New survey reveals price has surpassed ease of use as the most influential factor when SMBs choose software solutions; budget-specific shift could increase opportunities for larger-cost integration issues.
ARLINGTON, VA. March 27, 2019—Capterra, the leading online resource for business software buyers, released findings from its latest survey of small and mid-size business leaders across vertical markets to understand how SMBs are choosing talent management solutions and their implications on businesses. Capterra’s Talent Management Industry User Research Report revealed that price heavily impacts talent management solution decisions, surpassing ease of use as a key factor across SMBs. This focus on price creates a disconnect for small business leaders trying to choose the “right” software for their organization, as they’re using low price as the main driver when buying software.
“Understanding how buyers successfully leverage talent management solutions can help small business leaders make wise decisions based on their company’s size, resources, and software needs,” said Brian Westfall, principal analyst at Capterra and the survey’s lead analyst. “While low cost may seem like the most important aspect of software, choosing a solution solely based on price can create more issues than most SMBs are prepared to handle.”
Small business leaders run the risk of choosing a system that doesn’t meet the needs of their organization, ignoring the potential costs associated with picking the “wrong” software and eventually creating the need to search for and implement new solutions. This lack of knowledge is reflected in one key survey finding: 45% of respondents spent more than what they expected, while another 45% spent less. For SMBs operating on razor-thin margins, any unnecessary use of budget or resources could be detrimental to the business overall.
Key findings include:
- Importance of price: Price has surpassed ease of use as the second most important factor behind functionality in talent management software purchase decisions for all SMBs and is the primary factor for the smallest SMBs.
- Software search expectation vs. reality: 45% of users took 10 months or more to research and choose their talent management software, despite only 18% expecting the search to take that long.
- Key software features: Succession planning and 360-degree feedback are the most ignored talent management software features by those who have them, and the most desired by those who don’t.
SMBs can avoid making potentially harmful software purchase decisions, while keeping bottom-lines in check and by making careful technology choices – not just cost-conscious ones. Capterra’s survey offers key takeaways on this topic, exploring data on the shift in decision-making, tips for choosing the right solution, and the most important software features.
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