Retaining top-tier talent is a challenge no matter the industry or segment. According to a 2016 Compensation Force study, the average total turnover for all industries is 17.8%. Employees that don’t feel recognized when they outperform expectations are almost 2 times as likely to be job hunting, and that’s not great news, considering the average employee exit costs 33% of their annual salary.
A team of entrepreneurs — Amichai Schreiber (formerly Intel and Mobileye), Ben Reuveni (Intel), and Danny Shtainberg — set out in 2014 to reverse the trend with Gloat (previously Workey), an AI-powered career development platform that matches users with personalized opportunities while allowing them to remain anonymous. The New York-based company went on to attract $9.6 million in funding across a seed and series A round, and today it announced that it has snagged $25 million in a series B round co-led by Eight Roads Ventures and Intel Capital. (Existing investors Magma Venture Partners and PICO Partners participated.)
Gloat CEO Reuveni says the proceeds will be used to expand the firm’s New York and Tel Aviv offices with an “ambitious” hiring plan, and to further enhance its existing and in-development technology and service offerings. He notes that some of the world’s largest employers have already deployed its tools, including Unilever, Schneider Electric, LivePerson, Intuit, Oracle, Grubhub, Fiverr, PayPal, Oath, eBay, Vimeo, Cisco, General Electric, Deloitte, Western Digital, Monday.com, Houzz, Wix, and over 500 others.
“Our technology solves a problem that costs large enterprises on average $400 million,” said Reuveni. “As the first in our field, we are proud to be leading the way in helping enterprises evaluate their workforce, as individuals with unique skill sets and ambitions pave the way to maximize output while also increasing employee engagement. The momentum we’ve achieved in the last year and the increasing demand we’re getting from the market proves that our solution is at the forefront of the future of work.”
Gloat’s free-to-use flagship product is InnerMobility, which performs the aforementioned employee-to-opportunity matching by comparing individual resumes to a database of millions. Managers can tap it to recruit people for internal part-time projects, gigs, full-time positions, mentorships, and job swaps and to provide those who don’t land jobs actionable feedback. As for human resources teams, they’re able to glean insights about the hiring process, in part from easy-to-read metrics about available jobs, recent assignments, and the number of days off employees have collectively taken. Plus, those same teams get visibility for all types of vacancy, with filters for roles, availability, preferred salaries, and more.
On the employee side of the equation, InnerMobility recommends skills potentially in need of refinement or development (e.g., “marketing analytics,” “sales operations,” and “research”), while at the same time suggesting connections with company leaders possessing applicable knowledge. It also facilitates reverse mentorships, enabling employees to gain access to specialists within other corporate departments and to see how many external recruiters might be looking for folks with their unique talents.
AI-driven talent recruitment tools are fast becoming a dime a dozen, which is hardly surprising. In theory, they offer employers far greater insight into candidates’ personalities, histories, and experience than cover letters and resumes alone ever could. Startups like Eightfold and Vervoe tap machine learning algorithms to assess would-be employees’ skills, while ZipRecruiter, LinkedIn, and Indeed use them to match businesses with job seekers they might otherwise pass over. If the trend holds, the tech stands to disrupt the enormous recruitment software market, which was worth an estimated $1.1 billion as of 2016.