2021 was a great year for HRtech, with many successful fundraisings, some of them conducted by portfolio companies (360 Learning raised €200m, Skello raised €40m). HRtechs are no longer excluded from “super” fundraising rounds: in October 2021, Personio, the German workflow automation platform for SMEs, raised $270m at a valuation of $6.3b, becoming one of the most valuable startups in Europe.
In this edition of our HRtech mapping, we’ve chosen 172 startups with different focus on:
NB: We have not included startups on the Future of workspace in this mapping – feel free to check our specific mapping on this subject.
According to the 2022 Edition Tissot and Payfit HR report, recruitment is among the three top challenges faced by HR, with the management of the Covid-19 crisis and the retention of existing employees.
The Talent War is raging. To help companies recruit, HRtech companies are offering various solutions to find the right candidate at the right time. The traditional sourcing methods are paired with:
Once candidates have applied, recruiters need to assess their personality and skills. Companies are trying to find more efficient and less biased solutions to assess candidates than traditional CVs:
In the US, the Covid-19 crisis shed light on “bullshit jobs” (conceptualized by David Graeber in 2018) and triggered the Great Resignation: 38 million Americans resigned in 2021.
This new context has dialed up the importance of employees wellbeing and startups offer different solutions to improve talent retention:
What matters is how the employee feels and if he/she is engaged at work. eNPS (employee Net Promoter Score) reflects employees’ opinions and allows HR and managers to make decisions to improve quality of life at work (Supermood, TeamMood).
To retain talents, companies need to address career and skills management. We invested in Neobrain (€20m in January 2022) with our fund La Poste Ventures, which allows for more efficient internal mobility, by deploying the right skills to the right projects.
Employees are paying more and more attention to their benefits. Beside traditional benefits, we’ve created two new benefit categories in this mapping:
The Covid-19 crisis sped up the digitalisation of the workspace. Hybrid work is the new normal. Many HRtech startups are seizing this opportunity by providing tools to facilitate the management of hybrid teams and to increase their productivity. It goes from easy meeting organization and collaborative meetings (Letsmeet, Klaxoon, Aster) to workspace and project management tools (Slite, Get collective).
The desire for flexibility goes further for some people who make the transition from employee work to freelance work. The segment of temporary workforce is still an important part of this mapping edition:
HR teams now have plenty of solutions to automate payroll, to manage absences and to store employee data… It enables them to focus on more strategic tasks such as quality of life at work, training, career and skills management (even if administrative tasks still account for 63% of their time according to Tissot and Payfit). But they also have to face a complexification of their job with a diversification of the missions and a multiplication of tools and data.
We therefore added the new category of Benchmark & Analytics in our 2022 mapping. It includes companies which tackle the need for visibility and actionable data. 70% of company executives quote People Analytics as a top priority. Startups are developing solutions to gather fragmented and unexploited data and provide new kinds of insights and benchmarks. Figures, for instance, has quickly become the reference when it comes to salaries benchmarks, while Reflect is building a people analytics platform with a focus on data shareability and benchmarks.
The past year has been busy for HRtech and we believe VCs will continue to bet big on it. We see massive opportunity in some trends initiated this year such as people analytics, new benefits for “customer” employees, and solutions promoting diversity and inclusion through unbiased recruitments.