Login

Media Release: MYOB acquires Flare, Australian SMEs to reap benefits

Flare to accelerate delivery of workplace financial services platform to help more SMEs reach their potential

Business management platform MYOB today announces it has acquired Australia’s leading workplace financial services platform Flare, extending MYOB far beyond accounting to solve diverse problems for SMEs and their employees.

MYOB first announced a strategic partnership with and investment in Flare in November 2020, resulting in the native embedding of Flare’s onboarding and superannuation services within the MYOB platform. The acquisition by MYOB will fast track Flare’s ambition to be Australia’s most comprehensive and innovative workplace financial services and benefits solution, accessible to any employer in Australia.

It is expected Flare will continue to operate as a standalone business and service its other clients and partners, with the initial focus on further enhancement of the platform’s existing integrations with MYOB. This will include Flare’s pay and benefits app, which will unlock discounts and wellness, a digital wallet for payroll and novated car leasing.

Greg Ellis, CEO of MYOB, said the acquisition represents a significant evolution of MYOB’s payroll capabilities to deeply connect SMEs with everything they need to run and grow their entire business.

“SMEs can only grow when they get more out of doing less. MYOB’s position in the employee network is already substantial; one in five employed Australians are paid through our software. When you combine this with Flare’s pay and benefits capabilities, we can provide one of the most unique people management platforms on market, offering business owners value in new ways and in less time. Helping SMEs be more competitive and productive is the ultimate goal.

“Our acquisition of Flare creates pathways for MYOB to connect with businesses in new and deeper ways. By offering our customers solutions that drive value within their processes, MYOB can deliver on our vision of being a vital partner in the full lifecycle of Australia’s SMEs. We are incredibly excited by this opportunity,” said Mr Ellis.

Since it was founded in 2015, Flare has grown significantly, with over one in every four Australian employees starting a job each year interacting with its and benefits platform, which serves to make employee experience tools attainable for any sized Australian business.

James Windon, co-founder and co-CEO of Flare, said the acquisition will leverage MYOB’s substantial customer footprint to level the talent playing field for SMEs by connecting them with quality workplace digital tools.

“The battle ground for talent has never been tougher. Eight in 10 businesses are experiencing skills shortages* and there are fewer unemployed people than there are jobs**. Creating an exceptional employment experience has only typically been in reach for bigger businesses with big resources; Flare is passionate about changing that.

“We are thrilled to supercharge this vision with MYOB, to explore innovative territories faster than before.

“MYOB’s investment in Flare will provide more businesses access to comprehensive employee benefits offerings and digitised onboarding experiences. We think that is a huge win for Aussie businesses and their employees.”

* Hays August 2022

** ABS August 2022: in July, there were fewer unemployed people (474,000) than there were job vacancies (480,000 in May)

About MYOB

MYOB is a leading business platform with a core purpose of helping more businesses in Australia and New Zealand start, survive and succeed. MYOB delivers end-to-end business, financial and accounting solutions direct to businesses employing between 0 and 1000 employees, alongside a network of accountants, bookkeepers and consultants. For more information visit myob.com or follow MYOB on LinkedIn.

About Flare

Flare is Australia’s leading pay and benefits platform. Over one in four Australian employees are now using Flare technology when they start a new job – integrated seamlessly into the leading payroll, HRIS and time-and-attendance platforms. Flare allows employers of any size to offer everyone in their organisation the kind of personal and financial benefits that were once only available to senior executives, available with no ongoing maintenance or fees. The Flare app and card give employers the tools to attract and retain top talent – helping workers to take employee experience into their own hands and make their pay go further.

Media contact:
Harry Godber
0438 997 298

Media Release: Australians change jobs seeking better workplace benefits as the ‘great resignation’ takes hold

Australians are demanding more control over their pay and benefits amid mounting post-pandemic financial stress, with a new study confirming the global ‘Great Resignation’ phenomenon has arrived on our shores.
 

Professional services organisation Ernst & Young, Australia (EY) has collaborated with leading Australian pay and benefits platform Flare to survey 7,000 employees across the Australian economy over January–March 2022. The research findings have revealed a workforce with limited access to benefits or products that support financial wellbeing, and who are leaving their employers as their expectations change post-pandemic:

  • Workers are demanding greater control over their pay and benefits: 55% report COVID-19 lockdowns have changed what they expect from an employer.
  • Financial wellbeing accounted for over 50% of resignations in this period.
  • Just one in three Australian employees has access to a benefits program; yet those who do believe that it meaningfully improves their pay package and financial wellbeing—and makes them less likely to leave their jobs.
  • Over three quarters wish to take up key financial benefits like salary packaging.
 

