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Drive Vertical SaaS Revenue With A Embedded Hiring Solution
In the increasingly competitive world of Vertical SaaS—there are currently 17,000 SaaS companies serving 59 billion worldwide customers—vendors are looking for innovative, unique ways to increase revenue that meaningfully help customers and set them apart from competitors. One strategy quietly emerging as a game changer for revenue growth among forward-thinking Vertical SaaS companies is embedded hiring solutions.
Hiring is a universal business need that all Vertical SaaS customers can benefit from. By embedding hiring solutions into their platform, Vertical SaaS platforms can offer specialized hiring for their industry.
This often-overlooked approach has the potential to enhance customer satisfaction (hiring high-quality candidates has been the top challenge facing businesses across all industries for the past few years) and drive revenue in highly impactful ways.
In this article, we’ll share:
- What embedded hiring entails for Vertical SaaS.
- Why hiring solutions matter to vertical software customers.
- The revenue-boosting potential of embedded hiring.
Understand What Embedded Hiring Entails for Vertical SaaS
Embedded hiring involves seamlessly integrated talent acquisition and recruitment functionalities, typically in the form of an applicant tracking system (ATS), directly into industry-specific SaaS platforms.
This concept capitalizes on the synergy between the specialized SaaS solutions your platform is already delivering and hiring solutions geared toward the industry you serve.
While Vertical SaaS platforms can build embedded recruiting solutions from scratch, it’s a time-consuming and expensive process just to get a minimal viable product (MVP). White or private labeling is a modality Vertical SaaS companies can take advantage of in order to quickly and efficiently add a hiring solution another vendor has already created and services to their platform. White labeling is branding the ATS with your company's colors and logos, presenting it as a proprietary solution and strengthening your brand. Private labeling takes this a step further, customizing the solution to fit your unique industry. We offer both modalities here at HiringThing.
Unlike traditional recruitment methods that require your users to juggle multiple platforms and tools, embedded recruitment helps them streamline the process by incorporating it into the existing industry workflows in a platform they already use and love, bolstering stickiness and, thus, boosting your Vertical SaaS’s revenue streams.
Hiring Solutions Matter to Vertical SaaS Customers
While hiring is a universal business need across industries, there’s a difference between hiring hourly construction labor vs. franchise management vs. barbers vs. home hospice employees.
Horizontal HR software might not work for the niche industries that Vertical SaaS serves. Adding HR capabilities tailored to your industry helps your clients optimize a necessary business component and demonstrates your overarching industry expertise.
Take a look at the data we’ve collected indicated that your Vertical SaaS customers probably need support in the hiring department:
- Recruiting and retaining top talent is the top problem facing 52% of small businesses.
- 74% of organizations felt their recruiting strategies were underperforming in 2022.
- Overwhelmingly, one of the biggest tech challenges facing businesses today is finding good recruiting (and retention) solutions.
- The ISG Survey on Industry Trends in HR Technology and Service Delivery found that 64% of companies utilizing HR tech achieve measurable business value from their HR SaaS investments.
The Revenue Boosting-Potential of Embedded Hiring for Vertical SaaS
Expanding Your Value Proposition
By integrating embedded hiring, Vertical SaaS companies can enhance their value proposition. They transition from solely providers of industry-specific solutions to comprehensive platforms that address operational and human resource needs (the importance of which, we just covered above!).
Churn Reduction
Companies churn through 30% of their technology platforms each year. Increasing stickiness—keeping customers on your platform with an in-demand solution—helps fight churn.
A 5% increase in customer retention can increase profits between 25-95%.
Monetizing a Critical Need
SaaS companies often focus on customer acquisition and retention to increase profits. However, the savviest companies will focus on monetizing new, in-demand features (like embedded hiring) to generate new revenue streams based on solving one of your customers' top business challenges—monetization is 4x more efficient than acquisition and 2x more efficient than retention in growing revenue.
Private Labeling Your ATS is a Strategic Approach to Revenue Generation
Private or white label embedded hiring solution helps save development time and costs and helps Vertical SaaS providers start taking advantage of their new hiring solution within a matter of weeks or days in order to capitalize on this in-demand resource now.
We’ve seen tremendous success with Vertical SaaS providers who’ve private-labeled our ATS, so created the report White Label Applicant Tracking System: A Strategic Approach to Revenue Generation which provides an in-depth look at how providers can leverage embedded hiring to grow their revenue and make their platform more competitive.
Upselling and Cross-Selling
Vertical SaaS vendors can use embedded hiring as an opportunity to upsell and cross-sell your other SaaS offerings. Showcase the benefits of a unified ecosystem that not only addresses core industry needs but also supports seamless talent acquisition and management.
Expanded Market Share
Since Vertical SaaS platforms have a niche focus and don’t try to be everything, it reduces the potential market size. Expanding your market share is vital, and embedded recruiting could be just the solution to accomplish that.
While 98% of Fortune 500 companies utilize an ATS, only 35% of SMBs use an applicant tracking system—there’s a huge opportunity to convert over 60% of SMBs to ATS users!
Embracing the Future of Vertical SaaS Revenue
In a landscape where customer retention and differentiation are crucial to success, embedded hiring stands out as an innovative approach to drive revenue growth in Vertical SaaS companies.
By providing a holistic solution that integrates talent acquisition seamlessly into industry-specific platforms, SaaS companies not only enhance their offerings but also create a valuable source of recurring revenue.
About HiringThing
HiringThing is a modern recruiting and employee onboarding platform as a service that creates seamless talent experiences. Our white label solutions and open API enable technology and service providers to offer hiring and onboarding to their clients. Approachable and adaptable, the platform empowers anyone, anywhere to build their dream team.
