ServiceNow, Inc. (NOW) Earnings Call Transcript & Summary

All right, everyone. It looks like it is 1:02 central time. It looks like the dialing in has leveled out a little bit. So let's go ahead and get started with today's Employee Growth and Development discussion. I'm excited to discuss what we call EGD, known as employee growth and development with all of you. But before we get started, 2 things here lines have been muted. But also if you do have any questions, please feel free to put them in the Q&A. I will try to keep tabs on them as I go through the demonstration. But behind the scenes is my friend Haley, and she is willing to be monitoring that chat as well. So hopefully, we can get as many of those questions answered as quickly as possible. My name is Brittany Metcalf, I am a solution consultant, specifically on the employee growth and development team. I've been a solution consultant almost 11 years now coming from a background of the HCM world, both Oracle and Workday and even spent some time at Salesforce. And so I'm going to be the one driving today's demonstration. But like I mentioned, you might see a couple of things from Haley, who is also a solution consultant helping out with the chat or anything else that may be going on outside of the demonstration. For bandwidth purposes, I am going to turn off my camera, but I did just want to say hello and introduce myself. So for everyone on the line, what are we going to be discussing today? Well, as I mentioned, we're here to discuss employee growth and development. And so we're going to start with an introduction into EGD and really discuss the why. Why did we decide to create a product like this? What problem are we trying to solve? But I'm sure I'll be preaching to the choir for many of you. And I also want to give a brief overview of the product and kind of just tee it up before we jump right into the demonstration. And then after the demonstration, we will wrap up with a quick kind of overview and sneak peek of what is coming next month in Washington, D.C. So many of you that are on the line to today are HRSD or HR service delivery or IT service management or ITSM customers, perhaps both. And so first and foremost, I just want to thank you all for your partnership and thank you for the trust that you have placed in us as a partner and as a vendor. And so when we talk about HR service delivery or IT service management, -- and in addition to all of that employee center Pro. For those of you that are familiar with those offerings, you're already providing a single employee portal that connects all of your disparate HR solutions, whether it's Workday, whether it's Oracle, whether it's SAP or any other HCM solution you may have out there or more niche vendor, if you will. And with your different HR solutions and IT systems together, your employees can really have that seamless support, intelligent self-service experience and receive the communications that they need all in one place. And so with our employee workflows, you may be familiar with them, especially as an HRSD customer, do you have the ability to automate and deliver guided experiences across the enterprise for any higher to retire employee journeys such as onboarding, offboarding, leaves, internal mobility and employee relations. And so employee growth and development is really just leveraging a lot of that native functionality and providing a great career experience for your employees, and we're going to jump into that in a little bit more -- in a little bit more time here. So in today's economy, leaders are facing immense pressure to do more with less resources, right, not only less resources but drive retention, deliver on business initiatives continue to grow. And at the center of this, our people or just people in the workplace in general are becoming more frustrated, they're disengaging. And they're also dissatisfied with the amount of work that they're paying on with -- and it's not the work itself. It's the work in addition to the lack of career growth opportunities that they're wanting to continue and grow in their career. So right now, the #1 reason people leave their job is low pay. But right behind there in the #2 spot is the lack of career development. And so even here, data and reports have shown that, okay, when we do offer career growth opportunities and the potential to grow within an organization, 94% of workers said that they would stay at a company longer. And so -- this isn't a new problem, right? People have always wanted to grow in their career, and there's been a lot of road bumps or hurdles along the way. And so companies have tried to solve this problem in the past by investing in all different sorts of talent and learning solutions. And I think back to my decade and some change, specifically in the HR tech space. And yes, talent and career growth and talent management and all that has been a topic of discussion for quite some time. And so as organizations have been investing more in these talent and learning solutions, we're finding out that employees now have way more places that they need to be logging in and out of. And so that's what this graphic is describing here. And so actually, according to Okta, the average company has more than 80 different employee-facing systems, that their employees have to interact with. And that number jumped by more than 40% in the last 5 years. And so we all know what happened in 2020, right, insert the pandemic and people went to remote working. And then as we turn the corner of the pandemic, we've embraced hybrid working. And so just the work environment has changed, and there's now just more systems that employees are having to interface with. And with that brings more confusion, more frustration. And so even though the solution -- or there's been good intention around solving kind of the problem of career growth and frustration around career growth, the problem still exists. And so employees are frustrated because they're having difficulty navigating all the disparate systems. They don't know where to go to take action on their current development, and they also have no ability to track their career progression. But it's not just the employees that find themselves a little frustrated, managers as well. They find themselves having their hands tied behind their back a little bit as well because they're struggling to get their employees to really drive their career growth, but employees feel like they don't have the ability to really take control of their career. Managers also have a difficulty personalizing development plans