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Discover the latest in HR tech with key updates on Paylocity’s acquisition of Airbase, Workday’s AI-driven move with Evisort, and HiBob’s new integrations. We also examine Warp Payroll’s marketing missteps and SAP layoffs. Explore the trends shaping the future of HR and finance.
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Welcome to this month's edition of our HR Tech newsletter.
We are diving into a variety of significant developments that are making waves across the HR tech landscape.
From strategic acquisitions that are breaking traditional industry molds to controversial marketing strategies, here’s a roundup of what’s been happening:
What’s Happening: In a move that underscores a growing trend in HR tech, Paylocity has announced its acquisition of Airbase, a comprehensive spend management platform. This acquisition is particularly notable as it sees Paylocity venturing beyond traditional HR boundaries into financial management
Why It Matters: Historically, only enterprise vendors - like SAP, Oracle, and Workday - were willing to expand beyond the confines of HR. However, Rippling was the first mid-market HRIS vendor to begin offering features designed for CFOs, and we're seeing other mid-market vendors now respond. This could signal a new era where companies demand more integrated solutions that encompass both HR and financial operations.
What’s Happening: Workday’s recent acquisition of Evisort, an AI-driven contract management platform, provides a window into the future integration of AI in HR tech. Evisort’s capabilities to transform unstructured business documents into actionable and searchable data promise to revolutionize how HR departments manage and utilize their vast data repositories.
Why It Matters: A significant amount of employee data lives in forms, documents and spreadsheets that have, historically, required painstaking work to transcribe into useful HRIS data. With AI's capabilities rapidly advancing, we might be in a place where this employee data is unlocked, providing HR professionals with tools to better navigate and utilize their data for strategic decision-making.
What's Happening: Warp Payroll, an emerging HRIS and Payroll provider, faced backlash over its unconventional marketing strategy which involved engaging random Twitter influencers to promote their brand. The strategy backfired when one affiliated account posted content promoting white supremacy, casting a shadow over Warp’s brand.
Why It Matters: This incident serves as a cautionary tale about the risks of guerrilla marketing tactics in sensitive areas like HR. The slow response from Warp’s team has raised questions about their crisis management efficacy, highlighting the need for robust oversight when deploying aggressive social media strategies.
What's Happening: SAP has confirmed major layoffs, further evidencing the challenges facing SaaS companies in the current economic climate. This restructuring could also be indicative of SAP SuccessFactors facing stiffer competition from the likes of Oracle and Workday in the enterprise HCM space.
Why It Matters: The layoffs not only reflect broader economic pressures but also underscore shifting market dynamics within the enterprise HCM sector, where agility and innovation are becoming key differentiators. SAP SuccessFactors is betting that a focus on more agile delivery through reseller partners can help them navigate the mid-market more effectively.
What's Happening: HiBob announced a new integration with Dayforce along with an expanded product offering, notably their new ATS and recruiting capabilities. These developments are critical as HiBob aims to cement its position as a comprehensive suite in the mid-market HRIS arena.
Why It Matters: By addressing gaps in its product suite, particularly in recruiting and possibly also learning, HiBob is positioning itself as a formidable all-in-one HR platform. This evolution is significant as it indicates HiBob’s readiness to compete with larger players by offering a unified solution that rivals established HR systems.
