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Hosts Stacey Harris and John Sumser discuss important news and topics in recruiting and HR technology. Listen live every Thursday or catch up on full episodes with transcriptions here.

HR Tech Weekly

Episode: 232
Air Date: August 29, 2019

 

 
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Transcript

 

Important: Our transcripts at HRExaminer are AI-powered (and fairly accurate) but there are still instances where the robots get confused (or extremely confused) and make errors. Please expect some inaccuracies as you read through the text of this conversation and let us know if you find something wrong and we’ll get it fixed right away. Thank you for your understanding.

SPEAKERS
John Sumser
Stacey Harris

FULL TRANSCRIPT

Today’s Show is brought to you by the Human Resource Executive Magazine’s HR Technology Conference and Exposition held October 1st through 4th at the Venetian in Las Vegas. Join me and thousands of your colleagues at the world’s largest exhibition of HR Technology. Act now using the code HREX and you can receive a $300 dollar discount on your ticket.

[00:00:39] Thanks. We’ll see you there. And by the way, don’t miss the Women In Technology segment.

Good morning, and welcome to HR Tech Weekly, One Step Closer with Stacey Harris and John Sumser.

Hi Stacey. How are you?

I’m doing well. I’m in writing mode. I’m [00:01:00] home still and won’t start traveling for another two weeks looking at my beautiful North Carolina green backyard, but not being able to get into it because I have been writing writing writing day and night.

[00:01:10] How about you?

It’s a lot. It’s a lot the same here, although also writing day and night often involves moments of Anguish right now and that’s what it looks like mostly here.

So it’s a big news day. There is a lot going on.

Yeah, I obviously were as quiet and as it was for the earlier part of August this says we’re wrapping up August and heading into September.

[00:01:32] We are definitely getting the first look at what probably the rest of the month is going in and heading into October is going to look like as far as news and it’s a lot of. We end up with last or getting a new CEO and this is this one’s not I think as dramatic as it might sound is a new CEO and their founder stepping away to become chairman the new CEOs in there for a little while so we can talk a little bit about that, but I’m pretty big I mean glass doors probably one of those companies who without their sort of influence in the market.

[00:02:00] [00:02:00] We would not see some of the most game-changing approaches to how we think about branding and how we think about Employee Engagement and some cases as we have today. We also have another big news thing going on this week earlier part of last week Oracle directors for those who follow through the broader Oracle story not just their Oracle HR technology conversations.

[00:02:20] But Oracle directors have given blessing to shareholders. There’s several shareholders to carry basically a lawsuit against Larry Ellison, who is the founder of Oracle and Africa to is their next in line behind Larry and so we’ll be talking a little bit about that. It’s in relation to the. We purchased that Oracle did in 2017 and that’s definitely going to have I think some interesting social impact and ripple throughout the market over the next couple of months.

[00:02:45] We also have several Acquisitions this week happening alight to acquire NJ human resources and GA is a sort of Consulting flash payroll Outsourcing organization, very heavily focused in European markets are very [00:03:00] heavily sap, and so we can talk a little bit about how a light is continuing to move into that base of technology and Tello acquires convey IQ.

[00:03:08] I think you have a lot more detail on that than I do. But until then can you say thank you try and figure out where it’s standing in this new market around the recruiting talent management space and then probably the things got a little bit of most attention just in into the recruiting and some of the blocks here space is Google shutting down and we will hire in 2020 that we will hire just came out about two years ago.

[00:03:30] We all had a lot of conversation about how that was going to affect your cutting phase that we have that. And then there are some funding things that we can talk a little bit about Jenny. IAI rebrands has passed the races thirteen point two million Ali raise eight million Ally I should say it raised eight million 340 KR solution and then for septic received what they call significant Investments not giving an exact amount because they’re private but with the goal of increasing their focus on their their their brand and what they’re trying to [00:04:00] accomplish in the market and if we get time there was a great article that was written.

[00:04:04] Bye if you interview just yesterday on why inclusive workplaces still make that people feel invisible in the company list of articles in hit me as wow. That’s first of all, the language is not something we hear used in the HR space, but there’s some great Insight in here about HR technology and and what it’s places in this one area of diversity inclusion.

