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Talent Acquisition

Systems 2010
Executive Summary

Madeline Laurano,
Principal Analyst
September 2009

© BERSIN & ASSOCIATES RESEARCH REPORT | V.1.0


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Talent Acquisition Systems 2010: Executive Summary 

TABLE OF CONTENTS
Introduction 4
Summary of Key Findings 5
1. Today’s Talent Acquisition Systems Providers Are
Responding to the Market by Offering More Innovation
in Advanced Features and Strategic Partnerships. 5
2. Although Many of Today’s Solution Providers
Are Offering Full Talent Management Suites,
Organizations Are Slow to Embrace One Platform for
Both Recruitment and Employee Development. 6
3. Organizations Need to Consider Integrating Their
Talent Acquisition Systems with Their Human
Resource Management System (HRMS) and Third-Party
Recruitment Providers during the Implementation Stages. 6
4. Customers Are Demanding More Web 2.0 Capabilities
and Social Networking Integration from Their Talent
Acquisition Providers. 8
5. Global Support Needs to Encompass More Than
Multilingual Configuration Including Compliance to
Local Regulations, Currency and Time Zone Support. 9
6. Market Churn Is a Constant in Today’s Talent
Acquisition Marketplace. 10
7. Solution Providers Are Experiencing an Uptick in
Customers from High-Volume Industries, Such as
Retail and Hospitality. 10
8. Contact Management Needs to Be a Priority When
Considering Talent Acquisition. 11
9. Organizations Need to Consider the Integration of Talent
Acquisition and Performance Management Solutions. 12
Conclusion 13
Appendix I: Vendor Profile – SuccessFactors 14

About Us 21
About This Research 21

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Talent Acquisition Systems 2010: Executive Summary 

Introduction
The talent acquisition technology market is one of dramatic change
and innovation. Both during strong and weak economies, investment in
talent acquisition systems remains a priority for best-practice companies
looking to gain a competitive advantage and secure a solid talent
pipeline of both active and passive candidates. Unlike other areas
of talent management that are not continuously driven by external
pressures, the state of talent acquisition systems continues to evolve.

Organizations at both the enterprise and midmarket level recognize


both the short- and long-term value in this investment. Yet, with recent
consolidations and a new crop of providers entering today’s talent
acquisition market, making the right decision around recruitment
technology can feel daunting. Organizations are currently in a precarious
position to not only demand more from their existing providers, but
also to take advantage of the new innovations in areas, such as social
networking, video tools, job-matching and search engine optimization.

The purpose of this research is to give readers insights into the


distinctions and overall market trends of the leading talent acquisition
systems providers available today. In our research, we explore:

• Various market trends during both strong and weak economies;

• Market growth and potential for talent acquisition systems providers;

• Recommendations for purchasing a talent acquisition system;

• The best practices for evaluating and selecting a talent acquisition


solution provider;

• Key concerns during product implementation;

• Global support and configuration;

• Customer satisfaction; and,

• Key partnerships with talent acquisition providers.

 “Talent pipeline” refers to an organization’s ongoing need to have a pool of talent


that is readily available to fill positions at all levels of management (as well as other key
positions) as the company grows. At each level, different competencies, knowledge and
experiences are required, and (to keep the pipeline filled) the organization must have
programs designed to develop appropriate skills sets.

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Talent Acquisition Systems 2010: Executive Summary 

Summary of Key Findings

1. Today’s Talent Acquisition Systems


Providers Are Responding to the Market
by Offering More Innovation in Advanced
Features and Strategic Partnerships.
Long viewed as a commoditized market, talent acquisition has
experienced a breakthrough in innovation over the past year. Solution
providers are not only facing competition from a highly saturated
market – but also from a new cast of players aiming to offer new tools
and services that replace the résumé and strengthen employer branding.
Organizations are taking advantage of today’s down economy by
reassessing their current talent acquisition processes and investments
in technology. Any organization looking to make leaner and smarter
decisions around identifying talent needs to reassess its current system
and determine what opportunities are available. Traditional solution
providers are responding by offering more Web 2.0 capabilities (such
as RSS feeds and integration with social networking sites). Other
providers are forming partnerships with these new providers (such as
Jobs2web, SimplyHired and Jobfox) to offer their customers search
engine optimization, social networking capabilities and a standard job
application. Organizations looking for new strategies to recruit talent
now have options.

