Human resources departments are one of the most traditional, and least digital, areas of many corporations. Now, progess is being made to find the right balance between implementing people management technology and maintaining a human touch. Startups across Latin America are developing solutions for improving human resource processes.
Why HR Tech is needed:
The needs and pain points of people management cover the full spectrum, from job placement for university students to career development for employees.
- Workers of the future will need better technology and design training. Education providers must not only teach, but also help students enter the workforce and succeed.
- Lack of information means people apply for jobs they don’t want, leading to high dropout rates at entry-level jobs.
- Recruiting and selection is inefficient. Human resources teams sift through piles of CVs and conduct in-person paper-and-pencil exams. Often, headhunters are needed to fill an important, yet costly role.
- Managing and retaining employees requires deliberate initiatives and creativity. Paying on time and tracking of employee satisfaction is critical. Employers want workers to progress over time. When talent is scarce, it is all the more important to attract, retain, train and promote from within.
Technology has a role in optimizing key processes in order to put the right people in the right jobs so they can have successful careers. Startups are focusing on specific human resource functions, or parts of the people management value chain, by leveraging technology to better find, verify, select, onboard, pay, and train employees. Below are examples of HR Tech solutions organized by value propostion.
1. Gaining Skills
- Educational experiences that match individuals with experts who can pass on relevant skills that will help them boost to their careers. Typical business model: Fee per student and success fee
2. Finding Work
- Web-based platforms that allow job seekers to pro-actively search through job opportunities, sometimes in a specific field. Typical business model: Pay-per-post or success fee
3. Selecting employees
- Software that filters a broad set of candidate and manage the application process. Some solutions use machine learning for predictive ability while others offer video interview options. Typical business model: Pay-per-hire or SaaS
- Technology that helps employers run thorough background checks on job candidates. Especially important in gig-economy that connect workers directly to end users. Typical business model: SaaS
4. Managing Employees
- Software that allows SMEs to better manage payroll, track vacation days, conduct evaluations and measure employee happiness. Typical business model: SaaS
- Education for employees that are recieve on the job training to improve performance. Training keeps employees engaged and motivated. Typical business model: Fee per employee
The Peruvian HR Tech scene
Peru has become an launchpad for HR Tech due to great founders and a latent market opportunity. The recent purchase by Navent of Peru jobs portal Aptitus from media group El Comercio is the most recent validation of the attractiveness of Lima’s job market.
Mapping of Peru HR Tech startups:
List of Peru HR Tech startups:
|AYO Mentoring |
Get on Board
HR Tech startups help people gain skills and grow in the job that is right for them. The strength of the HR Tech startup community in Peru will result in employees reaping the benefits.