Article: Price is what you pay, Value is what you get

HR Technology

Price is what you pay, Value is what you get

Technology, automation and cloud are driving change in the HR business ecosystem.
Price is what you pay, Value is what you get

The number one challenge that HR buyers have highlighted is that the “prices of products and services are too high.” as per the People Matters HR Industry Study 2015. In my experience, when customers say a product is too expensive, they are not talking just about price. This is a ‘value’ problem and not a price problem, but yet HR decision makers are loud and clear on the 

There are many changes taking place in the HR business ecosystem. On the one hand are the changing requirements of the buyer, pressures of operational efficiencies, to scale consistently, to find right partners for non-core activities so that the business can focus on what creates a competitive edge. On the other hand is the changing dynamics of the HR business – the advancement in technology, the opportunities in Cloud, and automation. Clearly, the segments that are getting disrupted faster are HR Outsourcing, Recruitment and HR technology. However, the change is also impacting L&D and Consulting as there is a need to capture external changes and include them to really add significant value to the clients.

The process of value articulation requires a combination of “outside-in” perspective but also an “inside-out” – combining both the external factors that are affecting the industry (cloud, automation and technology as we see it in the HR Industry), along with a soul searching exercise that will provide the organization the direction on how one frames its offering and how one sells its products. Going back to the basics of marketing: to focus on the benefits that the product and service brings to your client’s business, its measurability, its ROI.

In marketing,“motivation” to buy is often said to be equal to the perceived benefits minus the perceived costs. It is about benefits, not features. It is about solving problems and not about modules. It is about how you are articulating why your solution is better than the competition’s in a significant way. Features, modules, innovative approaches are necessary but not sufficient conditions for HR services & products to be successful.

Access the People Matters bi-annual Study on the HR Industry in the links below.

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Topics: HR Technology, #HRIndustry, #Editor'sDesk, #TheNowAndTheNext

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