[00:04:25] That doesn’t get talked a lot about a lot of busy stuff where you want to start at. Well, let’s race. Let’s do something different this weekend, see how weather that we can get to all of them. Ready? Yeah. Okay. So Robert Holman Robert Hilburn our I have it Robert over right when he was starting.

[00:04:42] And so what this means is he sold the company he got it running and now he’s going to go off and try other things while he keeps his fingers of the car.

This is exciting West or was the surprise. It made a big difference and you [00:05:00] had some. Yeah, I mean closer to me was it was the early stages of what the internet could be in to do right?

[00:05:08] That’s how I always looked at it it changed the dynamic now the end of the day it’s still basically a recruiting sourcing tool that that’s what we’re they close with money. But it changed the Dynamics about how you do that by giving a voice to a population often times didn’t have a voice in what was going on inside there are stations now, there’s a lot of debate as to whether or not they sell The Branding and and whether or not you know, those voices are legit and we always have that one coming to Groundswell rounds or data, but I can tell you there hasn’t been a job.

[00:05:40] That I’ve done for or resume that I’ve helped someone build or a job search. I have someone go through that. We haven’t talked about last or in the last five years in this way, right but as anything you have to go look at before you make a decision about any somebody so I think they really change the market a lot now when I was interested in I didn’t realize I actually thought they might be the bigger.

[00:05:59] They [00:06:00] currently have about a thousand employees. And they’re serving 67 million people worldwide each month with their sort of latest job paired as if you million reviews. I actually thought they were a little bit bigger than that. Dude be completely honest. I think they’re one of those companies that probably has a huge impact in it.

[00:06:16] And is it really as big as people probably think they are at some point and 67 million monthly visits is is pretty big for a job. Is that okay? Yeah, and they don’t really don’t really have non job or businesses. And since they were bought by the Japanese company recruits. It’s probably not likely to grow their functionality.

[00:06:45] So that seems right. German means that like you said, this will be a this will be a bit of inside and and advice being given through the company. Right but will not be worked on Saturday running or any of the big decisions. Now, they’ve got a new [00:07:00] president and CEO now. Yeah, you can do that a lot of different ways but one would assume they make an announcement like this because the new guy is going to be actually running things.

[00:07:13] And we have an opportunity to talk much with last for themselves about how this might change and they’re doing they think some of the bigger changes was when they were acquired. So probably I don’t assume will change too much. I mean do you expected this would change things a great deal on the inside the company this is a sort of a natural progression.

[00:07:31] The other big news I think you know just from A New Perspective is this lawsuit for Larry Ellison and Oracle this one a you know, I had heard about a couple days ago. Someone said hey, have you heard this? It didn’t come up on a lot of the HR technos wires. So it hadn’t sort of hit my radar yet and when I went and started looking at it this seems big, but II, you know what again?

[00:07:50] I don’t follow the stock market all that closing. This is a lot to do with the investors and shareholders and their perspective about what Larry did in his [00:08:00] perch. Of the netsuite product. This one really was netsuite was bought by Oracle and layer it by and particularly, you know, Larry Ellison and Safra Catz are being named in this court approved shareholder lawsuit about the netsuite purchase for a nine point three billion dollars when they acquired a but it’s not the largest acquisition in the tech space, but it’s up there.

[00:08:21] It’s like one of the top five or something like that. They have said and the idea guess is that they feel like they purchase this and it has. Basically given the booth at both Larry and the team said it would give to the Oracle bottom line.

Is this something that happens if corporate shareholder stock market space in maybe we don’t often hear about it as much because it’s usually behind the scenes and just part of something we’re hearing about because it’s a Founders do anything to Tunis it.

[00:08:49] What do you what do you know about this? So this is you know, the world is changing in perception of the business practices, and this is let’s be clear about what this [00:09:00] is Larry Ellison started. Well area Larry Ellison was the chairman of the board of the CEO of Ortho Larry Ellison started netsuite with the entire intent of selling it for.

[00:09:13] All right, that was the game plan from day one. And so there’s a conflict of interest. It’s pretty astonishing and when you when you understand that that I was the nine point whatever billion dollars that they pay for next week. Larry’s the one who got the big bag of money, right? This is you know, this is Juiced up but this is something that if I tried to do this in place, there might be local government involved in investigating what I was doing and so the suit is brought by.

