COVID19 has struck the world and also the global economy. But what does that mean for HR and HR Technology as their journey towards The Future of Work was just getting started?
Looking for answers, it was our luck to interview Jeff Wellstead, founder of Big Bear Partners Ltd.
How does COVID 19 crisis impact the business reality of the HR Tech Startups you know?
Generally, the SME market has been powerfully impacted by the lock-down issues, and downstream supply chain fall-out, which has shrunk revenue streams and disrupted several intended purchases of what now seem to be non-necessities in a survivalistic environment.
Many of the HR tech tools I’m familiar with – aimed at companies with 100-1,000 employees are often price targeted at the £10-£20/employee/month range – so they’re not breaking the bank. But only the most mission critical sorts of tooling is being considered at this point – mostly systems of record – possibly performance or project management tooling.
But I’ve seen a massive deferral of interest until things start to come back to ‘normal,’ and all indications are we’re looking at 2021, likely Q2 earliest for such purchases.
Do you consider the Corona-crisis to be a threat for all HR Tech Startups?
I would say most, unless again you can position your tooling to be mission critical in directly saving costs, supporting data insight with impact on workforce planning or risk mitigation, or otherwise focused on supporting strong remote working capabilities – as we’ll likely be in that scenario for at least 4-6 months – perhaps longer should social distancing continue until a vaccine is widely available.
Many offices are looking to bring back 50% of their employees on a split schedule to allow for ample distancing – so remote working will continue as a ‘thing’ for some time.
Do you expect HR and Business in general to use this situation to redesign work and accelerate their digitization process? If yes, what will be on top of their agenda?
I do think that this global experiment in remote working, and reconsideration of job structures, reduction of unnecessary roles, etc. will have CFOs and CEOs rethinking the entire spectrum of work redesign – mostly born of financial frugality brought on by the lock-down impacts.
The sorts of tooling that will immediately be considered will be cloud-based, highly secure and highly available systems of record, end-to-end workflow management, continuous performance measurement, OKR tooling, project management tracking, and collaboration software such as Slack, G-Suite, Microsoft Teams and more inclusive suites of capability vs. specialty or niche focused tools that stand alone.
Recruitment will come back as a needed thing as I predict several furloughed workers will reconsider their options whilst off work, and those that have already been laid off will no doubt have moved on whence the wheels at their previous employers come back online.
But any tool worth looking at has to solve real problems, reduce measurable costs, remediate powerful risks, and all have to produce useful and simple to derive, actionable data.
This is a real weeding out time – where superfluous bells and whistles, nice to haves but don’t really need and anything that is simply ‘feel-good’ stuff will be ignored.
What should HR Tech Startups do in this situation to safeguard and/or boost their business?
Become relevant, solve real business problems, make sure you’ve derived your solution by talking to real businesses under stress – and track what your solution does, or doesn’t do to fix those things.
Be attractive from a cost perspective. Be easy from an implementation and user engagement perspective. Be flexible in your packaging and price plans. Provide learning and support in the flow of your tool’s workstreams.
Have one face to the customer – not three or four. Reduce complexity, increase delight and satisfaction, and be remembered for having a unique and unforgettable experience (make it personal, like it matters who you’re selling to and why).