Tag Archives: Saas

VC investment alters the HR technology landscape

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hr_investment_bargraphBillions of dollars invested in HR technology companies have created a handful of new and reborn one-size-fits-all HCM vendors who made a big splash on the HR scene throughout 2015 and 2016. Not to be outdone, niche HR specialist vendors have upped the ante with some very compelling niche products targeting recruiting, performance, learning, compliance, and social collaboration. Choice is always a good thing for HR departments. How does all this investment in HR technology companies change the way HR executives think about using technology within their operations? 

To best-of-breed or not to best-of-breed? That is now the question.

There is no question that current thinking leads HR executives toward single-vendor-fits-all approach for HCM over using multiple best-of-breed niche software providers. The best-of-breed approach may gain favor as convenient and reliable data exchange service to core HR platforms mature. I’m seeing this trend occur with SMB accounting and sales automation providers now supporting data exchange to financial institutions, POS, fulfillment services, lead sources, and even benchmarking data. I expect the HR space to follow suite making a best-of-breed solution approach more viable for HR executives to consider in the future.

A new category is born—The Social Workplace.

Facebook, Google, and Microsoft are all well-positioned to Socialize the workplace. Social tools at work have the potential to reinvent tracking time, electing benefits, performance management, training, and coaching. This goes much deeper that LinkedIn or Glassdoor—think Facebook, SharePoint, and GoToMeeting combined. In fact, Facebook is already in the game with Workplace by Facebook (https://workplace.fb.com/) launched in late 2016. Gaining access to the employee’s wallet will be the holy grail for Social Workplace vendors, and HR is positioned as the epicenter to be the gatekeeper and policy maker for this new category. I’m concerned that many HR executives are too overwhelmed with day-to-day workload to properly address this opportunity. So, jumping into bed with Facebook may be convenient but not in their companies’ best interests. There are so many issues to consider: security, privacy, data ownership, productivity, etc. It’s HR’s ball to carry right now, and I’m hopeful that HR executives prioritize their time so they can lead the charge to carefully, thoughtfully, and safely deploy Social Collaboration in their workplaces.

Regulations grow exponentially; strategic outsourcing is HRs only hope to keep up.

With all good intentions government continues to burden companies with new reporting and regulation. With the expansion of E-Verify, EEOC, health and welfare laws, efforts to curb tax refund fraud and change tax brackets, the coming compliance burden continues to grow. We’ve learned from the ACA that new employment laws can be anything but a routine and predictable compliance job during their initial rollout. Already understaffed HR departments should strategically outsource these duties to specialists because when you bake in the true cost of doing the work yourself, outsourcing is truly more affordable and reduces compliance failure risks at the same time.

On premise software bites the dust.

Technology investments have favored Cloud vendors exclusively since investors like the advantages of the Cloud business model with shorter development cycle times, a single code base across the customer base, a streamlined support experience, and out-of-the-box integrations with third-party vendors. These things are all made possible by the Cloud software business model. The Cloud business model also does away with version upgrades costs and aligns customer and vendor interests around a stable and compelling product version which reduces the demand for support. That benefits both parties. Vendors are rewarded with lower costs and clients are rewarded with a better product and lower total cost of ownership. As most software vendors exclusively align their products to cloud deployment, on premise software becomes a relic of the past.

The billions of investment dollars in the HR technology space over the past five years has created new choice for HR departments. HR executives should look to outsource the increased burden of compliance to leave them bandwidth to focus on strategic technology investments such as Social Workplace tools and Human Capital Management software. Arguments will still be made for a single vendor solution, but a best-of-breed approach may gain more favor soon. Either way, HR needs to exercise caution with adequate due diligence in the vendor selection process. Don’t pick a vendor solely on technology demonstrations. A vendor that is too focused on feature-packing and super growth and not enough on customer service can be a nightmare to deal with. Nothing can make up for bad partner choices and failed implementations. The cost, aggravation, disruption, loss of time, and negative hit to your reputation as an HR leader is unrecoverable.

HR Cloud 9 requires a great ecosystem

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woman_cloudHR Cloud 9 is being in a state of perfect contentment with your HR ecosystem. Getting to HR Cloud 9 isn’t a trivial matter, and it isn’t about choosing one vendor to handle everything. The choices you make when building out your HR ecosystem will either form your utopia or nightmare. To get to HR Cloud 9, consider how your ecosystem will fair in the following areas. If you do, you’ll be well on your way to Cloud 9.