[00:09:54] Featuring Leon Panetta, right. So these are Savvy Big Time [00:10:00] serious players and they have a problem with the ethics of the deal and they particularly have a problem with you have a chat with you because they were sold a bill of goods about what the deal with you. The thing that sort of threw me is that well did the objective?

[00:10:18] Earlier and are the only objecting to it because now they just didn’t get the money back. They were expecting to get back out of it, right it is is that is that really the fundamental? Is it the Essex or is it the financial component? That’s leading you to tell and I don’t know the answer to it is you and I are not inside enough is how much of the board Larry Ellison controls right?

[00:10:42] And this reads like. This is this is this is a horrible thing to hear. This reads like the board has fractured and there are people on the board who are so upset about this that they’ve gone through the legal process of getting the suit [00:11:00] approved. It’s called the derivative lawsuit. It’s a derivative lawsuit because this group of people believes that the board of directors should have sued their CEO and the rest of the board doesn’t believe that right.

[00:11:14] And so this this is a board that has a serious problem. This is a symptom of a much larger serious problem and the reverberations inside of Oracle must be extraordinary. I was just going to say I mean there have been obviously lots of Ford. I mean, we just we saw some of the challenges going on with ATP not too long ago and therefore and shareholders but.

[00:11:36] And activist shareholders and on that front, but this feels very like like you said, you know, like there’s there’s so much fighting here is this going to have an impact on people who are buying our products at I don’t know the answer to that. I don’t know how much this will have an impact on the company to companies go through this and come out the other end and are generally fine.

[00:11:53] I don’t know the answer to that. We might have to go to a financial analyst you probably give us a better Insight on that, but it’s just jarring to hear it right when you know [00:12:00] that. The people who are working on the products are trying desperately to make that the focus that you’re the product and what they’re doing.

[00:12:05] And then you also have to think about the stability of the company when you’re talking about the Senate incorrect. Yep. Yep. It will be very interested in this particular article. There’s a chart showing relative vendor market share of the enterprise software business. That’s a surprise to me Oracle.

[00:12:22] This should be about the same size Adobe Salesforce and Microsoft are the big players in the Enterprise. I had no idea. Yeah, well when you think about the number of product and the amount now, this doesn’t particularly I think talk about mr. Converses not cloud and where that sits that I think in there has to be a conversation about that when you’re looking back to Google like down in the next 10 group rate.

[00:12:47] So is service now working in Cisco, but when you’re talking about total vendor market share and revenue growth and. Applications. Yeah, there is I think some interesting things here to say about and people think we’re [00:13:00] expecting this next week product, which is Oracle was a little behind in the cloud conversation to push Oracle up into one of those top three spots and it did is I think what I’m hearing or at least I’m seeing reading through the notes on this one.

[00:13:13] Okay. So a white is acquiring NGA a light is a financial management company and Investment Bank, I guess and it’s buying in GA. So this is this is essentially a private Equity deal. Yeah. It used to be there an Outsourcing company for Health Care Wellness human Capital Management as well as the financial management of the 401K retirement funds and stuff like that.

[00:13:37] So they were I’m going to get this wrong, but II they were previously. Honestly Powers Watson, but I could be wrong on I’ll have to go back and take a look. Someone probably going to email and let me know but it was it was one of those. I think it’s a on you would actually do they worry he turned into a light with then end up becoming sort of a larger than life.

[00:13:55] We’ve talked about it a little bit in the last couple of radio shows. They’ve been [00:14:00] acquiring little Technologies and and little companies and what they’re doing in the health and wellness space. This is a pretty big acquisition because NBA not only. Does outsourcing in payroll and not only does probably some of the largest sort of European specifically certified payroll managed Services, you know models.

[00:14:22] They also have their own technology. They they have a child your age are the David’s room HR systems. They have their own version of sap payroll which is which is very much customized to meet the needs of the European market in many cases. They’re probably one of the first organizations to really deal with a GDP our issues and I went over and had a conversation with them after about two years ago after a European event that they had nga’s been a pretty big player.

