Workday Enters Agreement to Acquire AI-Powered HiredScore

February 28, 2024 – Workday, a provider of finance and human resources solutions, has entered into a definitive agreement to acquire HiredScore, a provider of AI-powered talent orchestration solutions, which enable companies to use data-driven insights to improve recruiting and talent mobility processes. The combination of Workday Talent Management, Workday Skills Cloud, and HiredScore’s Talent Orchestration solutions, will provide customers with a comprehensive, transparent, and intelligent talent acquisition and internal mobility offering, helping them address their people needs. “People are at the heart of every organization, and investing in new and innovative ways to unlock the potential of talent is more important than ever,” said Carl Eschenbach, CEO of Workday. “HiredScore is the perfect complement to our product portfolio as we look to provide AI solutions that deliver real business value for our customers. The combination of our AI technologies that keep humans at the center, along with a deep understanding of the workforce landscape, will help organizations thrive and move forever forward.”

“We’ve only just begun to see the opportunities of what is possible with responsible AI in the workforce, and how organizations can use it more efficiently and effectively to deliver on HR transformation goals related to recruiting and employee experiences,” said Athena Karp, founder and CEO of HiredScore. “By combining our efforts and innovations with Workday, we’ll be able to deliver even more value to companies around the world as they look to build their future HR function.”

According to the World Economic Forum, employers are struggling to find the talent they need, and up to a quarter of jobs are expected to change in the next five years. “The combination of Workday and HiredScore will provide organizations with a comprehensive and intelligent talent acquisition and internal mobility solution to help them keep pace with growing workforce and business demands,” the company said. This will include the ability to:

  • Leverage Responsible AI to Solve Recruiting Challenges: With both companies committed to responsible AI and keeping humans at the center of decision-making, the joint offering will provide an explainable and trustworthy way for customers to match, hire, and manage talent from across their talent ecosystem.
  • Managing the Talent Lifecycle: To help HR leaders manage the holistic view of the talent lifecycle, Workday and HiredScore will provide a combined offering that will enable recruiters to use data to connect talent to open opportunities. This includes solutions that assist with identifying candidates whose skills and experience most closely match a customer’s open jobs, accelerating screening using data-driven insights, and identifying passive candidates – including within a customer’s talent ecosystem. The offering will also provide enhanced internal mobility and upskilling by helping employees more easily identify and prepare for new opportunities at their company. 
  • Elevate the Recruiter and Hiring Manager Experience: The combined Workday and HiredScore offering will help companies make their talent acquisition efforts more efficient by streamlining and expediting hiring processes through automated notifications, guided experiences, and recommended action items, all in their flow of work.

The transaction is expected to close in the first quarter of Workday’s fiscal year 2025, ending April 30, 2024, subject to the satisfaction of customary closing conditions, including required regulatory approvals. Orrick is serving as legal advisor to Workday and Cooley is serving as legal advisor to HiredScore and its shareholders.

Newly Appointed CEO

Workday has officially named Carl Eschenbach as CEO. Mr. Eschenbach was named co-CEO alongside Aneel Bhusri, Workday’s co-CEO, co-founder, and chair in December of 2022. Mr. Bhusri will remain integral to the organization as co-founder and executive chair of the Workday board of directors. He will serve as a strategic advisor to the CEO, collaborating with Mr. Eschenbach and the rest of the executive team to develop strategic plans and growth initiatives that align with Workday’s mission, vision, and values.

Workday Invests $250 Million in Ventures Business
Workday announced a $250 million expansion of its Workday Ventures fund. The additional investment capital from Workday into Workday Ventures, the strategic capital arm of Workday Inc., builds on the company’s solid performance.

“This additional investment capital into Workday Ventures is reflective of our continued commitment to serving our customers, helping them not only adapt but thrive and lead the future of work,” said Pete Schlampp, chief marketing officer and executive vice president of corporate growth at Workday. “We partner with pioneering technology companies that are closely aligned with our values such as innovation, integrity, and customer service, and we are laser-focused on supporting customers, entrepreneurs, and changemakers that help redefine our industry.”

“Working alongside Aneel for the last year has been a highlight of my career, and has solidified my belief in the opportunities ahead for Workday,” said Mr. Eschenbach. “I’m honored to serve as CEO of this incredible company, and to continue working with our world class leadership team and more than 18,000 Workmates around the globe to build one of the most enduring software businesses of our time.”

Mr. Eschenbach has more than 35 years of experience leading successful technology companies. He has been a partner at Sequoia Capital, a venture capital firm, since 2016, having worked closely with high-growth, innovative enterprise software organizations. Mr. Eschenbach has also held several leadership positions at VMware Inc., a global virtual infrastructure software provider, including as president, chief operating officer, acting chief financial officer, and executive vice president of worldwide field operations, helping the company scale at that time to more than $7 billion in total revenue during his 14 years at the company.

“Workday has never been in a stronger position, thanks in large part to the impact Carl has made in his first year,” said Mr. Bhusri. “From the start, he has embodied the company’s core set of values and I am confident that he is the right person to help Workday scale and lead us into our next phase of growth.”

Related: Workday Acquires VNDLY in $510 Million Deal 

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Executive Editor; Lily Fauver, Senior Editor – Hunt Scanlon Media

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