Jobvite, the company that once pioneered the use of social media to find interesting jobs and find interesting candidates, today announces two initiatives aimed at doubling its ambition to create a larger platform. form of recruitment and follow-up of applications.
The company has made an investment of more than $ 200 million. It will use these funds to acquire three small businesses focused on different aspects of the recruitment process: Talemetry (specialized in recruitment marketing); RolePoint (for employee referrals and corporate removals); and Canvas (a text-based conversational bot to start the filtering process).
Jobvite does not disclose its valuation with the financing, which comes from the private equity firm K1, but for a little clarification, in an interview, Dan Finnigan, CEO of Jobvite, said that it was a participation majority, but was not close to a complete acquisition. (PitchBook's latest valuation of the company, of approximately $ 150 million, is very old and dated September 2014 and has never been confirmed by the company.)
The combined company will have more than 2,000 customers including Schneider Electric, Lenovo, Santander, PayPal, original parts and Panasonic.
Finnigan says that Jobvite's growth and investor interest in supporting this is accompanied by two changes, one technological and the other, in how organizations manage human resources.
Several years ago, many companies, hoping to reduce their costs, merged their workforce and recruitment operations. "Recruitment has become an afterthought," he said. This has pushed companies to tackle as a viable minimal type of solution to the applicant tracking software but with little or nothing else.
But more recently, the struggle for talent has intensified, not only because of the low unemployment rate, but also because of the numerous opportunities and shortages of qualified personnel for specific, often emerging, skills. In turn, companies have begun to realize "that recruitment is the backbone of every business and that tracking candidates is simply not enough," he said.
At the same time, technology has evolved. While many recruiting software (and the recruitment process) have always been quite fragmented, the move to cloud computing solutions has made it possible to consolidate the process and use a platform to manage it. (Google's launch of Hire, which allows users to manage candidates via G Suite applications, LinkedIn's recruitment platform, Zoho and SmartRecruiter are all examples of using cloud platforms to create more comprehensive procurement and tracking services.)
Added to this is the increasing use of technologies such as machine learning to remove some of the most mechanical aspects of a recruiter's work to speed up processes.
Jobvite's three acquisitions are all part of these two trends. Canvas, for example, uses a bot to collect initial information about a candidate to start the selection process before recruiters take over.
Talemetry uses marketing technologies to identify the most ideal candidates to better target job opportunities, in the form of ads or other types of content.
Finally, RolePoint will add a new feature to exploit referrals of existing employees and facilitate the management of corporate moves.
Finnigan compares the cloud-based platform approach we are seeing in the market with Salesforce's impact on the growing concept of customer relationship management. "We know that marketing and sales software has continued to evolve with new features such as content marketing, and so has recruitment," he said.
"We are excited to be investing in such innovative technology," said Ron Cano, Managing Partner at K1 Investment Management, in a statement. "The talent acquisition sector is vital to our economy and is ready to be disrupted by outdated software that is still prevalent. K1's investment will create the only true end-to-end talent acquisition platform and provide our customers with accelerated growth in feature and service innovation. "