Peakon, the Denmark headquartered “employee retention platform,” has raised a further $35 million in funding. Described as a Series B extension, the round is led by European venture capital firm Atomico, with backing from existing investors, including EQT Ventures, IDInvest Partners, Balderton Capital, and Sunstone.
Originally offering “people analytics” by enabling companies to more regularly survey employees, Peakon has since evolved to become a fully fledged SaaS for employee retention. It claims to now tackle three critical areas. They are employee engagement, actionable insights to prevent employee problems before they arise, and competitor analysis through benchmarking employee engagement data against Peakon’s proprietary industry-wide data.
Peakon’s surveys are designed to be both fast and conducted weekly, rather than annually (as is the traditional way of surveying employees). They also adhere to standardised questions so as to enable industry wide comparisons. This means that companies using the employee retention software can not only get a more immediate feel for how engaged employees are at any given moment, but also use that data to drive operational decisions and competitor analysis.
For example, Peakon claims to be able to predict when certain employees are in danger of leaving 250 days in advance of doing so. As hiring gets increasingly competitive, this heads up is crucial as it theoretically provides enough time for management to attempt to prevent critical employees from leaving.
Zooming out further, Peakon’s use of standardised questions for the micro surveys it conducts on behalf of customers is enabling the company to build what it claims to be the largest real-time database of “how the world’s workforce is feeling”. By diving deep into this data — based on more than 30 million data points and rising — various macro trends can be established, such as comparing the fall in worker productivity before the winter holidays across countries and demographics.
Meanwhile, I’m told Peakon has grown extremely fast over the last year. This has included opening an office in New York where co-founder Kasper Hulthin is now based, while the company expects its U.S. headcount to be over 50 employees within the next 12 months. Peakon also has offices in U.K., Denmark, Germany, and New Zealand, and says current headcount sits at over 180.
Since launching in early 2016, Peakon’s customers have included the likes of Capgemini, Verizon, BMW, TrustPilot, Harrods and easyJet.
Adds Mattias Ljungman, Partner at Atomico: “As our world continues to change, traditional concepts of work are being redefined. Workers have to deal with constant change, and this is why it is more important than ever for companies to listen to their employees’ voices and create a positive culture through feedback and engagement. Yet, today companies are still struggling to measure their most important asset: their people. We were blown away by Peakon’s rigorous, data-driven approach to this problem”.