The 1001 startup ideas from YoStartups is to develop a Compensation Profile Platform that would anonymously aggregate the compensation data for different job profiles across cities and countries. Most of the details around compensation are kept a secret to avoid any confrontation from among employees. This makes employees often wonder about if they are properly rewarded for their work. Often professionals want to look at these data points before negotiating their compensation for their new role.
Market Definition for – Compensation Profile Platform
The workplace environment has been changing very fast with companies digging deeper into the limited set of highly skilled professionals. This is leading to more competitions which in turn is bringing a higher degree of transparency and more power into the hands of employees.
We already have a higher number of millennials in our workforce which is again being rapidly made in route by Gen Z. According to a report on Fortune, by 2019 Gen Z will make up about 20% of the global workforce – even more if the current pace of Boomers retirements increases.
Owing to the shift in the age group of the workforce, year 2016/17 is considered as the year of transparency in recruitment and its related compensations. Social media sites, and that too specifically Glassdoor and Vault are going to prove as the biggest game changer. They enable employees to talk online about their jobs, work culture, remunerations, etc.
Competitor Analysis for – Compensation Profile Platform
There are not many specific platforms dedicated to collating compensation data for different job profiles, but there is an increasing trend that people discuss these matters over social platforms like Glassdoor, Vault, etc.
There is one dedicated platform that we could find is California based company called Comparably. Comparably was founded in 2015, and has raised in total more than $13 million from across 12 different investors. Comparably has also ventured into the lucrative job market.
Pain Point & Target Audience for – Compensation Profile Platform
The target audience for the startup would be Millenial and Gen Z professionals who are either employed or looking to be employed by public or private companies.
Remuneration information is mostly kept secret by companies, and employees often wonder about their true potential and remain unsure if they are being paid fair. While switching their jobs, they also wonder if the offered remuneration is up to the market standards or he should negotiate for a better salary or perks.
Value Proposition for – Compensation Profile Platform
The platform will provide a common ground to all the professionals with higher transparency in remuneration and other associated perks for different job profiles. The platform can also be used to anonymously discuss the work culture in different companies, which job seekers can discover before hand and make better decisions.
The platform can later venture into the job market as well enabling a better match making between employers and job seekers based on mutual expectations.
Business Model for – Compensation Profile Platform
The startup will work on the social network model connecting corporate professionals. Any professional who wants to be a part of the network can do so by sharing his/her remuneration details, after which he would be able to access information from the other members on the platform. The platform will have non-disclosure policy and all the interactions over the platform can be done anonymously.
The company will set up a process to check the veracity of all the information provided by the members on the platform. It can do so by engaging a third party to anonymously verify the details before making it available on the platform.
Once the platform has sufficient data about different job profiles and employee expectations, it can start looking to monetize selling insights from the data to the private companies. The startup will also be able to monetize from its job platform heavily.
Way to market for – Compensation Profile Platform
The startup should launch the platform in one of the developing countries as they have the higher disparity in the remuneration for similar level employees across companies, or at times within the company. The startup should invest sufficient time and resources to set up the anti-theft security system for its data storage, as it would be holding a lot of sensitive employee and employer information.
In starting, the startup should target a specific industry and target to collate information of as many companies and job profiles. We suggest starting with software technology related roles as these employees often switch their jobs are mostly seen on the social platforms discussing new and past job profiles and remunerations.
Milestones for – Compensation Profile Platform
The startup should target to complete their technology development within 3-4 months. Post which they should target to collate atleast 50,000 employer profiles over next 12 months.
Investment Needed For Prototype for – Compensation Profile Platform
The startup should look to raise up to $250k in funding from early stage investors. It can approach any of the established job search platforms like indeed, naukri.com, etc.
Team Capability for – Compensation Profile Platform
As the startup would be holding a lot of sensitive information, it would need to put special focus on its’ cloud storage security. It makes perfect sense to have a co-founder with expertise in cloud security and ethical hacking. Another co-founder should be from the marketing background, preferably with some experience in working with any of the social platforms.
Investors / Expert Take for – Compensation Profile Platform
Human Resource and Job Market has always been a hot cake for investors with the likes of Indeed, Monster.com, etc. For the suggested startup idea, the key would be to create engagement on the platform. Once there is verified data for 100,000 plus professinals, the startup will be able to attract interest from existing Job Search platforms for the subsequent funding rounds and even lucrative offers for acquisition.
This 1001 startup idea article is from Yostartups, YoStartups is a Pre Accelerator and it empowers entrepreneurs to propel their business ideas into successful ventures. Yostartups’ core mission is to take the message of entrepreneurship to 1 billion people globally by 2020.
In case you are looking at scaling or launching a venture on similar lines, you can apply for our virtual acceleration program Excelrate on our website, Yostartups.com, Yostartups’ Excelrate program will help you in streamlining and structuring your startup idea. We have limited scholarships and discount packs for deserving startups, depending on the strength of your application, you may qualify for a discount.