Workday, a leading provider of enterprise cloud applications for finance and human resources, recently announced its acquisition of Peakon, a Denmark-based employee engagement platform. The deal, valued at approximately $700 million, is expected to close in the first quarter of Workday’s fiscal year 2022, subject to regulatory approvals and customary closing conditions.
Enhancing employee experience through data-driven insights
With this acquisition, Workday aims to strengthen its capabilities in the area of employee engagement and feedback. Peakon’s platform enables organizations to gather real-time feedback from employees and analyze the data to drive actionable insights. By combining Peakon’s expertise in employee engagement with Workday’s existing suite of HR solutions, the companies aim to provide a comprehensive solution that empowers organizations to create a more engaged and productive workforce.
Employee engagement has become a critical focus for businesses worldwide. Engaged employees are more likely to be motivated, productive, and committed to their organizations. They also tend to have higher job satisfaction and are less likely to leave their jobs. By leveraging Peakon’s advanced analytics and machine learning capabilities, Workday aims to help organizations better understand their employees’ needs and preferences, enabling them to take proactive measures to improve engagement and retention.
Seamless integration with Workday’s existing suite of solutions
One of the key advantages of this acquisition is the seamless integration of Peakon’s platform with Workday’s existing suite of HR solutions. Workday already offers a range of tools for managing various aspects of HR, including talent acquisition, performance management, and learning and development. By integrating Peakon’s employee engagement platform into this suite, Workday can provide organizations with a holistic solution that covers the entire employee lifecycle.
The integration will enable organizations to leverage employee feedback and engagement data across different HR processes. For example, organizations can use employee feedback to inform performance reviews, identify skill gaps for training and development, and even support succession planning. By bringing together these different aspects of HR management, Workday aims to provide organizations with a more comprehensive understanding of their workforce and enable data-driven decision-making.
Expanding Workday’s global reach
Peakon’s acquisition also presents an opportunity for Workday to expand its global reach. Peakon has a strong presence in Europe, with a customer base that includes well-known brands such as Capgemini, BMW, and Maersk. By leveraging Peakon’s existing customer relationships and expertise in the European market, Workday can accelerate its growth in this region.
Furthermore, Peakon’s platform is available in more than 60 languages, making it well-suited for multinational organizations. This aligns with Workday’s focus on serving global enterprises and providing localized solutions. By combining forces, Workday and Peakon can offer a powerful employee engagement solution that caters to the diverse needs of organizations operating in different regions and industries.
Conclusion
Workday’s acquisition of Peakon represents a strategic move to enhance its employee engagement capabilities. By integrating Peakon’s platform with its existing suite of HR solutions, Workday aims to provide organizations with a comprehensive solution for managing the entire employee lifecycle. The acquisition also presents an opportunity for Workday to expand its global reach, particularly in the European market. As businesses increasingly recognize the importance of employee engagement, Workday’s investment in this area positions it well to meet the evolving needs of organizations worldwide.