 “Web 2.0” refers to a perceived second generation of web-based communities and


hosted services (such as social-networking sites, wikis, folksonomies, weblogs / blogs,
social bookmarking, podcasts, RSS feeds, social software, web application programming
interfaces / APIs, and online web services), which aim to facilitate creativity, collaboration
and sharing between users. Although the term suggests a new version of the World
Wide Web, it does not refer to an update to any technical specifications, but to changes
in the ways software developers and end-users use the web. Source: http://en.wikipedia.
org/wiki/Web_2.0#Defining_.22Web_2.0.22.

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Talent Acquisition Systems 2010: Executive Summary 

2. Although Many of Today’s Solution


Providers Are Offering Full Talent
Management Suites, Organizations Are
Slow to Embrace One Platform for Both
Recruitment and Employee Development.
During both qualitative and quantitative research, it became clear
that, while organizations in other areas of talent management (such
as performance management and succession planning) look to one
platform to support these areas, talent acquisition still remains isolated.
One reason is that the buyers are a different audience from other
areas of talent management. Secondly, many organizations make their
decisions about talent acquisition without considering a long-term
approach to retaining employees. Talent acquisition departments are
looking to find quality candidates in an effective and efficient manner;
they are not looking at employee development and retention. Sixty-eight
percent of respondents to our survey only use their solution providers
for recruiting. The talent acquisition solution providers included in
this report are financially stable and have strong customer satisfaction
rankings, whether offering a best-of-breed recruitment solution or full
talent management.

3. Organizations Need to Consider


Integrating Their Talent Acquisition Systems
with Their Human Resource Management
System (HRMS) and Third-Party Recruitment
Providers during the Implementation
Stages.
Integration is a critical component of any talent acquisition system and,
surprisingly, one aspect that is often overlooked during implementation.
More often than not, organizations feel pressure to select and implement
a system in a short period of time. In doing so, they fail to think about
any long-term implications, such as integration with their existing HRMSs
and third-party recruitment providers. Several years ago, the majority
of organizations were not considering the process of integration when

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Talent Acquisition Systems 2010: Executive Summary 

selecting and implementing talent acquisition systems. They were making


decisions without thinking about a more strategic view of talent. Today,
organizations seem to be more mature in their views of identifying,
developing and retaining talent, but still are not making integration
an initial priority. This is evident in the number of “N / A” responses
with satisfaction in integration (see Figure 1). You can assume that
these organizations have not integrated their talent acquisition systems
with their HRMSs or third-party recruitment providers. We recommend
that organizations consider their current HRMSs, talent management
providers, third-party recruiting providers and social media when
implementing their talent acquisition systems.

Figure 1: Satisfaction with Talent Acquisition Systems Integration

59%
0%
Social Networking 7%
10%
13%
11%

25%
0%
HRMS 9%
13%
29%
24%

51%
0%
Assessments 4%
13%
15%
17%

46%
5%
Background Checking 5%
10%
21%
13%

0% 10% 20% 30% 40% 50% 60% 70%

N/A Very Unsatisfied Unsatisfied Neutral Satisfied Very Satisfied

Source: Bersin & Associates, 2009.

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Talent Acquisition Systems 2010: Executive Summary 

4. Customers Are Demanding More Web


2.0 Capabilities and Social Networking
Integration from Their Talent Acquisition
Providers.
Social networking has exploded in talent acquisition over the past few
years. While most solution providers avoided this topic in the past, they
are beginning to recognize a strong demand from their customers to
provide more support for features that enable connectivity, such as video,
social networking and RSS feeds. According to our research, 41 percent
of companies indicated that social networking is a “must-have” when
considering advanced features they would like included in their talent
acquisition systems (see Figure 2). For many organizations, integration
with social networking is even more critical than these advanced
features. Not surprisingly, as many providers have been slow to respond
to this demand, most organizations are not satisfied with the current
level of integration with social media (see Figure 3).