You want intimate customer service experience that is highly accessible and feels like an extension of your staff. Vendors that strive for an intimate customer service relationship take customer service to a different level. Service personnel staff have relevant up-to-the-minute information such as sales orders, setup documents, and all service history. Each and every service staff member has the requisite and relevant industry and product expertise to be knowledgeable and helpful to customers. Customer service people who are empathetic and highly value the voice of the customer. They are reliable, interchangeable, efficient, and effective in resolving customer service issues and exceeding customer expectations. This is more than just responding quickly. Each customer exchange is a seamless, predictable experience, and a customer is never asked to retrace or rehash a service issue. And for those issues that require more than a few days to achieve resolution, service staff clearly communicate timelines and resolution expectations to mitigate misunderstandings upfront.

You want software designed the way HR people think and works the way it’s expected to. Great HR software is built with the end user in mind. The HR user experience should mirror the way HR people think and work. The manager experience should complement the managers’ work and work day. The employee experience should be designed for casual use and promote communication and feedback to encourage engagement and recognition behaviors, which lead to happy workers. Don’t settle for clunky and hard to use. There are way better options today. This applies to HCM and more. Today, the Girl Scout’s Digital Cookie™ app[i] is used by Girl Scouts to “gain new business and social skills in an entertaining and engaging way.” Your HR Cloud 9 needs this too.

You need speed and accessibility because lack of speed and accessibility kills productivity. Review service level agreements for reasonable up-time guarantees and response time measures for all major application functions. If you require access at remote locations or via mobile devices, verify that your solution supports those forms of access. Most cloud vendors use a shared infrastructure of web servers, applications servers, and database servers that are accessible via the public internet. Many cloud vendors do not offer exclusive use to a single organization, so performance can be impacted by what other users are doing at any given time. Don’t get bogged down by poor performance; it’s a real drag and a time suck.

You need to be sure that the vendor’s solution “box” of capability is big enough for your needs. A single code base is another key tenant of modern HCM systems. A lot of Cloud providers have application policies to customize look and feel and even some parts of the customer experience. So, that doesn’t necessarily mean that every customer is stuck with the exact same user experience. But it does mean that code customization for the unique need of a single customer is not supported. Keep in mind that mature solutions tend to have a bigger “box” of capability that allows more organizations to be easily supported by the product. Choose solutions that meet your needs today and for the near future.

You need an evolved reporting capability that shields end-users from complexity. Modern HR Cloud software solutions are built on large data repositories with comingled customer data because this is most efficient and affordable for them. This multi-tenant design requires programming to separate customers logically and adds complexity to data reporting. Techniques like de-normalized database views and metadata layers facilitating intuitive data relationship, grouping, and summaries go a long way toward enhancing the productivity of a reporting user. Ultimately, the best approach eliminates all reporting complexity by abstracting the data relationships from the end-user altogether. This yields point and click report definitions, grouping, and summaries in the most user friendly format available and ultimately makes the reporting function available to a greater cross section of your organization.

You need good support for system integration, data imports, and data exports. Supporting the data needs of the various executive that an HR department services means getting data in and out of the system in a secure and efficient manner is an essential requirement. Employee loads, time imports, carrier feeds, G/L files, and published web service integration points are just a few examples. Don’t get painted in a corner with cloud solution that doesn’t meet your integration requirements.

Achieving the perfect ecosystem for your HR function could mean multiple vendors.[ii] Look for each of those vendors to provide an intimate customer service experience, fast and reliable access, flexible software capabilities that meet your current and future needs, a user experience that mirrors the way people work, and reporting and data extraction that don’t require a programmer to use.

Choose your partners wisely and be on HR Cloud 9.

This blog was written by Richard Cangemi, Chief Executive Guru at PeopleGuru™. This post may not be copied or published without permission.

[i] Girl Scouts. Digital Cookie 2.0. GirlScouts.org. Retrieved from https://www.girlscouts.org/en/cookies/all-about-cookies/digital-cookie.html (accessed 18 August 2016).

[ii] Fosway Group Limited and Decebo®. (July 2015). Integrating the HR Landscape on the Cloud. Retrieved from http://www.cedma-europe.org/newsletter_articles/misc/Integrating_the_HR_Landscape_on_the_Cloud_(Jul_2015).pdf

Dark clouds of vendors are hanging over us

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Do you listen to who uses your software?  Are you really listening to those who are responsible for the success of the project and your product? Or have you completely deprioritized your existing clients’ needs due to the constant push for new customers and revenue growth? Are you slamming customers onto the software without regard to their unique needs and befuddling and disappointing stakeholders and end users with lack of tangible results from their investment and hard work? Are you forcing new clients to compromise core objectives to accommodate overly optimistic go-live dates? Do you feel compelled to be a jack-of-all-trades and showcase feature parity with competitors hijacking your development roadmap leaving your product a mile wide and inch deep?