with relevant learning and training content for their direct reports and then similar to employees, right, a lack of visibility. And so as a result of all of these challenges, leaders at the end of the day here, find themselves confronted with lower employee satisfaction scores, difficulty also identifying emergent talent needs and gaps and also no visibility into the workforce as a whole and which skills people have, what they don't have. Is this an upskilling opportunity? Do we need to look externally. And so ultimately, employees don't really know how to progress their career and leaders have no insights to make smarter talent decisions. So how are we at ServiceNow creating a great career experience? Well, for one, we're not asking you to rip and replace your HCM or your talent solutions or your learning management solutions, right? You have invested in them, but we're providing our customers with a unified experience and intelligence layers with the platform, which allows us to sit on top of your existing systems to unify that experience and enhance that experience. So when you're looking at the slide here, you'll notice that we have our foundational skills layer, -- and that's really what's powering a lot of the functionality with employee growth and development. And ServiceNow is the system of engagement, and we tie that with an experience layer to help drive employee and manager adoption and engagement. And so we natively deliver skills intelligence with EGD. So we offer a dynamic skills ontology out of the box to connect skills, roles and people. We use industry data as well and insights from billions of records, which in turn allows us to provide a platform for aggregating, analyzing and disseminating the data across your entire enterprise ecosystem. So -- that's kind of my last slide of the intro into kind of the why behind EGD, the problem that we're trying to solve. And what we're going to do next is jump into the demo, and we're going to focus on 2 people here. We're going to start with Emily, who is our employee. She's gearing up for a career check in with her manager Maria. And leading up to her career check in, right? She's going to need information. She's collecting talent information, skills information, anything relevant to her overall career development. And then we'll go in as Maria. So not only how can Maria engage with Emily, but how is Maria leading her team through career growth and through these career opportunities. Okay. So let me go ahead and reload for you guys, but we're starting off as Emily here. And so like many employees, Emily wears many hats and she starts her day with her digital front door. And for those of you on the line, I hope many of you are familiar with this page. And so she has many tasks that she must complete throughout the day and is consistently navigating through your organization. So whether she's navigating and looking for the answer around something related to her career, whether she needs an answer to benefits or she has an IT ticket or anything in between. I'm going to pause here, make sure that there's no questions in the chat saw some blinking on the Zoom okay, we're good to go. So every day when she logs in, she sees her organization's banners here. And think of this as a great tool to communicate and provide information to your employees. Maybe open enrollment is coming up and you want to let them know that, that time period is coming up, and this is the information that you need, maybe quarterly growth conversations are coming up, and you want to make sure that they've evaluated or looked at their skills profile or they've gone into their career hub post a banner, right, keep that information in front and center. So since Emily is gearing up for that quarterly growth conversation with her manager, Maria, she wants to go ahead and take a look at her relevant skills information. And when we come in to our employee profile, first thing to note here is that ServiceNow knows exactly who your employees are. ServiceNow plays nicely with your HCM solutions or your HR systems and system of records. And all of that information is stored in her employee profile along with her skills and career related information. Now as Emily is gearing up for this conversation, historically, she would have had to swivel chair between systems to gear up for this conversation and be prepared. And she maybe had to navigate to your HCM solution, maybe she'd have to go into a talent solution like SuccessFactors, let's say, and then maybe bounce over a learning solution like Cornerstone and then maybe even digging through some loose notes and some e-mails. And so ServiceNow is serving up all of this information in a single experience to eliminate that swivel chairing and provide a single pane of glass for your employees. So the first thing that we notice here are the skills that she has. And these skills or required skills are based on her job profile. It knows or ServiceNow knows that she is a customer success manager and therefore, these are the skills that she has that are required for that role. But if you also notice, we have additional skills, right? People bring a lot of skills to the table. They're much more than just the skills that they have because of the job that they're currently in. These additional skills can be based on other jobs that she has had internally or externally. These could be to be based on gigs that she has worked and also other criteria. And so perhaps, Emily, like many of us has passions outside of work. She volunteers for a nonprofit. And as a member of the Board, she actually puts together presentations. And so maybe she is a Photoshop wizard. And she's going to go ahead and just add this skill. But one thing if you notice as well is it says recommended. Now ServiceNow has the ability to identify skills and also adjacent skills. So it's saying, hey, you might have a skill in Photoshop because you have this skilled in visual design. And so what this does for your employees, as it really drives that engagement. So rather than your employees looking at a blank slate or a blank sheet of paper of, oh, what skills do I have? Well, it's populating the skills that she has because of the current role that she's in, but also based on some other skills that exist, it's making some recommendations for her saying, "Hey, you have this visual design skill, you might have a Photoshop skill or hey, you might have, let's say, a Microsoft PowerPoint skill or anything that is related to visual design and Photoshop. And so this is actually something that she considers