Why We Acquired HourWork

Sprockets is on the move again. From launching our AI-powered recruiter “JoJo” to releasing an Amazon best-seller about the humanization of hourly workers in the same year, these recent initiatives reflect our relentless pursuit to transform the world of hourly work. We’re tired of the status quo and believe both employees and employers deserve better.

As the first in a series of upcoming acquisitions and product launches, we have acquired Cambridge-based HourWork. Over the past seven years, they’ve invested millions of dollars in developing an AI-powered employee communication platform that has supported over 11 million hourly workers and helped thousands of businesses reduce turnover, boost productivity, and drive profitability.

For context, we’ve had a long-standing relationship with the HourWork team—so much so that it feels like we’ve grown up together as companies. We both launched weeks apart, and since then, we’ve shared customers, vendors, and trade show floors. Both of our solutions have a rich history of reducing turnover and boosting profits for customers. We face the same industry giants and celebrate similar victories. While we address different aspects of the employee journey, we both have bold ambitions to revolutionize the world of hourly work.?

I've been eager to acquire HourWork for a long time now, recognizing early on—and now with absolute certainty—that combining the two solutions would bring remarkable benefits to the hourly workforce. The challenge, quite frankly, was always in the deal's specifics. (The devil is always in the details…) Acquiring a company backed by top-tier venture capital and serving iconic brands is no easy feat. So, when the opportunity presented itself, I went straight to my board of directors and pounded the table.

Here are a few reasons I shared with them:

1. “The HourWork and Sprockets company values and missions align.”

This was essential.?

When I first met HourWork at a trade show, they made me a little nervous as a potential competitor. Their booth was eerily similar to ours, with messaging like “humanize workers,” “reduce costly turnover,” and “AI-powered employee software.” Sound familiar? I’m sure you can also imagine a certain level of concern when their co-founder said their mission was to “help 80 million people achieve the American Dream” while my booth across the aisle read “Matching Millions of People to Possibilities.”

While most HR technology companies boast value for companies exclusively, HourWork’s product is designed for the frontline first.?

Pause. Read that again: “HourWork’s product is designed for the frontline first.”??

Retention and culture mean more to an hourly worker than the profitability of a business (although that’s critically important, too, of course). When companies deploy HourWork, employees stay longer, feel more motivated, and take advantage of growth opportunities. This helps them find a sense of purpose in minimum-wage America and start their upward mobility toward brighter futures for themselves and their families.

Business case aside, it’s paramount that we always align ourselves with partners and companies that reflect our mission. HourWork was no exception and actually pointed us closer to that North Star.

2. “The products perfectly align.”?

Sprockets is the leading AI-powered tool designed to help businesses source, screen, and select frontline workers, bringing applicants from “Hi, Applicant” to “You’re Hired.” HourWork is the leading AI-powered tool designed to help businesses stay connected to frontline employees for meaningful communication and valuable feedback, bringing employees from “Welcome, Employee” to “Goodbye.”

Together, Sprockets and HourWork now offer a complete suite of staffing services from recruitment to retention and exit interviews. In the words of Renzo Bassanini, CPO of Bluemont Group, one of the largest Inspire Brands (Dunkin’) franchisees, “Sprockets is essentially closing the loop on the entire employee lifecycle—hiring, promoting, and retaining. They offer a complete solution for managing talent from start to finish.”

Basically, HourWork customers asked for better hiring solutions, and our customers asked for post-hire solutions. Now, they can have both. This partnership allows us to deliver a holistic approach to hiring and retention, combining our expertise to create an all-encompassing solution that benefits both employers and employees alike… all from a single platform.?

3. “Customers love HourWork, and they're just scratching the surface.”

It was clear from speaking with our joint customers that HourWork consistently exceeds expectations, fostering long-term relationships with satisfied customers. They solve a real problem that yields a significant ROI.?

In fact, several billion-dollar SaaS companies have tried to create copycat versions of HourWork, even going as far as offering their software for free. Despite this, customers remain loyal year after year, continue to support the platform, refer their peers, and expand their subscriptions. As CEO of a company (Sprockets) that is constantly innovating and pushing the boundaries, I’ve matured to see this as the ultimate compliment!?

When conducting our diligence, I not only heard things like:?

"We've been trying to solve this for 25 years, and it's the first time I've actually seen an effective two-way communication tool.” - Casey Dout , COO (Bluemont Group)

“HourWork provided us with an avenue to connect with employees and take care of challenges immediately. And then you saw the turnover curve just keep going down and down.” - Renzo Bassanini , CPO (Bluemont Group)

“I would never renew with a vendor that was wasting my money, and this is our third year with HourWork. So I think that tells you what you need to know about how we feel about their ROI.”? - Dominic Benvenuti , VP and DOO (Boston Pie)

“All of these features work together to create a workforce that feels valued, feels engaged, feels listened to… And therefore retention is vastly improved.” - David Walsh , VP of People Services (New England Authentic Eats)

But I also heard unexpected stories like:?

“Through HourWork, a crew member told us about a pizza recipe idea they dreamt up. It only included ingredients that were constantly wasted because our current menu didn’t support them. It became a location best-seller in its first month.”

“Enough employees were asking about flexible pay that we went ahead and started a cash-out program and now 90% of our team members use it!”

“Had the crew member not informed us of a fryer that was acting a little funny via HourWork, we were hours away from a grease fire that would have destroyed everything.”

“The majority of our frontline is Spanish speaking, but most managers only speak English. HourWork gives (and receives) feedback in their native language, giving them a sense of home and belonging. It’s amazing to hear from this group of people for the first time in company history- we never realized the impact of that language barrier!"

I’m excited by the feedback from the current HourWork product and the different ways we can now—with far more resources—expand the offering to build the future.?

What’s Next? We’re Just Getting Started.?

Acquiring HourWork is a pivotal moment for Sprockets and a testament to our unwavering commitment to revolutionizing the hourly workforce. By combining our strengths and shared vision, we’re not just enhancing the tools available to businesses; we’re reshaping the entire employment experience for millions of workers. This acquisition marks the beginning of even more transformative innovations as we continue to push boundaries, challenge industry norms, and ensure that both businesses and their hourly employees thrive in an ever-changing world.?

Contact us today to learn how the combined power of Sprockets and HourWork can transform your workforce.

The best is yet to come… Stay tuned!?