Personio

The global workforce has undergone significant changes over the last decade, with remote work on the rise and employee expectations evolving to match. The "great resignation" phenomenon continues to impact European job markets, with 46% of workers in the UK and 42% in Ireland looking for new jobs in 2024. Simultaneously, Europe faces a shrinking labor force, with the working-age population expected to decrease by about 13.5 million, or 4%, by 2030.

Amidst these macro shifts, businesses are grappling with another challenge: the need to streamline their HR operations. As the economy cools, companies are reevaluating their HR staffing needs. Job openings for HR roles have declined by 45% year over year, compared to a 17% overall decline in job postings. This trend is partly due to technological advancements that allow companies to digitize and standardize HR processes, reducing the need for large HR teams.

In response to these pressures, businesses are rapidly digitizing their HR processes to do more with less. Small and medium-sized enterprises (SMEs) now use an average of 40+ applications. However, 70% of SMEs in Europe still rely on manual processes and Excel sheets for HR tasks, indicating an opportunity for digital transformation in this sector. Recognizing this need, 20% of companies planned to increase spending on HR tech in 2024, seeking solutions that can help them maintain effective HR operations with leaner teams.

Personio is an HR technology company focused on serving the needs of SMEs in Europe. Positioned as the "Workday for SMEs," Personio offers an all-in-one solution that digitizes the entire employee lifecycle, from recruitment to off-boarding. By providing a suite of HR tools tailored for smaller businesses, Personio aims to help SMEs navigate the complexities of HR management more efficiently. As the European workforce continues to evolve and SMEs seek more sophisticated HR solutions, Personio is positioned to capitalize on the growing demand for streamlined, data-driven HR processes in the SME sector.

Source: The Brand Hopper

Personio was founded in 2015 by Hanno Renner (CEO), Arseniy Vershinin (Chief Architect), Jonas Rieke (COO), and Roman Schumacher (Co-Founder) in Munich, Germany. The four co-founders met while studying at the Center for Digital Technology & Management (CDTM) in Munich, where they discovered a shared passion for entrepreneurship and building companies.

The idea for Personio came when a friend, who was the CTO of a European SME with 100 employees, shared his struggles with organizing recruitment and payroll processes without dedicated software. This revelation surprised the founders, who realized that while large corporations were leveraging digital services for complex HR solutions, small and medium-sized businesses were being left behind.

Renner, who was 25 at the time of founding Personio, had an unusual background for a tech entrepreneur. While studying at the Technical University of Munich, he worked as a skipper for yachts. Despite this unconventional experience, Renner and his co-founders saw an opportunity to make a significant impact in the HR tech space.

The team decided to build a software solution that would empower HR teams, improve employee experience, and propel businesses forward. They began working on the first version of the product immediately after graduating in 2015, despite admitting that they "knew next to nothing about HR" when they started.

Personio has since become one of the fastest-growing European tech companies, opening offices across Europe and attracting significant investment. The founders credit their success to the entrepreneurial skills they learned at CDTM, such as writing business plans and understanding fundraising fundamentals, as well as their enjoyment of working in small groups towards a joint goal with a high degree of ownership.

Personio offers a platform for HR-related tasks and processes, covering the entire employee lifecycle from recruitment to offboarding. The platform integrates with over 200 business applications across more than 20 categories, including Slack, LinkedIn, and Culture Amp, creating an interconnected HR ecosystem.

Core HR

Personio's Core HR serves as the foundation for employee data management. It provides a centralized employee file system where all employee data and their legal documents are stored, creating a clear and organized database. The system automatically reminds users of important dates and deadlines, while employees can update their personal information through a self-service feature. This functionality reduces the administrative burden on HR teams.

Source: Personio

The Core HR solution also facilitates the management of team details and business documents. It includes tools for tracking working hours and managing employee absences, aiding in compliance with local labor laws, and ensuring accurate employee compensation. This centralized approach enables better consistency across the organization and simplifies HR processes.

Personio's Workflow Automation feature acts as a co-pilot for managing HR processes at scale. It allows users to convert tedious HR tasks into repeatable workflows with just a few clicks. The system connects fragmented processes, reducing the overload of manually running HR processes across siloed systems. Personio offers pre-built workflow templates and a code-free workflow builder, enabling customers to craft experiences specific to their business needs. An automation dashboard allows users to monitor active workflows and review task progress across stakeholders.

People Analytics are embedded in the Core HR dashboards, providing real-time data analysis capabilities. Users can create tailored reports with various charts, attributes, and templates, and segment data by departments or locations.

Talent Management

Source: Personio

Personio's Talent Management suite covers the entire employee lifecycle, from hiring to training to offboarding. The platform's Applicant Sourcing feature enables users to create careers pages, set up new positions, and post jobs on over 600 job boards across Europe with just a few clicks. This includes distribution to 15+ free job boards and the ability to run premium campaigns for both generalist and specialist positions. The integrated recruitment CRM functionality allows companies to showcase their brand and track which channels work best for sourcing candidates.

Source: Personio

The Applicant Tracking System supports SMEs hiring processes by automating recruitment tasks and creating a consistent hire-to-onboard experience. It centralizes all applications, allows for highlighting promising candidates, and includes features like bulk actions, auto-responders, and CV parsing to reduce delays. The system also automates interview scheduling and provides insights on vital metrics such as time to hire and channel performance. Offer management is simplified with template-based document creation and eSignature capabilities for legally binding offers.

Source: Personio

Performance management tools within the Talent module enable the creation of personalized review cycles, from simple check-ins to comprehensive 360-degree reviews. The system allows for setting clear paths, tracking progress, and empowering managers to have meaningful conversations with their team members. It also connects goals, performance, and compensation for a more holistic employee experience.

Source: Personio

The Training Management feature allows HR teams to track attendance, progress, and compliance across the organization. Employees can browse and self-enroll in company-wide courses, while HR can easily assign specific training to individuals or teams. This approach helps drive higher training adoption and ensures company-wide compliance.

Source: Personio

In 2023, Personio introduced a Compensation Management feature to streamline salary reviews and adjustments, addressing the often manual and error-prone processes in SMEs. This tool aims to facilitate fairer and more informed decisions while protecting sensitive personnel data.

To support companies operating across Europe, Personio offers an International Absence Engine. This feature helps navigate varied labor laws and absence policies by providing pre-configured policy templates and customization options. It streamlines absence policy creation, approvals, and holiday balance calculations, reducing the risk of compliance issues and manual errors for HR teams managing international workforces.

Employee Experience

Source: Personio

Personio's Employee Experience suite offers a range of tools designed to streamline HR processes and enhance employee engagement for SMEs.

Personio Conversations serves as an automated concierge for HR teams, supporting the management of employee requests. It integrates with communication platforms like Slack and Microsoft Teams, allowing employees to interact with it through familiar channels. The system includes an AI-powered chatbot for instant replies to routine requests and a built-in knowledge base for storing and managing HR-related information. The knowledge base integrates with platforms such as Confluence, Notion, and Microsoft SharePoint, centralizing all existing HR knowledge in one place. Conversations also tracks the frequency of question types, helping HR teams identify gaps in their internal knowledge base and ensure the delivery of correct guidance. The system can automatically distribute location- or role-specific information to relevant employees.

Source: Personio

Personio Surveys, another feature in the Employee Experience suite, enables HR and people leaders to gather actionable insights through employee feedback. This multipurpose tool helps monitor and measure engagement, track trends, and increase workforce satisfaction while providing employees with an anonymous way to voice their opinions. Surveys connects to employee data, allowing for quick creation and targeted distribution of surveys using prebuilt templates. The system offers granular analysis capabilities, allowing users to filter results by department, office, and role to uncover patterns and drive initiatives. Question scoring and heat map analysis features provide actionable organizational intelligence.

Source: Personio

In response to the EU Directive on whistleblower protection, Personio has developed a Whistleblowing solution. This tool helps organizations with over 50 employees comply with the requirement to provide an internal reporting channel. The solution offers secure and anonymous reporting with two-way case communication, adhering to GDPR standards for data privacy and protection. This feature aims to help companies avoid potential fees, penalties, and reputational damage associated with non-compliance.

These products integrate seamlessly with Personio's Core HR platform, offering a solution for managing employee experiences and HR processes in SMEs.

Payroll

In 2023, the company expanded its product lineup with the launch of an automated payroll solution in Germany, marking a significant milestone in its development. Since launching, the product has grown to be used by over 1K customers

Source: Personio

The payroll solution aims to simplify one of the world's most complex payroll systems. According to the Global Payroll Complexity Index, Germany ranks second only to France in terms of payroll complexity. Personio's system is designed to navigate these intricacies efficiently, reducing manual effort and potential errors in payroll processing.

A strength of Personio's payroll solution is its partnership with DATEV, one of Germany's largest payroll and accounting providers. This exclusive partnership allows Personio to integrate with DATEV’s systems, which are estimated to cover 60% to 80% of the German market. This integration creates a natural fit for businesses already using DATEV for payroll, as Personio ensures data flows between the systems without manual intervention.

The company plans to gradually roll out this payroll solution to other markets. However, this expansion will be a measured process, taking into account the unique regulations and processes for managing payroll in each country.

In January 2025, Personio launched a Personio Payroll Expert Plan, which offers customers access to more automated payroll capabilities and dedicated tax advisors. The goal of these advisors is to “validate and approve payroll, ensuring compliance.”

Customer

Personio targets European SMEs with 10 to 2K employees. The company's customer base spans 70 countries, with Germany as its primary market. Notable penetration has been achieved in the Netherlands, where 75% of Personio's customers are based, including companies such as GoSpooky, Channable, Skinvision, and Lepaya.

Renner highlights a significant market opportunity, stating, "What we see is that day-to-day, 70% of SMEs don't have any kind of HR solution." Many of these businesses still rely on Excel spreadsheets or paper-based systems for HR-related data management.

The company has expanded its presence in Western Europe, establishing offices in Spain, the UK, Ireland, and the Netherlands. This expansion aligns with Personio's focus on serving the European market, particularly in countries with market dynamics similar to Germany's.

Market Size

The SME sector in Europe is comprised of over 25 million businesses and accounting for more than 99% of all enterprises. Within this sector, Personio's specific target market—companies with 10 to 2K employees—includes approximately 1.7M businesses.

Source: People Managing People

The HR tech market is made up of Human Resource Information Systems (HRIS), Applicant Tracking Systems (ATS), Learning Management Systems (LMS), performance management software, scheduling software, payroll software, and employee engagement software. As of 2024, Personio had captured just 0.6% of its overall market, indicating room for growth. The global HR software market was valued at $28.3 billion in 2024 and is projected to reach $33.6 billion by 2028, growing at a CAGR of 10.8% from 2021 to 2028.

Europe represents the second-largest market for HR software globally. The European HR software market was valued at $10.9 billion in 2023 and is expected to grow to $17.3 billion by 2032. SMEs accounted for about 38% of the HR software market in 2022 and are anticipated to experience the highest CAGR among organizational sizes, reflecting their increasing investment in digital transformation.

The HR software market is still dominated by large incumbents, with both established players and newer entrants vying for market share it’s a competitive market. When speaking about Personio’s long-established competitors, Renner said these companies “will always be focused on the enterprise space, the BMWs of the world, [while] we are trying to help those companies that currently don’t have solutions in the market tailored to their needs.”

Private Companies

HiBob: Founded in 2015, HiBob is a cloud-based HR and payroll software solution for businesses to manage employee data. As of February 2025, it had raised $574 million in total funding and was valued at $2.5 billion. HiBob differentiates itself with a focus on company culture and employee engagement, offering features like hobby groups and public recognition tools. It operates globally, serving customers from Sydney to San Francisco.

Factorial: Founded in 2016, Factorial is an all-in-one HR management platform for SMBs globally. As of February 2025, it had raised $299.9 million in total funding and was valued at $962.1 million. Factorial focuses on providing intuitive HR solutions that automate and centralize administrative tasks for SMEs, serving over 12K clients in more than 95 countries.

BambooHR: Founded in 2008, BambooHR offers a suite of HR tools including HRIS, payroll, and applicant tracking. While its total funding is undisclosed, it has gone through two funding rounds. BambooHR is known for its user-friendly interface and performance review system, primarily catering to the US market.

CharlieHR: Founded in 2016, CharlieHR is an HR software platform designed for small businesses and startups to automate HR tasks. As of February 2025, it had raised $3.2 million in total funding and was valued at $13.3 million. CharlieHR offers core HR features like time off tracking, onboarding, and performance reviews, positioning itself as a straightforward, affordable solution for smaller companies with simpler needs.

Public Companies

Oracle: Founded in 1977, Oracle provides a Human Capital Management (HCM) suite as part of its enterprise software solutions. Oracle controls ~10-12% of the HR software market and reported revenue of $53 billion in 2024, up 5.6% year-over-year. While both companies offer HR software solutions, Oracle's HCM is part of a broader enterprise software suite, providing more extensive capabilities and integration options for large corporations, whereas Personio focuses primarily on HR management for small to medium-sized businesses.

SAP: Founded in 1972, SAP offers the SuccessFactors HCM suite, controlling about 8-10% of the HR software market. Renner said, “SAP is the only real globally relevant software company out of Europe and that was founded 45 years ago.” SAP reported a total revenue of $37 billion in 2024, a 10% increase YoY. When compared to Personio, reviewers found SAP SuccessFactors more challenging to use, set up, and administer. SAP SuccessFactors offers a more comprehensive suite of HR solutions, including advanced features like succession planning and extensive HR analytics, which are tailored for larger enterprises.

Workday: Founded in 2005, Workday is a provider of cloud-based software for financial management and HCM. It controls about 9-10% of the HR software market and reported total revenues of $7.3 billion for the fiscal year ending January 31, 2024, an increase of 17% from the previous year. Workday's offering is more comprehensive, including advanced features like talent management, succession planning, and extensive analytics capabilities, while Personio focuses on core HR functions and is generally more affordable for smaller organizations.

Source: Personio

Personio operates on a tiered subscription pricing model based on the number of employees in an organization. The company offers two main tiers: Core, its all-in-one HR software, and Core Pro, which provides the software without limitations. The primary revenue stream for Personio comes from these subscription fees, which customers pay on a monthly or annual basis. This model provides a scalable revenue stream that grows as the customer base expands and as existing customers increase their employee count.

Personio's platform goes beyond basic HR functionalities, offering value-added features such as applicant tracking, job posting, interview scheduling, offer management, employee onboarding, performance tracking, employee development, and compliance management. These additional features not only enhance the product's value proposition but also create opportunities for upselling and cross-selling.

To further monetize its expertise, Personio offers professional services including implementation support, data migration, training, and consulting. These services are charged based on the scope and complexity of the work, providing an additional revenue stream while helping customers maximize the value they derive from the platform.

Personio has experienced steady growth since its inception. As of October 2024, the company served over 12K businesses. This represents an increase from 5K customers in 2023 and 3K in 2021. One unverified estimate indicated that Personio's revenue reached $346.5 million in 2024. The company continues to grow at a "high double-digit rate" as of June 2024 according to Renner, with its home market of Germany already achieving profitability.

Personio's research indicates that its services align with key priorities for HR managers, particularly in the UK. 73% of UK HR managers cited improving productivity as an immediate priority, while 75% are focused on attracting and retaining top talent over the next three years.

In June 2022, Personio raised a $200 million Series E at an $8.5 billion valuation. This round came just eight months after its $270 million raise in October 2021, which valued the company at $6.3 billion. As of February 2025, Personio had raised $724.3M in total funding. Key investors include Northzone, Accel, and Index Ventures, who have participated in all of Personio's funding rounds since inception. Other notable backers include Meritech, Lightspeed, Global Founders Capital, Eight Roads, and KKR.

Based on the unverified estimate of Personio's 2024 revenue at $346.5 million and the company’s $8.5 billion valuation in 2022, that would represent a 25x LTM revenue multiple. Publicly traded competitors, such as Workday, SAP, and Oracle, trade at a range of LTM revenue multiples from 8-10.2x.

Source: Koyfin

Expansion into Workflow Automation

Personio is expanding into "people workflow automation," aiming to streamline HR-dependent processes across various applications. This expansion addresses the growing complexity of HR tasks in SMEs, which now use an average of 40 different applications. By automating these processes, Personio can reduce manual work and improve efficiency. The company's approach is similar to UiPath or ServiceNow for SMEs, utilizing machine learning and process automation to handle repetitive HR-related tasks.

This move into workflow automation is timely, as digital transformation has gradually reached SMEs, with many adopting sales, finance, and CRM software. Personio's automation tools can provide connectors to speed up operations across these various applications, making its platform more integral to customers' overall operations. By positioning itself as a central hub for HR-related data and processes, Personio can increase its value proposition and strengthen customer retention.

Market Expansion Opportunities

Personio is experiencing growth momentum in the mid-market segment, targeting businesses with 200-2K employees. This focus on larger SMEs represents a substantial opportunity for revenue growth and market share expansion. Personio's conversion to a Societas Europaea (SE) in January 2023 positions the company for easier business activities across EU member states. For European companies this is seen as the foundation for an IPO and further European expansion.

The company also has a unique advantage in offering multi-country payroll services for SMBs, a feature that few competitors provide. This capability could be particularly attractive for European SMEs operating across borders, further differentiating Personio in the market. The German market, with its large number of SMBs, remains a significant growth opportunity for Personio, especially given the limited presence of U.S. players in this space.

Resilience in Economic Downturns

Personio has demonstrated resilience during economic downturns, as its product remains essential for many businesses to continue operating. Renner emphasizes that “an economic slowdown reduces growth in the economy and most companies, which is true for our customers. But in that environment, what doesn’t change is the need for people – who remain the most important factor in navigating crisis.” This resilience is evident in Personio's payroll offerings, which are fundamental to any company's HR operations. As payroll is often the first HR need for companies of all sizes, Personio's focus on this area provides a stable foundation for growth even during challenging economic periods.

The company's positioning in the SME and mid-market segments also contributes to its resilience. While enterprise-focused competitors may face more significant challenges during economic downturns, Personio's target market of SMEs continues to require efficient HR and payroll solutions regardless of economic conditions. This focus on essential services for a broad market segment helps insulate Personio from some of the volatility experienced by other tech companies during economic fluctuations.

Rapid Growth Management

As of June 2024, Personio was planning to increase its workforce by a third. While Renner claims the company could become profitable by halting its current hiring rate of 80 people per month, such rapid scaling often leads to operational inefficiencies and cultural challenges. As noted by Michiel Kotting, partner at Northzone, Personio will need to continually adjust its organizational structure to "deal with the complexity of the business while staying nimble." This constant restructuring could lead to internal disruptions, reduced productivity, and potential loss of key talent if not managed effectively. In January 2025, Personio announced that it would lay off 6% of its employee base (115 people), which is likely a corrective step that mitigates the risk of unencumbered growth.

Complex Labor Laws Across Markets

Personio faces challenges in navigating the diverse and complex labor laws across different countries. For instance, Germany's labor laws are particularly complicated, especially for companies targeting manufacturing or unionized industries. The UK has simpler payroll regulations, while the US presents complexities due to multiple tax agencies at federal, state, and city levels. This variability requires Personio to maintain a highly adaptable product that can cater to each market's specific needs. The company's struggle to develop a payroll solution in Germany is evident in its two-year development cycle, which initially only supported companies with up to 60 employees. Failing to effectively address these market-specific requirements could limit Personio's expansion and market penetration in key regions.

Product Development & Market Alignment

Personio restructured its product and engineering teams in January 2024, involving a 5% workforce reduction, indicating potential issues with its product development approach. The decision to enhance specialist skills and functional depth within this department suggests previous deficiencies in these areas. This restructuring, combined with ongoing recruitment for over 150 roles in the same department at that time, signals a significant shift in product strategy. If not managed carefully, this transition could lead to delays in product development, inconsistencies in the product roadmap, and potential misalignment with market demands. Personio's ability to successfully navigate this transition while maintaining its market position and continuing its growth trajectory remains a risk factor.

Personio is an HR technology company focused on serving the needs of SMEs in Europe. The company offers an all-in-one HR solution that covers the entire employee lifecycle, from recruitment to offboarding. Personio has experienced significant growth, reaching over 12K customers in 2024. The company's product suite includes core HR, talent management, employee experience, and payroll solutions. Personio's key opportunities lie in expanding into workflow automation, targeting larger SMEs, and leveraging its resilience during economic downturns. However, the company faces challenges in managing rapid growth, navigating complex labor laws across markets, and aligning its product development with market demands.