Figure 2: Demand for Web 2.0 Capabilities

Don't Know
17%

Must Have
41%

Solution Provider
Already Supports This
17%

Not a Concern
1%

Nice To Have
24%

Source: Bersin & Associates, 2009.

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Talent Acquisition Systems 2010: Executive Summary 

Figure 3: Satisfaction with Social Networking Integration

Very Unsatisfied 10%

Unsatisfied 15%

Neutral 54%

Satisfied 13%

Very Satisfied 8%

0% 10% 20% 30% 40% 50% 60%

Source: Bersin & Associates, 2009.

5. Global Support Needs to Encompass More


Than Multilingual Configuration Including
Compliance to Local Regulations, Currency
and Time Zone Support.
Evaluating, selecting and implementing a global talent acquisition
system requires a deep understanding of local
Copyright needs
© 2009 and
Bersin regulations.All rights rese
& Associates.
Many of the providers included in this report are able to support
global multilingual configurations for both the recruiter and candidate
interfaces. The challenge is that not every provider is able to provider
support in other areas of a global system, such as local regulations,
currency and time-zone support. We recommend that organizations
consider and plan for various scenarios that may occur during global
implementation, and involve a representative from each region to
participate in the selection process. Organizations should conduct
customer reference calls with other global organizations facing
similar challenges.

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Talent Acquisition Systems 2010: Executive Summary 10

6. Market Churn Is a Constant in Today’s


Talent Acquisition Marketplace.
This reality makes the task of selecting a talent acquisition system more
difficult than ever. During market consolidations, many customers lose
the level of customer support they had received from their providers. Due
to this market consolidation and customer dissatisfaction, organizations
have been looking for replacement solutions for their talent acquisition
systems. Many questions are often left unanswered and organizations
begin to look at other options. According to our survey results, 40
percent of organizations have invested in two or more talent acquisition
systems in the past few years. Through our interviews, we learned that
many of the customer references provided by solution providers are
actually frustrated with their talent acquisition systems and are looking
at other options. When considering a talent acquisition system, buyers
need to take into account financial viability of the solution providers, as
well as the impact of market consolidation.

7. Solution Providers Are Experiencing an


Uptick in Customers from High-Volume
Industries, Such as Retail and Hospitality.
Historically, high-volume industries (such as retail and hospitality)
have been slow to adopt technology solutions. One reason is that
many organizations are not familiar with the differences involved
with recruiting hourly versus salaried workers. Solution providers
have recognized an opportunity for growth in these industries (some
providers stated that 40 percent of these organizations still need a talent
acquisition system) and have responded by offering separate modules
for hourly workers, interview management tools, and tax and screening
procedures. Organizations in retail and hospitality now have options
when selecting a talent acquisition system.

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Talent Acquisition Systems 2010: Executive Summary 11

8. Contact Management Needs to Be


a Priority When Considering Talent
Acquisition.
Several years ago, contact management was dubbed an immature area
of talent acquisition for solution providers and customers. In today’s
shaky global economy, things have changed. Contact management needs
to be a priority for any organization looking to build a strong talent
pipeline, and establish long-term relationships with potential applicants,
key stakeholders and former employees. Adopting a strategy that
includes contact management will help organizations build an integrated
talent acquisition strategy by focusing on connectivity, accountability
and interactivity. We found that 41 percent of organizations believe that
contact management is a must-have. Even more astounding is that 55
percent of organizations are using their talent acquisition providers for
contact management. These organizations are asking more from their
providers – and, in return, solution providers are adding this functionality
or partnering with companies, such as AIRS to provide this functionality.

Figure 4: Organizations That Request Contact Management

Don't Know
24%

Must Have
44%

Solution Provider
Already Supports
14%

Nice To Have
18%

Source: Bersin & Associates, 2009.

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Talent Acquisition Systems 2010: Executive Summary 12

9. Organizations Need to Consider the


Integration of Talent Acquisition and
Performance Management Solutions.
In our Talent Management Suites industry study, we identified
performance management functionality as the “backbone” of the
integrated solution. In fact, every talent management suite available on
the market today supports core performance management feature sets,
as well as many of the advanced feature sets (including job and talent
profile management, and talent analytics).

