Acquiring a hidden gem: Unpacking Workday’s proposed acquisition of AI-powered talent acquisition provider HiredScore

Key Takeaways:

·????? Workday’s intent to acquire HiredScore is a seminal moment that signals how important AI-powered solutions are to the future of the TA industry. Will Oracle, SAP and other technology giants follow Workday’s lead and drive further industry consolidation? ?

·????? HiredScore elevates Workday from a workflow tool to a true intelligence platform and complements Workday’s offerings by providing data-driven insights that improve recruiting and talent mobility processes. This acquisition sets Workday up as a formidable player in the TA space.

·????? Why did Workday choose to partner with HiredScore? We believe HiredScore’s early investments in AI technology (years before the launch of ChatGPT) and strong focus on customer needs made it an ideal acquisition target. While Workday didn’t make the most obvious choice, they certainly made the right choice.

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Workday’s announcement of their intent to acquire HiredScore sets the stage for potentially significant changes to the TA landscape, as other technology giants are compelled to address gaps in their AI-powered TA solutions. Workday’s foray into acquiring a TA-focused company may have come as a surprise, given they have historically opted to build their own technology systems and have not been focussed on the vertical. However, Workday really did their homework. Unlike their flashier peers, HiredScore is not backed by venture capital firms and has flown under the radar, choosing to focus their efforts on innovation rather than marketing fanfare. HiredScore also has a fiercely loyal user base and a stellar reputation for execution.

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After nearly 20 years in the TA technology space, I can confidently state that Workday’s proposed acquisition of HiredScore marks a momentous turning point for the industry. We explore some key questions that TA leaders have raised to us.

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1.???? How will other technology giants respond to Workday’s proposed acquisition of HiredScore?

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Workday’s power move forces other technology giants to explore strategic AI acquisitions. Innovative Fortune 100 companies have touted HiredScore as their secret weapon. Firms that want access to HiredScore’s capabilities will now have to buy it through Workday. Overnight, Workday’s story has changed 10X. Workday is now cool and will no longer be viewed as a technology provider that the Finance department requires TA leaders to use. Workday used to be the system you got stuck with, but now it is the system you envy. Other technology giants will take note. We anticipate more acquisitions to take place in the race to acquire AI talent.

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2.???? How does HiredScore enhance Workday’s current offerings?

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Workday is a workflow engine. HiredScore powers this engine with AI and can embed TA into other systems, such as MS Teams. This functionality will make Workday a much more powerful tool. HiredScore has always been very thoughtful about AI and they believe in responsible AI. Their clients are happy because HiredScore always delivers. Clients feel they get real value. The marketplace’s perception of Workday as a clunky system will change as HiredScore takes them to the next level.

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3.???? Why did Workday choose to acquire HiredScore over other AI-powered solutions providers?

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As a long-time industry peer of Athena Karp , founder and CEO of HiredScore, I can attest to her vision of building a best-in-class TA technology offering. Athena and her team were focused on AI before AI was cool. HiredScore really listens to their clients and are fanatic about meeting customer expectations and timelines. I have never heard a client say a bad thing about them. Most importantly, Athena is a leader who inspires her team to do their best work. She always hires the best and brightest people, and their intellectual capital is unmatched. It is their secret playbook. Over the years, I have referred strong job candidates to Athena with the promise that I could hire them back when I need them. Unfortunately, no one ever leaves because they love working for her too much.

Workday nailed it with this acquisition.

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