Choosing the right software for your business is always a challenge. Functionality comparisons for all of the internal user groups, pricing assessments, and service agreement reviews are just a few of the many factors you need to consider when evaluating software solutions.
But when looking at HR technology companies to support your HR service provider business, the bar becomes very high, and your needs and requirements are even more complex. That’s because HR technology is an integral, essential part of an HR service provider’s business. It’s very often the solitary delivery tool to provide your services to your clients. Your business quite literally lives and dies with the viability of the HR technology company you use.
Given the significance of human resources software to your business, a provider of this technology is more than just a vendor. They’re your business partner. And when you’re evaluating a business partner who will play an important role in your organization both at the tactical and strategic levels, you certainly want to be as comprehensive and in-depth in your research as possible. So looking closely at the viability, experience and long-term roadmap of that partner is a must.
If the HR software doesn’t function properly, that’s a reflection on you and an impact on your reputation. When evaluating HR technology companies, Clay Scroggin of CompareHRIS suggests that, “… the more installs they have and the longer they have been in business provides a greater opportunity to correct as many issues as possible. And the size of an HR software company can offer helpful insight as to the stability of the company. Generally speaking, the more employees a company has and the longer they’ve had their products on the market, the cleaner their applications will be.”¹
And as PlusHR.com advises, “Don’t just focus on the technical attributes of the software, also consider the knowledge and experience of the supplier’s team, the company’s financial stability and the quality of their support, data protection and hosting arrangements.”²
The financial stability of your HR tech company is no small thing. If the software provider goes out of business, your business is left completely out in blue, with no fast and easy alternative available to you. According to the KPMG report Managing Supplier Failure Risk, “Supplier failure can destroy value in your business…In many cases, the cost of dealing with these situations can run into millions and absorb significant management time. [Your business] value can be destroyed in a range of ways” including “immediate lost revenue and liquidated damage claims…additional costs to resource [a new vendor]…Loss of customer goodwill…[and] reputational damage and potential loss of any competitive advantage.” KPMG adds that “dealing with supplier failure after the problem has arisen can be a very expensive process.”³
This presents a pretty compelling argument to closely evaluate the financial strength, experience, and available employee resources of HR technology companies, either one that you’re considering signing on, or even one with whom you’ve already contracted. The magnitude of the risks to your business are too great not to do so.
Hear why Aureon HR chose to partner with PrismHR for the future growth and success of their business.