vendor Xactly offers a suite of applications for sales performance management that operates in the cloud computing environment. An example of its success is receiving our recent 2013 Leadership Award in sales excellence for work by its customer Zuora. This achievement builds on its 2012 Leadership Award with customer GlobalEnglish. My...

Ultimate Software held its annual global customer conference and analyst day recently in Las Vegas, where more than 1,300 attendees got to hear about the company’s plans for 2013. Ultimate, founded in 1990, is a human capital management (HCM) vendor that provides human resources management systems (HRMS), payroll management, talent management and workforce management products to organizations primarily in the United States and Canadian markets – though it is announcing an international...

IBM held its 20th annual IBM Connect conference (previously known as Lotusphere) as part of its IBM Social Business efforts at the end of January. The conference focuses on business and social collaboration technology, which our business technology innovation research found to be the second-ranked priority for business innovation. At the conference IBM made a series of significant announcements, including a new version of its social collaboration suite, IBM Connections, and the ability to use...

Human capital is most organizations’ largest investment and one of their largest differentiators against the competition. So it follows that those that take advantage of the compelling, game-changing technology now available in human capital management (HCM) will place themselves at a competitive advantage.

Businesses need to simplify HR and compliance processes to save time and reduce risk. Talx, which helps employers address concerns in hiring, pay and compliance, has now assumed the name of its parent company and become Equifax Workforce Solutions [PDF]. HR and finance professionals should recognize the parent company’s brand from its work in the consumer credit industry. The company hopes these professionals will see that Equifax Workforce Solutions offers a better approach to governance, risk...

Budget season is about to open at most companies that operate on a calendar year, so this is probably as good a time as any to rethink the process. Almost all companies will undertake the construction of a budget this year the same way they did it last year, despite widespread complaints that it is a monumental waste of time. One major reason why budgeting never changes is that it isn’t important enough to be worth serious rethinking. Another reason is that too many vested interests are aligned...

Our benchmark research into agent performance management shows that the majority of companies are not very mature in their use of people, processes, information and technology in handling customer interactions. Companies are most mature is their use of information, but even in this area they are hampered by their failure to use the latest technologies available to support their efforts.

We have just released our 2012 Value Index for Total Compensation Management (TCM), in which we evaluate the competency and maturity of vendors and products. Our firm has been researching this category for many years, and our latest benchmark research in total compensation management found some improvement among applications in a field where many organizations still use outdated applications to manage an area with large financial and human capital impacts.

Acquisitions and new product releases continue to make the market for human capital management a hotbed of activity, as organizations attempt to fully utilize and increase the value of their workforces as I have outlined in my research agenda. ADP, with more than $10 billion in revenues and more than 570,000 customers, is aiming for the top spot in this market.

Businesses aim to make their sales function as productive as possible, but they don’t always support that goal with investment in technology. I recently wrote about sales needing a swift technology kick. Sales application vendor Xactly provides a boot with the release of Xactly Incent 8 and will make parts of the application suite available from the Apple App Store for the iPad in the coming weeks.

This week Peoplefluent announced that it has invested in Socialtext, a company that provides social collaboration software at the enterprise level. With this strategic investment Bedford Funding, the private equity firm that owns Peoplefluent, is the direct beneficiary. Peoplefluent will extend Socialtext into the human capital management market while continuing to let the company meet the broader market interest in its offering. Peoplefluent has moved quickly to make this application and...

Competition in the human capital management market rages on, with application suppliers racing to provide sophisticated applications that operate in the cloud. Cloud computing is a key factor in advancing human capital management, included in our research agenda for this area, along with analytics, collaboration, mobility and social media.

The workforce analytics market continues to evolve as organizations seek to improve the time it takes to find insights and employer metrics in order to meet compliance requirements, mitigate risk and enforce governance policies. TALX, a subsidiary of Equifax, provides a range of data-oriented services that help HR, payroll and tax professionals. Its integration with eVerify service assists the hiring process with I-9 compliance, and capabilities to examine workforce compensation and financial...

Businesses’ strategic imperative to optimize human capital is creating significant energy in the market for applications used to attract, optimize and retain talent. Amid all the recent acquisitions and changes that I have been writing about in this field, SumTotal Systems seems to get less attention than its size and the reach of its business merit. The company has more than 45 million users, with more than 15 million of them operating in a cloud computing environment spanning more than 3,500...