Figure 5: EPM Integration with Other Talent Management Processes

Integrated Approach Information Shared

• Competencies
• Learning and development activities – to meet goals, and close
Performance and Learning Management performance and competency gaps
• Learning experiences as development goals
• Progress and completion information on the development plan.

• Performance results
• Initial development gaps from pre-hire assessment and interview
Performance and Recruitment Management results
• Job profile (e.g., required experience, skills sets, abilities and
behaviors)

• Critical job, role and skill requirements for business plan and
future needs
Performance and Workforce Planning (Talent
• Gaps in critical skills
Planning)
• Job profile (e.g., required experience, skills sets, abilities and
behaviors)

Source: Bersin & Associates, 2008.

 For more information, Talent Management Systems 2010: Market Realities,


Implementation Experiences and Solution Provider Profiles, Bersin & Associates /
Leighanne Levensaler and Madeline Laurano, September 2009. Available to research
members at www.bersin.com/library or for purchase at www.bersin.com/tmsuites.

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Talent Acquisition Systems 2010: Executive Summary 13

Conclusion
The leading talent acquisition systems will continue to develop beyond
core functionality (e.g., applicant tracking and candidate requisition) into
areas, such as contact management, onboarding, employer branding and
performance management. Understanding your organization’s needs and
considering your company’s talent management strategy along those
lines will help locate software automation solutions that support those
objectives. When considering product differentiators, consider from what
position of strength this application developed. Get to know the other
customers – you will be able to be a resource for each other. We hope
that our report, Talent Acquisition Systems 2010: Facts, Practical Analysis,
Trends and Provider Profiles, serves as an educational tool for project
teams and their key stakeholders to understand the current state of the
market – and can also serve as a framework for solution selection.

 For more information, Talent Acquisition Systems 2010: Facts, Practical Analysis, Trends
and Provider Profiles, Bersin & Associates / Madeline Laurano, September 2009. Available to
research members at www.bersin.com/library or for purchase at www.bersin.com/TAS.

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Talent Acquisition Systems 2010: Executive Summary 14

Appendix I: Vendor Profile – SuccessFactors

COMPANY SNAPSHOT SuccessFactors, Inc.


Headquarters: San Mateo,
California
Company Background
Other Locations:
SuccessFactors has offices
SuccessFactors is one of the fastest-growing public software companies,
in 22 global locations, and a leading provider of on-demand employee performance and talent
including Copenhagen,
management solutions. The company enables organizations of every size,
Paris, Munich, Weggis
Switerland, London, and across every industry and geography, to achieve high-performing
Melboune, Sydney, Hong workforces through talent acquisition, goal alignment and execution,
Kong, Jakarta, Manila,
Singapore / Malaysia / talent development and planning, and pay-for-performance initiatives.
Thailand, Seoul, Sao Paulo, From 92 customers and approximately 282,000 end-users in 2003 to
Santiago, Mexico City, Lima,
Rio Pedras (Puerto Rico) more than 2,800 customers and more than five million end-users today,
Date Founded: 2001
SuccessFactors’ solutions are widely deployed across 60 industries in more
than 185 countries in 31 languages. Founded in 2001 with offices around
Public or Private: Public
the world, the company employs more than 700 people, all passionately
Mergers & Acquisitions:
N/A focused on revolutionizing the future of work. For more information,
please visit http://www.successfactors.com.

Figure 5: Sample Screenshot – SuccessFactors

Source: SuccessFactors, 2009.

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Talent Acquisition Systems 2010: Executive Summary 15

Product Overview – Talent Acquisition


Product Family

Delivery Models Development


Current Date Number of
Supported (SaaS / Technology
GA Current Customers Languages
Product Name Multitenant, (i.e., Microsoft.
Version Version on This Supported
Hosted and / or NET, Java, Cold
Number Released Version
Installed) Fusion, et al)

