Few technologies have attracted as much investor attention in recent years as HR tech.
Take Deel: in just five years, it hit a $12 billion valuation with over $500 million in annual recurring revenue. And it’s not alone. With Gusto worth $9.5 billion, Remote over $3 billion, and Rippling now $13.5 billion, the HR tech space is flush with fresh venture capital.
What’s driving this trend is the growing demand for all-in-one platforms which consolidate HR software with adjacent functions like compliance and finance.
In the early days, Rippling focused on easing employee onboarding. Since then, it has expanded into an end-to-end employee management platform, covering everything from payroll to mobile device management. More established players like Workday have gone down a similar route, offering customers a one-stop shop to manage finance, HR, and spend on a global scale.
The message is clear: Why juggle a dozen systems to handle the employee lifecycle when one platform can do it all?
The next innovation in HR
As the HR tech space grows increasingly competitive, leading platforms are developing ever more innovative ways to streamline corporate workflows.
The most successful players have zeroed in on the inefficiencies impacting modern teams, offering digital solutions that make complex tasks intuitive.
Take payroll, for example. Not long ago, businesses accepted that paying employees required a complex web of systems and manual processes. HR Platforms like Rippling and Gusto have flipped the switch on that narrative so effectively that older payroll systems now feel woefully outdated. In addition to payroll, they both now offer employer of record (EOR) solutions as an extension to their core business, allowing companies to hire and manage talent efficiently, both domestically and internationally. They've also streamlined expense management, automated bill pay, and simplified employee benefits.
So, what’s the next workplace process in dire need of an overhaul?
As product teams at leading HR tech companies race to answer that question, one major pain point is suddenly attracting a lot of attention: Employee phone plans.
Corporate connectivity: A long overlooked opportunity
For many companies, managing employee phone plans is a major hassle. I’ve seen teams struggle with over 4,000 employee phone plans across 20+ carriers and countries.
This isn’t just a high-cost, high-maintenance logistical challenge—it also raises significant security and compliance risks, potentially exposing organizations to major liabilities.
In most companies, employee SIM cards are still shipped by mail, exposing organizations to the serious risk of identity fraud. Meanwhile, the absence of programmatic SIM management creates blind spots for IT teams, leaving businesses under threat from SIM swap fraud and other telecom scams.
Imagine if keeping employees connected was as simple and secure as paying them. It's a problem that HR platforms are primed to solve.
Just picture this:
One contract and invoice for employee phone plans across carriers and countries.
Seamless onboarding: New hires receive their eSIM by email or Slack, connect in seconds, and are ready to go.
A connectivity dashboard: Where employers can assign role-specific phone plans for team members and monitor usage.
A simple interface: Where employees can request travel eSIMs for work trips with a click.
Effortless offboarding: When employees leave, their eSIM deactivates automatically—no termination fees, no security risks, no hassle.
The rise of embedded connectivity
In the past, embedding a mobile offering into an HR platform would be a huge undertaking, requiring vast amounts of capital, time, and developer resources. But today, that’s all changed.
Much as Stripe simplified payments back in the day, API-based connectivity platforms have removed the regulatory and technical complexity of offering mobile services.
With the right telecom partner, platforms can integrate multi-carrier phone plans seamlessly into their product in just a few weeks, instantly unlocking a new revenue stream that turns a profit from Day One.
The embedded connectivity movement has seen several tech players—from fintech giants like Nubank to cell phone brands like Light—enter the telecom game. But, so far, workplace phone plans remain an untapped market. One with huge potential.
With businesses spending upwards of $1000 per employee per year on mobile enablement, there are few products that can match the potential upside of connectivity.
Platform stickiness: Wireless is a notoriously sticky product. Once a business has moved their employees onto a single solution, they’re unlikely to switch.
Product differentiation: Phone plans are currently a unique selling point in the hotly contested HR tech market.
Global scale: Multi-carrier APIs allow platforms to launch local phone plans and travel eSIMs on a global scale with one simple integration.
Recurring revenue: HR platforms can earn recurring revenue from each connected line. With every enterprise client needing thousands of employee plans, that’s a massive revenue boost. What’s more, by upselling mobile plans to existing customers, HR platforms can drive additional revenue at zero acquisition cost and minimal cost to serve.
The missing piece
The ability to seamlessly provision and manage employee eSIMs isn't just a convenience, it's a fundamental requirement for today's workforce. As well as managing phone plans for office-based employees, many companies are now supporting frequent travelers and hybrid workers who need reliable connectivity wherever they go.
With Gigs’ OS, HR platforms can embed enterprise-grade phone plans seamlessly into their core services and allow their customers to configure, provision, and manage premium phone plans in 50 countries and travel data in 195 countries.
HR tech platforms have already transformed the way companies hire, compensate, and reward their employees, streamlining workflows and accelerating the digital economy. Telecom is the final missing piece.
Early movers will have a significant advantage—capturing market share, delivering added value to customers, and capitalizing on this vast untapped opportunity.