Navigating HR & Payroll Technology Acquisition: A Comprehensive Guide

In the procurement process, buyers can sometimes find themselves going down unproductive paths that result in purchasing something that doesn't fully meet their needs. At the same time, sellers may compromise certain aspects of their products to stay competitive. This study examines whether procurement contributes to or obstructs a successful outcome when acquiring HR & payroll technology and services.

What is the purpose of procurement?

Procurement is a crucial process within an organisation that aims to secure the best possible prices for goods, services, or works while considering factors such as quality, quantity, time, and location.

It promotes fair competition and reduces risks related to fraud and collusion, ensuring that transparent and professional practices are followed.

Understanding how procurement can benefit your business is essential, regardless of whether you are a buyer or a seller.

Planning for Procurement as a buyer

It's essential to have a clear plan and do thorough research for a successful procurement process. HR and payroll technology and services can be expensive, so it's important to prepare so that the cost of the procurement process doesn't exceed the cost of the technology and services. It's important to find a smarter and more efficient way to procure to maintain fairness and reduce the risks of fraud and collusion for buyers and suppliers.

To make buying things more accessible and cheaper, businesses should research the market, set clear goals, and know how to work with those who manage to buy. This helps everyone involved.

Research is crucial. Avoid relying solely on procurement exercises for new information.

Too often, procurement is used to learn what is available in the market. And, whilst you’re bound to learn more about the market, you should aim to walk into this process with as much understanding as possible. This will enable you to spot the cracks, identify the sales plays versus reality, and ultimately give you the confidence to challenge what you don’t quite understand, at the right level, not at the learner level.

To learn about the market, you can look at unbiased sources like user groups, articles, and webinars. Figure out what you need before you start researching. This will help you find any problems in your current systems, set a budget, and tell the difference between sales pitches and reality. Then you'll be confident enough to ask questions about anything you don't understand.

Improve instead of replacing by increasing efficiency and adding value.

Technology and its services are constantly evolving at a rapid pace.

What was learned during our previous procurement process may no longer be applicable.

Instead of solely focusing on finding a new solution with intricate details to cater to outdated challenges, consider the advancements in technology that have occurred since your last procurement process.

Legacy technology challenges may no longer exist due to developments in robotics and automation, such as the ability to solve manual processes.

For best outcomes, use procurement methods correctly.

It is important to involve procurement in the process and encourage the business to take ownership and interest in the products and suppliers.

To ensure a fair and clear relationship between the business and procurement, it is crucial to define their roles and ensure mutual understanding and respect. Empowering the business earlier in the process will increase engagement and encourage adoption, as they will ultimately be the ones consuming the technology and services.

Tips for the procurement process

You've taken the time to plan and conduct your research. What's next? How do you navigate the procurement process?

1. Get involved instead of keeping a distance

When choosing HR and payroll technology or services, it's important to involve the people who will be using them. This helps build a good relationship between the client and the service provider. The procurement process is a good chance to find the right match. If the relationship is successful, the supplier will be seen as part of the business, not just a supplier.

2. It’s more than just money.

When you buy something, like a tent, you should think about the price. A cheaper tent might not last as long as a more expensive one. If you choose the cheaper option, you might have to buy a new tent sooner.

Businesses also think about the price when they choose things. Sometimes things that cost more are better. It's important to investigate why something costs more before deciding.

If you spend more money on better technology, it can make things easier and save money in the long run. For example, you might need fewer people to help, which means less money is spent on staff. This can also make things more accurate. So sometimes it's worth spending more money to get better things.

3. Know what you’re buying

To choose the best supplier pricing, you should know what's included and what's not. Be careful of phrases like "not in scope" or "only for one per month." Additional services will cost more, so find out the cost before deciding. Know which services come with the package and which cost extra, like integration or specific reports. Once you understand what you're getting, you can compare it to other products on the market.

Comparing HR and payroll technology and services is not straightforward. There are many variables that affect pricing, and different suppliers offer different levels of flexibility. Procurement often makes the mistake of using the same scoring method for these services as they would for more commodity-based suppliers.

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