Human Resources Software BuyerView ReportInsight into today’s software buyer

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.

Abstract

Manual methods

Software

Manual methods/software

Manual methods/outsourced payroll

Multiple software systems

Nothing

Outsourced payroll

Outsourced payroll/software

Proprietary software

Other

0 75 150

Buyers’ Current HR Methods

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.

HR Software Buyers’ Integration Requirements

Over half of buyers sought a best-of-breed application, while 41 percent preferred an integrated suite from a single vendor.

3%

41%

56%

Best-of-breedIntegrated suite onlyMultipe products

Applicant tracking

Time & attendance

Performance review

Personnel tracking

Learning management

Employee scheduling

Payroll

On-boarding

Benefits administration

Applicant sourcing

0 50 100

Most Commonly Requested Best-of-Breed Applications

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).

Applicant trackingPersonnel trackingTime & attendance

Performance reviewBenefits administration

PayrollOn-boarding

Learning managementEmployee scheduling

Goal managementCompensation management

Applicant sourcing

0 80 160

HR Software Buyers’ Top Requested Applications

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.

Improve efficiency/accuracy

Go electronic/automate

Company growth

Consolidate systems

Too expensive

Ensure compliance

Other

0 75 150

Top Reasons for Replacing Manual Methods

Number of mentions

Buyers using manual methods cited the need to improve efficiency and decrease errors as the primary reason for evaluating new 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

0 25 50

Top Reasons for Replacing Current Software

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.

HR Software Buyers’ Deployment Preferences

The vast majority of the buyers we spoke with expressed a preference for Web-based software. Only 3 percent said they would prefer an on-premise system.

19%

3%

77%

Web-basedOn-premiseNot determined

Timeframe for Implementation

Most buyers wanted to implement new software within 3 months—common buyer behavior among SMBs, which don't require a long evaluation process.

6%6%

24%

64%

Less than 3 months3-6 months6-12 monthsOther / not specified

Demographics: Buyer Size by Number of Employees

Our sample spanned a wide range of business sizes and revenues, but most buyers were from companies that fell within the range of 1-250 employees.

3%6%

10%

12%

27%

21%

19% 1-5051-100101-250251-500501-1,0001,001-2,5002,501-5,0005,001-10,00010,001+

Demographics: Buyer Size by Annual Revenue

The majority of buyers were small to mid-sized businesses: 75 percent represented companies with annual revenue between $1 and $25 million.

2%4%

5%

9%

49%

26%

4%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 billionOver $1 billion

Read the full report

Get free price quotes on top HR Software

Get unbiased reviews & free demos on top HR Software

Learn more about Human Resources Software

Read Report

Get Free Quotes

Get Free Demos

Software Advice is a trusted resource for software buyers. The company's website, www.softwareadvice.com, 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.

@SoftwareAdvice /company/software-advice

@SoftwareAdvice/SoftwareAdvice