Salesforce has begun to toot its marketing horn about its new capabilities for performance management through its acquisition of Rypple, a provider of software designed for social collaboration for improving employee engagement. I have already discussed this acquisition (See: Salesforce.com looking for a Successful Rypple in Human Capital Management) and have actually signed up for and used the software. Rypple has introduced some great innovations to promote feedback and dialogue between...

New human capital management solutions are entering the market, aiming to simplify recruiting, hiring, onboarding and managing employees. Many such applications focus on talent management for use after employees are hired, but vendors also need to streamline tasks for recruiters, HR administrators and hiring managers. Jobscience provides software that simplifies the processes of getting the talent you want to hire ready to work as quickly as possible.

Saba this week announced its acquisition of Human Concepts, which provides applications and tools for understanding and interacting with employees through visualizations based on the organizational chart. Human Concepts had expanded its portfolio beyond tools to support planning and change processes critical for organizational succession and transition. The company has more than 500 customers worldwide, including partners like Infor, Oracle and SAP.

I attended the Ceridian analyst summit (Twitter #CENAday) in Boston to see how the company  is expanding its business in HR-related software and services into human capital management (HCM). Ceridian derives $1.5 billion in revenue from more than 130,000 customers with 25 million employees at organizations ranging from small and midsize business to two-thirds of the Fortune 500. CEO Stuart Harvey has been expanding the company’s management team, with key additions in heads of marketing and...

Utilizing the talents of everyone in the workforce is a critical priority for businesses. Savvy executives understand and are anxious to avoid the cost and time incurred in replacing trained, experienced employees and the downturn in productivity while jobs are unfilled. Our benchmark research into recruiting found that more than half of organizations now use metrics of cost and time-to-hire, which indicates the maturing of human resources organizations in response to this challenge. 

The acquisition frenzy in the enterprise software market continues. The announced acquisition of Taleo by Oracle will remove the independence of another successful cloud-based software company. Publicly traded Taleo (NASDAQ: TLEO) provides talent management applications on a rental cloud computing basis. Acquiring Taleo, which by all accounts has done a good job of growing the recruiting and applicant sourcing software business in a scalable cloud environment, was too good for Oracle to pass...

The HR Technology Conference and Expo in Las Vegas that begins today will showcase an array of new business technology innovations for human capital management and talent management. The business technology to help human resources professionals is evolving dramatically, and this is a place for HR and workforce management professionals to find new methods that help increase productivity and optimize business outcomes. Early this year our firm defined five business technology innovations that...

The HR Technology Conference and Expo in Las Vegas that begins today will showcase an array of new applications for talent management. The array of applications and advancements to help human resources professionals is evolving dramatically, and this is a place for HR and workforce management professionals to find new methods that help increase productivity and optimize business outcomes. The five business technologyinnovations that will be vitally important in this decade for HR as well as...

The HR Technology Conference and Expo in Las Vegas that begins today will showcase an array of new applications for talent management. The array of applications and advancements to help human resources professionals is evolving dramatically, and this is a place for HR and workforce management professionals to find new methods that help increase productivity and optimize business outcomes. The five business technologyinnovations that will be vitally important in this decade for HR as well as...

Improving worker/manager collaboration becomes a top priority as organizations realize the impact of such collaboration on workforce productivity and profitability. One way to enhance that collaboration is to make tasks such as scheduling, time and attendance and task management accessible through smartphones and tablets. The management team at Dayforce has experience with workforce management applications and now into the next generation of collaboration and mobility. The company uses...

Retaining talent and managing financials related to compensation should be a top priority for the HR and finance functions of companies, and many of them realize this. In our recent benchmark research in total compensation management, 72 percent of participants said it’s important or very important to have a compensation system aligned to their processes. One newer provider to the market, Excentive, started in 2002 in Europe and expanded globally in 2009. Its Excentive Compensation Cockpit...

A key component of workforce management software is to aid in scheduling and tracking time and attendance, streamlining interactions between managers and employees regarding these aspects of the job and promoting compliance with corporate and regulatory policies. WorkForce Software has been growing rapidly over the last decade while meeting these needs with an application suite that covers issues from leave management to case management. Its product helps businesses deal with overlapping...

To retain talent, organizations must ensure that their workforce’s compensation is comparable to that of their industry peers. As part of this effort, they should integrate compensation reviews with goal and performance reviews to ensure employees are paid their fair market value; otherwise the best talent will become a flight risk. Many organizations understand this; in our performance management for talent management benchmark research, two-thirds said they want to integrate compensation with...

