Human Resources Software BuyerView Report. Insight into today s software buyer

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1 Human Resources Software BuyerView Report Insight into today s software buyer

2 Abstract Software Advice helps organizations narrow down human resources (HR) software options to find a system that best meets their needs. This provides us with unparalleled insight into the biggest pain points buyers have with their current methods, as well as what they re looking for in a new solution. We recently analyzed a sample of 385 of these interactions with potential HR software buyers. This report outlines our most important findings. The majority of buyers were evaluating HR software for the first time (40 percent). The most requested HR application was applicant tracking (40 percent). 77 percent of HR software buyers requested a web-based deployment model.

3 Buyers Current HR Methods Manual methods Software Manual methods/software Manual methods/outsourced payroll Multiple software systems Nothing Outsourced payroll Outsourced payroll/software Proprietary software Other Number of participants Almost 40 percent of the software buyers were using manual methods to track and store their HR data. They were evaluating software for the first time.

4 HR Software Buyers Integration Requirements 3% 41% 56% Best-of-breed Integrated suite only Multipe products Over half of buyers sought a best-of-breed application, while 41 percent preferred an integrated suite from a single vendor.

5 Most Commonly Requested Best-of-Breed Applications Applicant tracking Time & attendance Performance review Personnel tracking Learning management Employee scheduling Payroll On-boarding Benefits administration Applicant sourcing Number of mentions Of those buyers who specifically requested a best-of-breed application, over a third (34 percent) were looking for an applicant tracking system (ATS).

6 HR Software Buyers Top Requested Applications Applicant tracking Personnel tracking Time & attendance Performance review Benefits administration Payroll On-boarding Learning management Employee scheduling Goal management Compensation management Applicant sourcing Number of mentions Whether buyers wanted a best-of-breed, integrated solution or a combination of products from multiple vendors, an ATS was most commonly requested.

7 Top Reasons for Replacing Manual Methods Improve efficiency/accuracy Go electronic/automate Company growth Consolidate systems Too expensive Ensure compliance Other Number of mentions Buyers using manual methods cited the need to improve efficiency and decrease errors as the primary reason for evaluating new software.

8 Top Reasons for Replacing Current Software Missing functionality Current system too complex Improve efficiency/accuracy Update/modernize Consolidate systems Unsatisfactory customer support Reduce costs Go electronic/automate Company growth Other Number of mentions Of those buyers looking to replace an existing HR system, 44 percent cited missing functionality as the reason for researching a new software solution.

9 HR Software Buyers Deployment Preferences 19% 3% Web-based On-premise Not determined 77% The vast majority of the buyers we spoke with expressed a preference for Webbased software. Only 3 percent said they would prefer an on-premise system.

10 Timeframe for Implementation 6% 6% 24% Less than 3 months 3-6 months 6-12 months Other / not specified 64% Most buyers wanted to implement new software within 3 months common buyer behavior among SMBs, which don't require a long evaluation process.

11 Demographics: Buyer Size by Number of Employees 10% 12% 6% 3% 19% ,000 1,001-2,500 21% 2,501-5,000 5,001-10,000 10, % Our sample spanned a wide range of business sizes and revenues, but most buyers were from companies that fell within the range of employees.

12 Demographics: Buyer Size by Annual Revenue 9% 2% 4% 5% 4% 26% Less than $1 million $1-$5 million $6-$25 million $26-$50 million $51-$100 million $101-$300 million $301-$500 million $501 million-$1 billion Over $1 billion 49% The majority of buyers were small to mid-sized businesses: 75 percent represented companies with annual revenue between $1 and $25 million.

13 Learn more about Human Resources Software Read Report Read the full report Get Free Quotes Get free price quotes on top HR Software Get Free Demos Get unbiased reviews & free demos on top HR Software

14 @SoftwareAdvice /company/software-advice Software Advice is a trusted resource for software buyers. The company's website, provides detailed reviews, comparisons and research to help organizations choose the right software. Meanwhile, the company s team of software analysts provide free telephone consultations to help each software buyer identify systems that best fit their needs. In the process, Software Advice connects software buyers and sellers, generating high-quality opportunities for software vendors.