HRMS software industry – Which Political Party is better for us?
Before I start this article, it’s important to note that I consider myself to be an independent who leans right. That being said, I will try my best to present the most unbiased HRMS Software article possible. At this point, I think we have all had plenty of political spin so I don’t need to add any more.
The HR software industry is tied very closely to our nation’s economy. Many organizations are not going to view HRMS software as a requirement when funds are tight. Those systems that offer payroll or time collection may be less vulnerable due to the fact that these two items are rarely going to be viewed as luxury items. They are must haves. Employees have to be paid, regardless.
The HR software industry will also be impacted by greater business regulation requirements. The HR community may not be too fond of FMLA, COBRA, OSHA or EEO, but those of us working in the HRMS software industry have directly benefitted from these items.
What’s good for the economy is good for the HRMS software industry
The obvious advantage to the HRMS industry of having Republicans in charge is that we are typically going to see lower corporate tax rates and lower taxes in the top income brackets. Thus, it’s easy to assume that if companies are paying less in taxes, they will have greater monies to invest in HR software solutions.
This is certainly open to debate, but a valid argument can be made that lower taxes equal faster growing economies. If this in fact is true, then, in this case the Republican Party would offer greater opportunities for the HR software industry.
The opposite argument is that if taxes are lowered for the lower and middle class, then they have greater income to spend and American business sees the benefits from added sales. If this argument is true, then it would appear the Democrats are the party better suited for the HR software industry.
But then there is the history. I am not an economist so I am not going to discuss the reasons why, but historically, the economy has been stronger when a Democrat is in the White House. In an article, The NY Times recently pointed out that since 1948 the average annual growth for GNP of 1.64% under Republican Presidents grew by 2.78% under Democrat Presidents. Given these numbers, it can certainly be argued that the Democrats are better for the HR software industry.
Increased business regulations are good for the HRMS software community
Does anyone think America’s tax accountants are lobbying Congress to come up with an easier tax structure? I went to school for accounting, and trust me, the current complex US tax system keeps accountants employed and CPA firms growing. The same thing could be said for the HR software industry. Back when I was selling HR software solutions, I was constantly asked about the system’s ability to handle EEO, COBRA, FMLA, and others. Many companies end up buying a system simply to handle these manually difficult to track items.
The Democrats may be far more likely to add regulation to the business community than the Republicans. I am certain I made a few sales based on FMLA alone which was passed by the Democrats. Given what has just happened on Wall Street, I think we can only expect to see increased regulations going forward regardless of which party is in office. Universal Health Care, if passed, could create tremendous added requirements our HRMS software programs will need to fulfill.
But then the opposite argument is that if companies are required to supply employees with health care, they will in fact have less money to spend on non-required items such as HR software solutions.
So which party is better for the HRMS Software Industry?
Actually, as I have played point counter point in my head with this article, I realize I have no idea. If I formed an opinion at this point, it would be based more on bias than on true economic theory. As I stated earlier, by education I’m an accountant and based on experience, I am an HR software sales representative. This question would need to be answered by an unbiased economist, if one exists, or by spinning political pundits.
I am certain if you are a Republican, you accepted the arguments I made favoring that party. Likewise, if you are a Democrat, I am certain you read this article and agreed with those arguments. I provided the arguments. Now, it’s up to you to make your decision….soon.
About the Author
Clay Scroggin worked in the Human Resource and Payroll Software Industry for more than fifteen years. During that time, Clay and those who worked for him, sold and implemented HRIS for hundreds of HR professionals. In 2007, Clay began working on compareHRIS.com, a site dedicated to assisting HR professionals with their search, selection, implementation and use of HR systems.