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Stay updated with the latest in HR technology! This edition covers ADP's acquisition of WorkForce Software, Rippling's AI-driven Talent Signal, Marsh McLennan's mid-market insurance consolidation, and HCM Unlocked's Delta launch for faster HRIS data conversions. Discover the industry's evolving landscape!
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Hello HR Tech readers,
Welcome to another exciting edition of our monthly newsletter, where we dive into the most significant stories shaping the HR technology landscape.
This month, we’ve got some blockbuster acquisitions, innovative product launches, and an intriguing shift in HR data management. From ADP’s bold play in workforce management to Rippling’s leap into manager enablement, here’s what’s making waves:
What’s Happening: In the biggest industry splash of the month, ADP has acquired WorkForce Software, a company specializing in complex workforce management solutions. While the exact price tag wasn’t disclosed, it’s widely understood that ADP shelled out billions for the deal. But why? Because workforce management is, hands down, the hardest piece of HR software to build and master.
Why It Matters: Time and attendance, scheduling, forecasting, and leave management across multiple jurisdictions and employee types—full-time, part-time, deskless, hourly, unionized—are some of the most complex elements in HR. Very few players can manage this at scale: Kronos (now UKG) and Dayforce (Ceridian) have been the go-tos.
Historically, ADP has relied heavily on UKG to serve its most complex time and attendance customers. ADP has even bragged that they sell more UKG contracts than UKG themselves. But here’s the kicker—by selling massive amounts of UKG WFM, ADP was also sending hundreds of millions in revenue to their competitor.
The acquisition of WorkForce Software changes that game. By bringing this expertise in-house, ADP can wean itself off its reliance on UKG, plug the hole in their product stack, and offer even more comprehensive workforce management directly through ADP.
What’s Happening: Rippling just announced its new manager enablement tool, Talent Signal. This tool promises to help companies identify high-performing employees earlier by leveraging Rippling’s vast data set and AI-powered insights. Unlike traditional performance reviews that rely on static, point-in-time data, Talent Signal analyzes real-time work data, such as lines of code produced, customer support tickets closed or Salesforce opportunities opened, to gauge performance on a continuous basis.
Why It Matters: Rippling’s ability to pull insights from their ‘employee graph’—a comprehensive view of employee activities and data across their entire system—gives them an advantage here. This isn’t just a new feature; it’s another step in Rippling’s effort to make HR data more intelligent and proactive.
Of course, not everyone is thrilled. There are murmurs online questioning whether this brings us closer to a Big Brother-esque workplace, where every keystroke and customer interaction is being scrutinized. But for companies looking to stay competitive by identifying top talent sooner, this tool might be a game-changer.
What’s Happening: In another major consolidation move, Marsh McLennan has acquired McGriff’s insurance practice for a cool $7.75 billion. This deal is particularly notable because McGriff has a strong foothold in the mid-market segment, while Marsh McLennan is traditionally focused on enterprise clients.
Correction: Marsh McLennan's focus is on Enterprise, but their subsidiary Marsh McLennan Agency, focuses on the complex middle market and has for a decade. McGriff will complement MMA's efforts in this segment.
Why It Matters: This acquisition is emblematic of the ongoing consolidation in the insurance and benefits space. The industry giants—Marsh McLennan, Aon, Lockton, USI, Gallagher—are expanding aggressively, both geographically and in terms of services. McGriff’s mid-market business gives Marsh McLennan an immediate entry point into a previously underserved customer base. At the same time, many of these larger brokers are expanding into more HR consulting services, such as Gallagher’s acquisition of OperationsInc & iBTR this year.
This trend spotlights a critical question: How can mid-market brokers stay competitive? Local or regional players' advantages have always been their personal touch and strong relationships. Will those relationships be enough as larger players bring more resources and comprehensive offerings to the table?
For what it's worth, OutSail is betting on those regional leaders. We'll continue to support mid-market brokers looking to maintain their independence by helping them add new services to compete with the behemoths while maintaining that essential local touch.
What’s Happening: HCM Unlocked, a leading HCM consulting firm, has launched Delta, a tech solution designed to streamline the data conversion process during HRIS implementations. One of the most frustrating aspects of switching HR systems is the time-intensive task of data mapping and cleaning. This typically requires manually reformatting old data so it can fit into a new system, often resulting in delays and corrupted data fields.
Why It Matters: Data conversion has long been the Achilles' heel of HRIS implementations. With Delta, HCM Unlocked promises to make data transitions faster and more efficient by using machine learning to automate and clean up messy data. The result? Faster implementations, cleaner data, and less frustration when transitioning from one vendor to another. This tool could fundamentally reduce the friction that’s historically made HRIS switching a nightmare.
As the HR tech landscape continues to shift, these developments underscore two main themes: consolidation and innovation. Whether it’s ADP fortifying its position by acquiring WorkForce, or HCM Unlocked solving long-standing implementation pain points, it’s clear that staying competitive in this space requires continuous adaptation.
We’ll be watching closely to see how these moves impact both buyers and vendors. Stay tuned for our next edition, where we’ll continue to cover the latest and greatest in HR tech.
Until next time, keep innovating!
