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Prospects of San Diego-based Blueboard have been stunned to study that the experiential worker recognition platform had shuttered final week. Now, HR groups on the platform’s purchasers are operating interference as many worker recipients are left questioning if there can be recourse for being unable to money in on experiences they’d earned.
In response to Pitchbook, Blueboard had over 200 staff as of 2023 and had raised $24 million. A former worker acknowledged that the platform had greater than 500 purchasers when the agency shut its doorways.
Based in 2014, Blueboard allowed employers and managers to distribute recognition to staff for any cause, from work anniversaries to staff constructing, within the type of experiences. Workers have been then in a position to order and redeem rewards awarded by the employer by their consumer accounts.
When HRE reported on Blueboard in the summertime of 2023, there have been many lessons and outings obtainable for workers to pick out as rewards, together with coffee-brewing lessons, spa days and farm excursions. Nevertheless, when the corporate ceased operations final week, many staff have been within the technique of redeeming their rewards, in line with experiences on social media. In response to feedback HR practitioners at shopper firms made on social media, staff have been informed immediately by Blueboard that these pending rewards wouldn’t be fulfilled.
“With none prior warning, the HR staff and all of our staff with pending Blueboard awards obtained an electronic mail that they aren’t in a position to fulfill any extra experiences, efficient instantly,” wrote one Reddit consumer. “The web site is shut down.”
Blueboard clients await updates
Scott Broomfield, Blueboard’s former chief monetary officer, defined the abrupt shutdown on LinkedIn late final week. He mentioned the agency’s secured lender foreclosed on its property and “swept” its financial institution accounts.
That is the primary closure of a rewards platform within the HR tech area in 2024. Nevertheless, in a report following the HR Tech Convention within the fall, analysts from RedThread Analysis predicted that this yr, many “comparatively small HR tech distributors” that secured funding funding during the last two or three years are beginning to run out of these funds, and it’s a lot tougher to boost a brand new spherical proper now.
The VC enviornment for HR tech has returned to “normalcy,” as famous by WorkTech, after a record-setting season that kicked off in early 2021 and continued by the second quarter of 2022. In response to Pitchbook, Blueboard’s newest funding was $9.3 million, raised in late 2020 from a Sequence A spherical.
“Whereas this was sudden, [the lenders] have been inside their authorized rights,” wrote Broomfield. “We want they’d have knowledgeable us so we may have labored out a cooperative restructuring settlement.”
The previous CFO mentioned that Blueboard’s board employed The Ravix Group because the Assignee for the Good thing about Collectors (ABC), which is a enterprise liquidation software accessible to an bancrupt debtor as an alternative to formal chapter processes.
He additionally wrote {that a} “supplier” could “assist with some reduction and partially care for” staff of Blueboard purchasers.
Broomfield mentioned that conversations between the supplier and clients may start as early as March 18. He additionally apologized to clients and thanked the Blueboard staff. In response to Broomfield, Blueboard delivered experiences to over 175,000 folks over the previous 9 years.
The rewards class is gaining traction within the HR tech surroundings. In response to the 2023-2024 HR Programs Survey from Sapient Insights Group, recognition platforms have been included within the prime 5 methods bought final yr.
Salt Labs establishes reduction fund
In the meantime, competitor Salt Labs, a rewards platform designed for frontline employees, has established a reduction fund for the employees of purchasers affected by the shutdown of Blueboard. Salt Labs has raised $18 million since launching in 2022 and has over 100,000 customers on its platform.
“As trade leaders, we’re taking the initiative to verify we’re there for probably the most weak of the workforce and significantly need to assist those that could have been saving their rewards for an expertise they couldn’t afford from their paycheck,” mentioned Jason Lee, founder and CEO of Salt Labs.
The $20,000 reduction fund is designated for workers of Blueboard shopper firms who’ve pre-funded rewards that may not be fulfilled. In response to a launch, these people could have entry to Salt forex for similar-value redemptions.
Former Blueboard shopper firms serious about becoming a member of the reduction effort ought to apply to the Salt Labs web site by 6 p.m. EST on March 20. Salt Labs has dedicated to prioritizing employers with a major inhabitants of important employees. As soon as accepted, employers will obtain a Salt allocation to distribute amongst affected staff based mostly on excellent Blueboard redemptions.
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