August 21, 2024
By Chris Harvey
Consider that over 50% of companies unsatisfied with their HRIS solution cite disappointment with their support experience. A similar percentage feel that their vendor doesn't listen to their concerns or respond to their needs. If you feel this way, it’s likely that your vendor’s culture isn’t a great fit for your organization.
When selecting an HRIS solution, many HR leaders focus on the tangible aspects of the software: functionality, ease of use, and reporting capabilities. While these are crucial, there’s another factor that’s often overlooked but can significantly influence your long-term satisfaction with your HR technology investment: the culture of the HRIS vendor.
The 8 Dimensions of Vendor Fit
When evaluating an HRIS vendor, it’s essential to consider all aspects of the solution to ensure it aligns with your business needs. The 8 Dimensions of Vendor Fit— Your Organizational Complexity, Product Functionality, Ease of Implementation, Ease of Product Use/Employee Adoption, Flexible Reporting, Support Quality and Responsiveness, Ease of Integration to 3rd Party Systems, and Vendor Culture—provide a comprehensive framework for making this decision. Among these, vendor culture stands out as a critical but often underestimated factor.
Why Vendor Culture Matters
The culture of your HRIS vendor is more than just an internal matter; it directly affects the quality and longevity of the product you’ll be using. Here’s why evaluating vendor culture is essential:
1. Innovation and Adaptability
A company with a strong, positive culture empowers its employees to innovate and adapt. This is crucial in the fast-evolving HR tech landscape, where new challenges and opportunities arise regularly. A vendor with a culture that promotes creativity and responsiveness is more likely to continuously improve their product, ensuring it evolves with your business needs.
2. Commitment to Customer Success
Vendors with a culture that prioritizes customer success see their clients' achievements as tied to their own. This perspective drives them to go the extra mile in meeting your needs, whether through exceptional customer service, proactive problem-solving, or personalized support. They’re not just selling a product; they’re partnering in your success.
3. Vendor Employee Engagement
Happy and engaged employees produce better work. If a vendor cultivates a culture where employees feel valued and motivated, this positive energy translates into the quality of the product and services you receive. Disengaged or unhappy employees, on the other hand, may lead to subpar support or a stagnant product that fails to meet your evolving needs.
4. Long-Term Relationship Building
Selecting an HRIS vendor isn’t just a one-time decision. Ideally, you aren't selecting just your next HR Tech solution, but possibly the last one you will ever need to buy. A vendor with a healthy, forward-thinking culture is more likely to build long-term relationships with clients. Companies with great cultures often have higher employee retention rates, which means you’ll be working with the same people over time, building personal relationships that ensure your issues are heard and addressed. This stability contrasts with vendors where high turnover means you’re constantly working with new employees who lack that personal connection and deep understanding of your business.
5. Alignment with Your Company Values
When the culture of your HRIS vendor aligns with your own company values, it creates a more harmonious partnership. Shared values around integrity, collaboration, and innovation can lead to smoother interactions, more effective problem-solving, and a stronger alignment of goals.
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How to Evaluate Vendor Culture
- Ask the Right Questions: During the selection process, inquire about the vendor’s values, how they treat their employees, and what their commitment to customer success looks like in practice.
- Assess Leadership: Leadership sets the tone for culture. Research the backgrounds and public communications of the vendor’s leadership team to gauge their commitment to a positive, customer-focused culture.
- Look for Signs of Employee Engagement: High employee retention rates, positive Glassdoor and Comparably reviews, and a visible commitment to diversity and inclusion can all be indicators of a strong company culture. Take note of employee feedback regarding layoffs, morale, CEO ratings, and future prospects. While these reviews shouldn’t be definitive guides to vendor culture, they can indicate if there are problems that should raise concerns.
Glassdoor examples (ratings out of 5):
- ADP – Overall rating 3.9. 76% Would recommend.
- isolved– Overall rating 4.1. 83% Would recommend.
- Paycom– Overall rating 3.4. 56% Would recommend.
- Rippling – Overall rating 4.1. 80% Would recommend.
- UKG– Overall rating 3.5. 62% Would recommend.
- Workday– Overall rating 4.1. 78% Would recommend.
The HR Technology Advice analyzes HR Tech vendors on company culture.
Top Vendor Culture Vendors based on customer reviews
Under 500 employees
Over 500 employees
Lastly, think about how your own company culture contributes to your business success and customer satisfaction. A positive culture likely drives employee engagement, which in turn enhances the customer experience. Similarly, when you choose an HRIS vendor, their culture will influence your satisfaction as their customer. HRIS vendors with strong cultures can positively impact your overall experience, just as a strong internal culture benefits your own clients. Seek out HRIS vendors that align well with your company culture and treat their employees in a way that fosters an optimal long-term partnership. By incorporating vendor culture into the 8 Dimensions of Vendor Fit, you’re not just choosing the right HRIS solution for today, but potentially the last one you’ll ever need.