Deel, one of the leading providers of global employment solutions, launched a suite of tools that will move them towards becoming a full-stack HRIS vendor.
Currently, companies that are building a global tech stack need a variety of solutions. So far, there hasn't been a single vendor that can provide the full suite of employment solutions (employer of record, global payroll, contractor management) and the full suite of HR solutions (leave management, employee files, performance reviews, etc).
Just because no one has completed the transition yet, doesn't mean that many aren't trying. Rippling announced that they were moving from the HRIS space towards the global employment space at the end of 2022. Ceridian is adding regions to their global payroll & global HR offering each year. And Velocity Global is reportedly working on a global HRIS of their own.
With this context, it made sense for Deel to jump into the arms race. Deel has announced the following additions to their suite:
- Deel HR – A globally-capable Human Resources Information System (HRIS) with everything needed to compliantly manage an entire global workforce – from direct employees, to international contractors, to EOR employees. Deel HR will be free for businesses with fewer than 200 people, roughly a $20k savings for companies.
- US Payroll – Deel has typically worked through partners to offer global payroll, but they will offer an in-house payroll engine starting in the US.
- Deel Engage – A set of community collaboration tools that will help distributed teams handle tasks like time off requests, 1-on-1s, candidate referrals, and more.
What does this mean for the market?
One of the companies that will feel this heat the most is Hibob, who had carved out a nice niche as the leading tech-friendly global HRIS system. Deel's HRIS is much more narrow in scope than Hibob's, which offers performance, engagement and comp functionality not seen in Deel's platform, but the competition is intensifying.
Additionally, Rippling will feel more direct competition from Deel, as well. Rippling has much more depth and experience when it comes to US payroll & benefits, but Deel has the experience and infrastructure advantage when it comes to global employment.
All in all, this is an optimistic sign for buyers. Building a global HR tech stack is incredibly challenging today and having leading vendors move towards an all-in-one model, will simplify the decision for some.