Recruiting Part of Sep-09 More than SaaS Bahasa, Bahasa Java


Management single 600,000 (Indonesian),
instance users in Bahasa (Melayu),
code base organizations Czech, Danish,
of all sizes German, English
and across (U.K.), English
all industries (U.S.), Spanish,
with French, French
accelerated (Canadian),
growth in Croatian, Italian,
the last few Hungarian, Dutch,
quarters Norwegian, Polish,
due to the Portuguese,
company’s Portuguese
latest release. (Brazilian),
Romanian, Swiss
(High German),
Slovenian, Slovak,
Serbian, Finnish,
Swedish, Tagalog,
Vietnamese,
Turkish, Greek,
Russian,
Bulgarian,
Ukrainian,
Hebrew, Hindi,
Thai, Korean,
Japanese, Chinese
(Simplified),
Chinese
(Traditional)

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Talent Acquisition Systems 2010: Executive Summary 16

COMPANY SNAPSHOT Core and Advanced Features Bersin & Associates Evaluation

(cont’d)
Requisition Management 
2009 Projected Revenue:
$150.6 million, growth of
35% (year over year) Requisition Approval 
Number of Deals in
2008:
More than 850 new Pre-Screening Questions 
customers (e.g., in 2009 it is
roughly 40%)
Assessments 
Number of Employees:
620+
Job Posting 
Customers:
Total Number of
Customers: 2,800+ Offer Letter Generation 
Number of Customers
Using the Most Recent
Release: All customers Candidate Career Portal 
2009 / 2010 Geographic
Expansion Targets:
Continue to grow in Search 
Europe / the Middle East /
Africa, Asia-Pacific and
Latin America. All global Conceptual Search 
regions have seen strong
growth in 2009, e.g.,
Europe / the Middle East / Workflow Automation 
Africa growth 169% (year
over year) in 2009.
Employee Referral Programs 
Total Number of Users:
More than 5.4 million
Interview Management 
2008 Customer
Retention Rate:
Greater than 90% Contact Management 
retention, greater than
100% dollar renewals
Staffing Agency Portal 
Top 3 Largest
Implementations (and
number of users)
Web 2.0 Functionality 
1. Siemens (420,000 users)
2. One of the world’s
largest retailers
Reporting and Analytics 
(300,000 users)
3. TD Bank (75,000 users)
High-Volume Recruiting 

Global Configuration 

 = None.
 = Basic
 = Comprehensive

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Talent Acquisition Systems 2010: Executive Summary 17

User Experience Bersin & Associates Evaluation

Recruiter’s User Experience 

Candidate User Experience 

Hiring Manager’s User Experience 

 = Current
 = Leader

Product Overview – Other HR Products

Other Products: Product Name and Current GA Version Number

Core HRMS

Competency Management

Competency Content Library

Onboarding

Performance Management

Succession Planning
SuccessFactors employs a several-times-a-year release
Learning Management cycle that allows customers to “opt-into” new
features. Via the company’s SaaS model, all customers
Learning Content Management are on the most recent release.

Offboarding / Transition
Management

Compensation Management

Workforce Planning

Workforce Analytics

Other

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Talent Acquisition Systems 2010: Executive Summary 18

Top Partners and Resellers

Partners IBM, eQuest, HireRight, DDI, Lominger, Geolearning, SkillSoft

New Partners Planned for The SuccessCloud program includes initial partners (CastIron, Pervasive and
2009 / 2010 Conformity).

Resellers TriNet, Ceridian, IBM

Service Offerings

Technology implementation included in every deal, optional SuccessFactors


Implementation Services University for training and business transformation services that focus on business
process best practices.

Customer Service (phone


Phone and online, tiered customer service. Premium options available
and online)

Non-English Language Support Supports more than 31 languages

Dedicated Account Each customer has a dedicated account representative throughout the life of
Representative the customer

Technical Consulting Services Yes.

Strategic Consulting Services Yes, part of business transformation services

Platform Hosting SaaS, multitenant solution

Secure data centers in top-tier hosting facilities in multiple location in the U.S.
Hosting Location
and Europe

Back-up Hosting Location Redundant data servers in the U.S.

Recruitment Process
Not provided
Outsourcing

Customer Training SuccessFactors University

SuccessFactors University includes content to make resellers and implementation


Partner Training
partners successful.

