[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:
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).
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.
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.
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