In my experience, the answers to these questions are now too often “Yes,” which is a strategy that is short sighted and sure to backfire. Bloated, hard-to-use software, rushed implementations, and low user satisfaction rates are not a recipe for success or growth. They are the recipe for failure. Cloud software vendors need to rethink their priorities and focus on change in the following areas.

Feature parity and one-upping your competition consumes development pipelines.

Rebalance priorities from adding new features to simplifying user experience.

It’s so easy to get caught up in a feature parity race and checking all the boxes on RFP responses that you completely neglect making the experience intuitive and creating the mobile-friendly experience that users desire. Your priorities are skewed toward taking orders while the needs of an existing, loyal user base are missed. The software gets bigger, more bloated, and harder to use. Users’ reject the software because the added features actually take them backward not forward. This alienates your users and lowers customer satisfaction. That consistently results in client losses over time.

Conversion of data in and out of the system is way too hard.

Step up to the plate and provide tools to make transforming data to and from your system fast and easy. 

Do vendors make it is hard to extract accurate and complete data from their system so they can’t easily be fired? Is conversion of data into a new system overly technical where it requires the use of expensive professional service resources just because the vendor wants the professional service revenue? Cloud based systems are often inherently inefficient and time consuming for data entry. Getting data into the cloud has been the Achilles heel of the industry. Vendors that do nothing to assist their users with data conversion features leave their customer between a rock and a hard place.

There is little focus and no vendor commitment to achieving the users’ desired outcomes and process improvement opportunities are ignored.

Truly engage as a partner ensuring that customers desired outcomes are fully met.

Once you’ve signed a contract with your cloud software vendor you’ve now begun a race to the finish line. Why is that? What is the rush? Is it because the vendor needs the client to go-live to recognize the revenue? Understanding user needs and business needs and then tweaking the software to meet those needs adds time and complexity to an implementation project. It’s faster and easier to ignore the uniqueness of each customer and conduct a vanilla implementation. Vanilla is what some Cloud software vendors push.

The result is an initial implementation with many missed opportunities for process improvement. Simply moving your current way of doing things over to a new system without thoughtful consideration of how the new system can be leveraged to improve things will likely perpetuate existing problems and inefficiency.  It is shame for Cloud vendors to railroad and marginalize users this way. It is not just a common courtesy, it is an obligation, for a vendor to ensure that their clientele isn’t hurried through implementation so that each client can get the most of their software investment.  As some claim Einstein said1, and as Rita Mae Brown wrote in Sudden Death, “Insanity is doing the same thing over and over again, but expecting different results.”2

Cloud vendors would be smart to wise up and address some serious strategic problems that stem from their insatiable desire to add new clients at the expense of taking care of the ones they already have.

1 Becker, Michael. (2012 Nov. 13). Einstein on misattribution: ‘I probably didn’t say that. Becker’s Online Journal. Retrieved from http://www.news.hypercrit.net/2012/11/13/einstein-on-misattribution-i-probably-didnt-say-that/

2 Brown, Rita Mae. (1983). Sudden Death. (pp. 68) New York: Random House. Retrieved from https://books.google.com/books?id=QJj9VqInFyUC&pg

Consumerize or Die

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Expectations of how simple and easy-to-use enterprise software should be are rapidly changing. iPhone and Android devices are so easy-to-use and common that they are raising the bar on how easy-to-use enterprise software applications need to be. And this in my opinion is a good thing.

It’s high time for enterprise software vendors to simplify their applications in the same way that the iPhone and Android have been simplified for consumer use. A mad rush to one-up the competition and add features or functionality has left us with bloated corporate applications. ERP, HR, training, CRM, and payroll applications seem to be more of a patchwork of screens and reports than a flowing portal to corporate information. Software vendors who wish to thrive in the future should take note and make some major investments in changing their software and their thinking in the following areas.

Simplified User Experience

Most corporate end users have been exposed to well-designed consumer software. Is it too much to expect corporate applications to have self-evident user interfaces that are fast, convenient, and functional? Or applications that are built for lay people and not only techies? Kludgy interfaces need to give way to intuitive and easier-to-use ones where information flows from a single point of data entry to secure storage and then to all places that are authorized to consume the information. In other words, I should enter a person, place, or quantity in one and only one place, and the software should handle the complexity of storage and access behind the scenes.

