Betterworks, a provider of continuous performance management for the middle market, announced the acquisition of Hyphen a provider of employee enagagement surveys and ” listening tools” for the middle market, in a move to better tie employee engagement to business performance.
The competitive pressure for both Betterworks and Hyphen to become part of a bigger platform must have been increasing greatly over the last 12 months. Talent management platforms have worked to integrate their employee engagement and feedback surveys into the performance management process. Culture Amp, a provider of culture, engagement, and analytics for the enterprise market, acquire Zugata, a provider of continuous performance and organizational network analysis for the enterprise. In the SMB we watched TinyPulse extend their pulse surveys into performance management offerings.
HR and talent leaders know that culture and engagement drive business performance. Leaders outside of HR agree. When HRWins asked thousands of business leaders outside of HR about company culture, 66% agreed that it has a direct financial impact on their business. When we read business books or listen to thought leaders speak about the secret ingredients to business success it always comes back to the team and the culture. We’re told to build a culture that engages employees, a culture of success, or a high-performing culture. But, we need data to show that we’re moving in the right direction.
Leaders within and outside of HR are looking for tighter correlations between culture, engagement and business outcomes and the HR tech market has moved been moving quickly in that direction. The Betterworks acquisition of Hyphen is the latest move in that direction. Time will tell if they are late to market with this new offering or right on time.