April has come to an end, but that does not mean there hasn’t been a lot of interesting news in the last month.
The 5th Australian HR Technology Survey is now open!
Take the survey now at:
With the growth of cloud technology and rapid advances in best-of-breed systems, the HR Tech industry is moving faster than ever.
SAP reported mixed results for their first quarter of 2015 . While revenue was up by 22%, profits were down, and down sharply with a 23% drop.
What is positive for SAP is their cloud subscriptions are increasing indicating they are making the transition from a perpetual license model to subscriptions. From an HR perspective sales of SuccessFactors EmployeeCentral were up by 92% taking their customer based to 640.
Melbourne based CultureAmp secured Series A round of funding of US$6.3 million, making them one a growing list of HR Technology startups in Australia receiving venture capital (VC) love. The interesting point on this funding round is they keep a majority of the people based here in Australia, even though all of the funds came from US VC’s.
US based Zenefits received US$500 million, giving them an valuation of US$4.5billion! Zenefits is free for organisations to use, with their revenue coming from insurance and benefit providers.
At the beginning of April industry heavy weight LinkedIn moved into the learning space with its purchase of Lynda.com. Lynda.com provides an online platform for anyone to learn business, technology and creative skills. According to the release “the transaction is valued at approximately $1.5 billion, subject to adjustment, in a combination of approximately 52 percent cash and approximately 48 percent stock.” Hopefully the purchase will help LinkedIn shore up revenue after they revised down projected earnings for Q2 resulting in shared dropping 20.95%.
Late in the month LearningSeat acquired Melbourne based e-learning company C-Learning. Apparently C-Learning was chosen as a acquisition target due to its expertise in bespoke e-learning and technology platforms.
Finally Talent2 announced that their Payroll processing business, which includes software such as Alesco, had been purchased by a Private Equity group 5Value. Users of the Talent2 HRIS products need to keep a careful eye on 5Value’s long term strategy. According to reports in the Financial Review:
“Under 5VCP’s ownership, the HRMS business will become a stand-alone entity, focused solely on the rapidly growing payroll outsourcing and learning markets in the Asia Pacific region,” said Mr Mehrotra
As of Workday Release 24 the UK now has native payroll support in Workday. This is big news due to the fact that UK payroll is more complex than US, indicating that Workday are making progress to being able to support other countries, such as Australia.
At the same time Workday announced an expansion on their Workday Global Payroll Cloud their partner program around local payroll offerings. Workday “offer certified, bi-directional, pre-built integrations between Workday HCM and other payroll systems to provide a comprehensive view of global payroll data”.
HoloLens is a wireless holographic headset that will overlap holograms onto what you are seeing. It will run the new Windows 10, independent of a smartphone or computer.
Why is this relevant for HR? It is likely we will very quickly see enterprise user cases in the form of learning, health and safety.
Mobile has been big for a while now, and it is still surprising so many organisations just don’t get it!
What does this have to do with HR? Lots.
From a recruitment perspective now if your career’s site is not mobile optimised, your jobs won’t be found in search results.
The broader impacts for HR is we must look at how to embrace mobile within all processes and practices. HR Technology vendors need to ensure their whole application is mobile ready, if not you might want to seriously consider “shutting up shop”.
If the HR Technology market was not crowded enough, SalesForce announced during April that they plan to release a new set of human resources tools, designed to improve employee engagement. The product has not been totally built by SalesForce alone, they leveraged many of their partners who have apps on AppExchange. Both vendors and purchasers need to keep an eye on these changes in the market place.
Matt Charney provides a really good look at why so many analytics programs fail. His post is mainly focused on social recruiting but the same messages apply to all HR analytics activities.