Data flow and real-time access

Offline and batch integrations just won’t cut it anymore. Onboarding an employee in payroll shouldn’t require a batch to run for the employee to be hired in benefits or time and attendance. Instantaneous access to real time information is the only acceptable norm for enterprise systems. Web services have existed for many years to provide for secure information exchanges so there’s just no excuse for offline batch information transfers. Corporate data flow from the information owner to the information consumer can happen immediately. Anything less is just not hip enough to be considered current.

Mobile-First Strategy

Data access should be 24/7 and from any type of device with a minimum of hassles. Often the most convenient option for a user is access via mobile devices. Application users may opt to use the full-site option where mobile functionality doesn’t exist or if it is more convenient to use the full site. To satisfy users’ expectations, enterprise software vendors need adopt a mobile-first strategy and accommodate the convenience of mobile access by careful planning and skilled development of their applications to leverage the strengths of mobile devices. Leading vendors will focus efforts toward mobile use wherever it is practical and will provide full-site options for functionality that doesn’t lend itself to smaller screen formats.

Unfortunately for enterprise software vendors, much work has to be done. It’s just not a matter of cut-and-paste or an application of “lipstick on a pig” to make my suggestions a reality. This effort will require much user interface rework and tradeoffs will have to be made between features and simplicity. In the end, vendors that make these investments will be rewarded with less demand for support and, even more importantly, happier end users.

So, enterprise software vendors: get onboard with simplified software, real time access, and a mobile-first strategy or become obsolete because soon your customers will expect nothing less from you.

Are you ready for a storm of cloud-based software?

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Knowing the right questions to ask when buying anything is essential. Sourcing cloud-based software is no exception. Cloud software can be tricky to evaluate because it’s bundled as a service to eliminate complexity. As a result, vendors are conditioned to provide little or no transparency to buyers. We are all too familiar with what happens when we make assumptions, right?

When you evaluate cloud software, break down each part of the service bundle and consider it individually. Here are tips to help you avoid a storm-cloud-based software solution.

Be sure to understand how the infrastructure is managed.

Cloud-based software is most often a shared infrastructure similar to the way we share public highways and bridges. This is called a multi-tenant configuration. The challenge is that heavy traffic and congestion at certain times can be a fact of life. Just as public transportation is not always suitable or convenient for transporting wide and heavy loads or private secure cargo, cloud-based solutions may not be suitable or convenient for supporting every unique business requirement. Larger and more sophisticated organizations can still make use of cloud solutions because the most sophisticated cloud vendors optionally support dedicated virtual machines for database, application, or even web servers. These configurations can eliminate many of the typical limitations of a shared infrastructure. If you need this today or in the future, choose a vendor that has the flexibility to customize the infrastructure to meet your needs.

On the infrastructure side of the cloud service, you should consider the following points before buying:

  • Will the vendor support a private connection with guaranteed bandwidth to eliminate traffic and congestion from other clientele?
  • What additional layers of security protection are optionally available?
  • How is the service updated for new functionality and compliance?
  • What are the intervals for applying maintenance releases and updates?
  • What are the service-level guarantees for uptime that are provided by the vendor?
  • What are the security policies for protecting your information from malware or other threats?
  • What level of reliability and redundancy is built into the service infrastructure?
  • Can the service be optionally configured to support dedicated hardware, virtual instances, or even in hybrid environment for companies with unique business needs?

Gauge how the system is going to perform in real life situations.

This one could really zap you if you’re not careful. Thoroughly evaluate performance, or you could be dead in the water and loosing revenue. Think in terms of your peak usage times or peak season and then make sure your cloud vendor understands your needs and can keep up with the influx of system activity that your company and others may need the cloud infrastructure to support. Get performance guarantees in writing.

Evaluate the functionality to be sure that it will serve your business needs.

Most of us instinctively think in terms of the web front-end functionality for this new cloud software we’re getting. But it’s not enough to just evaluate this piece alone with cloud solutions. Cloud vendors bundle the front-end that you see with the back-end functionality that you can’t see or touch. You need to know what is going on behind the scenes so you can ferret out what might be missing. Ask questions like:

  • What devices, OS’s, and browsers does the vendor support?
  • What level of customization can be supported to adjust the product to more closely match your requirements?
  • Can you manage the customization or is this only handled by the vendor? How are customizations supported?
  • How are integrations with third-parties handled?
  • What about single sign-on or items like active directory integration?
  • How do you access your data or even download your data for safekeeping?
  • What functionality is not real-time and subject to scheduling?
  • How are alerts managed?
  • What are your options for reporting and analytics?

Understand the true cost of using the cloud service.