[00:14:48] They put out the annual. Hey, we’re all complexity index that we talk about not too long ago. This is a big acquisition for a light and I think we’re going to find that this will create a very [00:15:00] interesting organization and has strengthened payroll health and wellness benefits retirement. In a way that I don’t know the name be a hazard this point at least you know in total is that maybe the big big guys like you Lloyd are or Center?

[00:15:15] So this is a new right? The light has 11,000 employees. So that would be a big deal. It would be a very big deal and I give them a very big foothold in the European market as well. Interesting. Okay, zipping through we’ve got Intel and acquires convey IQ. And this is interesting to me for one reason convey IQ is a company founded by Daniel wine blood and it’s kind of an extension of the work that you did in the early days of video interviewing, but she has now sold her company.

[00:15:57] After she graduated from Harvard [00:16:00] Business School in June, this is this is one of the most awesome women entrepreneurs you ever seen. Hey, right? She’s running this company. She changed it to reposition that she started it may be as long as seven or eight years ago and at your six she went to Harvard Business School full-time.

[00:16:24] Yeah already the company amazing amazing. She is she is just a super high-energy persuasive productive entrepreneur like you’ve never seen. This is saying with the until organization or is this a cell and then I’m going to go on for next time. Do you think on this one? No, I have no idea but it certainly isn’t her last and this is this is the first thing and the question of whether she stays in the industry.

[00:16:56] It would be nice to figure out how to keep her in the abyss. [00:17:00] We definitely need more women entrepreneurs who are sort of making Brands and making names for themselves and generally seems that they end up doing being shifted out in many cases through some of these Acquisitions, but you know, one of those brands has been around for a very long time.

[00:17:15] Do you think this acquisition is going to help sort of revive a bit of their energy in the in the recruiting Market? Is that part of what they’re doing here? Well, no, it’s I mean you look at the deal and the deal is. Trying to breathe life into a grounding and and you know, and so and tell oh, it’s just been bypassed by the last several years of investment in high stakes AI oriented stuff in the industry.

[00:17:43] And and so this is what they have to do to keep up with the fact that a class of their competitors are expanding their functionality so that their full service shop. This is probably the result of getting beaten in the market by people [00:18:00] with better deeper functionality. And so this is a necessary competitive deal.

[00:18:06] One of the challenges of being first to Market is sometimes you end up being a little bit older and if you don’t change with the market as quickly as everyone else is coming in. That’s what happened to you. Now lets you know, well, it’ll be interesting to see where until it goes with this and maybe by getting some new skill sets as well as getting the new product that might change a lot of things but we we have to go before we leave talk about Google and shutting down Google hired on this was all over the conversation board this week.

[00:18:30] Everybody had a comment or an opinion or perspective about Google hair and one of the big opinions was that. Google higher seems to be really liked by the people who are using it or at least subset of the commons and when you read through a lot of the articles is why is people hire shutting down there two years ago Google basically had actually had acquired another company that had a bit of the sort of called Bebop that had some of the sort of elements of people hire worked on it and created Google higher and [00:19:00] launched the two years ago and scaring the hell out of say much every 80s.

[00:19:04] At least SM baa baa Pious out in the market because they thought they were going to eat their lunch. I think in some cases and now they’re just saying they’re done with its white honey. They’re just going to shut down and they’ll wear the moment until they closed it down. They will be giving it away for free to everybody who’s using it.

[00:19:19] So no more license fees. What do you make of this done? I have a proud owner of this company. So Google reminds customer ID lat that’s what they do for until they I’m pretty happy user of Google products and pay not. In substantial amounts of money from Google products in the office of mail sweet, right?

[00:19:49] It’s a necessary component of my work and they just can’t they just don’t seem to be able to see anything else, right? So it’s like a [00:20:00] whole company with with add a really bad case of ADD. Is that weird? It’s disruptive, you know, the company come into a Marketplace they jump up and down and shake the marketplace 17 big red.

[00:20:20] This is a gorilla coming in coming in to your camper trailer trailer rather than they get bored and leave and so I find I’m thinking about it this morning, you know the issues of women with which they decide to exit is something that lots of people could learn. But it is like going to the dentist enterprise-e.

[00:20:41] Just three of your teeth.

[00:20:45] You didn’t really want to be able to eat that daikon us right exactly exactly. I mean, I guess the thing for me on this one is the thing about Google. Is there anything that will make the kind of money that they’re advertising which is where they make most of their [00:21:00] money off of these days, right?

