HR Tech Buying Trends for 2019

After assisting with over 150 HR software purchases in 2019, here are the key HR tech buying trends we learned from our clients

Brett Ungashick
OutSail HRIS Advisor
July 4, 2023
user making updates

[Updated on 8/26/2020] What were the buying trends in HR Tech for 2019?

In the past year, over 150 companies have used OutSail's free services to help select new HR technology. These companies have been as small as 7 employees and as large as 20,000. Some have a global presence and some are fully remote. Some are on the cutting edge of technology and some are looking for their first HR system.

Despite each company's unique characteristics, consistent patterns emerged from these software buyers throughout the year. They shared similar frustrations with their current infrastructure and they had similar key criteria for selecting new systems.

One purchase fills a need, one hundred and fifty purchases tell a story. Here's the story we learned this year:

Buyers are looking for more efficient systems

Some of the most common reasons that buyers have gone through an HRIS transition is because they have found their core provider lacking in certain functional areas. While many companies have tried to fill in those gaps with standalone tools, this approach has lead to other frustrations associated with a multi-system approach (more logins, harder to report, more manual re-entry).

Question: Why are you leaving your current HRIS provider?

  1. Lacking Capabilities. The platform doesn't support some of our core functional needs (58% of buyers cited this as a major reason)
  2. Poor Customer Service. The support we've received has been unresponsive or unreliable (53% of buyers)
  3. Too Many Systems. We have multiple standalone tools and want to consolidate and become more efficient (44% of buyers)
  4. Not Getting An ROI. We don't feel like we're getting as much as we should, given the price (37% of buyers)

Core HR is still king

While many of the exciting new vendors and innovations in the HR Tech space have been around talent management, engagement & employee development, buyers still feel like they need to walk before they run. Core HR functionality (Payroll, Ben Admin and Time) is still what is driving the majority of HR Tech purchases.

Question: What are the key functional areas that your next HRIS provider needs to excel at?

  1. HRIS (78% of buyers)
  2. Payroll (72% of buyers)
  3. Time & Attendance (42% of buyers)
  4. Benefits Admin (31% of buyers)
  5. Performance Management (23% of buyers)

Some standalone tools are sticky

While many customers have expressed an interest in moving towards a more all-in-one approach, there are certain standalone HR tools that deliver so much value that customers are hesitant to give them up during a transition.

Question: Are there any standalone tools that you'll be keeping and you'd like your next HRIS to work well with?

  1. Greenhouse (ATS)
  2. CultureAmp (Engagement Surveys)
  3. Lattice (Performance / Engagement)
  4. 15Five (Performance / Engagement)
  5. Lever (ATS)

Buyers ultimately want their day-to-day to be easier

What moves the needle for buyers? It's actually not a long track record and impressive customer roster, nor is it a flashy user interface and great mobile app. The most important thing buyers are seeking in a partner is a tool that will simplify their day-to-day and allow them to migrate to more strategic objectives

Question: What are the most important factors for the success of this HRIS purchase?

  1. Administrative Automations. We want to reduce the amount of manual work and re-entry that our admins have to do (40% of buyers)
  2. Better Integrations. It's important that all of our software systems can communicate data between each other (34% of buyers)
  3. Scalability. We're looking for a partner who will be a fit today, but can also grow with our business (34% of buyers)

Question: What is the least important factor in the success of this HRIS purchase?

  1. Established Partner. We want a partner that has a lot of experience and a strong customer base
  2. Value. We're looking for the vendor who will deliver the most bang for our buck
  3. User Experience. We want a modern & easy-to-use platform that will help with employee self-service

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Meet the Author

Brett Ungashick
OutSail HRIS Advisor
Brett Ungashick, the friendly face behind OutSail, started his career at LinkedIn, selling HR software. This experience sparked an idea, leading him to create OutSail in 2018. Based in Denver, OutSail simplifies the HR software selection process, and Brett's hands-on approach has already helped over 1,000 companies, including SalesLoft, Hudl and DoorDash. He's a go-to guy for all things HR Tech, supporting companies in every industry and across 20+ countries. When he's not demystifying HR tech, you'll find Brett enjoying a round of golf or skiing down Colorado's slopes, always happy to chat about work or play.

FAQ

Everything you need to know about OutSail
What is OutSail?
OutSail is the first-ever broker of HR Software. We offer market insights, evaluation tools & advisory services to help organizations research, evaluate and select the right HR software. And best of all - OutSail is free!
How is OutSail free?
OutSail is free due to our one-of-a-kind software broker model. When a company makes a purchase through OutSail, the winning vendor owes us a small fee for making the introduction.

No Hidden Fees - You don't pay for our services and the vendors don't pass our costs along either
Vendor Agnostic - OutSail partners with 220+ HR Tech vendors including every market leader
What are the benefits of OutSail?
1.) Market Insights: Access the industry's most trusted data. Read user reviews of every leading HRIS vendor. Access verified pricing data. Use proprietary tools to sort & filter by your selection criteria.
2.) Evaluation Tools: Access to project plans & timelines. Customize your own scorecard tools. Leverage expert-generated demo questions. Collaborate with your team
3.) Advisory Services: Work with HRIS industry experts. Assistance during proposal review and guidance for negotiations. Implementation readiness
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