Employment Hero

Employment Hero offers human resource, Employer of Record (EoR), PEO, and benefits solutions for small and medium-sized businesses (SMBs). Other services offeerd include 1) SmartMatch, which utilizes AI to suggest suitable candidates for hiring purposes, 2) “Swag”, an employment app for individuals to manage savings, wages and benefits at work while also being able to generate resumes using AI and 3) an employee learning management system (LMS). The company claims a 2.9x return on investment for companies using Employment Hero and 81% improved payroll efficiency.

The company previously introduced localized versions of the platform in these markets with pre-built employment contracts and policies. During the Covid-19 pandemic, the company introduced “Global Teams,” which served as a professional employer organization (PEO) for remote teams.

In April 2024, the company acquired professional services firm Employment Innovations to accelerate the development of its fully automated payroll solution. Previously, in February 2022, the company acquired KeyPay, a cloud-based payroll and workforce management solutions provider, for an undisclosed amount. The acquisition also included Pensionsync, a UK-based subsidiary of KeyPay that connects any payroll software to any pension provider. KeyPay is expected to operate independently and contribute to Employment Hero’s growth in Australia, New Zealand, Singapore, Malaysia, and the UK.

The company generates revenue via monthly subscriptions per employee, ranging from USD 8-12 and optional extras (employee assistance and HR advisory), priced at USD 6-15.

Key customers and partnerships

As of April 2024, the company served over 2 million users across 300,000+ enterprises. Notable brands included Tedaisy Insurance Group, BESA and PPS.

Funding and financials

In its most recent funding round (October 2023), the company raised GBP 131 million (~USD 159 million) in a Series F growth funding round led by TCV. Fund were earmarked to 1) support its global expansion, particularly focused on strengthening its presence in the UK, 2) expanding local headcount to 180 team members by end 2024 and 3) to expedite the UK rollout of SmartMatch, its AI-driven recruitment solution.

The company noted that it processes over USD 100 billion in payroll annually (April 2024), having had over 100% YoY growth since its inception in 2014. The company reached unicorn status in 2022, and invests USD 25 million into R&D each year.