Dive Brief:

• Ultimate Software, which offers cloud-based HR and payroll software to middle market employers, will soon be the owner of Kanjoya, a vendor that provides survey, text analytics and feedback tools.
• According to HR Tech guru Josh Bersin, writing at LinkedIn, the deal is an early sign of the emerging trend of HR leaders seeking out more sophisticated, flexible employee feedback systems in HR's quest to be more strategic.
• The Ultimate acquisition is important in that it marks how these nifty new feedback apps are moving from a nice-to-have bolt-on option to being embedded into core HR and ERP systems. Notably: Ultimate Software reports that 75% of its mainly mid-market customers will pay extra for a Kanjoya-type add-on.

Dive Insight:

Employers want to know more from and about their employees, especially how they feel when it comes to engagement (or lack thereof, these days). But most existing feedback systems have been limited by older, slower technology. Now, it appears that HR leaders are going to have more options, especially if more deals like the Ultimate-Kanjoya marriage take place. Large HR consulting firms such as Aon-Hewitt, Deloitte and many others of all sizes are also getting involved in raising the digital bar within the HR landscape — especially within benefits.

At the same time, much like the slowly but surely disappearing annual performance review, annual employee engagement surveys are less effective and fading in today's quick-changing workplace.