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