Just what are you going to spend on HR software? If budgeting your spend per employee, you’ll want to line item the expenditure on HR technology. It may be a big dollar or small, but it has its place. Now, what you spend and where you spend it, that’s worth looking at.
A survey by branding specialists fisherVISTA describes HR purchasing origins, motives, and outcomes. Some numbers may leave you behind; others may offer some direction to your budgeting plans. All in all, their findings can influence and move you towards a strategic decision.
The Survey Results
Keep in mind this survey is not specific to HRIS or related technology. It covers all HR purchasing, and the results describe the market behavior of HR buying decisions. For instance, it reports, “More than 40% of respondents indicated they planned to spend more per employee in the next 12 months on the following product categories: manager training, employee training, employee benefits and rewards and recognition.” Considering that HRIS can be the central operating mechanism for these tasks, it can pull together motives and priorities. Here are a few additional points of interest:
- HR decision-makers do not first turn to big name brand when thinking about purchases.
- Modern as they are, 35.5% explore their options on the internet.
- Nearly 40% seek the input of their peers, and 5.1% work with “a trusted online influencer.”
- Some 10% talk to product vendors at conventions and conferences.
- And, 1.45% look for input on social media.
Of concern to the survey sponsors, respondents did not list name brand as a significant mover.
The Survey Implications
When pressed through additional questioning, the survey respondents admitted they were concerned about brand reputability when it came to risk. Applicant tracking, job boards, background screening, and payroll services all raised the interest in brand recognition, credibility, and reputation.
Even though brand does not mean much in their initial research, HR buyers acknowledge reliance on brand as they approach decision time. But, even there, the research shows that brand means much more to CEO and CFO influencers.
HR customers largely research information about HR products through search engines and LinkedIn at least weekly. The majority never get their info from Twitter or podcasts. They rarely check blogs, but 67% attend semi-annual conferences. Most are unlikely to download whitepapers and reports if they have to complete online fields. And, they read HR publications and participate in webinars monthly.
Over 80% of the HR professionals surveyed attend one or more conferences every year, and 70% of them visit the exhibition hall (though only 10% talk to vendors). Given their reluctance to think brand name first, they would appear to be shopping with an open mind.
It seems that the decision to commit to HR technology is at the center of a number of influences. Unless the decision-maker is directed to a specific vendor, you are likely to start your shopping online and to explore your options with peers. The survey suggests first and lasting contacts begin at trade shows where visible marketing and glad-handing holds a lot of sway. In any case, brand is not your hallmark. It does not open doors or clinch deals, however it becomes more important when thinking about features that are associated with risk and compliance such as payroll.
The Survey and You
You are at the center of innovative products and services. You fend off aggressive vendors, and you may be confused by the proliferation of options. Where HRIS is a first time decision for you, you are likely to trust friends, peers, and instincts. You also may not have the right questions to ask or the correct sense of your needs. So, brand can be more intimidating than helpful. But, if you are starting your research online, compareHRIS.com provides a unique forum of interest and information along with its invaluable HRIS Selector Tool.