Equity Firms Continue Investment In HR Technology
February 1, 2016 – CoreHR, a provider of cloud-based human capital management and payroll software, has received an investment from JMI Equity, a growth equity firm focused on investing in software and services companies, and JMI Services LLC, which is the family investment company of John J. Moores.
‘’This investment will help us to continue our expansion across the U.K., Ireland, and other markets,” said John Goulding, CoreHR CEO. “We are continuing our relentless focus on software innovation, rapid deployment and delivering exceptional HCM and payroll management solutions to our customers.”
CoreHR’s founders will retain significant ownership and along with the current management team will remain actively involved in the business.
CoreHR offers cloud based, enterprise HCM and payroll solutions, which deliver an integrated platform to manage both transactional and transformational HR for organizations that range from a thousand to several hundred thousand employees. The firm’s solution encompasses the entire employee lifecycle from ‘hire to retire’ — including recruitment and onboarding, payroll and compensation, and workforce and talent management.
“We consider CoreHR to be the best provider of HCM software solutions in its markets. The company has a number of compelling opportunities to expand geographically, add new customers, and deepen its involvement with existing customers,” said David Greenberg, general partner of JMI Equity. “We believe that the added resources of our team and those of JMI Services will enable CoreHR to accelerate its growth strategy.” JMI Equity and JMI Services are independently managed firms.
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Companies investing in HR technology have continued to make headlines in recent months:
Randstad Holding just confirmed it is leading a seed financing in Focus Orange Technology. The investment is centered around the development of Crunchr, Focus Orange’s analytics platform. Crunchr collects, validates and consolidates people data into meaningful insights around strategic workforce planning, succession, talent management and employee preferences.
In November, Talentsoft, a global, privately held leader for cloud-based talent management solutions, completed a funding round of $27 million. The round was led exclusively by Goldman Sachs’ merchant banking division. The company’s software application suite provides an end-to-end talent management solution, ranging from recruiting to learning, and from compensation to performance management.
With so much money being invested in HR technology hiring executives can only hope that tools for managing their workforce will improve. Only 52 percent of organizational leaders are satisfied with the data they currently receive from their recruitment process outsource provider, according to the ‘Measuring Up’ report released by Korn Ferry subsidiary, Futurestep. Low volume of data, accuracy of metrics, and alignment with business outcomes were specifically highlighted as problem areas by businesses monitoring performance metrics.
While the Futurestep findings emphasized the need for RPO vendors to go above and beyond to satisfy clients, the report warned of the importance of mastering basic analytics first and foremost: “Good metrics go hand in hand with good RPO and achieving this pointed to the promise of a successful long-lasting partnership between the RPO provider and client.”
“It’s clear there is still some work to do when it comes to analytics,” said Elliot Clark, CEO of HRO Today. “Continuous innovation and trust will make for an improved relationship, enabling success over a sustained period of time, but companies and RPO providers need to align metrics with business objectives from the outset to gather truly valuable data.”
It is also more important than ever for today’s CHRO to understand how important new technology is within a company’s HR department. According to research from Aon Hewitt, future CHROs will need to be cognizant of the rapid progress in HR technology, particularly SaaS solutions, to improve HR processes and analytic capabilities.
Jobvite’s Recruiter Nation Survey found that 72 percent of recruiters acknowledged data analytics as somewhat important or very important. Dan Finnigan, Jobvite CEO, said: “Recruiters need to get creative and take a multipronged approach using insights gleaned from analytics, and mobile tools, while engaging the entire organization to help find and hire top talent. That’s how winning companies will stay one step ahead in this competitive career landscape.”
Contributed by Scott A. Scanlon, Editor-in-Chief, Hunt Scanlon Media