HR Tech Buyer Beware: Mistakes To Avoid

Buying HR technology can be hard enough. Now HR Tech customers need a plan to avoid the data version of “fake news.”

Recently, some HR tech pricing data from a site called siftery  hit my radar in our industry Facebook group Talent Product Plays. It was immediately met with tech execs, analysts, and influencers calling bullshit about the pricing report’s veracity. Siftery represents a trend in on-line content that targets buyers of just about anything: crowd sourcing. Crowd sourcing data to help with a purchasing decision, at face value, is a very good thing. It can be in incredible tool during an HR tech buyer’s research phase. But, any data that doesn’t rHR Tech Buyer Bewareepresent what’s happening in the market, crowd sourced or otherwise, can be misleading and rather than help the buyer, or give them an advantage in the buying process, it hurts them and could lead to bad decisions, or being ill-prepared come negotiation time.

Crowd source data sites, like siftery, have good intentions. Get customers to input data and fill a gap in the market – in this case, for pricing data. And, everyone loves to see pricing data. It’s a perennially provocative topic. However, those of us that spend a lot of time with both buyers of HR technology and the vendors that provide it find that this siftery report is largely misleading and inaccurate. One industry executive, that shall remain nameless, has commented that they have gone so far as to demand that siftery stop contacting their users, because the questions that were being asked in return for gift cards were largely questions that users don’t have perspective on. There may be dozens, hundreds, or thousands of users on a B2B tech platform, but normally only a handful of business people that get to see the contract details. For this reason, it’s surprising to see a crowd sourced site try to tackle pricing. Crowd sourced review sites, where users give their perspective on features, functions, and support can be incredibly useful, and tech vendors with nothing to hide will encourage their users to write reviews in order to stand out.

The review sites are counting on buyers finding them on Google and engaging with their content, before contacting any vendors. As B2B tech buyers have become more sophisticated, the trend has been to do more and more research before ever contacting a vendor. These ratings sites are counting on this to continue as they build their traffic. Why? This eventually allows them to implement a revenue model based on ads, or sometimes “featured vendor content.”

So, what should an HR tech buyer do, when starting the process?

Follow these tips to avoid common mistakes made early in the process.

As an HR and HR technology market analyst I spend a lot of time helping employers decipher the tech vendor landscape while also helping the tech vendors decipher their customer’s needs. It’s a big part of the analyst role. Having spent 10 years in each of the buying and selling roles and now 7 as an analyst, I’m uniquely qualified to help.

When business leaders set out to buy software they want to make an informed decision. Ten or more years ago it was almost impossible for a company to evaluate software without talking to vendors. The world has certainly changed a lot, and continues to at a rapid pace.

The data readily available to us on just about any type of technology products has empowered us to make incredibly informed decisions. So much so that according to Gartner buyers of business-to-business (B2B) tech have drastically changed their buying habits, opting to complete 57% of their research and buying process on average before ever contacting a vendor.

Can you blame them? No one likes to be sold to.

As I work with buyers of HR technology, they consistently tell me that the following seven starting points are those leveraged most consistently when surveying the landscape of HR tech:

  • Personal networks – Not to be confused with social networks. These are actual networks. Reaching out to people you know and respect that have evaluated a similar technology is, of course the most trusted source of input far and above any others.
  • Industry trade shows – Normally described as an opportunity to get a view of several products and hear from thought leaders about trends. Approached properly, this can be an incredibly efficient way to do research.
  • Meet-ups – Small, local networking and information sharing events where you meet industry peers and mentors while getting answers to questions about buying tech, and beyond.
  • Reaching out to investors and board members – These folks have an understanding of your business and perspective on what other people are doing.
  • Market/industry analysts – Leveraged more by CHROs or VPs of HR functions in large enterprises, these relationships rarely trickle down to technology users. However, this is starting to change as analysts (like yours truly) have moved away from putting report access behind paywalls and are focusing on providing some much needed context for employers of all sizes.
  • Blogs and Trade Press – Much of the time these are the result of a Google search and then turn into “subscriptions.”
  • Consultants – There is a growing list of consultants that specialize in helping employers get a handle on HR technology, including strategy, selection, and pricing.
  • Google – Is there a search for anything that doesn’t start with Google?

I put Google last on the list on purpose. Google, and other search engines, can be your door to a world of incredible research and data. If you’re not careful, it can also be the first step on a slippery slope of wasted time and effort. Which was the impetus behind this blog post. As you start your research, My recommendation is to depend on industry networks to vet the myriad sources that you find. Otherwise, you my spend all of your time sifting through data with little to no value.



  1. Gerry Giacoman Colyer May 9, 2017 at 5:32 pm #


    Thanks for writing about Siftery’s Pricing Benchmarks report and we appreciate you allowing us the space here to reply to your critique.

    You mention that personal networks are far and above the most trusted resource. In a way, what we’re doing at Siftery is expanding any individual buyer’s network by surveying a larger set than they could by themselves. In the case of the published ATS report, we collected responses from almost 300 companies (more have come in since publishing) that were verified users. In some cases, incontrovertible proof (e.g. an invoice) was provided. Needless to say – we stand by the report and believe that, other than the products releasing their pricing data themselves, this is the best pricing benchmark that buyers have to work with.

    • glarocque May 9, 2017 at 5:56 pm #

      Thanks for taking the time comment! I understand and appreciate that you stand by your product. Surveys just don’t equate to the level of detailed insight that personal networks do. I understand the value of a survey. I run surveys myself. I don’t know what about your data set is off in this particular case. But, I can tell you that it is off, and egregiously so.

    • Martin Burns May 9, 2017 at 6:14 pm #

      Gerry, to add to George’s point: the actual data defeats you. I negotiate contracts between ATS vendors and clients. I have, saved on my drive, almost all of their pricing sheets, year over year. I know the list price, and the negotiated price. The implementation costs, the add-one, post implementation service hour costs, yadda-yada. And I can tell you this: you may think you have good data, but… good gods you do not. It borders on the embarrassing.

      • glarocque May 9, 2017 at 7:35 pm #

        I wonder how many calls you’re going to get about pricing now. Keep an eye on that hard drive. 😉

      • Gerry Giacoman Colyer May 9, 2017 at 8:37 pm #


        If you and George can disclose your data, I’m sure the buyer community will be all the better for it.

        • glarocque May 9, 2017 at 9:42 pm #

          That’s sort of what we do for the industry, Gerry.

  2. Gerry Giacoman Colyer May 9, 2017 at 6:52 pm #

    George, I believe the buyer community would welcome your thoughts on how – specifically – our benchmarks are off. Are we reporting costs that are too high? Too low? For each product?

    If we’re both working in the interest of buyers, we’re open to exploring opportunities to collaborate.

    • glarocque May 9, 2017 at 7:35 pm #

      Thanks, Gerry. See Martin’s comment for more perspective. From my seat, your numbers are extremely high across the board. Feel free to drop me a line here: It will start an email discussion regarding any potential collaboration. As a market analyst, I’m not sure I can really inform your reports, but we can chat. Martin Burns and his firm are definitely also a good resource for you.

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