[00:21:01] They’ve investing heavily in their cloud and then the cloud work that they’re doing as well. So we small little initiatives they put out in the market. And as you said shake up a market, it feels almost like they’re either unaware of the chaos. They tend to create or they are aware of it and they’re okay with it.

[00:21:19] Feeling like that part of what their role is in the market. Do you think they care about the chaos or is it literally we’re sinking we can make the money if it doesn’t make money in two years we’re out of it. That’s all that they’re thinking about. I’m sure it’s much more sophisticated do they care about the damage?
[00:21:36] They do Oh Stacy, I don’t think they’re capable of seeing the damage they do but they have a. Insular culture that doesn’t understand the consequences of Its Behavior, but that said there’s real solid information here.
If Google can’t make an applicant tracking system [00:22:00] business really work in the small to medium sector where they know how to deliver Vision Services.

[00:22:07] We can’t make that initial proposition work and because their beta test got be they have analytics out the zoo about what works and what doesn’t work and how to tell when they have told you about something. They know all of that. Then you have to wonder about everybody else who’s in that work. Is it is there something else that might be replacing it?

[00:22:32] Maybe that’s the direction that they’re seeing that no one else is Right, which I think we have left over. There are a lot of companies showing atheist is in the SMB Center and I don’t know about you but I’ve always wondered what is the world a hundred person company needs and 80s for right because they’re generally tools for Regulatory Compliance.

[00:22:56] Right. And so it’s a questionable Value [00:23:00] Plus reaching the SMB Market is really hard if Google can penetrate the SMB market and somebody who’s doing it with an advertising budget. You have to wonder about the viability of a whole bunch of companies throughout the market and that’s easy to miss because the grill is jumping up and down inside the camp.

[00:23:22] Well, you know, there’s no money going into this industry. So real quickly. I know we have just a few moments, but this has been a big announcement. But we also have the money still coming in Jane AI every brand has capacity. They’re raising thirteen point two million 01 of the chat box that you’ve been talking too much.

[00:23:39] But of course there now describing their their system as a knowledge sharing platform. Did you do any interviews with Jane a is these are the people that jir the second smartest people in the business for the [00:24:00] moment where I’m meeting a lot of really really smart people who are coming out of the woodwork with their products now, but the folks should say they are.

[00:24:09] Actually understand the complexities of installing tools that help that have a conversational Innovation help people understand stuff about the company and they have by far the most sophisticated view of that. They’re a little fractured in the way. They approach the market they chase a lot of different kinds of Enterprise stuff.

[00:24:31] They are by Leaps and Bounds the smartest full-service conversational interface that you can get and I think about it this Knowledge Management because what they do is give people a conversational interface the policies and data and all of the stuff that isn’t perfect. Well, we’ll be hearing problem or about them under the new brand of capacity.

[00:24:53] I think the last statement here is sort of interesting if you think of Microsoft Office as a Creative Cloud is a Creative [00:25:00] Suite. I want people to look at your past the as the automation sweet to help people do their best work. So we’ve talked a lot about that that is sort of the next generation of conversation and knowledge and that seems to be where they’re heading no interest.

[00:25:14] And then we also have a lie raising eight million dollars in perceptive freezing another artificial intelligence more Predictive Analytics type of tool as well any of these that you sort of have an opportunity to stock with a lie interest me. It’s a our objectives and key results other Silicon Valley see terms being thrown around a lot tracker and for Skeptics I said is an analytic tool this more money and some of the area’s I think that we’ve talked quite a bit about previously as well.

[00:25:40] Yep, it’s just raining money. It’s it’s just raining money. So that’s a we’ve reached the end and we covered an enormous amount of terrain today and we didn’t get to the one bit of enormous terrain. And so let’s start with that. I think that’s a good idea because I think yes your Richmond’s done. [00:26:00] I think some interesting groundbreaking conversations at least in the area of diversity and inclusion of and and we’ll talk about it next week.

[00:26:05] All right, it’s been a good call John as always and me and you are going to get back to our writing efforts right now.

Thanks Stacey, and we will talk to you next week.

Thanks for listening, and we’ll see you next time.

Bye. Bye.

Thanks everyone, bye.

 
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