Capterra Finds Talent Management Software Buyers are Choosing Cost Over Experience

Capterra Finds Talent Management Software Buyers are Choosing Cost Over Experience

Businesses of all sizes and industries are increasingly relying on talent management software to both automate and optimize HR processes and achieve positive results related to money and time saved. 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 small and medium-sized businesses (SMBs) are choosing talent management solutions and their implications on businesses.

Businesses use talent management software for core HR needs such as personnel tracking, time and attendance, payroll, and recruiting. 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.

While budget-strapped SMBs are increasingly purchasing talent management software, price significantly impacts spending decisions—an issue that can cause talent management software implementation to backfire. The cost of choosing software that isn’t a fit for their organization or lacks the features necessary to meet HR needs could impact meeting business goals and retaining and gaining new talent.

The number of small businesses implementing talent management software has increased over the past ten years as vendors began creating products geared toward smaller buyers, focusing on affordability and ease of use. Results from Capterra’s 2019 survey revealed a shift in spending from a similar survey conducted in 2016—price surpassed ease of use as the second most-cited top factor in selecting talent management software.

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.

Read Capterra’s Talent Management Industry User Research Report.


Looking for more? Download our talent management buyers guide and check out the top-24 products available in the market with full page vendor profiles, key capabilities and questions to ask yourself and the vendor before purchasing a talent management solution. For those just starting the talent management software search process, this is truly the best resource to help get you going.

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Elizabeth Quirk

Liz is a leading enterprise technology writer covering Enterprise Resource Planning (ERP), Business Process Management (BPM) and Talent Management Suites (TMS) at Solutions Review. She writes to bridge the gap between consumer and technical expert to help readers understand what they're looking for. Liz attended Massachusetts College of Liberal Arts, where she obtained her Bachelor of Arts Degree in English and Communications. You can reach her at equirk@solutionsreview.com
Elizabeth Quirk

About Elizabeth Quirk

Liz is a leading enterprise technology writer covering Enterprise Resource Planning (ERP), Business Process Management (BPM) and Talent Management Suites (TMS) at Solutions Review. She writes to bridge the gap between consumer and technical expert to help readers understand what they're looking for. Liz attended Massachusetts College of Liberal Arts, where she obtained her Bachelor of Arts Degree in English and Communications. You can reach her at equirk@solutionsreview.com

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