2021 has seen further shocks to the world of work. Now in addition to grappling with the COVID-19 pandemic, employers are figuring how best to manage the shift to hybrid working, as well as respond to skills shortages and the ‘Great Resignation’.
Therefore, HR analyst Fosway has looked into the emerging trends in the talent and people tech space, as well as identified leaders and challenger vendors in a 2021 9-Grid based on performance, potential, and presence metrics.
Fosway’s analysis found that the market for talent and people success solutions is very hot, and its growth has been accelerated by the pandemic and investor interest.
Talking about this, Fosway CEO David Wilson commented: “The underlying story of this 9-Grid is one of accelerated innovation and change.
“With seismic shifts in working practices, organizations are having to reinvent the digital employee experience” and this is happening across all areas of the talent and people success sector.
The research found that established talent management solutions have been slow to innovate to the needs of companies, particularly around digitalized and employee-first strategies.
This is why a few niche players have managed to build strong footholds in 2021. Therefore, it is no surprise that this year’s 9-Grid features many new players.
For example, new entrants to the list are Eightfold, which is a strategic challenger, Lattice, a strong performer, ProFinda and Willis Towers Watson, potential leaders, Phenom, a core challenger, and core leader Reward Gateway.
Wilson added: “Skills, talent mobility, and employee advocacy have moved center stage for HR teams and through the flourishing talent & people Success ecosystem they are increasingly able to identify innovation that will support people and organizational transformation.”
Fosway believes that talent mobility has “come of age” in 2021, but will continue to be important in 2022.
In addition, while employee engagement remains important, employee listening and advocacy has become even more crucial. This is especially in the new paradigm of remote and hybrid working where it is harder to have a finger on the pulse of the needs and frustrations of workers.
Fosway emphasizes that listening and advocacy is crucial to companies to create an emotional connection with their employees, which is crucial to having a positive company culture that differentiates employers in the current ‘Great Resignation’ and competitive way for talent.
Is talent tech future-proofed?
Despite success in 2021, Fosway also looked into whether talent management processes and tech are fit for purpose in the hybrid future of work.
Fosway’s director of research David Perring commented: “For many organizations, the answer is no. The systems and processes that got us to this point are not what we need to get us to where we want to be.
“That means we need to rethink for people success if we want to create great workplaces for the future.”
The report found that buyers want richer people intelligence and analytics that support both employees and HR teams; it found that improving HR analytics and intelligence was going to be a number one priority in the coming year.
Other gaps in the talent and people success tech market were in performance and onboarding tech.
Fosway noted that there is a big opportunity here for vendors to step up to support companies better around employee success and retention.
The analyst finally called on vendors to really work on simplifying their integrations with one another because there remains no end-to-end platform that can provide all the functionality HR teams needs across talent and people success.