Top 3 Reasons HRMS Customers are Dissatisfied and How to Avoid it Happening to You

What we learned from analyzing

100 HRMS Customer Reviews.

May 1, 2024

By Chris Harvey

We analyzed over 100 customer reviews from the leading HRMS solutions to reveal the most significant causes of customer dissatisfaction.

Understanding Customer Dissatisfaction:

Our research reveals that while 68% of HRMS customers would recommend their solution, a significant 32% expressed considerable dissatisfaction. It's important to note that this analysis encompasses feedback for all the leading HRMS vendors, indicating that no vendor is immune to having unhappy customers.

Key Areas of Dissatisfaction:

1. Product Functionality:

  • 81% of unhappy customers rated their solution's product functionality as a poor fit for their needs.
  • Each customer has access to the same functionality, but dissatisfaction often arises due to a misalignment between customer expectations and the vendor's execution.

2. Reporting Capabilities:

  • 72% of dissatisfied customers reported that their HRMS vendor's reporting capabilities failed to meet their needs.

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The HR Technology Buyer's Guide provides key strategies and tactics to cut through the HR vendor noise to CONFIDENTLY determine the vendor that is the best fit for your organization.

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  • This area generated the highest level of frustration, with 41% of unhappy customers rating their satisfaction as 1 out of 5.

3. Implementation Challenges:

  • 68% of unhappy customers experienced unexpected challenges during implementation.
  • Misalignment of expectations and resources, along with inadequate communication, often contribute to implementation difficulties.

Strategies to Avoid Dissatisfaction:

1. Product Functionality:

  • Conduct a needs assessment to establish specific requirements.
  • Research solutions with your industry-specific experience.
  • Request vendor demos tailored to your unique needs.
  • Be wary of vendors who overpromise and are reluctant to ever say "no."

2. Reporting Capabilities:

  • Provide the vendor with specific reports critical to your business to build in front of you during demos.
  • Inquire if the HRMS uses multiple report writers as this can make reporting more complex.
  • Seek comprehensive report writing support and training to empower your team.

3. Implementation:

  • Schedule a separate meeting to discuss the vendor's implementation approach. Include key vendor resources such as VP or Directors of Client Implementation.
  • Ensure alignment of implementation expectations and resources before committing to a vendor.
  • Clarify responsibilities for data migration and accuracy to avoid post-implementation challenges.

For more detail on these HRMS buying strategies review the HR Technology Buyer’s Guide to assist your selection of the best fit solution for your organization.

By diligently evaluating these key areas during the HRMS selection process, organizations can mitigate the risk of product dissatisfaction and identify the solution that best aligns with their unique requirements. Prioritizing functionality, reporting capabilities, and implementation ensures a smoother transition and maximizes the value derived from the chosen HRMS solution.

This approach not only enhances customer satisfaction but also fosters stronger relationships with HRMS vendors, leading to long-term success in leveraging HR technology to drive organizational effectiveness and employee engagement.

In the end, your goal shouldn’t be just to purchase your “next” HRMS, but potentially the last one your organization will ever need.

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