The document discusses 10 things to consider when negotiating HR software contracts with vendors to avoid unfavorable terms. These include ensuring the contract specifies data ownership, whether renewals automatically occur, guarantees around price increases, termination within 30 days, a process for exiting gracefully, training for all users, penalties for missed vendor goals, variable consulting hours, budget for adoption incentives, and caps on maintenance fees. The document advises remembering that software features only have value if users actually use them.

1. How to Avoid Crappy HR
Software Contracts
William Tincup, SPHR

2. Situation Overview
• We don’t negotiate software contracts all that often
• Most contracts are provided by the vendors
• We’re at a disadvantage

3. 10 Things To Consider...
• Data
• Renewals
• Price
• Termination
• Exit
• Training
• SLA
• Hours
• Adoption
• Maintenance

4. Data
• Does your contract state who owns the data?

5. Renewals
• Does your contract automatically renew?

6. Price
• Does your contract guarantee that prices will not be increased?

7. Termination
• Does your contract state that you can get out in 30 days or less?

8. Exit
• Does your contract stipulate the process for a graceful exit?

9. Training
• Does your contract include training all users?

10. SLA
• Does your contract penalize the vendor for missing goals?

11. Hours
• Does your contract contain variable consulting hours?

12. Adoption
• Does your contract include budget for incentive programs to drive user adoption?

13. Maintenance
• Does your contract include caps on maintenance fees?

14. Remember…
"a feature is not a feature
unless users use said
feature"

15. Feedback & Thank You
William Tincup, SPHR
Tincup & Co.
Email = william@tincup.com
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