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Talent Acquisition Systems 2010: Executive Summary 19

More than 10,000 SuccessFactors online community members, typically conducting


Regional Users Groups
4 – 6 regional user groups each quarter.
More than 10,000 online customer community members that are tagged by industry
Industry Users Groups
to support customer interaction within a given industry.
More than 700 customers attended (last one happened on Nov 9 – 10) the 5
User Conference SuccessConnect User Conferences in San Francisco, Chicago, New York, Barcelona
and Melbourne

Live Demo Yes

Provide free and free trial software for our software services for the
Free Trial
smaller segments
Office of Federal Contract
Compliance Programs (OFCCP) Recruiting software supports OFCCP-compliance including through ad-hoc reports
Best Practices
Equal Employment
Opportunity (EEO) Best Recruiting software supports EEO-compliance including through ad-hoc reports
Practices

Key Differentiators
1. Organically built application provides seamless integration across all
talent acquisition and talent management initiatives.

2. Proven track record exhibited by a large user base and high number
of satisfied customers.

3. Use of the latest Web 2.0 technology to support an innovative


employee and manager experience.

Bersin Analysis
SuccessFactors is a leading talent management provider with a large
percentage of market share by number of customers and revenue. With
the latest release of its Recruiting Management solution in September,
SuccessFactors offers a best-in-class solution with a comprehensive core
and advanced features set, as well as tight integration with the rest of
the Talent and Performance Management suite.

SuccessFactors Recruiting Management is used by more than 600,000


users in organizations of all sizes and across all industries. Over the last
year, the company has had great success with selling into large, complex
organizations. In addition, the company’s global presence and experience

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Talent Acquisition Systems 2010: Executive Summary 20

are steadily increasing. Siemens is implementing all SuccessFactors


products, including Recruiting Management to all of its employees across
80 countries and in 20 different languages. As global corporations seek
out multilingual configurability and local compliance, SuccessFactors is
responding to this demand in several areas, including micro-career sites
for various geographies and support for European Union data purging
rules by country.

One area that has enabled SuccessFactors to stand out from other
providers (especially those with a heritage in talent acquisition) is
by providing recruiters with an internal view of the organization.
SuccessFactors creates consistency from its pre-hire to its post-hire
solutions by using the same job description of top performers during the
recruitment process. Recruiters also have access to organizational charts
and performance data. This provider is helping organizations integrate
talent acquisition with performance management.

Another key differentiator is SuccessFactor’s reporting capabilities. This


solution provider has introduced flexible reporting templates that can be
customized by location and job level, as well as by source-of-hire reports.
Source-of-hire reports include the number of people hired, the average
cost to acquire and how candidates perform once they are hired.

SuccessFactors has demonstrated a strong commitment to the talent


acquisition market in 2009 with advancements in reporting, assessments
and communication. SuccessFactors Recruiting has custom workflows and
optimizes the experience for recruiters, hiring managers and interview
teams – enabling them to collaborate together to efficiently hire the best
candidates for their organization.

The upcoming release in the first quarter of 2010 will include an updated
user interface, as well as advanced interview management capabilities.

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Talent Acquisition Systems 2010: Executive Summary 21

About Us
Bersin & Associates is the only research and advisory consulting firm
focused solely on WhatWorks® research in enterprise learning and
talent management. With more than 25 years of experience in enterprise
learning, technology and HR business processes, Bersin & Associates
provides actionable, research-based services to help learning and HR
managers and executives improve operational effectiveness and
business impact.

Bersin & Associates research members gain access to a comprehensive


library of best practices, case studies, benchmarks and in-depth market
analyses designed to help executives and practitioners make fast, effective
decisions. Member benefits include: in-depth advisory services, access to
proprietary webcasts and industry user groups, strategic workshops, and
strategic consulting to improve operational effectiveness and business
alignment. More than 3,500 organizations in a wide range of industries
benefit from Bersin & Associates research and services.

Bersin & Associates can be reached at http://www.bersin.com or at


(510) 654-8500.

About This Research


Copyright © 2009 Bersin & Associates. All rights reserved. WhatWorks®
and related names such as Rapid e-Learning: WhatWorks® and The
High-Impact Learning Organization® are registered trademarks of
Bersin & Associates. No materials from this study can be duplicated,
copied, republished, or re-used without written permission from Bersin &
Associates. The information and forecasts contained in this report reflect
the research and studied opinions of Bersin & Associates analysts.

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