Why Perengo decided to join TMP Worldwide – the global leader in talent acquisition
We are excited to announce that Perengo is joining TMP Worldwide.
Since starting Perengo in 2015, it was always our goal to accelerate the pace of innovation in the recruitment space. From the beginning, our approach was to introduce state-of-the-art adtech to the recruitment world to solve candidate sourcing efficiently at high scale.
Both our technology as well as our team will be integrated into the TMP organization and we’ll work together on our shared vision for the talent acquisition market. We are thrilled at the opportunity to expose our work to a much larger audience and help the world’s largest and most ambitious employers solve their recruitment challenges.
Perengo will continue to serve its existing clients and will be made available as part of TMP’s platform offering to its customers.
The Past: Recruitment Before Programmatic Technology
Perengo’s business model is based on the following insight: The labor market is an inefficient marketplace. Recruiters are having trouble to hire talent while unemployment rates have been between 3.5% – 6% since 2015.
Inefficient marketplaces are the sweet spot of adtech – using technology to match and optimize supply and demand. Based on the previous experience of our founding team, we decided to tackle this problem from a B2B angle and started to focus on recruiters and recruitment marketers.
Common challenges of recruitment are:
- Volume: Sourcing enough candidates is challenging and volumes are difficult to predict
- Quality: Finding the right fit of candidates is not easy
- Time: Recruiting is time consuming due to manual workflows and repetitive tasks
- Tracking: Generating useful insights about recruitment bottlenecks and improvement opportunities requires a dedicated setup
- Cost: Budgeting for recruitment campaigns is problematic as success attribution is laborious
High-scale and high-efficiency recruitment is Perengo’s sweet spot. This is where our technology was able to create the most value and where we started gaining significant traction.
The Present: Programmatic Recruitment Is the New Normal
Just a couple years ago programmatic technology was a fringe word in the recruitment space. Much has changed since.
As a whole, the talent acquisition market is seeking to move towards workflow automation across all steps of the candidate journey. This trend follows similar developments in other industries such as ecommerce and app marketing, where much of the work is done by the marketing stack.
Employers are requesting automated and cost-optimized job ad distribution as a standard feature from their agencies and job board partners. It is a huge improvement over manual distribution.
Along those lines, the partnership ecosystem is evolving in the right direction. Many job boards have adopted performance pricing models such as CPC (cost per click) and CPA (cost per action/applicant) to increase transparency. Another major improvement are the standardized ways in which advertisers (employer/agency/etc.) and publishers (job boards) exchange data.
All of the mentioned trends above are key building blocks which help the industry to become more efficient, transparent, and performant.
The market is getting ready for the next phase in its evolution.
The Future: Platforms, Data, and End-to-end Candidate Engagement
To predict the future of the talent acquisition market, it helps to look at analogous markets which have gone through similar phases in the past. In e-commerce, we’ve seen a steady shift towards full automation from programmatic distribution of ads to fully integrated customer data platforms which help advertisers to reach audiences along the entire customer journey.
We are moving towards a similar development in recruitment marketing where employers will be able to reach talent across all touch points. The logical solution is a unified platform where employers can manage all their talent acquisition workflows and all data.
Data as the key to success
If the entire candidate journey is captured in a unified platform, then employers have a centralized hub for data collection, analysis, and activation. This 360 perspective carries the following benefits:
- Proper Attribution: Compare the real cost of different sourcing channels.
- Better Investment: Allocate recruitment budgets in the most effective way.
- Data Insights: Apply learnings across the entire candidate journey.
Given TMP shared our vision and drive to accelerate the pace of innovation in talent acquisition technology, they were the perfect partner to continue our journey with. With TMP’s acquisition of Perengo, its platform becomes an integral part of the future TMP recruitment solution. Exciting times are ahead and now off to the next chapter.
In conclusion, we also would like to thank all our clients, partners, mentors and families who have supported us during the past years. Thank you for believing in us, without you this journey would have been impossible.
This is just the beginning, there is more to come.
Onward and upward. 🚀