For job seekers, the days of sitting in a diner, scouring the want ads and circling prospective employment opportunities are a thing of the past. Now, in the age of online everything, many employment platforms are built on the promise of finding the right jobs for the right candidate right away. The goal is to make it quick and easy to reach the congratulatory handshake at the end of a successful job interview for both job seeker and employer.
This evolution has also created a number of opportunities for early stage HR tech companies looking to carve out their piece of this lucrative pie. In 2014 alone, the HR tech sector attracted $2.3 billion in venture capital funding. There is opportunity here and investors are quickly realizing it. The growth in the sector can be grouped into four distinct verticals: recruitment, assessment science, online learning, and employee communication/engagement and recognition. Finding the right niche within a particular vertical can help a company find early success in the human capital space. Taking advantage of multiple verticals increases the opportunity and Binder, a Montreal-based company founded in 2014, is doing just that.
Binder offers an employment platform that has both a job-seeker and employer facing component. For job seekers, the platform offers an opportunity to build a robust profile and a two-way communication path with potential employers. For employers, the platform provides shareable information about company culture, office perks, etc., though multi-media content. The platform also lets employers engage with potential employees through interactive questions, challenges and even trial projects/internships. This information sharing almost instantly allows the employer to weed out weaker candidates and for solid candidates to shine.
Priscilla Lavoie, co-founder of Binder explains how the collection of data can help both employer and employee: “By better understanding a candidate’s interests, personality, goals, and expertise, as well as a company's culture and the type of employees they’re looking for, Binder can essentially provide an intelligent fit score between a candidate and a company/role. Employers can choose to see only candidates who score above a certain threshold, drastically reducing the amount of unqualified candidates and noise hiring managers have to deal with, while also helping to avoid costly hiring mistakes.”
Binder’s product is particularly attractive to small and medium size enterprises (SMEs), because it allows them to hire like much larger companies without having to invest in infrastructure and operational resources.
Lavoie continues: “Many small but fast-growing companies don’t have the time or resources to effectively source talent like the McKinseys and Googles of the world. Binder gives these smaller, high-growth businesses a chance to ‘hire like the best’ by analyzing and filtering candidates through questions and challenges to find the most suitable match.”
It is significantly attractive to university graduates early in their career who are typically more comfortable sharing information online. This interaction enables the platform to collect 3 times the amount of data than a traditional resume.
“Since Binder's value proposition resonates most with candidates who lack significant ‘real-world’ experience, the focus is primarily on college students and recent graduates,” said Lavoie. “This demographic benefit greatly because the platform allows them to prove their skills to employers, while enabling employers the ability to test-drive the talent before hiring.”
Binder’s innovative platform aligns the hiring needs of high-growth small and mid-sized companies with the interactive recruitment experience desired by job seekers.
In addition to the expected financial returns, RBC's investment will:
Location: Montreal, Quebec
RBC investment details: $125,000 convertible debt
Date of initial RBC investment: March 2015