Top Trends in HR and Talent Tech Driving Investment Today
Discover why now is a great time to join Talent Venture Group as we invest in new talent acquisition technologies
Long before the global pandemic disrupted the world, Talent Venture Group set its sights on the HR and Talent Tech sector. The TVG team has 30 years of experience in this domain, and we are dedicated as a team to the HR and Talent Tech sector. We believe in the future of work and the potential of this sector to grow no matter the disruption happening in the world. Join us as we explore the megatrends driving the HR and Talent Tech market today, and the technology driving innovation in talent acquisition.
Human Capital Management
Human Capital Management refers to a set of practices related to managing people. Focused on the organizational needs of talent, there are three main categories of HCM: talent acquisition, talent management, and talent optimization. Human Capital Management refers to a set of practices related to managing people. Focused on the organizational needs of talent, there are three main categories of HCM: talent acquisition, talent management, and talent optimization. According to TVG internal analysis, the global HCM market is worth $600 billion USD and has an expected Compound Annual Growth Rate (CAGR) of 9.2% until 2022.
Talent Acquisition
Talent Venture Group has developed our portfolio around the global talent acquisition category, which our internal analysis estimates at $250 billion USD globally, with a 10.3% CAGR until 2022. We call this the fastest-growing sector of HCM! Essentially, the talent acquisition sector includes functions focused on finding the right person for the job such as attracting, sourcing, interviewing, hiring, onboarding, and more. In the future of work, finding and onboarding talent will become more and more challenging as remote work becomes the norm and the talent pool expands around the world.
The TVG portfolio spans over 15 sub-verticals of talent acquisition, from sourcing and engaging to selection and hiring, we have focused our investments to create a hotbed of talent acquisition technology companies ready to meet the market disruption in 2021, and turn it into growth for years down the line. As the global future of work continues to develop, the Talent Venture Group portfolio of companies will play a pivotal role in the employer-employee relationship challenges going forward.
As we focus on the future of the HR and Talent Tech market, the TVG investment team has identified three megatrends:
Megatrends
The War for Talent
The talent wars have begun. Even before the global pandemic disrupted almost every aspect of life, the workplace was in the beginning phase of being changed forever. Indeed, the pandemic served as a catalyst for rapid change, and some companies are still trying to catch up as the disruption continues.
Distributed Teams
Since the pandemic transformed the corporate headquarters into a more fluid concept, the employer/employee relationship has been changed forever. The world is not likely to ever return to ‘normal’, at least as far as talent is concerned. The new workforce may come from anywhere, expanding the talent pool exponentially as geography becomes immaterial.
The Gig Economy
Untethering employees from the monolithic office opened many employee’s eyes to the possibility of leveraging talent and experience to work for themselves. The gig economy has disrupted the employer/employee relationship by shifting the culture of leadership from ‘command and control’ to ‘mentoring and collaboration’. On the employer side, the number of skills sought by employers has risen dramatically. Corporations can’t reskill or upskill their existing workforce fast enough to meet changing needs and increasingly turn to contingent and contract talent to fill the void.
Technologies
Supporting these megatrends in talent acquisition is the increasingly sophisticated technology available in the sector. In fact, the $400 billion global HR and Talent Tech sector of the market has an 11% expected CAGR until 2025. These are the technologies that TVG investment experts have earmarked for explosive growth as the world goes forward into the new normal.
AI and Machine Learning
Combining AI and machine learning isn’t new to HR and Talent Tech, having been used to hyper-automate payroll, recruitment, and service management, to name a few areas. In the post-pandemic work environment, technology based on AI and machine learning processes will improve efficiency and reliability. Specifically, the TVG team sees the hyper-automation journey expanding through talent acquisition processes to eliminate redundancies and reduce labor costs.
Employee Experience (EX)
As the interaction between employer and employee becomes more mobile, distributed, and virtual, companies of all sizes will need to address their employee experience (EX) strategy. From recruitment to onboarding, development and retention, focusing on the employee experience impacts employee performance, collaboration, and engagement.
Data-driven Insights
Corporations are investing in digital HR tools to help them assess talent productivity and engagement to ensure work requirements are being filled and that mental health and well-being are considered. These sophisticated tools enable HR professionals to measure not only the productivity of their talent but give crucial insights into all aspects of the EX. These insights can be repurposed into decision-making tools that improve workplace conditions and make talent acquisition and onboarding smarter.
TVG Companies
Without a good co-pilot, navigating the changes in technology disrupting the HCM could be a daunting task. Fortunately, TVG has the knowledge and experience to assemble a portfolio of companies prepared to exceed expectations as the market for HR and Talent Tech grows. We’d love to welcome you as an investor with the TVG companies! Click Here to meet our team.
By the way, if you are an #investor or #founder focused on or interested in the HR & Talent Tech space, you’re always welcome to sign up for TVG HR & Talent Tech Deal Radar newsletter, where we share intel on deal flow, spot trends and report short insights of the market on a weekly basis.
