A 2016 report by the research firm Gallup found that millennials—people born between 1980 and 1996—are the “most likely generation to switch jobs.” Today’s young professionals’ proclivity for job-hopping is putting a strain on recruiters and human resources departments at large companies, says Kurt Heikkinen, president and CEO of Delafield, WI-based Montage Talent.
“You’ve got several workforce trends that are driving the importance of recruiting and talent acquisition,” says Heikkinen, whose company develops software that helps customers conduct video and phone interviews with prospective employees. One such trend is “the mindset of the millennial workforce and the gig economy and the fact that they view their career as a series of gigs or projects,” he says.
On Thursday, Montage announced it had raised $8 million from investors. Heikkinen says the company will use some of the proceeds from the funding round to continue developing its software, which also helps clients find candidates when they have positions to fill. Some of the money will go toward sales and marketing efforts, Heikkinen says.
Ann Arbor, MI-based Plymouth Growth Partners led the round. Other participants included GCI, as well as return backers Beringea and Baird Capital, Montage said.
The company previously raised $6 million in 2014 as part of a Series C financing round.
In its press release announcing the funding round, Montage also said it had acquired Costa Mesa, CA-based GreeenJobInterview, which had been developing similar technology for doing interviews. Heikkinen declined to say how much his company is buying GreenJobInterview for, but says that Montage will partially finance the deal using money raised in the recent funding round.
GreenJobInterview’s 15 employees will now be joining Montage, which has a current headcount of about 70, Heikkinen says. Most of GreenJobInterview’s employees are based in California or Romania, and they’ll continue working from those places after the acquisition, he says.
Heikkinen says Montage’s software has been used to screen candidates in more than 180 countries. He says the globalization of the workforce is another “key driver” that has created demand from corporations for tools like the ones Montage develops.
“Companies are becoming more global and they’re looking for specialized skills outside of their local market,” he says.
Montage boasts an impressive roster of clients, including Verizon (NYSE: [[ticker:VZ]]), PepsiCo (NYSE: [[ticker:PEP]]), and several of the largest insurers in the U.S. One-fifth of the companies in the Fortune 500 use Montage’s software, Heikkinen says.
Montage customers can send e-invites to job candidates so that they can learn more about the potential employer ahead of a first interview. Candidates can do video interviews using computers or on mobile devices with the Montage Interview app, which is available for both iOS and Android, Heikkinen says.
Many interviews that take place via a Montage phone or video conference happen the traditional way, with the two parties online at the same time. But the company’s software also allows companies to conduct asynchronous exchanges with candidates, Heikkinen says.
“Candidates answer a series of questions on their own schedule, recording their answers and then submitting them to the employer,” he says.
Heikkinen emphasizes that Montage is a technology company, not a hiring search firm. Clients can use Montage’s software to find and edit sets of standard interview questions, he says, “but it really is the employer who is making the hiring decision.”
Heikkinen declined to comment when asked about Montage’s total sales in 2016 and revenue projections for the current year. He says Montage’s sales have been growing 50 percent year-over-year, but did not provide specific dollar figures.
