Productivity solutions are undergoing significant reassessment this year, and platforms for human resources – utilized for employee recruitment, termination, compensation, and management – are included in this evaluation. Currently, a company that has developed what it considers to be the future standard for HR operations is announcing a substantial funding round, demonstrating both its own expansion and the industry’s concentration on this sector.

Hibob, the company responsible for the HR platform known as “bob” (the company’s name is articulated as “Hi, Bob!”), has secured $70 million in funding, with sources familiar with the deal indicating a valuation of approximately $500 million.

Ronni Zehavi, Hibob’s CEO and co-founder alongside Israel David, stated, “Our core objective is to bring HR technology up to date.” He continued, “We are a people management platform designed for the modern workplace. Whether employees are working remotely or in a collaborative physical environment, our clients encounter challenges. We believe future HR platforms will move away from being cumbersome and complex, and instead offer a different experience. We aim to be a system that fosters engagement, rather than simply recording data.”

This Series B funding round is spearheaded by SEEK and Israel Growth Partners, with additional participation from Bessemer Venture Partners, Battery Ventures, Eight Roads Ventures, Arbor Ventures, Presidio Ventures, Entree Capital, Cerca Partners and Perpetual Partners – the same investor group that supported Hibob during its Series A extension in 2019. To date, the company has raised a total of $124 million.

This investment arrives during a year that has underscored the importance of adaptable and inclusive HR systems, but it also follows a period of difficulty for Hibob. The company addressed a sexual harassment allegation involving a senior executive, and faced accusations of attempting to conceal the matter. The chief revenue officer involved has since been replaced following media reports.

A company spokesperson communicated to TechCrunch, “Hibob has a zero-tolerance policy regarding harassment of any kind. The integrity of our company and our employees is of the utmost importance. When this incident came to our attention, it was taken very seriously and subjected to a thorough review. Ultimately, the employee in question was removed from the organization.” The spokesperson added, “Hibob maintains comprehensive company guidelines and training programs, and collaborates with a steering committee to ensure a safe workplace and a positive company culture. Our employees are fully aware of the repercussions for inappropriate conduct.”

Hibob originated in Israel, but currently designates London and New York as its headquarters. This funding follows a period of substantial growth across various markets.

In a recent interview, Zehavi explained that Hibob focuses on serving mid-market clients, currently numbering over 1,000 across the U.S., Europe, and Asia. These clients include Monzo, Revolut, Happy Socks, ironSource, Receipt Bank, Fiverr, Gong and VaynerMedia. Hibob has experienced “triple-digit” year-over-year growth in the past year (the specific figures were not disclosed).

Historically, human resources has not been considered a particularly prestigious function within a company, and has sometimes been viewed with skepticism. However, 2020 brought HR into sharp focus, as every organization – regardless of whether it operated with employees in traditional offices or more dynamic settings – was compelled to adapt its working practices.

This adaptation may have involved transitioning employees to remote work from home offices, or implementing new procedures regarding work schedules, locations, and interactions. However, irrespective of the specific changes, all implementations required a team to maintain connectivity, engagement, and effective management, and potentially handle hiring, furloughs, or terminations.

This shift has exposed the limitations of some established systems, which were often designed primarily for generating employee identification numbers for payroll and administrative purposes.

Zehavi noted that they selected the name “Hibob” after the owner of the bob.com domain requested an excessive price for its sale, but they appreciated “bob” as a product name. The company’s approach is built from the ground up to align with contemporary work styles, integrating diverse software and applications through integrations such as Slack, Microsoft Teams and Mercer, alongside other tools commonly used by HR departments.

Beyond covering essential HR functions like payroll, compensation, onboarding, time-off management, and benefits, Hibob offers additional features to create comprehensive user profiles, encompassing performance and culture. This includes the ability for peers, managers, and employees to provide feedback, enhancing engagement and providing the company with insights into individual contributions and areas for improvement.

This data is then integrated into organizational charts and visual representations that identify high performers, potential employee turnover risks, and emerging leaders. While numerous HR solutions offer standalone applications for some of these features – such as 15five’s early recognition of the value of goal-setting and feedback platforms – Hibob distinguishes itself by consolidating these capabilities into a single, unified system.

The resulting interface, as demonstrated, is more interactive and visually appealing, and is expected to be more user-friendly for HR professionals.

Investors recognize that the product and the company have identified a significant opportunity, delivering not only increased engagement but also a robust software solution that provides essential HR functionalities.

“This is not a Workday,” stated Adam Fisher, a partner at Bessemer, in an interview. “Our overarching belief is that HR is becoming increasingly important. While engagement is crucial, it alone is insufficient to create a substantial market.”

The platform has the potential for further expansion. For instance, employee training is gaining prominence in the enterprise and B2B software landscape, offering another avenue to enhance employee skills, knowledge, and engagement, particularly in a time of strained connections.

Zehavi mentioned, “Training, similar to a SuccessFactors-style offering, is definitely on our roadmap,” and noted that they are continuously adding new features. The most recent addition is a compensation module, often referred to as merit increase cycles. “This is a complex process requiring deeper integration with finance and the CFO’s office. We simplified it and made it easy to use. We launched it two months ago, and it’s been incredibly successful. Following learning and development, we have other modules planned for the future.”

Updated with further detail about Hibob’s news this year.