I found this analysis on the MintJutras blog written by Cindy Jutras. She covers Enterprise Resource Planning, something I seldom get into. But this news has some interesting implications.
We discuss people recruitment and development often in manufacturing. Here is a trend that holds the possibility of a tool that can help manufacturing managers perform this critical function well.
Here are some of the ideas Cindy expresses. Check out the entire post if you’re interested in learning more.
On January 8, 2014, Infor announced it had acquired PeopleAnswers, a pioneer in cloud-based predictive talent analytics. This continues a trend of large Enterprise Resource Planning (ERP) vendor acquisitions in the realm of performance management and recruiting. But unlike other acquisitions, this one adds quite a unique new value proposition to its broadening footprint of Human Capital Management (HCM) solutions. Its software as a service (SaaS) talent analytics capabilities add a measure of data-driven behavioral science to an otherwise “soft” discipline.
The overall software category of HRM became broader, turning into human capital management (HCM) and several different “specialty” categories emerged: talent management, including recruiting, performance management (reviews), incentive compensation, as well as skills development and learning, workforce planning and analytics and time tracking.
Today, not only are customers more demanding and less willing to subject employees to the hassle and confusion of multiple systems, but also the big ERP players are no longer content to leave that opportunity on the table. The result: A big round of consolidation has begun. So Infor’s announcement was the fourth major ERP vendor to announce an acquisition of a talent management solution, and a cloud-based one as well.
Yet the metric PeopleAnswers attacks most directly is much more firm and definitive. Although its product can legitimately be characterized as both performance management (employee assessments) and recruiting, the real metric that drives ROI is turnover. The premise: By accurately assessing the performance of individuals, you improve your ability to hire the right people. By hiring the right people you improve overall performance and retention. Customers routinely report reduction in turnover by 40%, and even higher returns in reducing involuntary turnover.