HR and Work Software – 20/20 and Beyond
Work and HR software companies remain relatively resilient through 2020, as many software buyers are looking for ways to improve corporate ROI from augmenting recruiting with unbiased AI and programmatic recruiting to improving retention via improved employee engagement / collaboration as the remote-work world is here to stay and the launch of talent marketplaces to reduce layoffs amidst a need to redeploy talent post the Covid-19 crisis. Expense reduction also is a key strategic pillar for many with the rollout of cloud CoreHR and payroll, among many other initiatives. Many HR/Work Software companies are positioned to contribute to the new ‘work from home’ economy and have benefited with substantial pipeline growth and accelerated sales, particularly in situations where the price point is relatively affordable. For those with less acceleration, the focus of buyers is on key metric improvement: customer retention, costs of employees vs. productivity, diversity & inclusion, and increasingly talent management. Either way, strategic buyers and investors have a keen focus on the work / HR software sector as a central area for outsized investment over the next 12-18 months as a sector that has outperformed in an increasingly challenging economic environment.