Category: Industry News

Funding rounds, M&A, product launches, and executive news

  • Background Check Providers Face New Scrutiny Over Turnaround Times

    Employers are increasingly citing slow background check turnaround times as a bottleneck in their hiring process, putting pressure on screening vendors to speed up verification without compromising accuracy, according to feedback gathered by LocalWork News from recruiting teams.

    Candidates who accept competing offers while waiting on background checks remain one of the top complaints recruiters raise about the hiring process. Some screening providers have responded by expanding automated verification for categories like employment and education history, reserving manual review for more complex cases such as international records or criminal history checks that vary by jurisdiction.

    Balancing Speed With Compliance

    Vendors caution that faster turnaround cannot come at the expense of compliance with the Fair Credit Reporting Act and state-level background check regulations, which require specific disclosures and dispute processes regardless of how quickly a report is generated. Several providers are instead investing in better court-record data partnerships and expanded staffing for manual review teams during peak hiring periods.

    Recruiting teams say that even modest improvements in turnaround time can meaningfully reduce offer-decline rates, making screening speed an increasingly important factor when employers select a background check vendor.

  • Staffing Agencies Report Longer Client Contracts as Companies Seek Workforce Flexibility

    Staffing and recruiting agencies are reporting longer average contract lengths with corporate clients, a shift that industry executives attribute to employers wanting flexible workforce capacity without committing to permanent headcount, according to data shared with LocalWork News.

    Where temporary and contract placements once averaged a few months, agencies say many clients are now signing agreements extending six months to a year, particularly for project-based technical, finance, and operations roles. Employers cite ongoing uncertainty about demand and continued caution around permanent hiring as reasons for leaning more heavily on flexible staffing arrangements.

    A Bigger Role for Managed Service Providers

    The trend has also boosted demand for managed service provider arrangements, in which a single vendor coordinates staffing across multiple agencies on a client’s behalf. Large employers say centralizing contingent workforce management this way has improved visibility into costs and compliance, particularly as contract labor represents a growing share of total workforce spending.

    Agency executives expect the longer-contract trend to persist through the rest of the year, even if permanent hiring picks up, as many employers now view a blended workforce of permanent and flexible staff as a long-term operating strategy rather than a temporary response to uncertainty.

  • HR Tech Funding Roundup: $2.1B Invested Across 34 Deals in Q2 2026

    The HR technology sector continued to attract significant venture capital in the second quarter of 2026, with $2.1 billion deployed across 34 deals according to data compiled by LocalWork News. While the total represents a modest 8% decline from Q1, deal volume held steady as investors showed preference for Series B and C rounds in established platforms over early-stage bets.

    Workforce analytics and skills intelligence platforms attracted the largest share of funding, capturing 31% of total capital. AI-native recruiting tools came in second at 24%, followed by employee experience platforms at 19%.

    Notable Deals This Quarter

    The quarter’s largest raise was a $340 million Series D for a workforce planning platform that helps enterprises model headcount scenarios against financial forecasts. The round was led by a growth equity firm with existing positions in several HR tech unicorns.

    On the earlier stage side, a stealth-mode ATS startup founded by former Lever and Greenhouse executives raised $22 million in seed funding on the thesis that most enterprise ATS platforms are overbuilt for the 90% of companies with under 500 employees.

    M&A activity also picked up, with two strategic acquisitions of skills taxonomy companies by larger HCM suite vendors looking to strengthen their internal mobility features.

  • Welcome to LocalWork News: Your Source for ATS, HR Tech & Jobs Industry Updates

    Welcome to LocalWork News — the dedicated news hub for the ATS, HR technology, and jobs industry space.

    We cover the latest developments in applicant tracking systems, human resources technology, recruiting software, workforce analytics, and the broader jobs market. Whether you’re an HR professional, recruiter, talent acquisition leader, or simply someone following the evolution of work technology, this is your go-to resource.

    What We Cover

    • Applicant Tracking Systems (ATS) — product launches, platform updates, market share shifts, and user insights
    • HR Technology — HRIS platforms, payroll tech, performance management tools, and workforce analytics
    • Recruiting & Talent Acquisition — sourcing trends, AI in recruiting, diversity hiring tools, and agency news
    • Jobs Market Intelligence — hiring trends, labor market data, remote work dynamics, and compensation benchmarks
    • Company News — funding rounds, M&A activity, product launches, and executive moves across the HR tech landscape

    Part of the LocalWork Family

    LocalWork News is an extension of LocalWork.com, the job board connecting talented professionals with top employers in their communities. Stay tuned for daily breaking news, in-depth analysis, and actionable insights.