Under the umbrella of human resources technology, the term refers to software and hardware that performs various human resource functions, including payroll, performance analysis, employee engagement, benefits, and process hiring, among others.
Going forward, the HR technology market is expected to grow to an astounding US$35.86 billion by 2028, driven in part by increasing investment in new product development. The COVID-19 pandemic, unsurprisingly, has had a dramatic impact on the workforce, as the digital shift has accelerated dramatically over the past two years.
HIRE Technologies Inc. (TSXV: RENTAL, OTCQB: HIRRF, Forum) contributes to this growth through its focus on technology as it consolidates and modernizes the recruitment market.
The company owns and operates several recruitment firms as well as a technology platform that it deploys to help organizations optimize their human resources.
Based in Toronto, Ontario, HIRE is Canada’s only publicly traded human resources consolidator offering technology, staffing and human resources consulting services.
The HIRE Technologies advantage
In an interview with Stockhouse Editorial, Simon Dealy, CEO of HIRE, explained that the company is focused on building a portfolio of technology-driven brands aimed at shaping the future of human resources through synergies, scale and reach.
Because HIRE focuses on technology, staffing and HR consulting services, Dealy said the company wants to “build a multitude” of brands, each contributing to the company’s growth and its success. goal of becoming a global brand. Although HIRE is currently focused on the Canadian market, Dealy said the company also plans to expand further into the US market.
At the heart of the company’s business are three key solutions:
- Recruitment: provide revenue streams from recurring contracts and high margins through a permanent event placement service
- HR advice: act as trusted advisors to boards of directors and financial sponsors
- SaaS: assist with onboarding and departure, employee engagement and performance management
As for what sets HIRE apart, Dealy said the company has “a very unique way” about how it brings businesses into the business. HIRE grants independence to its portfolio companies by keeping their strong, long-standing brands intact under the HIRE umbrella. This allows portfolio companies to focus on growth as they leverage the back-end infrastructure highly scalable office from HIRE and benefit from the security and support of a parent company such as HIRE.
Additionally, HIRE combines two important and synergistic engines to drive growth: an organic growth engine – fueled by brand cross-selling programs – and an M&A growth engine where HIRE benefits from private-to-public arbitrage in its model. assessment with an acquired EBITDA guaranteed by the sellers. .
Revolutionizing HR with technology
Dealy said the industry is growing at a “rapid pace” coming out of downturns, including the COVID-19 pandemic, as businesses need to re-engage their workforces and governments devote a lot of resources to recovering. people at work – two developments that benefit the recruitment industry.
As such, it’s no surprise that technology is having an impact on the HR industry and, as Dealy explains, American companies often seek candidates in Canada or elsewhere because they “don’t don’t need the closest and best” anymore, they just need “the best resource”.”
“Employers got used to this hybrid workforce model that they were forced into when the pandemic started,” Dely says. engage with the workforce.”
He added that this puts a lot of pressure on companies in Canada because their resources are not only being poached via other opportunities close to their office – the door has also been opened to opportunities in other regions, including international opportunities.
With this in mind, HIRE has identified several ways in which technology is revolutionizing HR, including:
- Increase efficiency by streamlining and simplifying organizational tasks
- Attract talent by having tools that allow employees to work where and how they want
- AI in recruitment, which includes deploying AI-based algorithms to source talent, reduce hiring discrimination, and create a diverse workforce
- Tools for working remotely, i.e. having technology accessible from anywhere
- Performance and wellness management, which means having technology for continuous real-time feedback and goal setting
With this in mind, a wide range of industries are shaping the technological shift in human resources solutions, including:
- Remote work practiceswhich include accelerating remote work and adapting to diverse and flexible work situations, as well as remote and international hiring
- The rise of human capital management (HCM) technology solutionsincluding hiring, training and development processes, productivity, engagement, etc.
- Contract staffwhich includes adopting recurring contract placement models to meet both short-term and long-term needs
- Consolidation of North American markets, meaning consolidation is driven by improved efficiency and savings in sales
- Social media and marketingwhich increase and help capture a larger tool candidate
- More attention to diversityequity and inclusion in hiring practices
The future of technology in HR
As such, when it comes to the overall market outlook, HIRE released its 2022 HR industry outlook in January, detailing eight key priorities that HR leaders should implement in order to address industry challenges. .
Broadly speaking, priorities range from talent shortages, hybrid work models and people analytics to diversity and inclusion, training and development, employee well-being, automation and artificial intelligence and business growth in specific categories.
“The COVID-19 pandemic has transformed the business world, and its influence will continue to impact businesses in the future,” Dealy said in the statement. “Now is the time to embrace change and be ahead of the human capital trends that will impact 2022. It’s not just about compensation when it comes to attracting great talent it’s also about focusing on what employees want in this new employment landscape and investing in their development and retention.”
As for the skill sets in demand for 2022, HIRE’s five predictions include artificial intelligence and machine learning, cloud computing, data science, software engineering, and digital sales and marketing.
“You’re always seeing companies that want to get more out of their technologies,” Dely said, adding that labor is expensive. “When you have labor shortages and resource shortages, it is even more important to try to take advantage of it.”
This is where artificial intelligence can step in and have an impact, as Dealy said companies want to try to exploit the data they have.
“Data is very valuable [for companies] trying to better understand their customer and market needs, and using analytics to do that is very important,” he said.
The management team
Simon Dealy, Managing Director
Simon Dealy is a senior executive with over 25 years of expertise in a variety of industries, including operations, finance, strategic planning, mergers and acquisitions, business development and start-ups. Dealy has developed business strategies, modified procedures and raised funds with remarkable success.
Building and selling his company, Control Solutions, a global internal audit provider with services in over 35 countries, is one of Dealy’s most notable accomplishments.
Eric Loree, Legal Director
Prior to his time at HIRE, Eric Loree worked at the TSX Venture Exchange where he oversaw the team responsible for reviewing new listings and pending issuer transactions. Loree was also a member of the Executive Listing and Policy Committee of the TSX Venture Exchange.
Loree also worked as legal counsel for a major telecommunications company and practiced in the corporate and securities law department of a national law firm.
Dan Teguh, Chief Financial Officer
Dan Teguh was previously director of business development at a major North American healthcare consolidator, where he was responsible for acquisitions and deal execution.
Teguh has also held senior positions at a publicly traded insurance holding company covering all aspects of capital management, such as mergers and acquisitions, planning, operations, financial reporting and investor relations. investors.
The investment opportunity: a consolidator bringing the best talent to the global market
Currently, HIRE is Canada’s only public consolidator operating in a significantly fragmented $500 billion global market with no other dominant competitor. The company’s revenue streams are resilient to recessionary and geopolitical pressures while being in a strong position to take advantage of economic upturns. With the recruitment industry experiencing double-digit growth following the recession, this puts HIRE in a unique position to capitalize on its growth potential.
As organizations seek out valuable and scarce human resources in today’s market conditions, HIRE’s recruitment offerings, especially for IT, are becoming more attractive to companies seeking top talent. in North America.
In other words, while HIRE is well positioned to capitalize on growth, so can investors with this unique investment opportunity that responds to a market that is not only rapidly changing, but here to stay for the long term.
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FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing