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Embedded Hiring is the Next Embedded Fintech

Pat Brothwell
Pat Brothwell
A tech professional embeds hiring into their platform after the success of embedded fintech.

Embedded Fintech is Currently the Most Significant (and Warranted) SaaS Trend

In recent years, embedded finance—more commonly known as embedded fintech—has gained significant traction, revolutionizing how financial services are offered to consumers. By integrating financial services seamlessly into non-financial platforms, embedded finance has brought convenience and accessibility to a new level.

Forward-thinking tech platforms started embedding financial interactions because financial solutions are something every company needs. Embedding them in a platform keeps customers on them more, increasing their stickiness and decreasing churn. The results speak for themselves—88% percent of companies implementing embedded finance increased customer engagement, and 85% say that it helps them acquire new customers.

The other significant benefits that have seen software companies across all industries race to embed fintech solutions include: 

  • New revenue streams 
  • Market expansion
  • Increased stickiness
  • Enhanced competitiveness
  • Higher customer satisfaction and retention

A similar approach can be applied to another crucial aspect of business operations: hiring. 46% of HR leaders say recruiting is their top priority this year, and 84% of SMBs report challenges with hiring top talent—hiring is the top pain point for businesses across all industries. 

Embedded hiring, the practice of integrating hiring processes into existing tech platforms, can transform these tech companies for the better, helping to grow revenue, increase market share, decrease churn, and make SaaS companies more competitive in the same ways embedded fintech has. 

In this blog, we’ll explore why embedded hiring should be the next embedded fintech.  First, we’ll explore how embedded hiring benefits end users (tech company customers) and then get into all the positives embedded hiring has for the tech companies themselves. 

The Benefits of Embedded Hiring 

Benefits for End User

Enhanced Efficiency

Embedded hiring offers significant benefits in terms of efficiency. Businesses can streamline the entire recruitment workflow by integrating hiring tools and processes into existing platforms. This eliminates the need for both candidates and employees to navigate multiple systems and platforms, simplifying their experience and reducing friction. 

With embedded hiring, organizations can seamlessly access candidate information, schedule interviews, and collaborate on evaluations within their existing workflows, ultimately saving time and effort for both hirers (recruiters) and candidates. 

Applicant tracking systems (ATS), the hiring platform typically embedded as the hiring solution, has been statistically proven to enhance the efficiency of the hiring process—78% of ATS users report it has improved the quality of their hires, 86% say it has helped them hire faster), and 78% of companies who used an ATS say it’s made recruiting easier. 

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Improved Candidate Experience 

One of the critical factors in attracting and retaining top talent is providing an exceptional candidate experience. Traditional hiring processes often involve manual data entry, repetitive tasks, and long waiting periods. Embedded hiring eliminates these pain points by providing a seamless and user-friendly experience. This integration creates a more personalized and efficient experience, enhancing engagement and increasing the chances of attracting high-quality candidates. 

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Reduced Employee Churn

Providing an exceptional candidate experience fosters good feelings from the very beginning and ensures candidates stay excited and engaged about your application process. This is key as candidate churn plagues industries of all types—92% of people who start an online application never finish it, and 60% drop out of an application because of length or complexity. An exceptional candidate experience means you’ll be the exception and not a stat when it comes to customer churn. 

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Data-Driven Decision-Making

Embedded hiring empowers organizations to leverage data-driven insights throughout the recruitment process. By integrating hiring tools with existing analytic platforms, businesses can collect and analyze data relating to candidate sourcing, application rates, and conversion rates. These insights enable recruiters to make data-backed decisions, such as optimizing job descriptions, targeting specific talent pools, or identifying bottlenecks in the hiring process. With access to real-time data, organizations can continually improve their recruitment strategies and optimize their talent acquisition efforts. 

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Seamless Collaboration

Collaboration is essential in a hiring process that involves multiple stakeholders, like hiring managers, HR personnel, and team members. Traditional coordination methods, such as email exchanges and spreadsheet tracking, can be inefficient and prone to miscommunication. However, embedded hiring facilitates seamless collaboration by providing centralized communication channels, task assignment features, customized workflows, and real-time updates. Hiring teams can collaborate within the same platform, share feedback, and collectively evaluate candidates, resulting in faster and more effective decision-making. 

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Scalability and Flexibility

Embedded hiring solutions can quickly adapt to the evolving needs of an organization. Whether a company is a startup experiencing rapid growth or a well-established enterprise expanding into new markets, embedded hiring platforms can scale alongside the business. These platforms can accommodate varying recruitment volumes and support different hiring workflows, ensuring a consistent and standardized hiring process across teams and geographies. Furthermore, embedded hiring allows organizations to integrate with third-party platforms like video interviewing, background screening services, or pre-employment skills testing. 

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Benefits for SaaS Companies 

 

New Revenue Streams

Embedded hiring software opens up new avenues for generating revenue. Embedding hiring tools into existing platforms is a value-add for customers that tech companies can monetize to grow revenue. Monetizing new solutions is 4x more efficient than acquisition and 2x more efficient than retention in improving revenue growth. 

Additionally, The more customers purchase additional products or services, the more it increases their overall value to your business. This means they are more likely to stay with your platform long-term, leading to increased MRR.

Preventing churn—which we’ll cover in the next section— also helps drive revenue. A 5% increase in customer retention can increase profits between 25-95%. 

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Increased Usage Rates and Decreased Churn

Churn is an issue for every software company—the average business churns through 30% of their technology platforms yearly. 

When businesses incorporate embedded hiring software into their offerings, it enhances the overall value proposition for customers. By providing robust hiring tools within their existing platforms, companies make it easier for users to manage the entire hiring process seamlessly. This increased usage leads to greater customer satisfaction and loyalty, reducing churn rates. With enhanced functionality at their fingertips, users are more likely to stay engaged with the platform, resulting in a win-win situation for businesses and customers. 

Studies show that SaaS companies selling more than one solution increased retention by nearly 20%, while SaaS providers with at least four solutions show an 80% retention rate. Additionally, The average mid-sized company replaces 39% of their SaaS applications with ones with better functionality. Adding more relevant solutions to your SaaS stack can improve customer retention. Check out our series on becoming multiproduct if you’ve yet to take that step!

Become Multiproduct

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Expanded Market Share

Embedded hiring software can help businesses expand their market share by attracting new customers and penetrating new markets. Organizations can target a wider range of industries and sectors by offering a comprehensive hiring solution. This versatility allows businesses to reach previously untapped markets and gain a competitive advantage. 

The ATS market is booming, so expanding your platform to include a recruiting solution gives you a leg up on the competition—68% of recruiting professionals say that investing in new recruiting technology is the best way to improve recruiting performance. 

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! 

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Expanded Team

Embedding the hiring solution of another vendor almost always comes with the advantage of having their team to help with implementation, marketing, sales, onboarding, and customer service during the duration of your partnership, essentially expanding your team with a new roster of experienced professionals invested in helping your business (and their embedded hiring) be a success. 

HiringThing, for example, offers full 360° support for our private label partners. This benefits your platform when you consider that 86% of customers are willing to pay more for a great customer experience. 

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Competitive Edge

In a crowded marketplace, differentiation is critical. Embedded hiring software enables businesses to stand out by offering a unique and value-added proposition. By providing comprehensive hiring capabilities within their existing products or services, companies demonstrate their commitment to addressing customer needs, especially considering, as we touched on before, just how challenging hiring is across all industries: 

  • 89% of C-Suite executives and 83% of HR leaders say HR tech enables them to be more flexible and responsive to the constantly shifting world of work. 

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Before You Go: A Quick Build vs. Buy Rundown

While embedded solutions typically imply that one company embeds another vendor's technology into their platform, occasionally, a tech company will consider building and embedding their own fintech or hiring solution from scratch. 

We’re not here to dissuade you from doing that if you have the time or resources, but we do feel we must point out how time-consuming and expensive that process can be. 

Outsourcing development bypasses the time and money spent on building new solutions from scratch and can save more than 50% of the SaaS development cost.  

  • Estimates place the range for developing a SaaS market viable product (MVP) between $50-250k. Due to the significant VC investments in the space over the last few years, costs will likely be much higher—well into the hundreds of thousands—to be competitive.
  • Build times usually range from 9-8 months to get your platform up and running, according to CloudSense. However, 70% of software development costs occur after implementation. Unexpected roadblocks or scope creep are a few reasons why 53% of projects cost 189% of the original estimate. 

Ensure Your Hiring Solution is Successful

Embedded hiring adds value and revenue to tech platforms. That’ll be especially true if these statements ring true for your organization.

  • Embedded hiring software is part of your growth strategy 
  • You are looking to roll out your ATS within the next year 
  • Your sales/account management team is incentivized to sell this product 

Checking yes to all three statements means you should schedule a demo with the HiringThing team today. If you didn’t, our team is still happy to begin strategizing on how embedded hiring software can supercharge your revenue growth. 

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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 HR technology and service providers to offer hiring and onboarding to their clients. Approachable and adaptable, the HiringThing HR platform empowers anyone, anywhere to build their dream team.