At this year’s Taleo World conference in San Francisco, more than 1,600 Taleo customers learned about the company and its suite of talent management applications. A major theme of the conference was the company’s investment in mobility and social media and the intersection of those trends with collaboration tools.

It is evident that business analytics is now a core business process in most organizations, but as our benchmark research on the topic shows, many have a lot of room to improve in how they use it. A dedicated provider of analytics tools, eThority continues to advance its technology to supply flexibility for the needs of a range of professionals from business management to analysts. 

I had the pleasure to drop into the 63rd annual conference of the Society for Human Resource Management (SHRM) in Las Vegas where over 18,000 human resources professionals came to learn, engage with peers and also enjoy a variety of entertainment. It was the definitely the place to be if you wanted to mix Hollywood with HR. From Sir Richard Branson in Sunday’s opener to music from Keith Urban to controversial political commentator Arianna Huffington and finally actor Michael J. Fox for the...

This week the management of Peopleclick Authoria renamed the company PeopleFluent, reoriented its vision and launched a new suite of applications. This effort is intended to hone its focus on the intersecting aspects of talent management and respond to the increasing importance of mobility in this field. This move indicates the dynamic changes that are occurring as the software industry tries to meet the expectations of the next generation of workers and managers. PeopleFluent will rely on not...

Less than a week after attending ADP’s industry analyst day, I flew to Washington, D.C., to attend Mercer’s analyst forum, which gave me a chance to compare another human resources juggernaut. While ADP is known primarily for payroll and business process outsourcing, Mercer is known for HR consulting and benefits outsourcing. Mercer is not as big as ADP, with $3.5 billion in annual revenue and over 27,000 customers, most of which are large multinational and midmarket companies, servicing over...

Workforce planning is a business process that done right ensures an organization of suitable access to talent to ensure future business success. At a Mercer analyst summit I attended recently, which I wrote about in “Mercer Promotes Possibility of the New Empowered Workforce,” one of the sponsor execs kept challenging the HR industry analyst community to do more research on workforce planning, since her company and its customers are spending more time and money on just that. 

One thing became crystal clear while I was at ADP’s industry analyst day last week: The world is more connected than ever before, and this contributes to making the world more complex than ever before.

Going into ADP’s industry analyst day, I was curious about where a 61-year-old “payroll” company fits in today’s market for human capital management. It certainly has a presence, with over 550,000 customers across multiple lines of business – HR, payroll, tax and benefits administration – and nearly $9 billion in revenue with three consecutive quarters of growth coming out of the worst recession since the Great Depression.  

Consolidation in the human capital management software market is in full swing. Recently  Peopleclick Authoria acquired Aquire Solutions, and just this week Golden Gate Capital and Infor agreed to buy Lawson Software for about $2 billion, which my colleague Robert Kugel commented.

Are you a human resources executive who’s still using spreadsheets and various database systems to track and manage compensation and incentives of your workforce? If you aren’t, then believe it or not, you’re in the minority.

Human resources professionals must deal with volumes of workforce data that resides in disparate software systems, including individual spreadsheets. But although the data is accessible to them, many organizations don’t have technology to aggregate, synthesize and analyze it, and so cannot easily use it to make efficient and effective decisions about talent acquisition and talent management.

Humanize every step of the employee experience. That was the grand theme of this year’s opening keynote just over a week ago at ERE Expo 2011 Spring by Matthew Jeffery, global director of talent brand for Electronic Arts, titled “Recruitment 3.0: Why traditional recruiters will be replaced by ‘emotional marketers.’” His speech emphasized the importance of emotionally connecting with candidates and employees alike and creating talent communities via social, mobile, cloud and collaboration...

When I entered the human capital management space over a decade ago, the Internet had just started to transform the way companies recruit, hire and manage their workforces. Since then the technological transformations have been astounding: Social media, mobile devices and cloud computing are just a few. And although every talent acquisition and talent management system available today is about getting users to the short list of qualified applicants faster and more accurately and managing all...

In today’s competitive environment, people working in collaboration can make the difference between a company’s success or failure. But hitting “reply to all” on an e-mail chain isn’t the kind of collaboration I’m talking about. Neither is managing your employee and business communications with cups connected by string and Ouija boards.

The state of the economy has intensified scrutiny of organizations’ people assets, and so we’re seeing new dialogues about human capital management. Deriving full value from the people in a workforce requires more than just HR managing annual performance reviews or occasional scrutiny of the compensation processes for increases to merit pay or incremental incentives. Investing wisely in workforce-related processes requires assessment and optimization using analytics that can provide a lens on...

