| If you have been selling HRMS Software, HRIS | | | | software or HRIS software prospects. |
| systems or HR software for any amount of time, I am | | | | Years ago I had an interview with a large payroll HRIS |
| certain you will agree with most of what I have written | | | | software company. The VP of sales told me that they |
| here. If you are new to the industry, get ready for a lot | | | | felt they were only closing the low lying fruit and were |
| of heart break. In fact, I challenge anyone to offer a | | | | not closing the harder sales. I told him, the low lying fruit |
| product that is harder to sell than HRMS Software, | | | | was exactly what I was going to try and close and to |
| HRIS systems or HR Software. | | | | find as much of those situations as possible. He told |
| I have been selling HRMS software, HRIS systems, | | | | me he did not like the answer. I was a little terrified |
| and HR software for more than 15 years. Here’s | | | | because I could not back down at this point. I told him |
| the scary reality. I have seen that if I show a hundred | | | | “Sorry, but it’s the truth.” If you hire an |
| HR managers an HRIS application, at least 80 will | | | | inexperienced HR sales person, they are going to |
| express interest in buying. At most, 10 to 20 will get the | | | | work the hard deals and six months to a year down |
| approval for purchase. Based on my estimated | | | | the road, they will determine that the low lying fruit is |
| numbers, this means that for every 10 HR | | | | where the money is made in HR software sales. I |
| departments looking for an HRIS product only 2.5 | | | | received the job offer but turned it down to start my |
| actually end up getting the approval and buying a | | | | own company. |
| system. The intent of this article is to explain why this | | | | As I mentioned above, those companies that don’t |
| happens and what you as an HR software sales | | | | see value in their HR departments are less likely to |
| person can do to avoid the pit falls. | | | | invest in HR software than those companies that |
| Why is selling HRMS Software, HRIS systems or | | | | value HR. Before doing the demo, working up |
| HRMS Payroll systems so hard? | | | | proposals, providing references and working to close a |
| • You are not selling your HR software to the | | | | deal, you need to try and weed out those companies |
| decision maker | | | | who have very little chance of getting approval for a |
| More often than not, you will be selling your HRMS | | | | system. Most often this is a question of cost. Let the |
| software, HRIS system or HRMS payroll product to | | | | prospect know early on how much your system costs |
| the head of the HR department who will, in turn, sell to | | | | and see what the reaction is or ask them what their |
| those with the authority to approve the funds. So to | | | | budget is for a system. |
| some degree, the success or failure you achieve in | | | | Qualifications are not simply based on cost. It’s also |
| HR software sales will rest with someone else’s | | | | a question of what the customer is looking for and |
| ability to sell your system. Welcome to HRIS system | | | | why they are looking. If you ask them what their |
| sales. Typical sales theory says you should, in this | | | | needs are and they indicate they must have a system |
| case, go directly to the decision maker. You can try, | | | | that offers an integrated payroll package and your |
| and you should, but it is important to remember that in | | | | product does not, this is not a qualified lead. If you ask |
| most cases they are not the one with the direct need | | | | what their needs are or what problems they are |
| for a system. They are going to rely on human | | | | currently having and they can’t provide an answer, |
| resources to make the determination of which product | | | | this should also be a red flag. The more you qualify the |
| will work best for the organization. There is very little | | | | leads of the prospect up front, the less head ache you |
| way around it; you sell to the HR department and they | | | | will save yourself later on. Work the low lying fruit. If |
| sell the concept to others. | | | | you ask why they are looking for an HR system, you |
| Think about it. In what other type of sales are you | | | | might receive the ‘I’m outta here answer’ of |
| not selling to the decision maker? If you sell used cars, | | | | “Well, we just wanted to see what was out |
| houses, or shoes, in all those cases you are working | | | | there”. Thanks; Elvis has left the building. |
| with the person with the ability to approve the | | | | • Learn how to be a consultant and a sales |
| purchase. | | | | person to sell more HRIS software. |
| • Next to impossible to cost justify HRIS software | | | | HR people are not IT people. You are not going to sell |
| Selling anything often applies using some type of cost | | | | the technology to HR. You are going to sell the results |
| justification. I have seen some companies come up | | | | of what your system can provide. In order to do this, |
| with detailed models that help to cost justify an HR | | | | you need to solve problems. The consultative sales |
| software application. I have even worked on a few, | | | | process is pretty basic. Find out what the client is |
| but I don’t think they work very well. Frankly, too | | | | currently using and what problems they are having. |
| many of the estimated cost savings of an HR | | | | Ask what they need a system to do and then show |
| application are soft costs. Such as: each termination | | | | that your product corrects these problems and meets |
| costs the company x amount of dollars. So if | | | | their needs. The better you are at this approach, the |
| through improved HR customer service and reporting | | | | more likely you are to win the deal. This last paragraph |
