Sexual harassment and misconduct in the workplace is at the forefront of national discourse – and Bambee, a Santa Monica-based software startup, is banking on it being good for business.
The company offers small- and medium-sized companies a slimmed down digital human resources department, something they might not otherwise be able to afford.
Founder and Chief Executive Allan Jones — whose resume includes stints as chief marketing officer at Zip Recruiter Inc. and head of product at now-defunct Docstoc – said 95 percent of small- to medium-sized businesses do not have a full time human resources or legal department, due to cost.
“If you’re a mechanic and making [revenue of] $30,000 a month and an HR department costs $6,000 a month, you’re just not going to do it,” he said.
Bambee has several pricing options depending on a company’s employee count. Businesses with up to 20 employees pay $99 a month, plus a $500 initiation fee for the company’s software. For companies with 21 to 49 employees, the product costs $199 a month plus an $1,000 initiation fee, and for companies of 50 or more, the rate is $349 a month plus a $2,000 initial fee.
Employees of Bambee clients can log onto a digital portal and take care of onboarding, paperwork and file complaints. Client employees can chat with a Bambee HR representative through online messaging.
Employers are able to manage termination, set up their employee handbook and run performance improvement plans through the self-service product.
Bambee’s HR services do not cover health care administration, hiring or payroll.
Jones claimed small companies typically don’t need dedicated HR services to help with hiring and benefits.
Bambee has 12 full time employees, the majority of whom are human resources professionals. Jones declined to disclose company revenue or the number of clients, but he said businesses that signed up for Bambee’s HR program have an average of about 17 to 20 employees. The company has contracts in sectors such as government services, finance, medicine, automotive, construction, mechanics and food and beverage.
Jones said providing HR from outside the organization allows a more objective view of the mission. For example, if a company has two executives fighting, a traditional HR representative might be biased based on their relationships with the involved parties and their superiors. However, Bambee’s HR professionals are one step removed from the office.
“We feel more comfortable saying what’s right because each customer is $99,” Jones said. “No one company makes us (too) nervous to speak our mind.”
OpenX Opens Up
OpenX, a Pasadena-based advertising technology company, announced $172 million in 2017 revenue in a March 13 report.
The private company is not compelled to release such information, leaving some observers scratching their heads.
The company has appeared on some lists of companies contemplating initial public offerings.
A company spokesperson denied the announcement was an indicator it was looking at an IPO.
OpenX credited its 20 percent revenue growth year-over-year to investments in mobile and video initiatives. The mobile business at OpenX grew 39 percent year-over-year with in-app revenue rising 89 percent, which the company said outpaced overall market growth by more than double. Video revenue for the company grew 5,000 percent in 2017.
OpenX Senior Vice President of Global Communications Dallas Lawrence said the company released financials to highlight its achievements, including “10 straight years of growth and four straight years of profitability.”
The company didn’t offer specifics on profits.
Staff reporter Eli Horowitz can be reached at [email protected] or at (323) 556-8335.
