HR Software Selection Guide

The Ultimate Guide to
Optimizing HR Operations:
How to Select Your
New HR Software
Tara Dwyer
Webinar Coordinator
Human Resources Today
Patrick Sayers
President, Newcastle
Research
June 20th, 2023
12:30pm PDT, 3:30pm EDT, 8:30pm BST
featuring
moderated
by

Newcastle Research is a leading research and advisory
company focused on the Human Capital Management
market. Insight into any market requires an understanding
of the sellers and buyers that compose that market. That’s
why their research methodology is designed to gain insight
into the products, services, and technology of HCM
vendors, as well as the customer experience and decision-
making process of their customers. Whether you’re a buyer
or seller of HCM, Newcastle Research’s independent,
objective research can help you make informed decisions.

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Patrick Sayers
President, Newcastle
Research
Optimizing HR Operations:
How to Select Your New HR Software

Optimizing HR
Operations:
How to Select Your
New HR Software
Patrick Sayers
Newcastle Research

We help customers choose the best HCM solution
for their needs
What We Do
calendly.com/newcastleresearch
patrick.sayers@newcastleresearch.co
m
Copyright © 2023 Newcastle Research | All rights reserved

What We Do
Our focus is understanding the market
m

What We Do
Our focus is understanding the market
m
and the customer

Focused on the customer
Today’s Discussion
Customers Newcastle Research has worked with, interviewed,
surveyed, met at industry events, etc…
m

Happy with current HCM solution Unhappy with current HCM solution
Focused on the customer
Today’s Discussion
(specifically, these
customers)
m

What’s the
biggest pain
point from your
current HCM
solution?
Why Organizations are Unhappy
50%
Dissatisfaction with customer service
12.5%
Missing functionality
12.5%
Not easy to use (not intuitive, etc.)
25%
Too many systems (duplicate data entry, etc.)
m

Poll Question
What is your
biggest pain point
today with your
current HCM
solution?
a. Dissatisfaction with customer
service
b. Missing functionality
c. Not easy to use (not intuitive,
etc.)
d. Too many systems (duplicate
data entry, etc.)

What We Hear
Reasons the
search for a new
HCM solution
isn’t moving
forward:
Why HCM
Searches Are
Delayed
“We need help
evaluating HCM
options.”
CHRO recognizes that the HCM market
is crowded – she needs insight into the
pros and cons of different HCM
vendors, and help creating a short list
of options that make sense for her
organization.
“We need to justify
a new HCM solution
to the CFO.”
CHRO understands her organization
needs a new HCM solution, but she
needs to convince other stakeholders
within the organization.
“We need help
defining our
requirements.”
CHRO and his team need help with a
needs analysis to ensure there are no
functionality gaps when they start
evaluating options.
“We’re afraid of making the
wrong decision, so we’ve
continued to push it off.”
CHRO wants to conduct the most
effective search possible, but he’s not
sure where to begin.
“We don’t have time.”
and her team don’t have time to
conduct a thorough needs analysis,
search, and evaluation.
m

What We Hear
Reasons the
search for a new
HCM solution
isn’t moving
forward:
Why HCM
Searches Are
Delayed
“We need help
evaluating HCM
options.”
organization.
a new HCM solution
to the CFO.”
“We don’t have time.”
and her team don’t have time to
conduct a thorough needs analysis,
search, and evaluation.
m

What We Hear
Reasons the
search for a new
HCM solution
isn’t moving
forward:
Why HCM
Searches Are
Delayed
“We need help
evaluating HCM
options.”
organization.
a new HCM solution
to the CFO.”
m

What We Hear
Reasons the
search for a new
HCM solution
isn’t moving
forward:
Why HCM
Searches Are
Delayed
“We need help
evaluating HCM
options.”
organization.
m

What We’re Covering Today
Top five considerations when selecting new HR
software
“We need help
evaluating HCM
options.”
organization.
m

If the final decision is between different types of vehicles, the search didn’t reflect the buyer’s
needs
• Decide on a type of HR vehicle that best fits your needs
• Then evaluate options within that category
Determine the Right HR Technology
Vehicle
(HCM, PEO, HRO, etc.)
CONSIDERATION #1
m

Single HCM Integrated HCM
What’s the
difference
?
• Built from the ground up on a single
codebase
• One employee record
• Applications that were developed and
built separately, then brought together
• Modules may be on multiple databases
and may have disparate user interfaces
• Individual modules updated at the
discretion of the partner
Why does
it matter?
• No need to manually enter and update
data into separate systems
• Single system requires one update
• Separate databases and update
schedules can create more work for the
customer’s IT team to avoid problems
• Potential negative impact on user
experience and ongoing support
Understand the Difference Between
Single HCM and Integrated HCM
CONSIDERATION #2
m

Poll Question
What is your
company using
today for your HCM
needs (HR, payroll,
time & attendance,
etc.)?
a. Multiple HCM vendors
b. A single HCM vendor
c. Homegrown system
d. Professional Employer
Organization (PEO)

Situation #1
• Customer buys a solution from a single
provider and assumes it’s a single system
• The reality is a core component is
delivered through a 3rd party
The Result
• Customer experiences disconnected
workflow and user experience
• Support for that one module isn’t as
good as the other modules
Situation #2
• Customer doesn’t include any resellers in
search
• “Why would I buy from a reseller when I
can buy directly from the software
developer?”
The Result
• Customer eliminates from consideration
what could be a better option
Reseller Scenarios Can Be Good or Bad
Two situations you want to avoid
Reselling scenarios can be detrimental or beneficial, depending on the
situation
CONSIDERATION #3
m

What to look for
• The vendor should have a detailed plan
̶ What resources should the customer
expect to commit (time, staff, etc.)?
̶ What is the vendor’s responsibility and
what is the customer’s responsibility?
What to watch out for
• Often the vendor is largely to blame for
not having a good game plan, or not
communicating the plan effectively
• Proceed with caution if the vendor is
vague on details; don’t accept “We’ll
figure it out when we get there"
Understand the Implementation Plan
Before Signing
Confusion around implementation is a recipe for
disaster
CONSIDERATION #4
m

Poll Question
What is the most
important criteria
in selecting your
next HCM
solution?
a. Features/Functionality
b. Price
c. Ease of use (UI, workflow, etc.)
d. Customer service
e. Consolidation (reducing the
number of HR systems we use)

• Every HCM vendor will tell you
customer service is their top priority
• CSAT metrics, reviews, etc. may
not reflect entire customer base
1Half of customers cite poor customer service as the primary reason for switching HCM vendors – Newcastle Research
Don’t Underweight Customer
Service in Your Decision
Revenue retention is the best
benchmark for customer service
• < 90%
• 90% - 94%
• > 94%
(#1 reason why organizations switch HCM vendors1)
CONSIDERATION #5
m

/in/taradwyer
@HRPosts
humanresourcestoday.com
Q&A
Patrick Sayers Tara Dwyer
Webinar Coordinator, Human Resources Today
/in/sayerspatrick/
patrick.sayers@newcastleresearch.com
President, Newcastle Research

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