Munich Startup: Who are you and what do you do at FunctionHR? Please introduce yourselves briefly!
FunctionHR: We are Julian, Julian and Lukas and we have set ourselves the goal of to change the way human resource management is carried out in companiesTo this end, we have developed applications for employee surveys, people analytics, and HR reporting that can be combined into a platform for data-driven HR management. Our applications span the entire employee journey, from recruitment to talent development and retention. We combine data from internal HR software systems and public web portals with turnkey surveys on our survey platform, then consolidate them into an integrated data hub. Users can conduct comprehensive analyses based on advanced statistics and machine learning (“artificial intelligence”) via our HR Keyboard, an interactive, web-based dashboard. With these data-driven insights, we enable our customers to optimize HR processes, improve the quality of HR management decisions, and enhance the employee experience within the company.
Julian Huff and Julian Süß met while completing their doctorates in human resources management at LMU Munich. They wanted to continue working with data after their doctorates, but not in academia, but with a stronger practical focus. That's why they founded FunctionHR and are now responsible for data, analytics, and IT. To ensure that the complexly programmed software doesn't gather dust on servers but is actually purchased and used by customers, Lukas Brandstetter joined the founding team and, in the Sales & Growth department, ensures that our products are positioned among the target audience.
FunctionHR solves four problems simultaneously
Munich Startup: What problem does your startup solve?
FunctionHR: We We can see that business areas such as marketing are already heavily relying on data analysis. But HR is also increasingly driven by a desire to base decisions on data. At the same time, many companies are faced with the challenge that
- Data is available in many different systems and is not uniform,
- Data on employees’ attitudes and work experiences are scarce,
- lack of own skills for data analysis,
- the analysis results do not reach the relevant people, i.e. the managers.
This is precisely where we come in: We integrate various data sources, conduct surveys along the employee journey, and enable managers to conduct advanced analyses in an interactive dashboard and receive recommendations for action directly in the software.
Munich Startup: But that's been around for a long time!
FunctionHR: You're right, there are countless standalone solutions. Our strength lies in the fact that our software covers the entire process: from generating and integrating data, through analysis, to deriving recommendations for action and distributing the results to key stakeholders. Data analysis often fails because the data is either not available in the correct format or the results end up in a drawer.
However, for us, it's not a problem if, for example, there's no data available on how applicants perceive the application process. In this case, we can simply set up a candidate experience survey and link the results with other data sources. And by delivering the results directly to managers and providing them with recommendations for action, we ensure that the analyses are actually implemented in daily practice.
“Lack of willingness in human resources to work with data”
Munich Startup: What have been your three biggest challenges so far?
FunctionHR: In the first few years, we tried to win over customers with a comprehensive people analytics platform, but we quickly realized that a large platform wasn't really helpful. We therefore refocused and have since focused on solving specific business problems (e.g., low employee satisfaction, high turnover) with individual applications that can still be combined into a single platform.
Our biggest challenge is the lack of willingness in some HR departments to work with data. While we've noticed increasing change over the past two years, there's still plenty of room for improvement.
Apart from that, we got in our own way a bit in the beginning and communicated our admittedly complex products in a complicated way, but that hasn't been a problem since the go-live of our new website.
Munich Startup: How are things going?
FunctionHR: After refocusing, things are going very well, and we were able to increase our software revenue fivefold in the 12 months before the coronavirus outbreak. Of course, COVID-19 has postponed a few deals, but we're noticing that demand for digital solutions is rising sharply again.
Munich Startup: How do you rate Munich as a startup location?
FunctionHR: As a native of Munich, of course, this is entirely positive. Munich offers us the perfect combination of innovative industrial companies, ecosystems and beer.
Munich Startup: Isar or English Garden?
FunctionHR: This question triggers a lot of discussion and disagreement among us. Lukas clearly says English Garden; nothing beats a summer Eisbach tour. Julian Huff prefers the nature and tranquility of the Isar. And Julian Süß mathematically posits that kitesurfing > Isar = English Garden. It's all the more wonderful that there's something for everyone here.