Cashflow and payroll timing are also revealed as key financial stress factors for workers:

  • Australian workers have become the largest creditors in the economy: only half are paid weekly, and one in four report being paid late—resulting in extended periods where employees are without the pay they are owed.
  • 7 in 10 Australians are living paycheck-to-paycheck, with less than $5,000 in savings and an inability to meet their financial needs in an emergency.

 

Despite these escalating cashflow issues, 7 in 10 employees report they would never ask for a pay advance, choosing instead to take on debt to meet their cashflow needs:

  • Two in three have turned to credit cards to meet their spending needs; on average, they are now nearly $3,000 in debt.
  • One in five has used a personal loan or mortgage drawdown for a vital purchase.
  • Two in three wait until payday to make important purchases.

 

The analysis notes significant merit in employers adopting benefits programs that are accessible, dynamic and go beyond a static intranet—including the option to access pay on-demand without charging interest or fees, and where value is driven by other perks like affiliate partnerships or access to a broad range of financial wellness resources.

EY Oceania Fintech Leader May Lam said, ‘What is clear from this new data is that there is a significant workforce shift underway post-pandemic. In this environment, employers of all sizes have an imperative to review the financial and personal benefits they are offering to employees, or risk being left behind as others adapt.’

Flare Co-Founder and Co-CEO James Windon said, ‘This new data reveals the balance of power in the Australian workforce has shifted towards employees. Workers are coming to expect more from their benefits: nobody should have to pay to get paid.’

‘Employers can no longer provide a static intranet and expect to retain staff. The reality for most workers is that they’re not in an office every day: they’re remote or on their feet, and need financial resources in their hands, on their smartphone,’ Windon said.

‘Flare has listened to employees, and we’re proud to be launching Australia’s first pay and benefits app available to any business for free – letting workers take employee experience into their own hands. It’s our goal to equip businesses of all sizes to compete for top talent with the resources of ASX50 companies, right across the economy.’

The Flare & EY Whitepaper ‘Pay in the new economy’, can be accessed here.

About Flare

Sydney-based fintech Flare is Australia’s leading benefits platform and pay technology provider. Flare serves over a million employees—including a quarter of Australian workers starting jobs each year; and is integrated into the leading HRIS, time-and-attendance and payroll software suites.

The new Flare App and Card are available for free to businesses of any size, and bring Flare’s full suite of benefits into the hands of employees, at the centre of employee engagement:

  • The Flare Card gives employees the option to access their wages in real time for free—without incurring any fees, charges or interest.
  • Free access to a competitive suite of perks, discounts and wellness resources from leading Australian retailers and service providers.
  • Access to valuable salary packaging services to save on tax—including novated car leasing, a tax structure that saves car owners thousands of dollars per year on average.
  • Better engagement with your superannuation savings—the largest benefit available to most Australians.
  • Flare has partnered with Westpac, Australia’s oldest bank, to provide a full banking-as-a-service experience to employees within their workplace—launching later this year.

The Flare App and Card are rolling out now to early-access partners and will be available to the remainder of the Flare network over the course of 2022

About EY

The EY Technology and Consulting practice supports organisations as they initiate or undergo major transformations. Capabilities span end-to-end solution implementation services from consulting, strategy and architecture, to production deployment.

Media contact:
Harry Godber
0438 997 298

Flare raises $22 million in series C fundraising, and expands beyond HR into a full suite financial wellness solution

When we started Flare five years ago, we knew that technology could play a key role in reimagining the relationship between businesses and their teams. In 2020, over 2,500 businesses use our software to engage with their teams of more than 650,000 employees nationwide, and we’re integrated with over a dozen HR and payroll platforms. This means Flare is used by 1 in 20 Aussies in the workplace—and we’re just getting started.

Today, we’re announcing our Series C capital raise of $22 million, led by MYOB, one of Australia’s leading technology companies. The round also includes existing investors Point72 Ventures, Acorn Capital and David Fite, and Malcolm Turnbull joins as a new investor. Both Malcolm and David will join Flare as special advisors.

A partnership for scale

In addition to leading this round of funding, we are thrilled to announce our  partnership with MYOB, to deliver world-class digital products and solutions to MYOB customers. Flare and MYOB share a similar ethos, in that we both exist to help businesses and their employees thrive. This partnership will see us continue to focus on our mission of making it easy for Australian businesses to onboard, pay, and engage with their teams—at work, and beyond. Our software will be available for MYOB SME customers by the end of the year, and Enterprise customers in 2021.

We’re excited to play an active role in the next stages of Flare’s growth and look forward to working together to unlock the potential of their unique software. Our purpose at MYOB is to help more businesses start, survive and succeed, and what better way to do this than by empowering them to more efficiently onboard and engage the lifeblood of their business – their employees.

Andrew Baines
General Manager Financial Services, MYOB

Fuel for our next chapter

The pandemic era with COVID-19 means workplaces will never be the same. Engaging and retaining a distributed or remote workforce is more important than ever, and more Australians are living with stress. 40% of us experienced some form of financial stress in 2020, and millions live payday to payday.