herself incredibly proficient at. This is something she's been doing for quite a few years, and she's going to update her proficiency. And of course, you can have the validations around that. Maybe that's a conversation that they have on their one-on-one. But again, this is rounding out her skills profile, which is important because people have a lot more skills than just the skills that are necessary to do their daily job. So in addition to rounding out her skills, Emily wants to make sure that her aspirations and areas that she wants to grow are visible to her and her manager and also up to date. So she's currently in a customer success role she maybe wants to get promoted to senior or maybe she wants to check out something that's completely different around global impact because she has really taken a like into sustainability -- or maybe there's a weakness or a gap in her skill set and she's saying, "I want to work on my communication skills." And so she recognizes in order to take the next step in her career and maybe become that senior customer success manager, she needs to become a better communicator. And so she can be very proactive and say, "Hey, this is something that I'm interested in, "Hey, can we create a growth plan, and we'll get to this. But think of a growth plan as a legitimate plan of different tasks and steps necessary to achieve something that you want to achieve, like becoming a better communicator or maybe you want to work towards a promotion or transitioning into a new role. Now there's a lot that goes into bettering yourself and growing within an organization. It might be taking on more leadership-related tasks, let's say, it might be stretch assignments. And other times, it might be good old-fashioned learning. So many organizations have multiple learning solutions or LMSs and ServiceNow can call all of that great learning data and content and surface it up, surface up relevant learning in a single location. So again, it's driving that single experience and driving a positive career experience. So Emily has been in her role for 2 years. And she's rounded out her skills. She could look at her skills profile. She identified communications as a skills gap, and that's something she's working towards. But there's some more information that she needs to dig to dig into to gear up for that conversation. And so where she is really going to live and breathe as an employee around her career in really owning and driving her career is Career hub. So when she comes into Career hub, a lot of great information. So starting with spotlight, this is targeted content perhaps based on her role, based on her career aspirations, location and other relevant information, nudging them along, providing extra information, providing additional context, we also have what we call HerCircle. And I'd like to call this the circle of trust, right? It's an easy way to stay in touch with mentors, peers, leaders and people that are really invested in you and helping you grow within your career. Now not every employee or not every company has a structured kind of career growth program or a way to conduct these career growth conversations or check-ins. And so this might be a new exercise not only for you, but also your employees. So ServiceNow surfaces up some helpful instructions here. So maybe it's uploading your resume or you could upload your LinkedIn. And this is a great way to get your employees to engage. And I kind of mentioned earlier about the skills information and not starting from a blank piece of paper or a blank slate, same thing here. So you can upload your resume or LinkedIn account and it's going to pull your experience and pull your skills for you. So again, you're not having to start from scratch. It's going to give you that baseline. But also, hey, do you want to create an aspiration? Do you want to kick off a growth plan? Do you want to start learning. And so she may be receiving these nudges because it's time for her quarterly growth conversations or maybe she hasn't done these things yet. But having helpful information like this will drive that user adoption and keep this front center. So people are nudged and reminded, hey, there's something you might need to look at. Or hey, you're something that you might need to do to prepare for your conversation. As we navigate through her career hub as well, we have grow within [ 10 ]. So I think when I talk to all of you on this webinar, we've all had this experience before. We want to grow or we want something new in our careers, but we don't know where to start. And this will show Emily actionable insights. And these are what we call proactive prompts. And so these proactive prompts, again, are going to nudge her, hey, do you need to update one of your growth plans? Or maybe do you need to update your skills profile, right? So again, reminding her and keeping this information front and center. As Emily approaches her career growth conversation, she wants to ensure she has not only kept up with her task, but also has visibility. So within the context of her career hub, she can see the things that she needs to be working on. This could be meeting up with the mentor or coach. It's going to be taking a course. This could be studying or passing an exam. This could be a task that's tied to a growth plan. And so not only does she have visibility here, but of course, like all things in ServiceNow. It would be a notification here as well at the top of her screen. It could be an e-mail notification. So again, keeping everything front and center. So I'm going to pause here for a second and check the chat here. So it looks like there was a question in here from [ Galene ] when you add people to your circle of trust, are they able to see your career goals and tasks. So yes and no. So there are some things as an employee, you can decide that you're going to share with someone and we'll touch on that a little bit. But what that really boils down to is permissions. What do you want people to see, what do you not want people to see, but as an employee, you also have the ability to share some of this information. So you can share an aspiration, you can share a growth plan as well. So your mentor or people in that circle will absolutely have visibility and transparency into what you're trying to achieve. Good question. So as Emily is approaching that conversation like we talked about, she's reviewing her career hub. And if you noticed some of these things we've kind of already touched on, right, aspirations, growth plans. And we've seen this on different pages and that's