Jobvite, the company that was once an early mover in leveraging social networks to help source job opportunities and find interesting candidates for openings, is today announcing two big moves to double down on its ambition to build a bigger platform for recruitment and applicant tracking.
The company has picked up an investment of over $200 million, and it will be using the money to acquire three smaller companies focusing on different aspects of the recruitment process: Talemetry (which specializes in recruitment marketing); RolePoint (for employee referrals and in-company moves); and Canvas (a text-based conversational bot to get the screening process started).
Jobvite is not disclosing its valuation with the funding, which is coming from private equity firm K1, but for a little guidance, in an interview, Dan Finnigan, Jobvite’s CEO, said it was a majority stake but nowhere near a full acquisition. (PitchBook’s last valuation of the company, of around $150 million, is very old, dating from September 2014; and it has never been confirmed by the company.)
The combined company will have 2,000+ customers that include Schneider Electric, Lenovo, Santander, PayPal, Genuine Parts, and Panasonic.
Finnigan says that Jobvite’s growth, and investor interest in backing that, is happening in tandem with two changes, one technological and another the evolution in how organizations handle human resources.
Several years ago, many companies — hoping to cut costs — merged together their personnel and recruitment operations, “and recruiting became an afterthought,” he said. That led to companies tacking on, as a kind of minimum viable solution, applicant tracking software but little or nothing else.
But more recently, the war for talent has escalated — not just because unemployment is low but because there are now multiple different opportunities and shortages of suitable people for specific, often emerging skills. In turn, businesses have started to realise “that recruiting is the backbone of every company, and that applicant tracking is just not enough,” he said.
At the same time, there have been evolutions in the technology. While a lot of recruitment software (and the recruitment process) has traditionally been quite fragmented, a move to cloud solutions has provided an avenue for consolidating the process and using one platform to manage it. (Google’s launch of Hire, which lets users manage job applicants using G Suite apps; LinkedIn’s recruitment platform; Zoho and SmartRecruiter are all prime examples of how cloud platforms are being used to build more complete sourcing and tracking services.)
Coupled with this is a rising use of technology like machine learning to remove some of the more mechanical aspects of a recruiter’s job to speed up processes.
Jobvite’s three acquisitions all play into both of these trends. Canvas, for example, uses a bot to source initial information about a candidate to start the screening process before human recruiters step in to take over.
Talemetry, meanwhile, taps into marketing tech to help identify where the most ideal candidates might be in order to better target job opportunities at them, in the form of ads or other kind of content.
Lastly, RolePoint will add a new feature to tap into referrals from existing employees, and to help manage in-company moves.
Finnigan likens the cloud-based platform approach that we’re seeing in the market to the impact Salesforce has had on the expanding concept of CRM. “We know that marketing and sales software have continued to evolve with new features like content marketing, and the same has happened in recruitment,” he said.
“We are excited to be investing in such an innovative set of technologies,” says Ron Cano, managing partner at K1 Investment Management, in a statement. “The talent acquisition industry is critical to our economy and ripe for disruption with outdated software still prevalent. K1’s investment will create the only true end-to-end talent acquisition platform and will provide our customers with accelerated growth in innovation of product features and services.”
Shiv has over 8 years experience working on Internet of Things and an avid user of Drones