Gone are the days during which CEOs and leaders of big, complex, multinational teams struggle to understand employee engagement. Say goodbye to menial HR surveys that weakly reflect reality and to post-damage exit surveys that raise issues very late.
In our AI era, it is possible to have a more robust approach to measuring and optimizing employee engagement. According to CrunchBase this “employee engagement” market is valued at USD 1 Billion. Peakon a Copenhagen startup is shaping up to be the leader in this space. They provide a B2B software that enables companies to measure and improve employee engagement. Whilst the most tech savvy and innovative companies of the sort of Google, Facebook and Amazon are deemed to have their own people analytics teams and solutions, most companies don’t. Peakon thus aims to enable those companies to upgrade their people analytics capabilities. By combining data science with organizational behavior and psychology it aims to elevate people management and bring it at par with the best finance and employee management techniques. Peakon estimates that more engaged employees will directly translates in the top lines of businesses. In fact, they estimate that highly engaged employees have 37% fewer sick days, 30% higher productivity and that every 1% increase in engagement leads to a 0.6% increase in revenues and 58% lower churn cost.
How does Peakon aim to increase employee engagement?
Peakon’s approach is to use simple data driven solutions to “understanding, engaging, and retaining staff”.
To understand staff and engage them frequently without burdening them, peakon carefully designed its data collection process. Its process is enjoyable and minimize time commitment. through smart surveys that uses algorithms to asks “the right questions at the right time”, the system distributes questions across the organization in a way that provides all insight a manger needs without burdening employees.
Real time data and analytics is provided by gathering continual feedback. This enables managers to take a preventative approach to people management rather than reactive one. Through smart algorithms, the platform pinpoints early on areas of risk and even suggests to managers tangible action plans. This is a major improvement compared to traditional way of doing yearly reviews. The algorithms work by understanding what motivates employees and what are common issues they are facing.
The platform also facilitates communication throughout the process and allows managers to respond directly to employees which proved to be very powerful: employees like to know that they are being heard.
The platform claims to be very secure, and uses latest encryption techniques to protect data.
Results are very encouraging: in 2017-2018 the companies’ revenues grew six fold. Their client portfolio includes top-notch companies such as Capgemini and BMW. And it is the fastest growing SaaS company in Europe. They recently raised a 22 Million Series B and plan to expand globally. Clients are also very satisfied with results with some clients witnessing 50% decreases in churn rates. In one instance, a client completely restructured its organization to act upon feedback received on the platform. Clients even compare the platform to Salesforce, as one said: “Every morning, I turn on my computer and check Salesforce to understand the real-time performance of our sales and pipeline What I love about Peakon is that it’s a very similar experience, but rather than looking at our sales figures, I’m looking at something more important: how our people are feeling.”
Will it be the next Salesforce?