intentional. We're sprinkling this career-related information throughout her experience to keep it front and center. And so she can view and access this information throughout her employee experience and meet her where she is. And we like to say that we embed this stuff in the flow of work. So -- with these growth plans as well, another great thing to think of this is not only is it a literal plan to help you achieve some sort of aspiration or goal that you have, but it's keeping Emily organized and focused on what she needs to achieve. It's a living and breathing plan that she can adapt as the year goes on and maybe her goal shift or initiative shift. And it's also a great way for her manager to stay in the know of her career development. So her manager doesn't have to scramble and find out this information, the last minute. And there was a question from Galene, and I can't remember if I said this exactly, but growth plans when you're creating your growth plans, is this just going to be shared with your manager? Is this going to be shared with a mentor or someone else who's helping coach you. So there's that transparency among all the people that might have a vested interest in your career. Now if we take a look at learning as well. So we kind of talked about that this is part of growth. And she has visibility into what's in progress, what has been assigned, perhaps she has saved some learning from years past. But one thing that I want to kind of point out here, too, and this goes back to that single experience is that, again, organizations probably have multiple learning solutions, and so you need to pull them from different LMSs. And so in this case, we can see that in this example, there are 3 LMSs that were surfacing learning up from. And so that is reducing Emily's swivel chair and having to go back and forth, go back and forth between systems to get to the learning that they need. So Emily, we saw with her -- we go back up to her aspirations here. We saw that she is going to be working on her communication skill as that was a skills gap. She also can identify what skills has she gained, which are in progress that she's working on. She also can identify where some other skills gaps may be. So for example, let's say, problem solving. And she's thinking, okay, I want to become that senior success manager. The next thing that I really need to do is really round out my problem solving skills, let's say. And so what he's going to do is go ahead and create a new aspiration. And so does she want to move to a new role, maybe one day, does she want to master a skill, yes, that's exactly what she wants to do. So what skill is she looking to master. And in this case, it is saying, "Hey, here are the skills that you need to develop. You currently have but you could make them stronger. And so this is a great example of leveraging the intelligence within the platform of nudging her of, hey, here are some skills that you might need to work on? Or hey, here's a gap that you may have. So we're going to continue with that problem solving skill here. And within the description, she can put whatever she would want, maybe she just wants to define what problem solving maybe is, maybe she wants to provide some detail about why improving on this skill is beneficial to her in her overall development. When did she want to do this within the next 6 months, within the next year, within the next several years. Mastering a skill is tough. And so maybe this is something that she's going to work on diligently over the next year or maybe it's a little bit more daunting of a skill set and she's going to develop it over the upcoming years [indiscernible]. And so going back to Galene's question in the chat, who do we want to share this with? Is this going to be a personal goal only -- and just to tell you a little personal story, we went through these kind of quarterly growth conversations internally here at ServiceNow, and we have to set a personal goal. And I set a goal of mid-day, every day for 30 minutes. I'm going to walk outside and just get some sunshine and step away from my desk 3 times a week. And I know that sounds like a small goal, but it's just a personal one. My manager doesn't need visibility into that or someone else, but it's just something that I set for myself to make sure I can kind of balance out my day. But for Emily here, she wants to share it with her manager or maybe she wants to share it with her mentor. And she's going to go ahead and notify Maria as well to make sure that it doesn't get lost in the shuffle. So as an extension of saying, hey, here's a skill that I want to work on, you can actually straight from here, create a growth plan. But what Emily is going to do is she's going to wait to talk to Maria, and they're going to discuss that growth plan together of how they're going to achieve kind of enhancing that problem-solving skill that she is looking to grow. So I mentioned this earlier. If you think of a growth plan as a literal plan that is holding Emily accountable while also giving her manager visibility into how they will achieve that aspiration, it's also that living breathing plan that she and Maria can collaborate on because they -- we all know that aspirations change, things change, initiatives might change, priorities might change. And so this allows everyone to be nimble and agile as the year goes on. So she's working on a better work-life balance and a couple of other things that she's interested in is customer engagement as opposed to customer success. But she has one item that is in draft form here. And so she's got to go ahead and explore forecasting. And so she needs to become more equipped in this process as a senior customer success manager and it actually becomes more familiar with this topic. It makes her case stronger to potentially be promoted to that senior role. And so in these plans, you can incorporate developing a skill, a task like signing up for a mentorship program. Perhaps there's learning that is being assigned one-on-ones as well. And so since this is that living, breathing plan, maybe she wants to go in and add some learning activities from here. And so we're going to say -- we're going to keep it on the forecast topic. And so she can now search through the catalog here. And so I would imagine that many of you on today's demonstration have the experience of "Oh, I want to take a training. Is it in this learning solution? Is it in that learning solution? Maybe video trainings are in one system, but compliance training is in another" and then you're trying to build out your career