Under the human resources technology umbrella, the term refers to software and hardware that conducts a variety of human resources functions, including payroll, performance analytics, employee engagement, benefits and the hiring process — among many others.
Moving forward, the human resources technology market is predicted to grow to an amazing US$35.86 billion by 2028, spurred in part by increased investment in new product development. The COVID-19 pandemic, unsurprisingly, has had a dramatic impact on the workforce as the shift to digital accelerated over the last two years.
HIRE Technologies Inc. (TSXV:HIRE, OTCQB:HIRF, Forum) is contributing to that growth thanks to its technology-first focus as it consolidates and modernizes the staffing marketplace.
The company owns and operates a number of staffing firms as well as a technology platform that it deploys to help optimize organizations their human resources.
Headquartered out of Toronto, Ontario, HIRE is the only publicly traded Canadian 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 the company is focused on building a portfolio of brands focused on technology and geared towards shaping the future of human resources through synergies, scale and reach.
Because HIRE is focused on technology, staffing and human resources consulting services, Dealy said the company wants to “build up a multitude” of brands, with each one contributing to the company’s growth and goal of becoming a global brand. While HIRE is currently focused on the Canadian market, Dealy said the company anticipates expanding further into the US market as well.
At the core of the company’s business are three key solutions:
- Staffing: providing revenue streams from recurring contracts and high margins through an on-occurrence permanent placement service
- HR consulting: acting as trusted advisors to boards and financial sponsors
- SaaS: assisting with onboarding and offboarding, employee engagement and performance management
In terms of what makes HIRE stand out, Dealy said the company has “a very unique way” in how it brings companies into the business. HIRE grants its portfolio companies independence by keeping their longstanding and strong brands intact under HIRE’s umbrella. This enables the portfolio companies to focus on growth, as they leverage HIRE’s highly scalable back-office infrastructure and benefit from the security and support of a parent company like 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 valuation model with acquired EBITDA underwritten by the sellers .
Revolutionizing HR through technology
Dealy said the industry grows at a “rapid rate” when it comes out of downturns, including the COVID-19 pandemic, because companies need to re-engage their workforces and governments put a lot of resources into getting people back to work — both developments that benefit the staffing industry.
As such, it’s not surprising technology is impacting the human resources industry and, as Dealy explains, companies in the US are often looking for candidates in Canada or elsewhere because they “don’t need the nearest and best” anymore, they just need “the best resource.”
“Employers have gotten used to that hybrid workforce model that they have been forced to enter into when the started,” Dealy said. “It really accelerated this change in mentality of how we engage with the workforce.”
He added that it’s put a lot of pressure on companies in Canada because their resources aren’t only being poached via other opportunities near their office — the door has opened to opportunities in other regions as well, including international opportunities.
With that in mind, HIRE has identified several ways in which technology is revolutionizing HR, including:
- Boosting efficiency by streamlining and simplifying organizational tasks
- Attracting talent by having tools to empower employees to work where and how they want
- AI in recruiting, which includes deploying AI-based algorithms to find talent, reduce hiring discrimination and create a diverse workforce
- Remote work-tools, meaning having technology that can be accessed from anywhere
- Performance and wellness management, which means having technology for real-time, continuous feedback and goal setting
In line with this, a wide range of industries are shaping the technological shift in human resources solutions, which include:
- Remote work practiceswhich include the acceleration to more remote working and adapting to diverse and flexible work situations, as well as remote and global hiring
- The increase of human capital management (HCM) technological solutionsincluding processes for hiring, training and development, productivity, engagement and more
- Contract staffingwhich includes the adoption of recurring contract placement models to fill short-term and long-term needs
- Consolidating North American markets, which means consolidation is being driven by improved efficiencies and of sale
- Social media and marketingwhich are increasing and helping to capture a larger candidate tool
- More focus on diversityequity and inclusion in hiring practices
The future of technology in HR
As such, when it comes to the overall market’s outlook, HIRE released its 2022 Human Resources Industry Outlook in January, detailing eight key human resources leaders should be implementing in order to address challenges in the industry.
Broadly, the priorities range from a talent shortage, hybrid working models and people analytics to diversity and inclusion, training and development, employee wellness, 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 companies well into the future,” Dealy said in the release.”Now is the moment 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.”
When it comes to in-demand skill sets for 2022, HIRE’s five predictions include artificial intelligence and machine learning, cloud computing, data science, software engineering and sales and digital marketing.
“You’re always seeing companies wanting to leverage their technologies more,” Dealy said, adding that labor is expensive. “When you’ve got labor shortages and a scarcity of resources, it makes it even more important to try and leverage that.”
This is where artificial intelligence can come in and make an impact because Dealy said companies want to try and leverage the data they have.
“Data is very valuable [for companies] trying to understand their client base better and the needs of the market better, and using analytics to do that is very important,” he said.
The management team
Simon Dealy, Chief Executive Officer
Simon Dealy is a senior executive with more than 25 years of expertise in a variety of industries, including operations, finance, strategic planning, mergers and acquisitions, business development, and company start-ups. Dealy has developed business strategies, changed procedures, and raised cash 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, Chief Legal Officer
Before his time with HIRE, Eric Loree worked at the TSX Venture Exchange where he supervised the team responsible for reviewing new listings and ongoing issuer transactions. Loree was also a member of the TSX Venture Exchange’s executive listing and policy committee.
Loree has also worked as legal counsel to a major telecommunications company and practiced in the corporate finance and securities law department of a national law firm.
Dan Teguh, Chief Financial Officer
Dan Teguh was previously the director of corporate development at a leading North American healthcare consolidator where he was responsible for acquisitions and transaction execution.
Teguh also held senior roles at a publicly traded insurance holding company covering all aspects of capital management, such as M&A, planning, operations, financial reporting and investor relations.
The investment opportunity: A consolidator bringing top tier talent to the global market
At present, HIRE is the only Canadian public consolidator operating in a significantly fragmented, $500 billion global market with no other dominant competitor. The company’s revenue streams are resistant to recessionary and geopolitical pressures while also being in a strong position to take advantage of economic recoveries. With the staffing industry seeing double-digit growth post-recession, this puts HIRE in a unique position to take advantage of its growth potential.
As organizations seek valuable and scarce human resources in today’s market conditions, HIRE’s staffing offerings, particularly for IT, are becoming more attractive to companies looking for top-tier talent in North America.
In other words, while HIRE is well-positioned to capitalize on growth, so too can investors with this unique investment opportunity catering to a market not only evolving rapidly, but here to stay for the long haul.
Fore more information, please visit hire.company.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing