Talentlytica: Digital Transformation in Human Resources Management

The role of the HR team has undergone a significant transformation because now they are not only focused on administration, but also on business strategy. HR teams are encouraged to be able to integrate technology in every aspect of their work, from recruitment, development, to employee retention.

Technology is needed because filtering the quality of candidates amidst the abundance of information makes the recruitment process more complex. This is just discussing one example of the challenge. Para startup player trying to solve every problem in the field with the solutions they offer, one of which is Talentlytica.

For starters, this startup is relatively old, founded in 2017 by Bagus Rahman Syah and Aswin Januarsjaf. Before agreeing to found Talentlytica, the two met on an involving project engagement assessment and performance for a government agency.

From there, they agreed to start Talentlytica (PT Global Talentlytica Indonesia) which focuses on product development assessment technology based. "I am responsible for developing technology, while Aswin brings his expertise in psychometrics and HR," said Talentlytica Co-founder Bagus Rahman Syah when contacted DailySocial.id.

Bagus and Aswin's backgrounds are quite strong in their respective fields. Bagus founded Gagas Imaji, an IT company that focuses on development interactive new media with specialization in UX, interactive technology, web app development, digital product consultantand rapid prototyping. This company has been established since 2004 and helps local and international companies.

Meanwhile, Aswin has experience in the field of psychology. For more than 20 years, he worked in various subsidiaries of the Astra Group and was a consultant for many companies. In the academic world, he is also a lecturer in statistics courses. Due to his high interest in data processing, Aswin created several for mobile devices to report the psychological test tools and HR applications (workload analysis, talent mapping) which has been used by many companies.

Product development

Well explained, Talentlytica has product journey which took quite a long time until it was finally accepted in the market. The first product was to move psychological tests from paper format (conventional) to format online. The response received from the market was not as good as expected.

“We learned that to create a product that can be accepted by the market, we must understand the problem and be able to provide the right solution to professionals in the HR field. The way to do this is by listening feedback from customer. "

Input from users, he continued, really helps companies understand what HR management really needs. They can sharpen their products and develop new features that are more relevant according to the needs and problems experienced by HR management.

"Customer feedback also became the root of Talentlytica's culture in developing products. Because of this, we can continue to develop until now and have developed more than 13 products assessment which can help HR practitioners starting from the process recruitment, development, retention, to promotion employee."

Talentlytica offers various assessment solutions according to company needs, including various types of test and assessment tools that can be used to general recruitment, sales test, management trainee, promotion test, culture fit, talent management, to high level management recruitment.

Platform online assessment

designed to help companies make talent-related decisions based on data and analytics. The assessment results will be objective, unbiased and more accurate. This need is basically required by all HR departments from various industries.

However, Talentlytica products are more suitable for massive use, especially for companies with more than 500 employees. Users come from government, state-owned and private levels across industries. Some of them are the Directorate General of Taxes (DJP), Biofarma, Mitra Keluarga, Wika, Elnusa, Telkom Indonesia, Astra Motor, Paragon, BRI, Bank Indonesia, Garuda Food, and many more.

Differentiating it from players in the same scope, Bagus claims that Talentlytica guarantees a fast assessment process, accurate results, and reports that are easy to read and integrated.

"Team Customer Support that quick answer, solutions and services customer which consistently makes Talentlytica the trusted choice of hundreds of companies in various industry sectors.”

This in-depth experience attracted the attention of many parties to make Talentlytica the business partner, especially for corporate clients who want to understand and analyze more deeply the employee data they have with the problems they face in the daily world of work.

For example, someone wants to know what factors cause someone to resign, how to predict talent, what aspects make a high contribution to forming a talent, and even predicting employees' tendencies to commit fraud.

Apart from that, in supporting the industry, the company participates in holding seminar and workshop activities for existing customers and HR practitioners. The aim is to help practitioners become more aware and understand HR issues in Indonesia, especially in identifying, managing and retaining talent in companies.

Positive performance

Unlike most SaaS players who take an approach through subscription packages for monetization, Talentlytica takes angle which is a little different. The business model focuses on assessment quota-based products. So consumers will buy assessment quotas according to the type of assessment or measuring tool they need. The quota will be deducted if the assessment has been carried out.

"Please note, there are some people who complete more than one assessment or more than one measuring tool, so the number of assessments can exceed the number of users or candidates."

Bagus claims, since the company was first founded until October 2023, the total assessments that have been completed have reached more than 1 million assessments. If you look at it on an annual basis, throughout 2022, there will be 300 thousand assessments that have been completed by more than 100 thousand candidates.

This figure has increased by 44% compared to 2021. There have been 200 thousand assessments completed by 68 thousand candidates. Meanwhile, until October 2023, 270 thousand assessments have been completed by 80 thousand candidates. This year's achievement is predicted to exceed the performance of previous years.

The company's performance over the past two years has been quite healthy considering that at that time the pandemic was still going on. It's good to see that the pandemic accelerated the digital transformation process because at that time many companies were forced to adopt new technologies.

"So in the end, many companies realized that these changes were not as bad as they imagined and could even help them work more efficiently and effectively."

Throughout 2017-2022, Talentlytica recorded positive performance with a CAGR (Compound Annual Growth Rate) of around 55% over the last five years. Last year's revenue rose 18,9% from IDR 11 billion to IDR 13 billion, with a total of 165 company users. Meanwhile, in October 2023, revenue will reach IDR 11 billion with 206 companies.

It is submitted that Talentlytica operates with its own funds (bootstrap). Bagus adheres to the principle that good products and services must be able to generate income from the first day they are launched. Even so, he is not against external investors.

In fact, in recent times, the company has started exploring with several large investors and angel investors to see the opportunity for Talentlytica to grow more exponentially. He is looking for investors who have vision and value that is the same as what Talentlytica offers, and believes in what they do.

“Even though financially we have prepared the path bootstrapped and plans towards an IPO in the next 8-10 years, the presence of external investors will probably accelerate or enlarge our IPO plans in the future.”

Industry potential

Bagus continued, Talentlytica's business prospects in the HR world are still very promising. The quality and excellence of employees greatly determines the success of a company. Therefore, more and more companies will increase their investment in the HR sector.

In the future, technology such as automation and artificial intelligence will increasingly dominate many aspects of life, including the world of work. The presence of this technology is not to replace human tasks, but to work together with humans. So what companies need in the future is to be able to collaborate with this technology effectively.

“We see that digital transformation and changes in the use of AI will be a big challenge for companies. Therefore, we plan to play a key role in facing this challenge. We want to provide a more effective solution in helping companies find employees who suit their needs in this era of ever-changing technology."

From various intense interactions with users, the company succeeded in identifying a number of problems and challenges faced by HR management. This opened up opportunities for Talentlytica to respond with appropriate solutions, through lots of experimentation and prototyping.

“We want to ensure that the products Talentlytica develops can perfectly meet needs customer. Apart from that, we also integrate our newly developed products with existing products in our portfolio. This will allow Talentlytica to provide a more comprehensive solution to customer us," concluded Bagus.