Hello there! Starting this week, I’m part of the best independent research team in the business – the Ventana Research team – and I couldn’t be more thrilled. As the song goes, “What a long, strange trip it’s been” to get here.

Recently Human Concepts sold its personal organizational structure software OrgPlus to Administaff . Since it retains other products with the OrgPlus name, this step might seem puzzling, but it makes sense in terms of the company’s developing product strategy. The sale also frees Human Concepts to focus on organizations with more than 1,000 employees, where growth is more readily available. Human Concepts is experienced in the workforce management market; its customer and partner Zentiva Group...

The talent management software market has and continues to consolidate dramatically through acquisitions. The trend is to bring together processes and applications for hiring, onboarding, performance assessment, compensation, succession planning and analytics. As the race continues to attract customers and users by presenting the most integrated suite of applications, a new market segment has evolved in the shadows and is now taking the stage in talent management. Talent Technology, a vendor in...

The new year started off with a bang in the human capital management software market as SumTotal Systems acquired GeoLearning, a leading learning management system (LMS) software vendor.

At its annual user conference in Las Vegas, Kronos unveiled the next stage of its approach to workforce management to its customers and partners, showing an aggressively confident posture after completing its fiscal year 2010 with revenue increased 9 percent to $741 million. Kronos is the largest provider of workforce management systems for time and attendance, scheduling, absence tracking, hiring and workforce analytics. Kronos offers the software in several delivery options: through...

At its annual user conference in Boston, Saba provided insights to industry analysts on its progress over the last year and its direction for 2011. Best known for its learning management system (LMS), collaboration and more recently its talent management applications, Saba now has more than 19 million users in 1,400 customer organizations that are mostly in the public sector, have 5,000 or more employees and are based in North America, although it operates in 28 languages in 195 countries. Now...

At its 2010 user conference in Miami, Plateau Systems reviewed for analysts its progress in the market for talent management software. Plateau has a unified platform and suite of applications that cover learning, compensation, job performance and analytics. The company’s financials have been steadily growing as more customers adopt its platform and show good year-to-year growth in its applications that are rented through software as a service (SaaS). Plateau claims that its SaaS business has...

Consolidation activity increased in the market for applications in talent management or what I call workforce performance management as ADP announced and now has closed the acquisition of Workscape. ADP is a $9 billion outsourcing provider that is well known for providing employer and payroll services; the company has been expanding its breadth of services for employers by responding to demand for software as a service (SaaS), a deployment model that does not require significant involvement...

Today was another inflection point for the talent management market and buyers of HR applications with the announcement that Kenexa is acquiring salary.com (NASDAQ: SLRY) pending shareholder and SEC approval. Kenexa is offering a cash-per-share agreement that should work to complete the transaction. More complicated will be figuring out how to retain the talent at salary.com; that company has been decreasing in sales and size of the organization over the last couple of years and has struggled...

At its annual user conference in Boston, Saba provided insights to industry analysts on its progress over the last year and its direction for 2011. Best known for its learning management system (LMS), collaboration and more recently its talent management applications, Saba now has more than 19 million users in 1,400 customer organizations that are mostly in the public sector, have 5,000 or more employees and are based in North America, although it operates in 28 languages in 195 countries. Now...

At its 2010 user conference in Miami, Plateau Systems reviewed for analysts its progress in the market for talent management software. Plateau has a unified platform and suite of applications that cover learning, compensation, job performance and analytics. The company’s financials have been steadily growing as more customers adopt its platform and show good year-to-year growth in its applications that are rented through software as a service (SaaS). Plateau claims that its SaaS business has...

Consolidation activity increased in the market for applications in talent management or what I call workforce performance management as ADP announced and now has closed the acquisition of Workscape. ADP is a $9 billion outsourcing provider that is well known for providing employer and payroll services; the company has been expanding its breadth of services for employers by responding to demand for software as a service (SaaS), a deployment model that does not require significant involvement...

Today was another inflection point for the talent management market and buyers of HR applications with the announcement that Kenexa is acquiring salary.com (NASDAQ: SLRY) pending shareholder and SEC approval. Kenexa is offering a cash-per-share agreement that should work to complete the transaction. More complicated will be figuring out how to retain the talent at salary.com; that company has been decreasing in sales and size of the organization over the last couple of years and has struggled...