Take the time to truly understand the pricing model and your true costs. Don’t solely rely on the sales proposal and estimate provided by the vendor. Find out:

  • How is the pricing incrementally adjusted for growth or shrinkage in the use of the service? Is it adjusted based on transactions or number of covered users or not at all?
  • How is data storage and bandwidth consumption managed? Are limits imposed or do charges kick in at certain thresholds?
  • What pricing guarantees can be provided to ensure that your price continues to be fair down the road?
  • Does the vendor offer a scaled down use of the service after cancellation? What are the charges for this usage?

Check out the bricks and mortar behind the cloud service.

What services are available conveniently and affordably from the vendor? Don’t assume. For example, PeopleGuru’s payroll cloud service bundles services for ACH origination, garnishment processing, check printing, new hire reporting, and federal-state-local tax filing with a dedicated account management team but many of our competitors don’t. Clients that are used to these traditional payroll outsourcing conveniences that switch to a cloud service without a bricks and mortar support operation have the unique challenges of staffing up to support these functions in-house. So, be sure to understand what services your cloud vendor is offering:

  • How is the vendor’s support operation structured?
  • What level of support is provided during your implementation process?
  • Does the vendor have a structured process for guiding your through the implementation?
  • What tools does the vendor provide to facilitate data conversion into their product?
  • How is training delivered?
  • Are self-help tools available?
  • Is technical support immediately available when you need it, or do you have to wait 48 or even 72 hours for a response to an email?
  • Will you have a dedicated account management team and an escalation point of contact, or will you have to wait in a call queue to get the next available representative at a call center?
  • Did you check two or three client references?

By considering the infrastructure management, real life performance, functionality, true cost, and bricks and mortar, you’ll avoid storm-clouds and will be able to identify the best cloud-based solution for your organization’s unique needs.

Hiring – Separating the posers from the performers

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The Urban Dictionary defines a poser as a person who habitually pretends to be something he or she is not. The Free Dictionary defines a performer as one that is able to carry through to completion.

Chances are that if you have hired enough people you have made your fair share of hiring mistakes. I’ve had my own personal frustration with a candidate (or two) where after in-depth interviews and reference checks the candidate still didn’t pan out as expected. The candidate turned out to be a poser. And the current job market has both overqualified and under-qualified candidates stretching the truth and posing to compete for the few available job opportunities.

There’s no question that bad hiring is an expensive mistake. The U.S. Department of Labor pegs the cost of a bad hire as up to one-half of annual salary. And that doesn’t count the potential impact to customers, coworkers, missed deadlines, and morale.

So what is a hiring manager to do? How can we identify the posers from the performers? To start with, you can use the following hints to separate the poser from the performer during your initial screening of candidates.

Posers versus Performers

Posers Performers
Answer with rhetoric and hyperbole in an attempt to redirect the emphasis from their lack of experience or knowledge regarding the subject at hand. Cite real world examples of similar job experience and knowledge regarding the subject at hand.
Are heavily coached on interviewing skills and immediately ready with slick, rehearsed answers to expected questions. Make deliberate and thoughtful responses that exhibit passionate answers with in-depth analysis and problem-solving skills.
May have resumes that are heavily decorated with associations, certifications, and memberships. Tend to be more selective with their time and resources and only hold certifications and memberships that directly relate to job performance.
Self-label to guru status, go-to person, or top-performer without providing the insight into how they reached their current level of success. Tend to be more modest but exhibit a strong interest in their field of expertise and the trials and tribulations of becoming successful.

Interviewing should only be considered one tool in the hiring process. A rigorous evaluation with a well-defined process and assessment criteria is your best defense to identify the poser from the performer. At minimum, I recommend the following:

  • Encourage candidates to qualify themselves with job listings that advertise rigorous selection and testing requirements.
  • Document the job requirements in terms of skills, experience, interests, special qualities, and educational job requirements. Evaluate each candidate in terms of his or her match to these requirements, and use the same process and assessment criteria for each candidate.
  • Don’t rely entirely on interviews. Candidates generally want a job offer so they’re apt to tell you what they think you want to hear.
  • Assess cultural fit not personality or likeability; diversity is always a positive influence in the workplace.
  • Narrow down to a small pool of candidates and then enlist the help of an external testing service to validate your assessments and final choices before extending offers.
  • Finally, make all employment offers contingent on reference checks and completion of a 90-day probationary period.

I believe that a disciplined hiring approach that favors performers over posers will greatly increase your chances of selecting candidates that become happy and successful long-term employees.

