Phenom Acquires Plum for AI Talent Assessment

In a strategic move to fortify its artificial intelligence-driven talent intelligence platform, US-based Phenom has acquired Canadian HR tech firm Plum. This integration aims to equip employers with advanced tools to combat the rising tide of AI-generated misinformation in recruitment, such as fabricated resumes and deepfake interviews, a growing concern as projections suggest up to one in four job applicants globally could be fraudulent by 2028.

The acquisition, finalized last month, brings Plum's expertise in assessing "durable human skills" – qualities like adaptability, empathy, and judgment that are resistant to AI manipulation – under the Phenom umbrella. This synergy is expected to provide a comprehensive assessment suite, allowing organizations to more accurately predict candidate success by measuring intrinsic human capabilities alongside technical qualifications. The financial terms of the transaction were not disclosed.

Phenom, a significant player in the HR technology landscape, has been actively expanding its capabilities through strategic acquisitions. Plum marks its third acquisition this year, following the integration of people analytics platform Included and skills assessment firm Be Applied. This aggressive M&A strategy underscores Phenom's commitment to offering a holistic talent lifecycle solution, from acquisition to development and retention.

Founded in 2012, Plum has established itself as a pioneer in psychometric-based talent assessments, leveraging AI to predict job performance with a claimed accuracy four times greater than traditional resume screening. The company has demonstrated a significant impact, reporting a reduction in "one in three bad hires." Its client roster includes prominent enterprises such as Hyundai, Scotiabank, and Whirlpool. Prior to its acquisition, Plum had secured approximately $19 million CAD in funding from a notable group of investors, including BDC Capital’s Women in Technology Venture Fund, Export Development Canada, Real Ventures, Pearson Ventures, JFF Ventures, Strada Education Network, EduLab Capital Partners, and Impact Engine. Its most recent funding round, an $8 million CAD financing, occurred in early 2023.

The integration of Plum's robust assessment data with Phenom's applied AI platform is poised to offer organizations unparalleled insights into candidate suitability. This enhanced capability is particularly crucial in today's competitive labor market, where bad hires can incur substantial costs, potentially reaching up to 30 percent of an employee's first-year salary. By enabling the measurement and verification of AI-resistant human skills within the natural hiring workflow, Phenom aims to empower businesses to make more informed talent decisions and mitigate hiring risks.

This acquisition also signifies Phenom's strategic entry into the Canadian market, with plans to expand its team in the region. All Plum employees will be integrated into Phenom's global workforce of 1,600 professionals, contributing to the company's mission of transforming how organizations attract, engage, and develop talent.