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Why does HR keep buying the wrong software

Many small and midsize businesses prioritize cost over ease of use when considering HR technology purchases due to budget constraints.

Price is a significant factor that greatly influences the selection of talent management solutions, as highlighted in Capterra’s report on industry users. According to analysts, this focus on spending creates a “disconnect.”

“Although cost may appear to be the primary consideration when selecting software, relying solely on price can lead to more challenges than most small and medium-sized businesses are equipped to handle,” stated Brian Westfall, the lead analyst of the survey and a principal analyst at Capterra.
Taking shortcuts

According to Capterra’s research, a significant portion of HR tech buyers experienced varying levels of spending on their purchase. 45% of buyers reported spending more, while another 45% reported spending less. In general, the majority of companies (80%) are said to be content with their choice. However, during the process of implementing new software, a significant number of organizations (62%) have had to change their solutions because the cheaper alternatives they initially chose lacked the necessary features.

Companies that opt for cost-cutting measures may end up purchasing technology solutions that do not effectively meet their business requirements. This disconnect can result in higher costs for SMBs, as they are constantly forced to address the shortcomings of an inefficient HR system and seek out alternative solutions.

According to Capterra, buyers should conduct a thorough analysis of all available options, taking into consideration factors such as functionality and ease of use, rather than solely focusing on cost. This approach will enable them to choose the most suitable software while also being mindful of their financial goals.

According to the analysts, talent management solutions that are considered the best often come with a range of functions, but these additional features usually come at a cost.