Avoiding the “Saashole”

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Software-as-a-Service (“SaaS”) is a software delivery model where the product and its associated data are hosted in the cloud, and users gain access to the application via a web browser. In recent years, many business applications including accounting, customer relationship management, enterprise resource planning, and human resource management have moved from on-premise licensed installations to SaaS as a primary delivery method. Gartner Group estimates that SaaS revenues will reach a projected $21.3 billion by 2015.

I should say upfront that I am a big fan of SaaS. Its simplified product and service model yields lower retail costs, improved vendor profitability, and makes customer support more convenient for everybody. Unfortunately this sometimes means that all customers have to be shoe-horned into “the box” of canned functionality. A “one size shoe that fits all” solution may work well for some organizations, but it often doesn’t for all. Organizations that have customization needs or unique integration requirements will find that SaaS is too restrictive for them and in turn may end up in the “Saashole” trap. There are often better choices for these organizations such as hosted or an on-premises license.

Here are my tips for avoiding the “Saashole” trap:

Review service level agreements for reasonable up-time guarantees and response time measures for all major application functions. SaaS applications are cloud-based, meaning a shared infrastructure of web servers, applications servers, and database servers that are accessible via the public internet. SaaS does not offer exclusive use to a single organization so performance can be impacted by what other users are doing at any given time.

Does the vendor support the browser and platform that you desire? Now days SaaS is accessed using a web browser. Are you patient enough for browser-only access? Is your intended use conducive to browser access? Is your internet connection stable and fast enough?

Choose a vendor with a more evolved reporting capability that shields end-users from system complexity. SaaS vendors commonly use a large data repository comingling customer data as this is most efficient and affordable for them. This multi-tenant design requires programming to separate customers logically and adds complexity to data reporting. Techniques like de-normalized database views and metadata layers facilitating intuitive data relationship, grouping, and summaries go a long way to enhancing the productivity of reporting. Ultimately the best approach eliminates all reporting complexity by abstracting the data relationships from the end-user. This yields point-and-click report definitions, grouping, and summaries in the most user-friendly format available.

Make sure the vendor’s “box” of capability is big enough for your needs. A single code base is another key tenant of SaaS. A lot of SaaS providers have application policies to customize look and feel, and in some cases, parts of the customer experience, so that doesn’t necessarily mean that every customer is stuck with the exact same user experience. But it what it does mean is that code customization for the unique needs of a single customer is not supported. Keep in mind that mature products tend to have a bigger “box” of capability that allows more organizations to be easily supported by the product.

Don’t get “Saasholed” into a long-term contract without cancellation options. Yes it is true thatSaaS has a subscription pricing model, but many vendors impose minimum contract terms or early termination penalties. It’s no fun to be pigeon-holed with a contract for a product that is not working well for you. And what if your organization requires change? You must consider your future needs as well.

Don’t overlook your system integration points, data imports, and data exports. In our business of HR, Benefits, and Payroll, getting data in and out of the system in a secure and efficient manner is an essential requirement for our clientele. Employee loads, time imports, carrier feeds, G/L files, and published web service integration points are just a few examples. Does the SaaS solution you are considering meet your integration requirements?

The key to every successful SaaS implementation is matching customer requirements to the capability of the solution. Before making a buying decision, conduct enough due diligence to know if the solution is a good fit for your unique requirements. Like with so many things in life, the proof of the pudding is in the eating. One sure way of avoiding the “Saashole” trap is to try the service before signing a long-term contract.

Are you hunting Purple Squirrels?

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The Purple Squirrel is a term used by recruiters to refer to the most elusive of candidates matched to the most difficult of job requirements. A highly sought after and elusive Purple Squirrel candidate possesses the perfect match of education, experience, and qualifications to fit a job’s diverse requirements like a glove;  it is therefore assumed that this prized candidate can immediately assume the job’s responsibility with little or no training and perform with enhanced productivity.

Recruiters dread the “setup-to-fail” Purple Squirrel candidate search because it can be nearly impossible to satisfy a hiring manager’s unrealistic expectations for these job openings. And it is a growing problem. The current buyer’s market for talent has led to hiring managers with expectations that are unreasonably selective where qualified candidates are passed over with the hope of finding more closely matched candidates or even ones with lower compensation needs—a really frustrating no-win situation for the recruiter and the candidate. It is a tragedy that more people aren’t working while so many jobs remain unfilled for months while organizations conduct exhaustive searches for their Cinderella of candidates. This is not an entirely new problem. A few years back I was involved in the sourcing of candidates for a company with many job openings. Our team was excited about the size of the opportunity with this new client but we failed to realize that this client had engaged us in a Purple Squirrel hunt. This client’s expectations were so impossible to meet that after several months of unrewarded efforts we parted ways. When we discussed the situation with the client he mused that a workforce of perfectly matched employees would enable his businesses unit to function with fewer workers and greater productivity.