| HR is able to reduce the turnover rate from X to Y, x | | | | is extremely important; you may want to go to |
| amount of dollars is saved. This may in fact be valid. | | | | Amazon and purchase a few books on consultative |
| The problem is ultimately your system will be sold to a | | | | selling. |
| finance or accounting person. I started out as an | | | | • Involve as many departments as possible in the |
| accountant. As an accountant, at least by education, | | | | HRIS system selling process. |
| let me tell you soft cost HR software savings will be a | | | | When going through the sales process and demos |
| hard sell. | | | | with a prospect, I like to involve as many others in the |
| There are exceptions. If your HRIS or HRMS | | | | organization as possible to show that the system |
| application includes in house payroll or a payroll hosted | | | | offers value outside of HR. An HRIS system that |
| option that is less expensive than what the company is | | | | provides value to the entire company has a greater |
| using, this is easy to calculate ROI. Recruiting systems | | | | chance of being sold than one that does not. |
| are also easier to cost justify. If a widget company is | | | | If your product offers a training module, make sure to |
| paying X dollars to head hunters each year and you | | | | involve the training department. Involve risk |
| are able, with a recruiting solution, to hire ten percent | | | | management with FMLA, workers comp and OSHA |
| more internally, there is a direct ROI statement that | | | | reporting. If you offer payroll, it is obvious that you will |
| can be offered. | | | | involve payroll and accounting. If your system does not |
| Yes, an HR system will save human resources a | | | | but will feed data over to payroll, this is still a benefit to |
| tremendous amount of time and benefit the entire | | | | a department outside of HR. Then, of course, there |
| organization but how much money is actually saved? | | | | are the benefits to employees with self service or |
| Not an easy answer or an easy sale. | | | | managers with manager self service. I think you are |
| • Does the organization see enough value to | | | | getting the point, an HR system that streamlines |
| invest in an HRIS system or HRMS software | | | | information for an entire organization will be seen as |
| application? | | | | having greater value than one that only benefits HR. |
| When it comes to HR, in my opinion, there are two | | | | • Tie the benefits of the HRMS software to the |
| types of HR departments. There are companies that | | | | goals of the organization. |
| place great value on the benefits of HR and those that | | | | Find out what the organization or the HR department |
| see HR as a cost center. It’s pretty easy to tell | | | | goals are and show how your product can assist with |
| which is which. If you have a well staffed human | | | | meeting them. How many employees is the company |
| resource department run by a true HR professional, | | | | looking to hire in the next year? Do they want to |
| the company likely values HR and you will find you | | | | decrease turnover? Do they want to decrease costs |
| stand a far greater chance of getting approval than if | | | | per employee? If you can tie the benefits of your |
| you are working with an understaffed HR department | | | | HRIS product to the company’s goals, you again |
| run by more of a clerical HR person than a | | | | stand a greater chance of getting the deal. |
| professional. If the organization has 700 employees | | | | • Gain access to those making the decision. |
| and does not currently have an HR software system, | | | | |
| why? The need is there. The benefits are there. Have | | | | As I have mentioned, you will fail to accomplish this |
| they tried to get the approval for a system before and | | | | more often than not but it is still worth trying. When |
| failed? The company would benefit from a system, so | | | | performing the demo, ask HR to invite the decision |
| why have they not as of yet added one? The longer | | | | maker to the presentation or ask for a meeting with |
| you work in the industry, the quicker you will become | | | | this individual to determine exactly what their goals are |
| at seeing which organizations value HR and which | | | | for HR and the organization. As long as you attempt |
| don’t. If the organization you are working with does | | | | this connection, with the blessing of HR, the results will |
| not see HR as offering value, you will have a tough | | | | be beneficial. |
| time getting the budget money for a new HRIS | | | | • Advancing the HRMS software or HRIS system |
| system. | | | | sell |
| What can you do to improve your HRMS software or | | | | The most powerful question in sales and, especially, |
| HRIS system selling process? | | | | HR system sales is: “What’s the next step.” |
| Now that we have presented the problem, let’s talk | | | | Throughout the process, you need to make sure you |
| about the solutions. There are steps you can take, to | | | | are moving in a forward direction to close the sale. I |
| some degree or another, to counter the problems | | | | provided a summary at the end of each meeting as to |
| mentioned above but still you are going to lose deals | | | | what my and the contact’s deliverables were. The |
| based on what I have offered above. The important | | | | first thing to do at the next meeting is to review those |
| thing is to make sure you are working and winning the | | | | items. At that end of that meeting the “What’s |
| deals that can be won and not losing those deals to | | | | next” question pops up again. If you find you have |
| your competitors. | | | | deals sitting in your pipeline for long periods of time, try |
| • Qualify, qualify, qualify…… Your HRMS | | | | this approach to see what happens. |