Between the whiplash of fast-moving conditions and grave events that transpired over the pandemic, employees are seeking relief by voluntarily changing jobs or leaving the workforce altogether. As a result, the employee experience is now a strategic priority due to the prospect of large increases in employee turnover. For example, 4.3 million workers voluntarily left their jobs in August. Employers were already intent on keeping employees engaged pre-pandemic, and the need has only accelerated. The employee experience has transformed through recent consolidation and institutional investments, and this has resulted in more holistic, integrated solutions.
The employee voice has never been more amplified given recent investment in employee listening tools. Employers look to gain insights from employees and address shortcomings compared to industry benchmarks. Workday’s acquisition of people analytics leader Peakon began a quick succession of transactions within culture management solutions. Perceptyx enhanced its leadership position in employee listening and culture management through its acquisitions of CultureIQ and Waggl. Ultimate Kronos Group acquired workplace culture specialist Great Place to Work. Executive search firm ZRG Partners acquired culture consultancy Walking the Talk. On the venture funding side, employee experience platform Culture Amp raised a $100M Series F at a $1.4B valuation.
Employee communication continues to be a top priority as hybrid work arrangements remain in place. Engagement of frontline workers, who employers struggle to engage even in non-crisis conditions, has become even more critical as they have felt the effects of the pandemic most directly. Workforce communication players Social Chorus and Dynamic Signal combined to create a digital employee experience platform centered on productivity and wellbeing. Communications platforms WorkJam, Simpplr and InvolveSoft raised capital in the third quarter to address these challenges. After receiving an investment from Marlin Equity, social intranet company Coyo acquired Finnish communication platform Smarp and French engagement analytics company Jubiwee to expand its geographic reach and capabilities.
As the employee experience evolves and the definition of a benefit broadens, companies look to expand and integrate offerings across the spectrum. Recently, wellbeing and engagement platform Limeade acquired employee listening capabilities through its TINYPulse acquisition, and performance management suite 15Five added employee engagement through the acquisition of Emplify. Abry Partners and Castik Capital entered the space earlier in 2021 through the acquisition of engagement platform Reward Gateway. Rewards and recognition leader Terryberry continued its active M&A strategy and global expansion through the acquisition of UK-based iCOM Reward Works earlier in the year.
DISCLAIMER This presentation is intended for information and discussion purposes only and does not constitute legal or professional investment advice. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of Harbor View Advisors, LLC (“HVA”). The information in this presentation was compiled from sources believed to be reliable for informational purposes only. HVA does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented.
