HRlab's HR Software Blog

The Over-Hyped HR Application Part 1: Social HCM Technology

You cannot deny the incredible growth that social has achieved over the past several years; and according to Forrester that trend is only set to continue (growing at a compound annual rate of 34 percent). For quite some time as well, the HR industry has been experimenting with the idea of how to leverage social technologies to the benefit of organizations worldwide. From the first uses of social media to amplify recruiting efforts to more current efforts to wrangle the ever-elusive topic of effective performance management, social HR apps have promised to be the future of the workforce—replete with real-time collaboration and fully engaged employees. Yet, for all the promises that HCM social software espouses, efficacy questions still loom large. Namely, do the benefits of Social HCM measure up to the hype? In some ways the answer to this not so simple question is an unequivocal affirmative (e.g. tools like blogs and wikis serve an undeniably useful purpose in policy creation, communication and feedback); but for many areas, it's our stance that the hype rather than reality has controlled the conversation—a problem that we take serious issue with. So, piece by piece we are going to look at the Social HCM landscape and see which areas are overhyped and which are not.

1) Social Recruiting Apps

From the broad-based recruitment capabilities of social networks such as Facebook, Google+, Twitter, and LinkedIn to the more specialized locations such as Jobvite, Jobs2Web (acquired by SuccessFactors and now owned by SAP), and Avature; it would appear as though social recruiting has all but gone mainstream. As Gartner's most recent HCM HypeCycle report highlights though, "While the ATS [Applicant Tracking System] market is now mature, the social recruitment market is not". Indeed, as the firm's Thomas Otter notes, "the [social networking] tools to manage the many interactions and to optimize the candidate experience are still relatively new". Even so, organizations of all types are coming out in droves to somehow leverage this social HR technology in order to compete in the war on talent. You can see the appeal too; for both applicants and companies.

For one, acquiring talent is not the same game that it used to be; and organizations have to work harder than ever before to convey their specific Employment Value Proposition (EVP) to prospective employees. Likewise, the consumerization of the workforce has pushed an incredible amount of would-be staffers in the direction of searching for (and applying to) jobs through newer social channels. In fact, according to recent Jobvite research, 64% of businesses said they have hired through social media and 55% plan to invest even more in it this year—a positive sign given the fact that fully 89% of job-seekers are using social media in their search. In the end though, the war on talent rather than the advent of these social technologies is what will truly solidify social recruiting's place at the HR table. Qualified workers (especially in knowledge-based economies) are becoming increasingly difficult to find and attract—a fact that makes social recruiting not only a necessity but also about as far from over-hyped as you can get.

2) Social Learning Applications

With an ever-increasing supply of HR software solutions from learning specialist vendors such as Element K and Blackboard; to the open-source software options from vendors such as Moodle and Docebo; on up to the full-fledged HCM software suites from Cornerstone OnDemand or SumTotal, social learning technologies have become one of the largest growth markets within the HR software market over the past decade. In large part this social learning boon is a by-product of the increased understanding of the need to tap into the collective knowledge that employees' house; and in many ways has simply followed suit from the success that the more mature social offerings of the CRM (Customer Relationship Management) industry have fostered. As Gartner's Jeff Freyermuth explains, "[social learning] software…acknowledges the importance of social networks and the need to access the expertise of colleagues and different communities".

The question is though, whether the quest for social learning technologies truly reflects business needs? For instance, is collaboration always needed to achieve learning outcomes? Can all topics that necessitate learning truly benefit from peer to peer interaction? More importantly, are all an organization's learners inclined to develop through online or social channels? Of course the answer to these questions is an unequivocal negative; and at no point should social learning exist as the be-all-end-all of the development world. That said, the benefits of these social tools are impressive, especially when one considers the fact that hallmarks of this approach are digestible content and continuous improvement—both factors that contribute to the highly sought-after element of engagement in the learning material. As such, though this social HR technology has seen an inordinate amount of attention as of late, I have to admit that the benefits live up to the hype. Just don't make it the only weapon in your learning and development arsenal.

