Now that we’ve reached the year’s second quarter, we have a few months of investment data to absorb. WorkTech founder and chief analyst George LaRocque recently presented his firm’s Q1 2024 Global Work Tech Market Update, an industry-leading report.
The analysis reveals that global investment in workplace tech during this period amounted to $1.07 billion, with funding distributed across 50 deals. Q1 2024 witnessed an uptick in investment, compared to quarters two through four of 2023, which LaRocque says aligns with levels observed in certain quarters of 2020 and earlier, before the record-setting spike that was 2021 and early 2022.
WorkTech confirmed that the HCM segment maintains its lead over the talent acquisition and talent management sectors, with payroll accounting for a significant portion of the HCM category’s share of work tech investments. Employer of record (EOR) and earned wage access (EWA) solutions continue to attract substantial interest from investors. LaRocque wrote that talent acquisition figures typically compete with HCM numbers; however, this season’s shift is likely an investor response to “confusing job market data,” with headlines reporting layoffs causing an atmosphere of uncertainty.
One of the most interesting parts of the report reveals how AI fits into the picture. The report breaks down several categories of AI innovation, and I think we are getting to the point where buyers very much want to know exactly how these tools are designed to directly address the needs of HR and the workplace.
There’s been a huge buzz about generative functionality, and the report said that HR tech providers have “rushed to seize the market opportunity.”
Grab the full analysis and get LaRocque’s insight here. Meet LaRocque at HR Tech 2024 in Las Vegas at the Investor Summit.
HR tech in action
The AI-Enabled Information and Communication Technology (ICT) Workforce Consortium was recently launched by Cisco, Accenture, Eightfold, Google, IBM, Indeed, Intel, Microsoft and SAP—accompanied by six advisory organizations. It is centered on reskilling people in roles that are prone to be affected by AI. Consortium member goals include:
- Cisco aims to train 25 million individuals in cybersecurity and digital skills by 2032.
- IBM plans to skill 30 million people by 2030 in digital competencies, including training 2 million in AI.
- Intel aims to equip over 30 million individuals with AI skills for employment by 2030.
- Microsoft has committed to certifying 10 million people from underserved communities with digital skills for job opportunities by 2025.
- SAP intends to upskill 2 million individuals worldwide by 2025.
- Google announced more than $25 million to support AI training and skills development for individuals across Europe.
According to Lattice’s 2024 State of People Strategy Report, performance management remains a primary concern for HR leaders, especially amid economic uncertainties. Lattice introduced Talent Reviews, a new tool empowering HR business partners and managers to assess employee performance and potential more fairly and objectively through top-down evaluations.
LinkedIn has introduced a new feature called Recruiter Verification, enabling recruiters to authenticate their professional identity as company representatives and making it visible to job seekers. Soon, members may notice the “Verified Recruiter” label, indicating that a recruiter’s workplace has been verified through a LinkedIn Recruiter corporate subscription.
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