HRTech Startups See Opportunities in Great Resignation Pain

Image credit: iStockphoto/Aleutie

What started as a great social experiment during the pandemic got employees thinking about what work means to them. Fed up with employers dictating terms, they’ve decided to take matters into their own hands. And it has led to the Great Resignation, now spreading like a second pandemic around the world.

It’s already creating upheavals in the U.S. and Asian markets, made worse by the tightening of labor laws and employees having a taste of alternative lines of income. China is facing a “lying flat” challenge where workers refuse to work too hard, while Western Europe faces the same challenges as their U.S. peers despite having stringent labor laws.

Some see it also as the Great Reckoning, pointing to the employers' failure to understand what employees need. But analysts argue that this is not just about pay or better perks this time around.

Whatever you call it, it’s creating great consternation among all employers as they try to bootstrap their organization to thrive as the pandemic becomes endemic. Where employers once saw this social movement as a temporary shift in employee expectations, many realize it’s time to reimagine the employee experience.

It is also why startups like Deel and HiBob are now working together.

Deel is a payroll and compliance startup founded in 2019. Its deal is to bring together payroll, compliance, perks, benefits, and other capabilities needed to hire and manage a global team onto a single platform.

What’s different is that it is designed for today’s hybrid workforces, including independent contractors and full-time employers. It partners with more than 250 legal, accounting, mobility, and tax experts to ensure that today’s companies can build their workforces or find talent and stay compliant in over 150 countries. And the entire process can be completed within minutes, the company claims.

HiBob is an older brother that entered the market in 2015, before the pandemic. Its product, Bob, offers an agile HR Tech suite that the company claims follow how people work today. That is globally, remotely, and collaboratively. Startups and multinational companies see value in Bob in getting HR and managers connecting, engaging, developing, and retraining their top talent. It’s ideal for high-growth global digital companies like Fiverr and Monzo.

Now both companies are coming together to integrate their offerings tightly. The two companies announced that their integration will help CHROs and HR leaders “to streamline and better serve modern companies with growing dynamic workforces, whether teams are comprised of a mix of full-time employees and contract or freelance workers or domestic and international workers.”

"We are in the midst of the Great Resignation, and employee turnover, hiring to enable growth are at peak levels. HR leaders are under significant pressure to manage everything from recruitment and hiring to onboarding and retaining initiatives to offboarding workers leaving their organizations," comments Ronni Zehavi, chief executive officer at HiBob.

"Especially for modern, multi-location, high growth companies, this can present substantial challenges without the right technology in place as HR teams are managing employees across regions with many different employment arrangements. HiBob's integration with Deel solves this problem. It takes the guesswork out of these processes by making the process of hiring and paying workers – all while remaining compliant – seamless regardless of where they live," he adds.

The integration is good news for mid-sized, multinational companies, especially those who want to scale rapidly but are tied down by employee demands for better flexibility and employee experiences.

The tight integration will allow new employees to go through one onboarding process that feeds into both systems simultaneously. In addition, the employee data will flow from one platform to the other, making it easy for companies to onboard and pay employees, contractors, and freelancers anywhere in the world.

This creates fewer mistakes, less manual data entry, and increased flexibility in managing many types of employment arrangements, payment cycles, locations, currencies, and time and attendance compliance benefits.

"At Deel, we're constantly looking at ways to help businesses around the world hire and manage their global workforce," said Alex Bouaziz, chief executive officer and founder at Deel. "We're delighted to be partnering with HiBob, a leader in its field, to give global, high growth companies the ability to streamline and better serve their employees, wherever they might be in the world. The integration of HiBob's capabilities with Deel's seamless functionality will provide major benefits to global teams of all sizes."

Get ready to see more such integration news as HRTech startups see opportunities as the Great Resignation continues to roil employers.

Winston Thomas is the editor-in-chief of CDOTrends, DigitalWorkforceTrends and DataOpsTrends. He chronicles the trends that are reshaping work and the digital workforce. You can reach him at [email protected].

Image credit: iStockphoto/Aleutie