3) Social Performance Management Applications

Of all the social HR technologies on the market, few raise as many eyebrows as social performance—especially from me. As you might recall from one of my earlier posts on the Salesforce.com acquisition of Rypple, I'm reticent to believe that social performance management could be anything more than a glorified Generation-Y attraction incentive. That said, with this past month's acquisition of the social performance management software vendor Sonar6 by Cornerstone OnDemand, it's hard to deny that the HR technology market is reacting to some sense of customer sentiment. Add to that this past week's TLNT.com op-ed from Saleforce.com's John Wookey about why a social HCM model (particularly for performance management) is needed and I'll admit that my resolve isn't as strong as it used to be. The fact is, as Wookey opines, "Given the history of how these [performance management] systems were developed and designed, the reality is that we need to fundamentally rethink their purpose". I couldn't agree more, but unfortunately it appears as though the pendulum has swung completely away from top-down historical performance management to a bottom-up approach with social. Neither of these approaches is flawless and a more balanced approach would be far more likely to elicit the type of results that organizations are after. As such, while I may be softening a bit, I still have to call this one like I see it…overhyped.

Bottom Line for Social HCM Hype?

As Gartner's Thomas Otter puts it, "Social software capabilities are impacting HCM systems today…[but]…the bigger business impact of social software in the HR context will be on the organization's culture". This in a nutshell, is the crux of the social HR technology issue. There can be no doubt of the tangible benefits that social recruiting, learning, and in some cases performance management can achieve for businesses; however, there can also be no denying that social technologies represent a paradigm shift that few companies are truly ready to fully commit. Indeed, while benefits can certainly be gained by deploying these social HR tools, savvy businesses will seek to stack those prospective gains up against probable push back—knowing that the greatest influencer on technology uptake is organizational culture. Given these factors, I would have to recommend a measured approach—taking realistic stock of how any of these social HR technologies could positively impact the organization; and deploying those applications in concert with established strategies rather than relying on them as a sole approach.

By Micah Fairchild       5/8/2012        Permalink        Comments (0)         Posted in Social HR

Finding the Truth in the Great SAP/Oracle Debate

I must admit, with the way things have been shaping up in the HCM software market, I'd almost swear that I'm keeping tabs on a political battle rather than a software vendor back-and-forth. After all, one can certainly draw an incredible amount of striking similarities analogously. Two major competing parties which aren't vastly different from each other? Check. Said two parties taking up all the air in the room even though other alternatives exist (and, yes the irony isn't lost on us that with this post we're adding fuel to this fire)? Check. Said two parties in a constant battle to "one up" the other in the public's eye? Check.

Of course I'm talking about Oracle and SAP, the two largest enterprise software vendors in the HR software space who seem to be locked in a perpetual state of battle that has each one of these massive companies coming out with what feels like daily press releases. Of late—first, it was SAP with announcements about HANA, then it was Oracle's announcements about Fusion. Next, it was SAP about SuccessFactors (SFSF), then it was Oracle about Taleo; all bringing us current to SAP's recent integration plans announcement for 2011's SuccessFactors purchase (which itself triggered a press conference response from Oracle/Taleo execs). To be sure, none of these announcements is small; in fact each one listed above represents (at minimum) millions and often billions of dollars of invested time and resources that both companies have dedicated to driving future revenues.

And in a world where technological innovation and the electorate's voice have together started to craft new purchasing paradigms, both Oracle and SAP should at least be lauded for their continued efforts to stay relevant. However, one can easily get the impression that these announcements are simply veiled attempts to get the better of their opponent. So, in true HRlab fashion, let's see if we can't take these latest announcements and get to the truth and heart of the matter. After all, voters have a right to know all the facts about politicians; we just feel customers should receive that same courtesy. Here's what we can surmise after all the announcement dust has settled…

The Truth About the SAP/SuccessFactors Situation

Many months ago, SAP's acquisition announcement about SuccessFactors had the media abuzz. As we referenced in earlier blogs and articles on this subject, this acquisition was hardly a game changer, but nevertheless SAP's latest integration announcement sheds light on some key points that current and prospective customers should remain cognizant of. In a nutshell, the announcement was a broad-stroke painting of SAP's intentions to take current talent management investments (in SAP ERP HCM and Business ByDesign) and shift focus to SuccessFactors. While for the moment, SuccessFactors will remain an independent company that is only affiliated with SAP; as SAP's recent announcements indicate, plans are on the fast-track to make true integration happen between these two HR software players. If SAP had ever been lukewarm as to its HCM offerings, it's clear that those days are behind them given the amount of time, energy, and considerable resources that are being thrown at the SuccessFactors endeavor. Specifically, here's what we know: More ...

