Let’s face it. Getting executive buy-in for a software purchase of any kind is hard! That’s especially true for a department that doesn’t directly make money for the organization – like HR.
I have been selling Employee tracking software, HRIS software, and HRMS systems for more than 15 years. Here’s the scary reality. If I show an HRIS application to 100 HR managers, at least 80 will express interest in buying. But only 10 to 20 – at most – will get approval for the purchase. Based on my estimated numbers, this means that for every 10 HR departments looking for an HRIS product only 2.5 actually end up getting approval and buying a system.
That’s a disappointing number, especially if you’re feeling the pressure of trying to make up for inefficiencies and shortcomings of your current system. So what can you do to avoid pitfalls during the approval process and increase your chances of successfully appealing to decision makers?
Before we talk about solutions, let’s start with understanding why it’s so hard to get approval for an HR software purchase in the first place.
The problem is clear: organizations that don’t see HR as a value driver will be less likely to invest in better software. Good enough is good enough. If you work for an organization like this, however, all is not lost. There are several steps you can take to counter the problems above and make a good case for investment.
Decision-makers are not IT people. Trying to sell them on the amazing features of the new software will almost always fail. Instead, you’ll need to demonstrate how the system can solve problems and benefit the organization. The more effectively you show that the product meets needs and fixes problems (especially those with a measurable ROI), the more successful you will be.
When going through the sales process and demos with a prospect, I like to involve as many others in the organization as possible to show that the system offers value outside of HR. An HR system that provides value to the entire company has a greater chance of being approved than one that does not.
For example:
Look for cross-organizational benefits too, such as improved experiences for employees and managers through the self-service portal. The point is that an HR system that streamlines information for an entire organization will be seen as having greater value than one that benefits only HR.
Look for ways that the new software can assist with meeting organizational or departmental goals.
If you can tie goals like these to the capabilities of the HRIS, you stand a better chance of getting approval for the purchase.
Include an analysis of cost and benefits, including projected ROI, value drivers, cost savings, and budget impacts. Include as much supporting evidence as possible to demonstrate that the purchase would be a good move not only for the HR department, but for the company as a whole. It’s also helpful to set up a meeting to talk through the proposal in person so you can make your case (this also ensures that your proposal doesn’t get shunted off to someone’s “Deal with Later” list).
Waiting for a decision after you have presented your proposal is often the hardest part of the approval process. While the decision may look straightforward from an HR perspective, there may be legitimate financial or practical reasons why a new software purchase isn’t in the cards for your company. Some companies just aren’t as open to the idea of change. Others have to wade through a lot of red tape before substantial budget decisions are approved. There may also be contributing factors outside your control such as staff shortages, cultural components, or budget allocations for other projects.
Still, following the steps above will go a long way toward making your case, and you can rest assured that decision-makers have everything they need to make an informed decision.
About the Author
Clay Scroggin worked in the Human Resource and Payroll Software Industry for more than 15 years. During that time Clay and those who worked with him assisted hundreds of HR professionals with their HR software needs. In 2007 Clay began working on CompareHRIS.com. The site contains several tools to assist HR professionals with their HR software research including the flagship HRIS Selection Tool.