So why shouldn’t we be incredibly demanding and selective in hiring? What’s wrong with this thinking?

Extended candidate sourcing expenses can exceed the incremental training costs for traditional candidates. Purple Squirrel jobs are so difficult and time consuming to source that the cost-of-hire for a Purple Squirrel can often exceed the incremental training cost for hiring less well-matched candidates. Time is money and wasted time leads to missed opportunities. Wasting excessive amounts of time interviewing and sourcing the Cinderella of candidates can leave your department or organization lagging in productivity or even behind schedule in other areas of the business altogether.

Technical capabilities have overwhelmed your sourcing criteria. If you are recruiting Purple Squirrels you are likely weighing the technical capabilities of your candidates too heavily. Candidates should be evaluated in a balanced manner where qualities such as cultural fit, self-motivation, willingness, adaptability, aptitude to learning, and the ability to work in teams can be just as important to long term job success as a specific degree, certification, and targeted industry experience. Weighing technical qualifications too heavily in the recruiting process can leave you open to turn-over and cultural and morale issues down the road.

You can’t predict the future so don’t paint yourself in the corner by hiring a one trick pony. Markets and organizations change and so do job duties. A better employee is so often the one that can adapt to change, learn new skills, and rise to future challenges.

Been there and done that already. Employees perform best when challenged with growth assignments. The whole concept of a finding a perfectly matched Purple Squirrel candidate is counter to the concept of a growth assignment. Do you want an employee that is willing to settle for a job that really isn’t that challenging, growth-oriented, or provides them with a learning opportunity?

For Pete’s sake…let the stale air out and bring some fresh in. Promoting from other departments or sourcing from outside your industry has real benefits. You gain employees with fresh perspective, access to sources of new talent, and ideas; this in turn creates fertile ground for positive change. Any additional training or startup costs for hiring newbies can be defrayed by lower initial compensation requirements.

Don’t let the parade pass sourcing Purple Squirrels. Here are four recommendations to limit your organizations exposure to the wasted time, effort, and the missed opportunities that accompany Purple Squirrel hunting.

1)      Set a fixed reasonable duration for sourcing candidates for each job opening. Use a talent management system like PeopleGuruTM to define reasonable durations (like 90 days) for sourcing open jobs. Hold HR, recruiters, and hiring managers accountable for executing within these defined time intervals and escalate the recruiting process using workflow notification events at defined points throughout the sourcing window.

2)      Encourage hiring diversity, equality, and balanced candidate evaluations by defining corporate-level hiring standards such as cultural and physiological evaluations along with job specific evaluation criteria; enforce these standards via automated online questionnaires and ratings with assigned balanced scoring and knock-out criteria ensuring that the job-specific requirements do not overwhelm the candidate sourcing process. This has an added benefit insomuch as it ensures that candidates are evaluated in the same manner and judged using the same criteria.

3)      Engage internal candidates first. Release new job openings to employees via employee self-service for at least two weeks prior to accepting outside candidates. This will ensure that your internal candidates get priority consideration and foster a culture of achievement.

4)      Track cost of hire accurately. To accurately track costs of hire you have to consider all recruiting costs including internal and external costs. Use your HR or recruiting system to assign costs to each phase of the recruiting process and not just the external costs. Track internal costs by allocating expenses and overhead to the internal resources consumed in addition to external costs. Only this approach will provide a true picture of your total cost of hiring for each job opening.

Purple Squirrels may sound adorable and harmless; I assure you they are not. For job seekers and recruiters alike it’s a growing nightmare of unfilled jobs waiting for a dream Cinderella candidate that really doesn’t exist.

Why I want Zebras for customers, and not just because…

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Zebras are majestic, unique, and beautiful.

The software-as-a-service industry caters products and services to the bell curve of customer requirements—our industry calls this vanilla service model of product and service capabilities “the box.” Little emphasis or focus is placed on handling the out-of-the-box situations or unique customer service requirements because a limited service model is much easier to develop, implement, and support. A simplified product and service model with an assembly-line support infrastructure yields improved profitability and lower costs, right? This of course means that all customers have to be shoe-horned into “the box.” This “one size shoe that fits all” mentality may work for some organizations, but it doesn’t work for all because this is often the reason organizations contact my company—PeopleGuru. At PeopleGuru, we’ve affectionately nicknamed these unique organizations “Zebras.”

