Founded six years ago by Hanno Renner, Roman Schumacher, Arseniy Vershinin, and Jonas Rieke, Personio has established itself as a key player in the field of HR solutions for small and medium-sized enterprises (SMEs). The co-founders met while studying at the Center for Digital Technology & Management (CTDM) in Munich, where they combined their skills to address a largely overlooked need: the digitization of HR processes for SMEs. Today, the company supports more than 10,000 clients across Europe and is valued at €6.4 billion.
The Beginnings of an Entrepreneurial Journey
The idea for Personio emerged as Hanno Renner and his co-founders were finishing their studies. Unlike many entrepreneurs who start companies to solve problems they’ve personally experienced, the Personio team began with a broader vision: identifying a genuine market need. The turning point came from a friend who was the CTO of a company with 100 employees, managing all HR processes through Excel spreadsheets. This insight led Hanno and his partners to dive deeper into HR and discover that 70% of European SMEs were not using any software to manage their employees.
Hanno Renner explains:
“We founded Personio after realizing that small and medium-sized businesses didn’t have access to the digital tools available to larger companies. We wanted to fill that gap by providing solutions that made managing their staff easier, as employees are the most important resource for any organization.”
In 2016, Personio was born with a clear mission: digitize and automate HR management for small and medium-sized businesses. Starting with limited resources, the company quickly gained traction by listening closely to its clients and adapting its solutions to their needs.
A Vision Rooted in Supporting SMEs
Personio’s success is built on two fundamental beliefs: SMEs are the backbone of local economies, and people are the most valuable asset in any organization. According to Hanno Renner, SMEs often lack the tools available to larger companies for managing their talent, despite their crucial role in creating jobs, driving innovation, and supporting local communities.
Hanno Renner continues:
“Our mission is to enable SMEs to succeed by helping their employees thrive. SMEs create jobs, foster innovation, and play a vital role in their local communities. We believe that people are the key to any company’s success, and our role is to help unlock their full potential.”
The company’s vision is to allow every SME to “unlock the potential of their people” by facilitating and optimizing the management of all stages of the employee lifecycle, from hiring to retirement. To achieve this, Personio offers an all-in-one platform that covers every HR function, including absence management, payroll, recruitment, talent development, and more.
A Strategy Focused on Innovation and Expansion
Personio’s strategy is built on continuous innovation. Aware of the challenges businesses face today, the company has identified four major trends that guide its product developments and initiatives:
- The rise of distributed teams: As more employees work remotely, Personio enables companies to easily manage staff spread across multiple regions and time zones. The company helps clients remain compliant with local regulations while maintaining a global presence.
Hanno Renner comments:
“We know the world of work has changed, with more teams geographically distributed. Personio helps connect employees no matter where they are, while ensuring processes remain compliant with local requirements.”
- The talent shortage: Attracting and retaining talent has become a critical issue for SMEs. To address this, Personio develops tools that simplify recruitment, improve employee experiences, and enhance engagement throughout their journey with the company.
Hanno Renner explains:
“The war for talent is real. We must not only help companies attract top candidates but also retain them by offering modern, tailored HR experiences.”
- The consumerization of enterprise software: Employee expectations regarding technology are rapidly evolving, especially with Gen Z entering the workforce. These younger employees expect to use tools as intuitive as the apps they handle in their daily lives. Personio aims to create a user-friendly and modern interface.
Maria Angelidou-Smith, Chief Product and Technology Officer, adds:
“Employees today expect HR tools to be as simple and intuitive as the apps they use in their personal lives. We want Personio to be not only functional but also enjoyable to use.”
- Challenges in managing data: In an increasingly complex environment, companies generate vast amounts of HR data that are often disconnected. Personio positions itself as a central platform, capable of collecting, connecting, and analyzing all this data to help companies make informed decisions.
Hanno Renner concludes:
“Managing HR data is a major challenge for many of our clients. By centralizing this data, we enable companies to make decisions based on reliable, connected information.”
Major Innovations to Support SME Growth
In recent years, Personio has strengthened its offering with numerous innovations directly addressing its clients’ needs:
- People Workflow Automation: A central tool that automates HR processes across the organization. This solution helps companies automate tasks such as absence management, performance evaluations, and even recruitment processes while integrating tools like Slack and Microsoft Teams.
- International absence and time management: With the rise of distributed teams and varying local labor laws, Personio has developed solutions to simplify the management of leave and working time on an international scale.
- Real-time payroll: In Germany, Personio offers a native payroll solution that enables companies to complete payroll in minutes while reducing errors, thanks to real-time integration of HR data.
Christine Hecker, VP of Engineering, comments:
“Payroll management is often complex, especially in a market like Germany. With our real-time payroll solution, we simplify this process to make it fast, accurate, and transparent.”
- Compensation Management and Personio Surveys: The company has also launched products dedicated to compensation management and feedback collection, helping managers effectively manage salary increases and improve employee engagement.
Geographic Expansion and Future Ambitions
With a growing presence across Europe, Personio stands out with its “global but local” approach. The company supports eight local languages and ensures that its solutions comply with the specific regulations of each country. This strategy allows Personio to provide a seamless and compliant experience for companies operating in multiple countries.
Hanno Renner explains:
“We have always believed it’s essential to have a global presence while remaining locally relevant. This means not only offering global solutions but also adhering to the regulations and specific needs of each market.”
Although Personio is primarily focused on Europe, the company doesn’t rule out expansion beyond the continent. According to Hanno Renner, the European SME market is vast and still largely untapped, offering significant growth opportunities.
Significant Fundraising
Personio has raised €688 million from several prominent investors, including Northzone, Accel, Index Ventures, Global Founders Capital, Lightspeed Venture Partners, Greenoaks, Altimeter Capital, Alkeon Capital, and Meritech Capital Partners.
Hanno Renner states:
“These funds allow us to continue innovating and expanding our reach across Europe and beyond while staying focused on our mission: helping SMEs thrive by optimizing their human resource management.”