By Micah Fairchild       3/6/2012        Permalink        Comments (0)         Posted in HR Industry

Oracle Bets Big on a New HR Software Market Buy, But Why Taleo?

Ask anyone that keeps decent tabs on the HR and HCM software market and chances are they'll reference that the biggest news to come out of the HR technology space in 2011 was SAP's massive payout for SuccessFactors (SFSF). "It's huge", many analysts said; "It's a game-changer". And of course it was a major purchase in a growing industry, but I must admit that I was dubious this acquisition would do anything that major to the market. While SAP had been tinkering in the innovation shop (with in-memory analytics taking up the lion's share of their strategy), the fact was that within the HR software arena, SAP needed the SFSF technology. Not so much in terms of getting into the cloud, but rather in developing out a next-generation end-to-end HCM software product. Yet one of the most oft-cited market reactions of this investment wasn't what this acquisition would do for SAP's product line (or consequently what would happen with SAP's brand), but rather what the purchase would compel other vendors to do…namely Oracle.

Analyst queries papered the blogosphere, highlighting questions such as: How will Oracle react to SAP's SFSF buy? Will the software behemoth follow suit and similarly seek out a smaller talent management vendor to acquire? Speculation reached such a fever pitch that soon questions revolved not around if Oracle would be investing in additional HR software solutions, but rather which solution the vendor would ultimately pursue. Of course, being versed in Oracle's latest technology advances in both hardware and their newest HR software offering Fusion HCM, I believed these conjectures to be simply blog fodder with little merit. After all, in contrast to SAP, other than rounding out its Fusion HCM suite with recruiting and learning modules, how could Oracle actually benefit from acquiring another HR software solution?

This past Thursday, (February 9, 2012) I was proven wrong, as Oracle announced intentions to purchase Taleo (a leading provider of cloud-based talent management software) as a clear reaction to the SAP/SFSF deal. To say I was flabbergasted would be an understatement, as unlike the bulk of my industry colleagues, I didn't think that a) Oracle was in the market for this robust of a purchase, and b) that Taleo would have made it to the top of the list. Seriously, why Taleo? I mean, aside from the obvious fact that Taleo has Recruiting and Learning capabilities (which would potentially plug serious gaps in Oracle's talent management software strategy); I can gather few reasons as to why this particular vendor would have been the answer to perceived deficiencies in Oracle's HCM technology.

While the purchase is a done deal (and Oracle hasn't exactly been busting down my door to get my opinion anyway), I still think it's important for prospective customers to understand what this ultimately means; regardless of whether an organization is considering Oracle or any other vendor's solution. So, let's address how this deal's potential benefits that are being marketed actually shape up. More ...

By Micah Fairchild       2/13/2012        Permalink        Comments (3)         Posted in HR Industry

Salesforce.com's Rypple Acquisition: More Questions Than Answers

As the dust continues to settle on Salesforce.com's (SFDC) latest acquisition of the Social Performance Platform Rypple, opinions abound as to just what exactly this means for the HCM software space. While trying to wrestle that answer out of vendors, analysts, and customers alike; in the meantime I have my own set of burning questions for this latest M&A activity that I intend to get to the bottom of. Namely, is this a move by SFDC to set the stage for more related acquisitions in 2012? Will Rypple actually work for a broader audience? And finally, is SuccessForce really the best name they could come up with?

Does the Rypple purchase signal 2012 Salesforce.com aspirations?
Up until now Salesforce.com has focused on Customer Relationship Management (CRM) and the development of Force.com, the company's Platform-as-a-Service (PaaS) offering. With Mark Benioff at the helm, the trifecta strategy of CRM + Cloud + Social has clearly worked, as has the development of the Force.com ecosystem for the company's Sales and Service Clouds. This latest acquisition though has undertones that we haven't seen from Salesforce.com as of yet—the development of non-CRM applications outside of Force.com. A fact highlighted by a recent Gartner report that cites, "Salesforce.com does not plan to redevelop Rypple on Force.com".

