СЕО Startup Builder PVG
One of the main challenges that concern all verticals in general and HR in particular is data sparseness. The penetration of technology can vary from one island to another. This has a big impact on the HR industry, because it is important to create a connection between talent and employers, and for this to happen both parties must at minimum find out about each other. In Indonesia, most often there is no digitized data about the company or about a potential employee, and there is no federal database of resumes. At this point, the market is very fragmented: recruiters in Jakarta may not be able to find people in Bali or Sulawesi.
My impression is that the vast majority of Indonesionas are still looking for work through people they know. But there are some HR companies — most often these are headhunting agencies with their own database and they have various monetization models, for example access by subscription and a percentage earned for each person who acquires work.
In addition to structuring and accumulating data, processes need to be automated. This is a hot topic that will definitely be taking off in the coming years. Indonesia is a country with a lot of paper bureaucracy. There they don’t have a labor code like the one in the Russian Federation, and the arrangement between the company and the employee is regulated by a few laws and the internal documents of the company. I think that full-fledged HR platforms are needed there that can manage employees and the corresponding paperwork: accumulated vacation days, end of year bonuses, social payments and contributions, medical insurance, and overtime.
The second niche that I would pay attention to is the management of freelancers or offshore employees. Today, many people don’t work in the city or even in the country in which they are physically located, and this is a global trend. There are several complex issues that need to be addressed here. First off, it is the hiring process, onboarding such employees, paperwork and reporting to local regulatory authorities, and in some cases visa issues. Secondly, there is the fintech component: cross-border salary payments and early wage access. I think that this area will be actively explored by HR teams around the world and, of course, in Indonesia. For investing, this is also a reliable B2B business.
The last segment that I have long believed in is services that help build a career track. Currently there are many applicant tracking systems, but the world is already ready for career tracking systems. Since talent has become more mobile, and work has become more often remote, I expect there will be services that will build a career path for a certain talent, show possible development paths in different countries, propose the best companies, and assist with motivation letters and resumes.