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HIRE Technologies is building a modern human resources company for the remote work paradigm

Last updated: 15:05 11 Nov 2020 EST, First published: 07:30 11 Nov 2020 EST

HIRE Technologies Inc. -
HIRE’s strategy is to create a global network of brands, layering SaaS-based technologies amid traditional staffing firms

HIRE Technologies Inc (CVE:HIRE) is building a different kind of human resources company – one for the modern age.

As the only Canadian public consolidator of staffing, HR, and IT firms, the group is executing a strategy to modernize and digitize human resources within a highly fragmented US$170 billion industry in North America. Its marquee brands offer a wide range of staffing solutions across Canada. 

HIRE’s strategy is to create a global network of brands, layering Software-as-a-Service (SaaS) based technologies amid traditional staffing firms. The strategy gives it additional revenue streams, synergies with existing business units, and unfair advantages against more traditional companies, as evidenced by its recent investment in US HR technology group Atlas ID.

In an exclusive interview with Proactive, CEO Simon Dealy talks about how he is guiding the company through one of the worst economic crises in recent memory and how remote work is presenting opportunities for HIRE to increase its market share.

Why is it so important for companies to take a technology-focused approach to hiring?

Companies have been embracing technology in many aspects of their operations for a long time now. It is essential to improving productivity, communication, customer service, business analysis, and reporting. However, recruiting has seen a slower adoption of technology, even though there have been advancements in this function.  Remote work mandated by the COVID-19 pandemic has been a catalyst in this regard by highlighting the digitization gap in how companies recruit for talent.

Newer generations of employees want to use technology (mobile friendly technologies) in all aspects of their lives, including searching for a new job, working through the interview process, and ultimately managing their careers. Companies that do not embrace this risk missing out on qualified candidates, especially those with unique, high-demand skillsets.  Whether it is for curating job applications, streamlining the interview process, or marketing job opportunities to the right target audience, companies recognize that AI is powerful. Its capabilities can be better leveraged across the talent acquisition space. There is a lot of potential for technology to make a meaningful mark on how employers hire, engage, and retain top talent.

In what ways has the pandemic (and associated economic contraction) affected recruitment and more specifically, your company?

There have been many years of status quo in the staffing industry, and the pandemic has reset the competitive landscape, creating several opportunities to capture new market share. Before the pandemic, only 3.4% of the workforce was working remotely. Gartner Research estimates that 88% of companies mandated remote work due to the pandemic, with 74% of companies planning to permanently shift to remote work arrangements. The workforce may never fully return to its pre-pandemic arrangement, and this is the biggest shake-up that our industry is seeing.

With the permanence of remote work come many opportunities.  Our candidates now have a much larger potential employer base. US companies are now more willing to hire Canadian employees and have them work remotely. It is encouraged further by the skills shortage in specific industries such as IT and Healthcare.  Our candidates also benefit from increased flexibility, lack of commute, financial savings, and additional family time. A report produced by review42 shows that 30% of telecommuters save up to $5,000 per year and that 99% of telecommuters want to continue working remotely.

For our clients, scheduling and interviewing candidates is vastly more efficient using video conferencing than traditional in-person meetings. In many cases, this has increased the number of interviews a candidate will conduct with a prospective employer. The time companies spend setting up and running these interviews is reduced, and it is estimated that companies save, on average $11,000 per year for each remote employee.

Of course, remote work has some challenges.  There is a decrease in the sense of belonging to a company without regular peer to peer contact. Companies have to work harder at communicating with and engaging their workforce. Mental health issues are rising due to feelings of isolation.

For HIRE, both the opportunities and the challenges of remote work present a way for us to win new market share.  We are thinking more creatively about recruitment and culture fit.  We are leaning on technology.  Keeping to the status quo of the staffing industry was never our intention. 

What's on the agenda for shareholders over the next few months?

HIRE is continuing to drive revenues through our organic growth model and expanding the awareness of our Atlas ID SaaS solution. Our SaaS solution is targeted to COVID-19 and helping employers re-engage their workforce safely and within Government guidelines. We have seen an uptick in market activity for all of our service offerings, which is a positive sign, especially since the staffing industry is typically a bellwether for economic recovery.

The company is also diligently working to close transactions in its acquisition pipeline. Our pipeline of target companies is increasing, and we are very optimistic about closing several transactions over the next twelve months. The company will likely expand into the US market in 2021.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

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