In some ways, this new Rypple-Salesforce.com relationship is a given considering Rypple's plugs for the often-cited holes with Salesforce.com Chatter, but it has also left many wondering if this latest move is a "build disguised as a buy". Indeed, the Rypple acquisition seems to be a signal that Salesforce is attempting the short-term fix of beefing up Chatter for gamification and employee engagement—thereby extending the use and market for the Chatter application. While further Rypple integrations aren't yet known, as strong man John Wookey himself has attested, the future directions Salesforce is interested in are Recruiting, Onboarding, and Learning, with possible Compensation Management aspirations down the line. Given these facts, and though I hate to side with a particular vendor on this, Taleo's response (albeit self-serving) to this latest news seems to hit the nail on the head. Specifically, as that company's David Wilkins puts it, "Rypple is really just another piece of [SFDC's] social analytics strategy". Indeed, on its own, the Rypple acquisition doesn't mean all that much for the HCM software space, but if partnered with a comprehensive talent management strategy (that it appears that company is pursuing) Salesforce could wind up with a solution that appeals to a large population of HR software buyers. It's a big bet (and a big "if"), but if Salesforce follow-through can match up with the market's current momentum towards "social", it could pay off.

Will Rypple work for a broader audience?
Perhaps the biggest point I would make (from someone who has seen their fair share of implementation issues from a performance management software solution) is that for many large companies—especially those that fall into the verticals of government, hospitality, manufacturing, healthcare, and retail—performance management is not an oft-visited process. More likely in fact is that managers and employees will gather up some documents and meet once (or twice) a year, pin down an arbitrary rating, and then assign a standard cost-of-living increase that fails to make any sort of impact on motivation or retention. I'm not trying to be overly negative here, but the fact is that this culture is so entrenched that the likelihood of drastically altering it has precious little chance of working with simply the implementation of a new software offering. Aside from Rypple's offering up of a snazzy User Interface (UI), software also needs to actually be used on a regular basis in order for the learning curve to even out (and adoption to fully take hold)—a truth that Rypple and now SFDC must admit is not entirely likely just yet.

Unfortunately, the bulk of comments that you come across in blogs and analyst reports revolve around the idea that Rypple's approach is going to up-end the performance management establishment and finally bring about the utopian system that employees and executives have been clamoring for (okay, maybe not—but close). The fundamental flaw in this evaluation however is that Rypple has been primarily leveraged for salespeople (hence the great partnership with Salesforce)—a group that is unique in almost every substantive aspect of their employment relationship. For example, compensation for countless salespeople is driven off a base+ model, a clear sign that in order to make a decent wage, a salesperson has to perform. Likewise, working hours for many salespeople can go well past 60+ per week, an indication that salespeople are paid for results and not hours worked. It might be nice to imagine a world where all employees are handled this way, but try handling your administrative assistants or IT staff this way and chances are that an "Occupy Workplace" movement is about to start in your office lobby.

The point I'm trying to make here is that Rypple works for salespeople because of who they are and the nature of their work. The metrics for performance are right out in front of them every day and as such, a social performance tool complements that work style. The tool's wider application beyond sales (and customer service truthfully) requires a different culture—a culture that is not easy to build and even harder to convert to. That's not to say it can't be done (or shouldn't be done for that matter), but a healthy dose of reality is still needed to see the uphill battle that this type of application faces.

Concluding Thoughts
While I'm sure that many more questions will surface over the coming months in regard to this acquisition, I can say one thing for sure—this is not a tide-turning move by Salesforce to enter into the HCM software space. Rypple may well work for specific sub-sets of an organization's employee population, but a great deal of effort will be needed to translate that over to company-wide success. That being said, SFDC is one of the great unknown commodities in regards to how much of a market impact the company could make in the coming year. With another round of strategically-positioned activity, the company could well create a one-stop shop for those small to mid-market organizations seeking customized HCM functionality in the same way that SFDC served the CRM market. It's too soon to know exactly how all that will pan out, but needless to say we'll be keeping our eye out.

Oh, and to the last question on my list from above…SuccessForce is the name they've gone with; a name that even though I might consider a bit cringe-worthy, at least it's not Abracadabra (SageAbra's prior moniker).

By Micah Fairchild       12/28/2011        Permalink        Comments (0)         Posted in HR Industry