At Spark we love partnering with companies taking a product-first approach, which is why we’re thrilled to announce our growth investment in Justworks, a company that gives thousands of growing businesses across the country access to corporate-level benefits, seamless payroll, HR tools, and compliance support — all in one place.
As of 2015, there were almost 50 million people in the United States employed by small and medium-sized businesses. They represent almost 65% of net new private sector jobs and provide half of all private sector employment. Small and medium-sized businesses are truly the backbone of the entire U.S. economy. Unfortunately, managing their people has become harder and harder.
With rising healthcare costs and increased regulatory burden at both the state and federal level, it’s becoming increasingly challenging for entrepreneurs to manage their people and give them the benefits they deserve. Moreover, entrepreneurs and their operators want to spend more time growing their businesses and serving customers, not focusing on HR-related tasks. The HR products that have served the SMB market historically have not kept pace, and many SMBs are still using manual processes and outsourced servicing models to manage their HR, payroll, benefits, and compliance needs.
Software is disrupting and automating industries previously served by manual processes or managed services, and HR is no different. Justworks has a massive opportunity to transform how SMBs manage their people and back office functions. The company has taken a software-first approach by offering an all-in-one platform that automates everything HR-related — payroll, benefits, and compliance. Their solution becomes the system of record that manages SMB’s most important asset, their people, through an easy-to-use and elegant SaaS platform that combines exceptional 24/7 customer service with the power of the Professional Employer Organization (PEO) model.
Because of this, Justworks is able to leverage group buying power to give entrepreneurs access to top-notch benefits for their teams at affordable prices, as well as significantly reduce the administrative overhead associated with the compliance and regulatory burdens of growth and managing more people. Justworks is also the first company to completely productize the PEO model through a self-serve go-to-market. While their market opportunity is massive, there are few companies that can reach SMBs in an efficient and scalable way, an area where Justworks has excelled. It’s not surprising Justworks has acquired thousands of customers in the past few years and is one of the fastest growing HR SaaS companies.
Spark is thrilled to partner with Isaac and the Justworks team on their ambitious journey to becoming a category-defining company in the HR space. They’re also hiring!