HR technology makes the arduous task of managing the workforce a little easier than if it were totally absent. This is a safe assumption to make in the general sense. But it is a rudimentary one because nearly every HR tool claims to do the same thing. It is up to the organization, who are in this instance, the buyers of the HR technology, to weigh the cost-benefit analysis offered by each tool. A purchase decision, therefore, is a culmination of a long list of decisions, the first of which is the goal of opting for the tech tool instead of keeping up a manual routine.
HR technology automates, quickens, increases the efficacy of HR processes, and saves tons of time and resources for an organization. So as not to be stuck with the wrong product that fulfills only a part of the goals, or worse, none at all.
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Technology purchases, like all other decisions, should be made for the right reasons. Buying technology products hoping that a company can:
- join a bandwagon of tech-savvy peers
- turn around its performance without a solid plan of action dedicated to each metric it hopes to make better
- find a single solution for all its challenges
are some of the wrong reasons for signing up for a service or product. Instead, a deeply organized project-management-type solution to HR technology helps buyers understand their needs as well as their options better.
Re-evaluating the elevator pitch against the actual sales presentation helps the buyer remember why they started to consider the product/tool in the first place. It also simplifies the trade-off between expense and benefit.
Work backward: Thinking from the point of view of the seller is an excellent beginning. Does the buyer fall under the category of their established audience? If a reasonably wide bracket doesn’t cover the buyer’s nature of business or needs, the chances are that the focus of the HR technology and who it seeks to serve is entirely different. The mismatch between needs fulfilled and resources being wasted in the wrong area might be too much to ignore.
A business-case in the building: Buying a shiny new tech tool isn’t always the answer. The numbers of expenditure and results reaped put things in perspective for any potential buyer, not just their finance teams. The business-case might prove that it might make sense for a larger organization to have a tool but their own can get by through an in-house solution or temporary fix before larger needs are seen to justify the expense.
Sometimes the cost is not just the rupees spent: Although every business would be careful enough to watch out for hidden costs and lock-in periods that they might not see immediately, they do miss out on other aspects by which resources can drain out. For instance, a long training period, extra expense or trouble to be taken for understanding a workflow, or outlay for special infrastructure to make the product work can still add to the original cost of the HR tool.
Buyers in the market for HR technology should pay attention to the operational needs set to arise from the purchase and not just the initial outlay. Going so far as to imagine the cost of replacing the tool in the future, cost of upgrades, and so on should be considered side-by-side to evaluate the fitness of an HR technology purchase.
Reference: HR Tech: 5 Reasons We Too Often Buy the Wrong Stuff | Talent Culture – HR Technology | Meghan M. Biro | January 27, 2021
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