Curated Intel from the Talent Tech Industry
October 18-24, 2021:
• Wonolo raises $138M as temp staffing tools are in high demand;
• The biggest future employment crisis: A lack of workers as the talent pool shrinks;
• HR tech startup FloCareer raises $5.7 Mn in Series A funding, targets US market;
• National study helps confirm why it’s so challenging to hire hourly workers;
• Background screener HireRight announces launch of initial public offering.
PLUS
• A Shout Out to TA Though Leaders. We’re pleased to recognize once more some of this year’s TAtech Top 100 Most Influential Thought Leaders: @JoshGampel, @GerriAllamby, @JoeShaker, @MarieArtim, @AmyNoah – thanks for your contributions to talent acquisition!
• The TAtech Talent Technology Buyer’s Guide is a one-of-a-kind resource for recruiters. The only database available to talent acquisition teams that features solution providers with both state-of-the-art products and business practices they can count on.
Wonolo’s Big Round Comes As Temp Staffing Tools Are In High Demand
Startup backers seem to think temporary employment platforms have a very lucrative long-term future. To date, investors have pumped billions into apps and platforms aimed at helping employers and workers fill on-demand jobs more quickly and easily. Companies funded since last year have collectively pulled in just over $2 billion to date, according to an analysis of Crunchbase data. Much of that is quite recent. The latest large funding recipient–San Francisco-based Wonolo—announced $138 million in fresh funding recently to scale its work-booking app, which matches workers with local, pay-by-the-hour gigs. So far this year, at least four companies in the space have raised rounds of $100 million or more. Job market trends support investors’ enthusiasm. As businesses emerge from the pandemic, many are struggling to fill open positions, including restaurants, retail and hospitality. Other areas, such as health care, have been chronically short-staffed for some time and see shortages worsening.
The Biggest Future Employment Crisis: A Lack of Workers as Talent Pool Shrinks
The pool of available workers may be the most pressing concern about the future of the U.S. labor market, experts agree, based on newly released federal government data. The labor force participation rate is projected to continue to trend down, declining from 61.7 percent in 2020 to 60.4 percent in 2030, with retiring Baby Boomers and a declining population rate reducing the number of people available to work, according to a new analysis from the Bureau of Labor Statistics (BLS). The youngest Boomers will reach traditional retirement age by 2030. "This is a tough picture, looking forward," said Ron Hetrick, senior labor economist at labor market analytics firm Emsi Burning Glass in Moscow, Idaho. "People who think that once the pandemic subsides things will get better forget that in February 2020 we had the lowest unemployment rate in history. Since then, we have lost many more Baby Boomers and haven't really added new labor market entrants."
HR tech startup FloCareer raises $5.7 Mn in Series A funding
HR tech startup FloCareer has raised $5.7 million in Series-A funding from Data Point Capital along with the participation of Uncorrelated Ventures and Orios Venture Partners. Launched in 2018 by Mehul Bhatt and Mohit Jain, FloCareer helps hiring companies across the globe by conducting technical rounds of interviews through gig workers on its video interviewing platform, by leveraging more than 3,000 industry experienced freelance interviewers across the world. A balanced mix of AI and Gig-Workers to solve the challenges of hiring companies will remain the core strategy of FloCareer. FloCareer will use this capital to strengthen its position as a leader in gig-workers powered video interview platforms in the US and India. It intends to use the proceeds in business development in the US, while continuing to grow in India. It will continue to innovate new people focused solutions, using cutting edge technology.
National Study Helps Confirm Why It’s So Challenging to Hire Hourly Workers
Nexxt, a talent solutions technology company, recently announced the results of a national survey of more than 1,200 job seekers which revealed what hourly workers want, the types of hourly jobs that are the most desirable, and who is most likely to search for an hourly job. According to the survey, a little more than half of hourly workers (52%) said they are actively looking for a job, while 45% are passively looking, and 3% are not looking at all. Hourly workers seem to be reevaluating their priorities at the moment, as 48% are not actively looking for new opportunities—although a pay check is still the primary motivator (40%) to entice an hourly worker to make a move. The next major reason workers are drawn to a new hourly position is the chance for career advancement (22%), followed by the promise of a better work environment (11%). Survey participants said the most desirable hourly jobs fall in the Clerical & Administrative field, followed by Manufacturing & Production, Hospitality, Delivery Drivers, and Retail. Hourly workers span all levels of education with 33% of survey respondents holding a bachelor’s degree.
HireRight Announces Launch of Initial Public Offering
HireRight today announced the launch of its initial public offering of 22,222,222 shares of its common stock. The initial public offering price is expected to be between $21.00 and $24.00 per share. As part of the offering, HireRight expects to grant to the underwriters a 30-day option to purchase up to an additional 3,333,333 shares of common stock at the initial public offering price, less underwriting discounts and commissions. HireRight has applied to list its common stock on the New York Stock Exchange under the symbol “HRT.” HireRight provides comprehensive background screening, verification, identification, monitoring, and drug and health screening services for more than 40,000 customers across the globe. HireRight offers services via a unified global software and data platform that tightly integrates into their customers’ human capital management systems enabling highly effective and efficient workflows for workforce hiring, onboarding, and monitoring. In 2020, HireRight screened over 20 million job applicants, employees and contractors for its customers.
A Talent Technology Buyer’s Guide Recruiters Can Count On
There are a bazillion talent technology companies out there, offering all kinds of recruiting products. How do recruiters know which are credible and worth your consideration? They turn to the TAtech Talent Technology Buyer’s Guide. This database only lists organizations that have great talent technology AND ascribe to the TAtech Code of Ethics. That makes it a unique resource that recruiters can count on to feature solution providers with BOTH state-of-the-art talent acquisition products and the highest standard of business practices!