This capital raise allows us to improve our market-leading B2B solutions, and expand our growing suite of workplace financial products designed to help every Aussie get the most out of their money, no matter what they want to do with it, and help them achieve financial security. We are incredibly excited to roll these products out over the coming months.

Flare’s unique business model provides real value to Australian firms and their employees in equal measure, at a time when the future of work looks very different. I’m excited to join Dan, James and the entire Flare team in this next chapter of their journey.

Malcolm Turnbull
Former Prime Minister of Australia

 

And finally, we wouldn’t have reached this milestone without our talented team. From our very first office in Bondi (where running water was not always a thing), to co-working spaces and now our headquarters in Barangaroo, thank you to everyone who has walked these floors since 2015, and been part of the Flare story.

We are incredibly proud of the team we’ve built, and their tireless efforts to bring our vision to life. If you’re interested in joining us for this next ride, we’re hiring across product, engineering, marketing, and finance. You can check out our open roles here.

Dan and James

 

Managing COVID in the hospitality industry with Shaun McDonald from Lucas Group

Lucas Group has six restaurants across Sydney and Melbourne including Chin Chin, Kisumé, Gogo Bar, Baby Pizza and more. Their aim is to provide exceptional dining experiences which redefine the boundaries of expectations and excite the senses. In this interview, we chat to Shaun McDonald, the General Manager of People and Development, about how Lucas Group have been managing COVID in the hospitality industry.

Tell us about the impact of the pandemic on LUCAS Group

As a result of the COVID-19 pandemic, the restaurant industry, including LUCAS Group, was required to close as non-essential services. The impact on our business resulted in us having to stand down 650 people during that time, and changing our business operations. 

Our main priority was around our people. Every decision we made was about putting our people first, communicating regularly, and executing on a strategy that supported our people as much as possible throughout the pandemic.

We shifted to ‘takeaway’ business operations within 48 hours and reopened our brand — something that we’ve never done before. The sole reason for this shift was to support those people that would not be eligible for financial assistance from the government. 30 percent of our crew are from overseas. 

The Job Keeper Program was introduced by the government a few weeks later, which was great for our people. It was another mechanism for us to support our crew. We applied immediately, and were able to support our stood down crew.

How did you manage communications with your staff? 

Strong communication was critical for us during this time. We focused on crafting messaging that was concise and clear, and enabled managers to share messages aligned to our CEO’s direction. Managers were provided tools and training, so they could communicate with their people.

At every level of our organisation, we ensured people understood the new direction, that they knew what to do in their roles, were trained up effectively and ready to fight. We needed to ensure our systems and processes were set up to effectively deliver the same quality in house in a takeaway model. 

Training was so crucial to helping people understand what to do, as their roles changed — and to deliver exceptional service to our guests and bring that level of comfort.

What are your return to work strategies and plans? 

As we transition our business from being a takeaway back into a restaurant, there are a few safety precautions we needed to make to our workplace so our crew felt comfortable to return to work. At the beginning, things were changing on a daily basis, constant updates, changes to legislation and changes to the job so we needed to keep up to date.

When we reopened we wanted to make sure that, we had done everything as a business to make sure that our people were safe, and explained to them that we were meeting social distancing guidelines and being compliant.

We also educated our managers to make sure that the messaging was the same. This brought a level of comfort to our crew. We’ve actually received a lot of positive feedback about the level of communications that came out of the clear and the concise messaging that was distributed.

We had to go through lots of planning to ensure which employees we would stand up and planning how we would layout our restaurant to adhere to social distancing restrictions. If any of our staff had reservations about coming back to a guest facing role, we put some of them into back of house roles so they would be more comfortable. We made sure that we communicated to our staff so that they knew we were running our venues safely and we were adhering to all the requirements set by the government.

How do you ensure that your employees are engaged and feel safe after returning to work?

Pulse surveys have been a great for us to ensure that people are comfortable with being back in the work environment. We’ve been able to get feedback and jump on any changes that we possibly need to make to make sure that people feel safe and they feel comfortable at work.

Related article: 10 Ideas to help you boost your employee engagement

Learn more about how Shaun McDonald used Flare to engage with employees through digital onboarding and benefits in this case study. If you’re looking for an additional HR software to support your business, Flare offers a free onboarding software with employee management and benefits. To learn more, please request a demo.

Flare Launch Event

Flare launch lights the way to a super future.

Thank you to everyone who made it to our launch event on Tuesday the 31st of May. Over a hundred people joined us to mark the beginning of something big and exciting.

Continue reading “Flare Launch Event”

Flare launch lights the way to a super future. Thank you to everyone who made it to our launch event on Tuesday the 31st of May. Over a hundred people joined us to mark the beginning of something big and exciting.