and figure all of this out, and now you're on all these different experiences and everything is siloed and not connected. Well, in this case, she's thinking, "Oh, okay, this is a course that I want to add to my learning plan" and so not only does she have visibility into this, but also, we can see here that her manager is a collaborator and Maria has visibility into this. So there's that accountability, there's the collaboration. There is the transparency. So Emily is really eager to discuss this with her manager, and she's relieved that she has all of this information. And not only has she collected all this information, but Maria also has visibility into that. So I know you're probably sitting there looking at some of the trainings that are here and you're thinking, "okay, Brittany, that's great, but is this the only place Emily can keep up with her learning?" And the answer is no. So we do have an entire learning section of her career hub here. And we're not going to dive too deep into learning per se, but I wanted to give you a view of what it looks like to see everything that is due. For example, so this is easily identified, which items she needs to be working on. And of course, you can get notifications to remind them or have a reminder that, hey, you need to complete your CRM administrator or this leadership course or exploring product sales. We also can see continue where you left off. So rather than her having to hunt and peck or hunt and find, okay, what was that product management course I was taking where I got interrupted? She can jump right back into that information -- or sorry, that course. And so again, she's not having to remember is it in Cornerstone, was it in Workday, was it LinkedIn, right? It's going to drive her exactly where she needs to be. And so, one, this is reducing that back and forth for your employees. And it's just making a better experience for them because it's eliminating or taking away that guest work of where do I need to be, what should I be completing because ServiceNow is surfacing up all of that information. Lastly, around recent activity. So starting with the assigned training, and we saw that at the top of the page as well, right? So we can see that Maria has assigned this training, but also one thing that I wanted to point out, and this goes back to meeting people where they are or embedding employee growth and development into the flow of work. So let's pretend that Emily actually got promoted. And because of that promotion, there's this promotion workflow, right? It might be learning that needs to be done. There might be something set to payroll, when her pay is being adjusted, HR gets notified of her new position and her new title, but also because of that, there has been a trigger that, hey, here is some learning that she needs to take. So not only can it be learning assigned by your managers or learning assigned by your learning and development organization, but also there's automation behind it because of our journey functionality, right? And for those of you that are not familiar with Journeys, Journeys are those cross-departmental workflows, so processes that are touching many hands, teams, departments, think of, leave of absence, a promotion, onboarding, offboarding, a transfer, right? And because of this pretend promotion that we're saying that Emily got, it's kicking off some training. So it's eliminating that manual intervention. ServiceNow just knows, hey, she's been promoted from position A to position B and therefore, this training is going to be relevant or required of her to complete upon taking on this new position. So Emily has everything related to our career talent and skills readily available and at her fingertips. So she's feeling very confident for her upcoming conversation with Maria. So that kind of completes Emily's portion of today's demonstration. And so not only does this allow her to be prepared for her upcoming quarterly conversation, but I would argue one of the most important parts of employee growth and development is that it allows you to be prepared for those conversations, but it allows her to be in the driver's seat of her own career. What are her aspirations? What does she want to explore? What type of plan does she want to build to achieve the goals that she has? And so in this case, Emily is not the only one preparing for these conversations. Now it's time to take a look at Maria as she gears up for these conversations not only with Maria -- or sorry, not only with Emily but also with Emily and other direct reports. I'm going to pause, make sure there's no questions in the chat. Looks good. All right. So moving on to our friend, Maria here. So ServiceNow's experience is consistent throughout. So Maria's experience is similar to Emily's, but she has different targeted information. And so since she is a leader, she might have a manager's guide or manager relevant information presented to her in these banners. But at the same time, though, even though she is a manager, she's also just like every other employee, right? They have -- she has aspiration. She has career goal. She has growth plan. She wants to take a look at, she has a skills profile that she wants to stay on top of and maybe take a look at. And so we've seen these proactive prompts just throughout the experience, right? And so this is prompting her as just an individual employee, hey, what are your career aspirations. But in a little bit, we're going to see the proactive prompts and the nudges specific to her as a manager. Hey, you have this coming up with Emily. You have X, Y and Z coming up with John, have you taken a look at this growth plan? But at the end of the day, this is her digital front door to all things within your organization, similar to what we discussed with Emily. So Maria manages Emily and a few other direct reports and she spends a lot of her time in what we call Manager Hub. And so this is all things related to her as a manager and her direct reports. So when we take a look at her Manager Hub, now we're seeing those proactive prompts. And we talked -- I just mentioned this where we saw some proactive prompts of "Hey, Maria, here's some stuff that you might want to look at as an employee", now these are the proactive prompts of, hey, here are some things that you need to tend to with your team, taking a look at aspirations or do we need to remind the team and send them an e-mail directly from the system, right? So not swivel chairing in and out of outlook or anything like that, reminding them that these conversations are coming up, let's make