Phenom Buys Included: What HR Leaders Should Do Next
Phenom just acquired Seattle-based Included, a people analytics startup known for agentic AI. The goal: give HR teams real-time, actionable workforce insights without manual reporting or data wrangling.
It's a timely move. Leaders are dealing with talent shortages, hybrid work, and tighter budgets. More accurate insights and faster decisions are the advantage.
What Happened (and Why It Matters)
Included, founded in 2020, built AI that flags retention risks, skills gaps, and DEI issues-then recommends interventions. Phenom will fold this into its Intelligent Talent Experience platform used by thousands of enterprises.
Terms weren't disclosed, but industry chatter puts the deal in the mid-eight-figure range. Phenom's valuation topped $2B in its last raise and this is reportedly its sixth acquisition in five years, after moves like Tydy in 2024-another sign of consolidation across HR tech.
The Upside for HR Teams
- Answers over dashboards: Ask plain-English questions like "Where are our engineering skills gaps?" and get a plan, not just a chart.
- Real-time signals: Early warnings on attrition, engagement dips, and diversity gaps-before they hit KPIs.
- Less swivel-chair work: Integrated insights across recruiting, onboarding, mobility, and retention.
- Faster action: AI-generated playbooks for interventions (training paths, mobility moves, targeted sourcing).
Inside the Tech Synergy
Included's models analyze structured and unstructured data (surveys, reviews, performance notes) using NLP and machine learning. That complements Phenom's AI for matching, job recommendations, and career pathing.
Expect the combined stack to reduce time spent compiling reports and increase time spent executing. Early pilots cited in industry forums suggest turnover reductions of up to 20% when analytics drive targeted interventions.
Market Context You Should Track
Analysts see this move pushing Phenom closer to heavyweights like Workday and Oracle, with a shift from reactive reporting to proactive, AI-driven workforce strategy. Coverage from sources like SiliconANGLE frames it as part of a broader race to consolidate talent intelligence.
Regulatory pressure is rising too. Expect more scrutiny on fairness, bias, and model transparency-especially with policies influenced by the EU's AI Act. If you sell or hire in the EU, get ahead of it: AI Act overview.
DEI: From Reporting to Measurable Progress
Included brings DEI modules that track representation and movement by level, function, and geography. Phenom plans to expand these features, giving HR teams better visibility into where progress stalls and what actions move the needle.
With 70% of executives listing DEI as a priority, expect more pressure for clear baselines, intervention testing, and quarterly reporting tied to outcomes.
Risks and Realities
- Data integration: Merging systems requires careful mapping to avoid mismatches and duplicate metrics.
- Feature overlap: Redundant tools confuse users-clear product naming and enablement will matter.
- Governance: You'll need updated policies on data security, model bias testing, and audit documentation.
- Change adoption: AI is useless if managers ignore recommendations-enablement is non-negotiable.
Integration Timeline
Phenom expects beta features by mid-2026 and wider rollout later that year. Early access will likely go to existing enterprise clients willing to co-design and provide feedback.
Included's ~50-person team is expected to stay on, with many remaining in Seattle or remote. That helps preserve momentum and domain expertise.
What To Do This Quarter
- Audit your data: Identify HRIS, ATS, survey, performance, and L&D data sources. List owners, refresh cycles, and gaps.
- Define decisions: Pick 5 questions you must answer weekly (e.g., "Who's at risk in engineering?" "Which roles have the highest internal mobility potential?").
- Set success metrics: Choose 3 outcomes to improve (e.g., 90-day attrition, time-to-productivity, internal fill rate) and lock baselines now.
- Pilot a use case: Start with one function or region. Run A/B interventions (manager coaching vs. pay adjustments vs. career paths) and measure deltas.
- Create a governance pack: Bias tests, data retention rules, access controls, and a simple review process with Legal/IT.
- Train your managers: Teach them how to read signals and act on recommendations. Adoption will decide ROI.
Signals to Monitor
- Retention and internal mobility trends in critical roles
- Quality-of-hire and ramp time for key job families
- Skills inventory accuracy vs. real project needs
- DEI movement and representation by level
- Manager response time to AI recommendations
Why This Could Change Your Roadmap
If you already use Phenom for talent acquisition or mobility, expect deeper analytics and action flows across the employee lifecycle. If you're evaluating vendors, this raises the bar for unified insights across TA, onboarding, and retention.
Competitors like Eightfold AI and Beamery will respond. For buyers, that means more choice-and more pressure to compare on explainability, outcomes, and integration speed.
Practical Next Steps
- Ask your Phenom rep about the Included roadmap, beta access, and data requirements.
- Shortlist two use cases where faster decisions would save real money in 90 days.
- Align HR, IT, and Legal on a lightweight AI governance playbook and review cadence.
- Set up a monthly "AI in People Ops" forum to share wins, misses, and insights across teams.
Want to Skill Up Your Team?
If you're building AI fluency across HR, explore curated programs and role-based paths:
Bottom line: this deal points to HR moving from reporting to recommendations to action. The winners will be the teams that clean their data, pilot fast, and train managers to use the insights.
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