PHILADELPHIA, PA — Phenom announced it has acquired Be Applied, an AI-driven cognitive assessment company, to expand its skills-based hiring capabilities as employers increasingly focus on validated competencies over traditional credentials.
Phenom said the acquisition integrates Be Applied’s evidence-based assessment technology into its AI platform, enabling enterprises to evaluate candidate and employee skills at scale within hiring workflows.
The move comes as companies shift toward skills-based hiring amid reported workforce gaps. Research from the World Economic Forum shows that 63% of employers identify skills gaps as a primary barrier to business transformation between 2025 and 2030, according to the release.
Phenom said traditional assessment tools are often disconnected from job requirements and may not scale effectively across industries and experience levels.
The U.S. Department of Labor estimates that a bad hire can cost at least 30% of an employee’s first-year salary, excluding indirect costs, the company noted.
Be Applied’s platform uses adaptive cognitive assessments tailored to specific job requirements. Phenom said the technology has been tested across millions of candidates and roles and is designed to improve hiring accuracy while maintaining candidate experience.
“Organizations are moving faster than ever at applying skills to hiring, and they need the infrastructure to support it,” said Mahe Bayireddi, chief executive officer and co-founder of Phenom.
David Perring, chief insights officer at Fosway Group, said the acquisition addresses a gap in enterprise-scale skills validation.
Khyati Sundaram, chief executive officer and chair of Applied, said the combined companies aim to help organizations hire more effectively at scale.
Phenom said the integrated assessments can also be used internally to map employee skills and identify gaps, supporting workforce development initiatives.
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