sure everything is good to go. Does she need to assign some training. So more actionable insights so she can really help drive their careers. Well, we talked about with Emily right, too, and same with Maria, she has everything front and center as she leads her team. So her manager hub gives her visibility into important things related to other people's careers like maybe someone's leaving the organization, and she has to make sure that they offboard well or there's someone joining the organizations or someone is on maternity or paternity leave. She can stay on top of all of the relevant tasks and processes that her direct reports might be going through simultaneously. And so depending on her focus of the day, maybe she wants to look at something a little bit more team centric. And so maybe she wants to focus on who has assigned learning, right? And it looks like Emily has some learning. Nick has some learning that has been assigned. And so she's kind of trying to take a look at who has this learning and what are they taking? What's overdue? What's in progress because, again, she's gearing up for those conversations. And so maybe she knows she is about to walk in a conversation with Emily and a couple of things here. Maybe she sends her an e-mail just as a reminder, or maybe she's going to think, "Oh, you know what, we talked about how she wants to get promoted from staff to senior customer success manager. I just saw learning. I want to go ahead and assign her that learning. So again, helping Emily achieve the goals that she has sought out to achieve and also enabling Maria to kind of shepherd and help Emily achieve those goals. So the focus you probably heard me say a few times today is reducing swivel chairing or reducing going in and out of different systems. And what we're trying to really emphasize is that single experience to provide that positive experience or that positive career experience. She also has insights, and we can spend a ton of time on reporting and dashboards, but I always like to show this because there's a couple of things worth pointing out. For example, poll surveys, how is everyone's overall happiness within the company? And how is Maria as a leader. Let's pretend the score was actually really low, right? And if that score was low, Maria would have visibility into that. She can be proactive with the tools that ServiceNow delivers to provide that great career experience and she can kind of realign the ship or steer the ship back into a positive direction. How long has your team been here? What is the tenure of your team? So it looks like she definitely has some folks that have been here 4 to 6 years, even over 6 years. So that's actually some pretty good retention. But if you notice, there's actually a gap for that 1- to 2-year mark. So that is a visual that she's thinking, okay, I need to do a better job at retaining those people when they hit the 1-year mark. What is it? Is it that they're frustrated because they're not getting promoted? Are they frustrated because they don't have a clear path within their organization? Is it something else? And so that's giving her the insights to have those conversations and begin to figure out, okay, well, why aren't people staying after 1 year and they're going somewhere else kind of at that mark? Another thing she needs visibility into is growth plans. How many people are actively in a growth plan and going through these plans and steps to achieve something specific, whether it's mastering a skill, whether it is trying to attain some sort of aspiration, which that aspiration could be exploring a role. It could be getting a new role. It could be developing a new skill. And then lastly, with learning, right? As Maria prepares for these conversations, it's hugely beneficial that she isn't logging in and out of all those different LMSs trying to figure out who has completed what learning and when and what is overdue and what's in progress. She has all of that nice and neatly presented to her in her manager hub. So as Maria prepares for her conversation with Emily, she wants to check in on different growth plans. So let's actually go up to the growth plan specifically. And like anything within ServiceNow, we can filter down. So we're just focusing on Emily right now, and we saw these growth plans when we are playing the role of Emily, right? And so we noticed that her work-life balance growth plan is actually at risk. And both Emily and Maria are very aligned with making sure that Emily doesn't burn out. Emily is a great worker, we just want to make sure that she has a work-life balance, She's not burning out. And so Maria is a little concerned, right? She's trying to figure out what is going on? Why is this at risk? What is Emily doing or how could we, as a team, manager and direct report, work together to make her work-life balance better. And in these growth plans, there could be tasks, there can be meetings, there can be learnings. And again, it's to help everyone stay on track of what needs to be achieved and accomplished for this particular employee. And so maybe in their one-on-one conversations, Maria is going to ask, how can she help Emily. Does she need to help with prioritization, does she need to help with managing workload and just make sure that, hey, everything is going well. We're respecting her boundaries, we're respecting her work-life balance. And so as Maria is gearing up for this conversation, the last thing that she really needs to take a look at as this conversation is right around the corner, it's something that we literally call conversations, and these are great because they're nice templates. So her check-in is actually going to be tomorrow. And here, we can see everything specific to Emily and talent specific too. So rather than having to jump in and out of e-mails or take a look at notes or I have a whiteboard actually on my desk, right, of keeping track of things. Maria has all of that handy. So what are her aspirations? So actually she's gearing up for this conversation, what does she need to keep in mind? Okay, she's exploring problem solving. She wants to be promoted into a new role, what are the growth plans that she's looking -- or sorry, working on, and we just talked about that work-life balance growth plan. What is some of the feedback? What are the skills that she has? So again, she has all of this, this 360-degree view of Emily around her talent and career aspirations. And so that is something that she can leverage actually she's having these one-on-one conversations. So not only does she have that handy information