Sydney startup Employment Hero is an all-in-one HR benefits and payroll platform
Web-based HR platforms are becoming increasingly popular as companies seek lower costs, more efficient management processes, mobility and faster communication. Online applications help to streamline product integration and we’ve seen many business sectors shift their focus into online-only platforms. Accounting is now a very much web-focused based practice thanks to the technology behind companies like MYOB and Xero and even compliance is looking to speed up traditional paper-only processes through applications like iCompLii and BlueQ.
While these systems have all moved to the cloud, HR departments often still uses storage cabinets and manila folders which, of course, is a more or less redundant practise given the development of today’s technology.
To help transform the way businesses manage HR is an Australian all-in-one HR benefits and payroll platform Employment Hero. The platform works to simultaneously benefit both employers and their employees through a system of rewards and benefits that are not generally offered to small and medium sized businesses.
With Employment Hero employers essentially get a free HR platform that helps them manage employee performance, attendance, daily tasks, and rostering.
On the employee side of things, Employment Hero offers a whole range of benefits including everything from discounts on gym memberships, mobile phone plans, electricity and gas, mortgages, and cars, to name a few.
Founder of Employment Hero Ben Thompson said the reason an employer would choose to use the platform is that they can make their employees better off and in doing so there is no added cost. Employment Hero also gives employers a complete HR system that includes everything from HR contracts, a job board, and employment policies.
For years Thompson has been involved in helping companies run HR and also worked with Power2Motivate, an employee benefits company, and is also the director of KeyPay, an online payroll software service. Through these past experiences Thompson thought there must be a better way to scale to get 10,000 companies on board, rather than just a few hundred.
“I started to think, how can we make an HR platform more affordable for employers and more employee-centric for employees, and that’s when I came up with the marketplace idea. So Employment Hero is now a marketplace, we can make money by saving employees money,” said Thompson.
Employment Hero acts like a one stop shop for all employer HR needs. The platform is currently also looking at even more ways to benefit a company with the inclusion of a training module where employers can train and update their staff on specific procedures online, rather than at work.
Employers can either subscribe to Employment Hero and pay a fee or, if the platform already manages their company’s HR, then they can experience company-wide benefits for free. These benefits are derived from Thompson and his team looking into the expenses a typical employee has, which may include insurance, housing, superannuation and extra curricular activities. What Employment Hero does is find a cheaper way to provide these benefits by purchasing them in bulk through partner providers.
Currently Employment Hero has over 500 employers on the HR platform and more than 35,000 employees on the payroll platform.
“When we go to market and find all of these suppliers, we can negotiate incredibly good discounts for the people on the platform. We’re negotiating with a huge amount of purchasing power,” said Thompson.
“We get compensated as a broker for insurance and an advisor for superannuation, and we also make money on the marketplace, so if somebody uses Employment Hero to refinance their mortgage then we’re making money by saving them money.”
For standard features within the platform including customised reports and staff requisition, Employment Hero charges a $5 subscription fee per employee per month, for access to a range of enterprise features the cost increases to $8. However access to the standard model is free.
Employment Hero first launched in December last year and is currently seeking its first round of funding. Thompson said the startup is looking for a $3 million investment to expand the platform’s reach and provide even more benefits to both employers and employees.
Employment Hero is also looking towards international expansion and believes the UK would be the next best step. Thompson said the UK market has just rolled out auto-enrollment, which is effectively compulsory superannuation and Employment Hero’s system works well with helping employees and employers also manage their superannuation on-boarding process.
“I guess my company’s big, hairy, audacious goal has always been to make employment easier to manage and more rewarding for employees, and we’ve set ourselves the goal of working with ten thousand companies by 2020.”
Image: Ben Thompson. Source: Supplied.