While searching for information on HR Tech activity in the LATAM (Latin America) region, I stumbled into the 4th Latin American HR Tech Study, published by GoIntegro. Results was surprising. Parts of the LATAM region is quite vibrant and active, HR Tech wise!
“This year’s study reveals that 70% of the companies that have a formal HR Tech strategy met their objectives, 10 percentage more than companies that do not have a formal HR Tech strategy. Having a precise strategy and approach is crucial to make the best of HR technology in order to guarantee a more coherent and fluid Employee Experience and meet overall business goals” (Source)
I approached German Dyzenchaud, CEO and cofounder of GOIntegro, Latin America’s leading Employee Engagement Platform and asked to speak with him in order to get a better understanding of the HR Tech activities in South America.
HRTechNation: German, by all criteria, you are a forward thinking and innovative professional. You
established GOintegro back in 2002! Tell us a little about yourself and how you got to
where you are today with GOintegro.
German: At 26, once I graduated with an architecture degree from UBA, I co-founded my first Internet company about sports, which merged with a marketing agency with operations in Europe.
This personal experience was the seed for GOintegro, which started in Argentina developing benefit programs for business partners. After a while, the product incorporated more and more technological development with benefits, recognition and internal communication applications for the Human Resources area.
This is how we took the company to the point where it’s able to replicate the solution and customize it for other clients, having the ability to scale by using social technologies in the cloud.
Now the company has operations in 7 countries, more than 500 corporate clients, representing
1.3 million employees using our platform and applications.
HRTechNation: I have to say that the Latin HRTech market sounds like an exceptionally vibrant one!
How big is the South American HR Tech Market ( investments, no of startups). Should we look at each country separately?
German: Each country has its unique HR technology landscape, some are more developed and more competitive such us Brazil, Mexico and Chile. However, with the growth of cloud technologies and Software as a Service (SaaS) business models, most HR technology vendors have quickly become relevant in each country. We have estimated the size of the latin-american market for of HR Tech industry to have more than 12.000 companies with more than 500 employees. That is for the countries where we have presence: Argentina, Brazil, Chile, Colombia, México, Peru and Uruguay. As for the number of HR Tech startups, I would say there are around 50 of them.
LATAM region can be seen as just one place, but with different cultures. In terms of HR needs, it’s much more about what all countries share, than the differences they have. In fact we are growing our clients who replicate the platform in many countries where they have operations, and sometimes with one instance covering all of them.
HRTechNation: As per the report I read, which you initiated, the prominent categories are Internal Communication (45%) and Training (45%) solutions. That’s very different from other markets where recruiting solutions are leading the market – it’s actually LAST with 33%….Why the difference, do you think?
German: I don’t think that is different from other parts of the world in terms of penetration and most used HR technologies. In the 4th Latin American HR Tech Study we did at the beginning of this year, more than 1.000 HR professionals indicated that the most used HR tech solutions are those developed to support Payroll, Performance Evaluations, HR Management, Time & Attendance Tracking, & Recruiting. Internal Communications and Training are the ones expected to grow the most in the next few months.
The main differences that we see with other more developed regions in the world, are those driven by the importance of more labor intensive industries such as manufacturing, agriculture, mining, fishing, forestry and such, as well as drive by a relatively smaller knowledge based workforce.
HRTechNation: Are there any unique issues that define the Latin America HR Tech market?
German: Continuing with the what I was sharing before, I would add that is a fast growing market, we have seen a steady intention to grow HR Tech investments over the last 3 or 4 years with more than 40% of the companies growing their budgets for HR Tech. In response to this, not only global HR tech firms are entering the market more aggressively than in the past, but also there are many new startups operating locally in each country.
HRTechNation: What is the status of adaptation of HR Tech applications? Are HR managers keen to try them out? Do they prefer local apps or international ones? Can you mention 1 company that’s doing a great job adopting this kind of technology?
German: Mid-size to corporate firms place a lot of weight in their evaluation if the vendor has local and regional presence as well, so they have the support and the scalability they need.
HRTechNation: What are the activities (Meetups? Conferences?) of HR Tech in Argentina and LATAM in general? Do the local startup founders have some kind of community or eco systems they are a part of?
German: In each country there are a few associations, HR community organizations, local events and conferences, but they don´t integrate nor collaborate much across borders. The local startups tend to participate at these local initiatives. The HR Tech ecosystem still has a lot of space to grow.
HRTechNation: Any local VCs heavily involved in the industry?
German: Our two investors, Riverwood Capital, a PE from Silicon Valley with a strong presence in the region, and Kaszek Ventures, the largest VC in LatAm, are probably the biggest players in the Latin America Tech industry in general. Both invested in GOintegro and share our vision to create the leading HR Tech company in Latin America.
HRTechNation: Can you perhaps recommend a few South American HR Tech applications you are particularly fond of?
German: I would recommend Navent for Recruiting Technology. They have very interesting products with a few well established brands such as Bumeran, Laborum, and new solutions like HiringRoom.
In the Performance Evaluation niche you can find global brands such as Success Factors, but a few local brands such as Rankmi.com. There are many interesting companies like HolaEmi.com, a recruiting platform using AI and GOIntegro, of course.
HRTechNation: Any message that you would like to convey to the readers?
German: Technologies, together with cultural and social forces, are rapidly changing the Latin American HR technology market. Trends that have shown to be the new core of HR are taking the market in Latin America. Best practices to boost Employee Engagement, Improve Employee
Experience, leverage People Analytics, and solidify Organizational Culture are shaping how HR is developing strategies to support corporate objectives.
Muchas Gracias German!
About German Dyzenchaud
Germán Dyzenchauz is CEO and Co-Founder of GOintegro, the leading Employee Engagement platform in Latin America, which integrates in one place solutions that simplify the operation of initiatives related to Communication, Recognition, Benefits, Rewards and Incentives. For more
than 15 years Germán has led GOintegro’s strategy, product vision and operations in seven Latin American countries. He also led two financing rounds from Silicon Valley private equity firms to accelerate company growth.
Linkedin, Twitter, GOIntegro Blog (in Spanish), GoIntegro Website (english)