There’s a pattern in the lifespan of human resources (HR) technology companies of the past two decades: they get gobbled up. The pioneering firms in HR technology from the late 1990’s to early 2000’s were mostly acquired by bigger enterprise companies in need of a few product parts. IBM acquired Kenexa, Oracle bought Taleo and SuccessFactors was acquired by SAP.
With those acquisitions, founders and early employees left and innovation died. Then came the Great Recession and all investment ended. Today, industry experts like Sheeroy Desai, CEO at recruiting and HR management platform Gild, think job growth is finally hitting stride. Though some bigger players appear stagnant and still, HR tech companies are growing quickly, as hot, agile startup technologies enter the field.
“In the past decade this stagnation has allowed Workday to emerge as a new disrupter,” Desai remarks, “but with almost no real competition even Workday has not brought the level of innovation that is truly needed.”
“Almost every current HR function operates under 20th century principles of past practices, efficiency, risk avoidance, legal compliance, and hunch-based people management decisions,” remarks HR thought leader, Dr. John Sullivan. But, today, there is a new set of entrants who are challenging the status quo.
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