A Zebra’s stripes are as unique as fingerprints, and no two are exactly alike.

So what makes an organization a Zebra? We define a Zebra as a client that requires more flexibility in their benefit administration, payroll, time and labor, and/or HR product and service model. Often these organizations have unique policies or procedures that are of cultural significance and provide a unique competitive advantage—policies and procedures that these organizations firmly believe are worth preserving. Zebras are often forced to resort to labor intensive manual administration of their unique needs outside of their core systems. Organizations like a 1,000 employee health insurer with a generous but unique 401K company match eligibility requirement that is subject to an annual look-back of earnings and hours paid. This same organization has a paid time off accrual policy with more complexity than is the industry norm and an online benefit enrollment process with tons of employee choice. Or a beach resort that employs 900 who when facing a serious compliance dilemma and substantial wage and hour fine, engaged PeopleGuru to preserve their long standing practice of assigning wait staff to both the banquet and the restaurant during the same shift. Another is a 750 employee home improvement contractor that records hours and jobs in the field and feeds this data real-time to an in-house system.

All Zebras have two things in common; they choose to be Zebras, and they take great offense to being treated like they aren’t.

Zebras have excellent senses; they can even see at night and in color.

It’s my opinion that our Zebras are more industry savvy and competitive. They don’t swim upstream or create policies to be difficult. They see opportunity where others miss it, and they operate their business with a unique competitive advantage because of it. Yes, it is true that Zebras really take advantage of PeopleGuru’s unique product and service capabilities, and we love each other because of it. And we are always welcoming new Zebra clients.

Of course, you don’t have to be a Zebra to be a PeopleGuru customer, since we literally serve thousands of organizations that aren’t. Then again, you may find peace of mind knowing you can show your Zebra stripes in the future if you ever need to.

So you think you want to go with my competition? Why I could say I told you so, but won’t…

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Their lower price is not what it seems.

The old expressions are true that “there’s always a catch,” and “a low price usually equals inferior products or service.” In our business of Benefits Administration, HR, and Payroll software services, new customers come to us for a variety of reasons. The number one reason is frustration with service. We see clients that are just tired of painful and inferior help desk support, and sometimes others have more tenuous and complex system difficulties, and even some face significant compliance penalties.

Getting service is like finding Waldo.

Our competition has become data-processing-centric with service as an afterthought. And while the data processing aspects of the Benefits Administration, HR, and Payroll software services business are vital, I don’t believe that it is reasonable to expect our customers to be experts in our business. We see it as our job to be there to guide our clientele through the process of getting the most of our service and product capabilities. How many times a month or a year do you make a change to a Paid Time Off policy or 401K match algorithm? I’m sure that for you it will not be that often, but, for us, we see these things every day. Our service model encourages our customers to engage us to assist in these types of events for your convenience. In our model, you can help yourself or be helped—either way is fine by us.

Don’t get sold a billed of goods: Implementation, schmimplementation.

We’ve been doing this for fifteen years. Our sales process engages our prospect to include enough information to understand our prospect’s needs. We generally skip the boring PowerPoint®, and limit ourselves to five minutes on “where we came from,”“who we are,” “what we stand for,” and “where we are going.” We spend adequate time justifying the project and defining project success criteria upfront. We follow-up our sales process with a client onboarding team that continues and validates the initial due diligence and works toward the orderly achievement of the defined project success milestones. We do focus on education so our clientele can get the most of our systems and services. And finally our systems and service are flexible and scalable so you are never painted in a corner or outgrow its capabilities.

System conversions are expensive and time consuming—don’t make the wrong choice. Of course it’s nice to see a prospect return to us after few months with our competitor, but I hate the fact that time and money were wasted in the process.

They won’t love you as much as we do.

I know this sounds corny, but it’s true. We bend over backward for our clientele. Your account manager is and will be knowledgeable and accessible because your account manager won’t be overloaded with too many clients—by design. In fact, client retention is a major part of their compensation structure. It is their job to keep you happy and retained. We strive to keep our employees’ interests aligned with our customers.

We are mature, reliable, and user friendly.

This is a business where focus, experience, and maturity counts. Is our competitor really worthy of your business? With fifteen years of singular focus in the Human Capital space, we know this business and can serve your needs in this area. Our systems are state-of-the-art, easy-to-use, and accurate. They work well for thousands of clients all over the USA. We manage all things compliance related in-house—it’s too important to leave to a third-party processor. We are not perfect, and I’d be skeptical of any firm that tells you that they are. We fix our mistakes, stand behind our company, and provide real service guarantees.