on the left, but also we can see how they're both collaborating and gearing up for this conversation. So Emily has said, "Hey, maybe let's discuss a stretch assignment for her, something that would challenge her." In this case, Maria wants to check in and say, "Hey, what's going on with the growth plan? How can I help you?" again, do I need to help with prioritization of work? Do we need to talk about setting boundaries? Is there anything I can do to help. And then we know that Emily has really been seeking that promotion. And so Maria wants to kind of touch base and create a plan around that of what she needs to do to kind of create a case or profile or information to be strongly considered for that promotion. You can add different action items. And so it's just a great checklist of talk points, action items, follow-up items. And so maybe a follow-up item here is going to be assign Emily a senior mentor. So we're going to give Emily a mentor that is a senior customer success manager, so she can get some exposure to that. And so rather than taking notes in a notebook or in an e-mail somewhere and then wondering where to track that down in the next couple of months or over the next year, everything is going to be added in this conversation. So everything is getting tracked. It's being documented. And again, it's in one single place. So we're not going in and out of different systems or opening up e-mails or digging through notebooks. And then the one thing that I think is one of the most powerful things is the transparency and the collaboration, right? Careers are owned by the employee, but they need help from other people, whether it's a manager, whether it's a mentor, and this allows everyone to work together and be on the same page and keep the ball rolling trying to achieve those goals. So with that, it looks like Maria has everything set. She's ready for her conversation with Emily. And so Maria is actually going to step away for lunch and take her dog for a walk. But once she returned, she's going to continue working through her career hub and her manager hub to prepare for the conversations that she has next week with Emily's peers. So that concludes today's demonstrations, but for -- or demonstration, but for those of you on the line, don't forget, we're going to get a little sneak peak of what is to come next month. But I do want to kind of wrap it up briefly about the demonstration and what we saw. So whether we are talking about Emily or if we are talking about her manager, Maria, we saw how there was that single experience for all things related to career. She wasn't logging in and out of different systems. Emily didn't have to wonder where to go. She had those proactive prompt. She had her career hub. She had her skills profile. She had all of her relevant career information to really have ownership and drive her career and take the next step or take her career to where Emily wants it to go. And because Emily has all of those tools and resources, she's able to relay that over to Maria. And Maria has tools like the manager hub in viewing things like what are people's aspirations, what are the growth plans that we've collaborated on. What are the conversations that we're gearing up to have. What have we had -- what have we discussed in the last conversation? What were the takeaways from there and continue to build on those conversations rather than having everything operate kind of in a vacuum, right? And that's where a lot of frustration always lies around career development is that we have these conversations. They're usually exciting. You feel like you achieve a lot, but then a month goes by and then 2 months goes by, and before you know it, there's not a lot of follow-up. And the reason why there's not a lot of follow-up or anything that's actionable is because usually, again, I know I've said this a few times, is usually, you're operating in multiple different systems and everything is pretty manual and then ultimately, there's no flow to anything that is going on. So between providing the tools and leveraging our workflows and our skills engine and just being the system of engagement, we're going to be able to help you drive that positive career experience. And so just to kind of sum up everything that we saw, at least at a high level, right? And I was trying to touch on these as we went throughout and so I'm not going to read this entire list. But focusing on some of the problems that we hear from our customers who are out in the field, these are -- we're trying to solve or remedy those issues through omnichannel career development having the ability to personalize growth plans using those proactive prompts and using the AI -- native AI functionality that is built throughout the entire platform to make recommendations on skills or those nudges. Having curated learning, being able to integrate with talent solutions as well to holistically create that single talent experience. So we have about 10 minutes left. And so with that, I wanted to jump into our future conversation around what is coming with Washington, D.C. next month. I do have to put up our safe harbor statement. Please remember that the next few slides are future looking for the Washington, D.C. release and please make all of your buying decisions based on current functionality. All right. So the thing that I might be most excited about is the opportunity in the marketplace. So today, we saw a lot of things like managing your skills and pulling skills from a resume or your LinkedIn profile, setting up aspirations or a growth plan, and those are great. But we all know that employees are looking to grow internally. And if they grow -- if they want to grow internally, they need to have that mobility, whether it's take a new role, whether they get promoted or they pivot into something new or they take on a gig right, a side project. And maybe that's something that allows them to flex some skills that they have, but they don't get to leverage them in their day job or maybe it's a stretch assignment. And so with opportunity marketplace, we're going to drive internal mobility, we're also going to enable workforce agility. So that kind of solved some of the angst that we hear around enablement -- or not enablement, engagement, retention and just kind of keeping people within the organization. If you show people that they can control or at least have some say into what they're going to do next, again, whether it's a brand-new role or it's a gig or a side project that they're going to be working on. It allows them to discover these things and