WorkStep Raises $17 Million to Make the Supply Chain a Better Place to Work

Technology platform replaces temp staffing model with long-term outcomes and improves workforce satisfaction

WorkStep, the company helping large supply chain employers, source, screen, engage, and retain their frontline workforce, today announced $17 million in funding led by FirstMark Capital, with additional participation from previous investor and strategic partner, Prologis Ventures. The infusion of capital, a combination of Seed ($6.7 million) and Series A ($10.5 million) funding, will be used to grow the team and continue to improve and expand its technology.

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Founded in 2017, WorkStep supports supply chain companies by helping them find and retain their frontline workforce. From the industrial revolution through the COVID-19 pandemic, the supply chain workforce has been the backbone of the U.S. economy and has become increasingly critical to Americans’ daily lives – from food on a table to packages delivered on time. The pandemic made it clear supply chain labor demand will only continue to increase with the boom of ecommerce, and turnover will remain an ever-present challenge even during periods of higher unemployment.

“This past year, we saw increasing dependence on supply chain labor to fulfill our basic needs,” said Dan Johnston, Co-founder and CEO of WorkStep. “But with record turnover leaving supply chains understaffed and the remaining workers stretched thin, WorkStep’s technology that improves new hire fit and lifts post-hire satisfaction is crucial to retaining this critical worker segment.”

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Last Fall, WorkStep launched RETAIN to help supply chain employers increase frontline workforce retention by automating employee engagement, identifying top opportunities to reduce turnover and empowering leaders to drive and measure improvement. RETAIN has been proven to reduce turnover by up to 29 percent, save customers millions in replacement and retraining expenses, and helped propel the WorkStep business to more than double in the back half of 2020.

“The momentum WorkStep demonstrated this past year is impressive to say the least,” said Adam Nelson from FirstMark Capital. “As supply chains buckled under the stress of overwhelming demand, WorkStep helped companies navigate these difficult times with products that directly address their pain points. The team is just scratching the surface in terms of functionality to benefit workers while driving meaningful savings and productivity gains for employers, and we’re excited for the future growth in capitalizing on this opportunity.”

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