Workday to acquire Peakon as remote work demands greater connectivity

Workday, a financial and human resources management software company, is acquiring Peakon, an employee engagement platform, for $700 million in an all-cash deal.

The deal, which will close in May pending regulatory approval, will give Workday a legup in the employee experience market. Peakon’s online platform provides resources for employers to gather employee feedback and then creates a plan for employers to execute a more collaborative work environment.

Workday will have the ability to provide organizations with real-time visibility intoemployee experience, sentiment and productivity, through an interactive dashboard that will help drive employee engagement and improve organizational performance. Peakon’s machine learning capabilities create better insights and provide efficient, personalized courses and training on how to convert those insights into actionable steps.

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“Peakon is on the cutting edge of helping organizations turn employee insights into more connected teams and stronger organizations,” Aneel Bhusri, co-founder and co-CEO, Workday, said in a statement. “The past year has magnified the importance of having a constant pulse on employee sentiment in order to keep people engaged and productive.”

Peakon has helped organizations like recruiting company the Adecco Group, food ordering company Delivery Hero, Staples and easyJet make fundamental changes in how they operate to improve employee experience and drive better business results.

Withremote work a continuing realityfor 2021, it’s urgent that employers stay connected to employees, while promoting healthy and cooperative work environments.

Poor communication can lead totoxic workplace culture, an increasing problem through the pandemic. During COVID, just 32% of employees report feeling satisfied with their job, down from 57% pre-pandemic, according to a survey by research firm The Martec Group.

Employers will want to utilize specialized tools as a way to tap into workplace issues and provide actionable solutions.

“Listening to employees has become one of the most urgent strategies to build agility, responsiveness and growth,” Josh Bersin, a global industry analyst, said in a statement. “Workday’s acquisition of Peakon will enable Workday customers to deploy a highly targeted and integrated employee listening strategy, addressing a top priority in employee experience today.”