Workday acquires employee feedback platform for $700 million

Workday has bought employee engagement software provider Peakon to boost its offering.

Workday announced on 28 January that it had signed a deal to acquire Denmark-based employee engagement platform Peakon for $700 million in cash.

Workday said the acquisition would allow it to drive employee engagement and improve organisational performance by providing businesses with real-time visibility into employee sentiment, experience and productivity.

Workday says the demand for these types of tools has grown during the Covid-19 era, as companies have found it more difficult to connect with and listen to employees working remotely.

According to Workday, a big advantage to integrating Peakon'’s software to the Workday platform will be creating “a continuous listening platform” across the entire employee lifecycle, from recruitment to exit.

In a statement, Workday co-founder and co-CEO said, “Peakon is on the cutting edge of helping organisations turn employee insights into more connected teams and stronger organisations. Bringing Peakon into the Workday family will be very compelling to our customers – especially following an extraordinary past year that has magnified the importance of having a constant pulse on employee sentiment in order to keep people engaged and productive.”

Peakon CEO and co-founder Phil Chambers sees Workday as a logical partner: “Workday excels at helping enable customers to leverage their data. Together, we’ll be able to help drive greater productivity, talent development and employee retention for our customers — and unify how employees interact with their organisations.”