express interest in things, and that is what drives that engagement and really helps with retention. And then lastly, meeting business needs. The world moves so quickly, and we all know the needs within an organization can change quickly, and you might identify a gap sooner than you realized. And before you know it, you're thinking, okay, do we have people with the skill set, yes or no? Do we -- can we leverage them internally? Yes or no? And then if the answer is no, do we need to go externally look for these people? But either way, you're at least giving your organization the chance to leverage the skills and the talent that you already have internally because at the beginning of the demo, we talked about Emily, how she has certain skills because she's in the customer success manager role. But she brings other skills because of prior experiences that she has and other things that she might be doing outside of work, so let's tap into that and see what type of talent we have internally. Mentorship. So especially, this is something that we hear, I am a millennial speaking here, but something that we hear with millennials, but especially with Gen Z, is that people just want mentorships, right? And so in Washington, D.C., we are going to roll out one-to-one mentorship capabilities. And what we're going to be able to do is, one, leverage the intelligence of the platform and use a mentor matching algorithm to best suggest matches. So for me, I'm a solution consultant, and maybe a mentor that would be a good fit is someone who is a solution consultant at the next level or maybe someone who was a solution consultant and then they moved into product marketing, right? The system will be able to recognize that I have these certain skills, I have certain aspirations maybe I have a growth plan, and therefore, John Doe, who was an SE and now is part of outbound product marketing might be a great mentor for me. But also people seeking mentorship, mentees will have the ability to search as well. So not only can you surface up potential mentors, but also you can search for mentors based on certain things that you're looking for. And then also leverage some of the functionality we talked about today like discussions and conversations to drive structured and productive conversations for the mentor and the mentee to help achieve whatever the goals may be. So today, we also saw Manager Hub, right? And we saw team information, we saw journey information. We saw some insights. But if you notice, we didn't have the tab around skills. And so that is coming next month. And this is just a great visual of identifying, okay, what is the total skill set of your direct reports? What are the top strengths of skills, right? And maybe as a manager, you're looking at this and you're thinking, "Oh, we should have the skill set around, let's just say, storytelling because that's important for my role" where are the gaps, where are the areas of growth. So again, that goes into do I need to assign learning, can we upskill people? Or do we need to find someone externally to fill that gap, right? You have the information to be able to make those decisions and then also be able to view just the overall skills distribution across the organization. Oops, didn't mean to go back there. But then the last thing that I wanted to touch on is that we focused heavily on the employee and the manager today, and we haven't forgotten about the leaders within your organization, and we'll be rolling out Leader Hub as well. So as an organization, you can understand where your talent is and make the strategic decisions on, and I've kind of elaborate and touched on this a few times, but make the decision on, are we upskilling and closing skills gaps or are we recruiting? And the world is changing so rapidly and having these insights will allow you to be proactive and allow your organization to be nimble, agile and ultimately successful in this ever-changing and very quickly changing world. So I wanted to give you a little sneak peek of what's coming in Washington, D.C., our next release. I am really excited for the next release, especially around employee growth and development. There's going to be a lot of really good stuff in there. But just to kind of conclude everything that we've been talking about. EGD is a solution that's a seamless extension to the ServiceNow platform. And a lot of the things that we've talked about today are just native workflow capabilities that you are already leveraging today for those of you that are customers, -- and with that, you're able to deliver connected simplified HR and IT experience for your employees, your managers, leaders, agents, administrators or anyone else within your organization. And so kind of taking that native functionality, we've added the career hub, and that's building on that experience as it is embedded within your existing employee center pro portal and connects all of your talent systems in the same way to deliver that personalized and guided career journey for your employees. And so what that's ultimately allowing you to do is maximize on your existing ServiceNow platform -- or sorry, ServiceNow footprint and ServiceNow technology investment. So the last thing that I'll leave you with is just, again, thank you so much for watching. And just to kind of tie it all together in a nice bow when you walk away. The things that we're focusing on here is improving retention by making it easy for your employees to really self-drive and own their career in a single place. We want to also fuel business growth by retaining, by growing and developing highly skilled individuals within your organization. And then lastly, be able to make smarter talent decisions because at the end of the day, right, your biggest investment is the talent or is the people that reside within your organization. So how can you invest in them? How can you make them better? And then ultimately, how can you make the best talent decisions to drive kind of your business goals and for the success of your organization. But that's about it. I know we have a few minutes left, but I just want to say thank you once again for joining. And Haley and I are going to stay on for a few more minutes. But again, thank you so much, and looking forward to seeing you out in the field. Just as a reminder, Haley and I will stay on the line for the next couple of minutes, but thank you for joining. All right. Everyone, thanks so much for joining. That brings us to the top of the hour. And like I said, thank you for joining and looking forward to seeing you out in the field.