WayUp and Yello Merge to Expand Recruitment Services

The Ongoing Challenge of Diverse Talent Acquisition

Numerous studies, statistical analyses, and corporate commitments notwithstanding, many organizations still face significant difficulties in attracting a diverse workforce. A common perspective suggests the problem isn't a lack of qualified candidates, but rather deficiencies in the execution of recruitment processes and technical interviews.

Another frequently cited issue is companies successfully onboarding diverse entry-level employees, only to subsequently fail in their efforts to retain and nurture these individuals’ professional development.

A New Approach to Recruitment: WayUp and Yello Merge

As entrepreneurs continue to seek solutions to bridge the gap between skilled, diverse professionals and effective recruiting strategies, a recent merger offers a potentially impactful answer.

WayUp, a platform specializing in sourcing diverse candidates, has announced its merger with Yello, a recruitment software provider. The combined entity will operate legally as Yello, while maintaining distinct branding for both companies, and will employ a total of 200 individuals.

Addressing the "Black Hole" in Candidate Management

“Simply directing diverse applicants into applicant tracking systems isn’t enough,” explains Liz Wessel, co-founder and CEO of WayUp, in a TechCrunch interview. “If companies lack the necessary automation, tools, and analytics to ensure these candidates are properly evaluated, they risk being overlooked.”

Wessel identified a critical issue – a “black hole” where qualified candidates disappear during the recruitment process. This observation led to discussions with Yello, which she characterizes as a leading candidate relationship management (CRM) solution for early-career professionals.

An End-to-End Recruitment Solution

By integrating their capabilities, these startups aim to deliver a comprehensive recruitment tool. This tool will aggregate a diverse pool of candidates, considering factors such as educational background (including both core and non-core institutions), ethnicity, academic major, geographic location, and gender.

The combined platform will then facilitate the placement of these candidates into a streamlined, software-driven job application process.

• Key Focus: Improving diversity in hiring.
• Solution: Combining sourcing and recruitment software.
• Goal: Create a more efficient and equitable hiring funnel.

Leveraging Data for Enhanced Diversity in Recruitment

For the last seven years, WayUp has been developed with a core principle of “data-driven diversity.” The platform sets itself apart from conventional job boards and sourcing tools by requesting candidates to voluntarily disclose information regarding their race, ethnicity, gender, and veteran status.

This allows WayUp’s clients – the employers – to prioritize diversity initiatives during their hiring processes. Simultaneously, early-career professionals are able to discover job opportunities specifically tailored to their individual profiles.

Expanding Capabilities Through Strategic Merger

Recently, WayUp introduced a dashboard designed to pinpoint where employers may be losing diverse candidates within their recruitment funnels. This initial step into candidate recruitment management paved the way for today’s merger with Yello.

Yello specializes in managing the complete recruitment cycle for businesses. This includes everything from initial career events, like job fairs, to virtual candidate interactions and interview scheduling.

Notable clients utilizing Yello’s software include Johnson & Johnson, Tableau, eBay, and Adobe.

Streamlining Fair and Equitable Hiring

“Yello delivers substantial workflow automation, enabling companies to efficiently and equitably move applicants forward,” explained Wessel. “Often, the challenge isn’t attracting enough applicants, particularly at the entry-level, but rather identifying and securing the most qualified and diverse talent.”

For years, Yello has been developing a sourcing component within its campus recruitment solution. The integration with WayUp will significantly expand this database to encompass over 6 million candidates from 7,000 campuses.

According to a statement released regarding the merger, the candidate pool is comprised of 71% individuals who identify as Black, Hispanic, or female, alongside a substantial number of veterans.

Synergies and Benefits of the Combined Platform

“Recruiters will gain access to a powerful combination of data and automation, now available through a single provider,” stated Corey Ferengul, CEO of Yello, in a press release announcing the merger.

Yello, previously lacking a dedicated focus on diversity within its software, will now incorporate WayUp’s extensive talent database into its service offerings.

Conversely, WayUp, which previously lacked a comprehensive candidate relationship management (CRM) tool, can now provide this functionality to its user base.

• Key Benefit: Enhanced data insights for diversity tracking.
• Key Benefit: Streamlined recruitment workflows through automation.
• Key Benefit: Expanded candidate pool with a focus on underrepresented groups.

Handshake

Despite operating within a market encompassing 6 million early adopters, these companies face competition from a significant player valued at over a billion dollars. Handshake, having most recently secured funding at a $1.5 billion valuation, functions as a networking and recruitment platform specifically designed for university students.

This job recruitment platform has now surpassed 18 million users, spanning numerous universities. This includes approximately 120 institutions serving minority students, encompassing both Historically Black Colleges and Universities (HBCUs) and Hispanic Serving Institutions within the United States, alongside community colleges.

While not as prominently advertised as WayUp’s, Handshake’s dedication to diversity is evident in its extensive reach. Furthermore, its carefully constructed network actively incorporates HBCUs into discussions with its 550,000 employer clients, demonstrating a commitment to underrepresented demographics.

Canvas, another venture-backed company in the HR technology sector, provides a similar recruiting platform. It utilizes self-reported data to assist diverse candidates in securing employment opportunities.

Strategic Mergers and Competitive Positioning

The integration of WayUp into Yello’s portfolio is bolstering its competitive position against Handshake, Canvas, and other rivals. This is achieved through the addition of software services to its existing recruitment tools.

Although both Yello and WayUp last received venture capital funding nearly four years ago, this merger doesn’t appear to be a response to financial difficulties. According to Wessel, her company has consistently exceeded sales projections for the past four consecutive quarters.

“Yello does not directly compete with Handshake,” Wessel stated via email. “I have never encountered a situation where they won a contract over us. We only encounter competition with Handshake when a company doesn’t prioritize Diversity & Inclusion (D&I) as a primary objective.”

She further added, “To date, we have not lost a Request for Proposal (RFP) specifically focused on D&I sourcing.”

Future Trends and Challenges

The long-term implications remain uncertain, particularly regarding the potential for further consolidation between CRM and talent acquisition tools, including Handshake.

“It presents a substantial challenge,” Wessel explained. “Developing an Enterprise-level software solution, like ours, requires a decade of dedicated effort to reach its current level of sophistication.”