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Introduction
The human resource (HR) marketplace is poised for significant growth in the next
10 years. Companies
around the world are increasing their investment in HR infrastructure. They are
not only becoming more
attuned to the benefits of recruiting, hiring and retaining top talent, but they
are also buying more
products and services to help them realize the best return from their people and
investing in automation
to streamline the delivery of these services. As the market for HR products and
services expands, so does
the competition.
This white paper is for these very companies that provide products or services t
o the HR marketplace. It
offers a 10,000-foot view of the HR marketplace, including opportunities and tre
nds and how to capitalize
on them. Building off primary and secondary research, the HR buyer and market ar
e profiled and
segmented, clearly showing the abundant opportunity offered by this market segme
nt.
Text Box: Excellent execution requires well-crafted strategies and tactics for c
ustomer selection, acquisition and retention.
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This lucrative opportunity also represents a challenge specifically how to effecti
vely capture the
opportunity through effective sales and marketing. This white paper addresses th
at challenge and
functions as a how-to guide for marketing to buyers of HR products / services an
d outlines the strategies
and tactics that will produce results. These best-practice strategies and tactic
s draw from experiences of
small, medium and large HR suppliers as well as industry insiders and marketing
professionals who have
found ways to increase market visibility and generate sales leads through innova
tive yet fundamental
marketing and public relations campaigns. Lastly, this white paper describes how
HRmarketer.com, the
leading on-demand marketing solution for the human resource marketplace, provide
s aggregated
marketing and public relations resources that enable suppliers to focus on execu
tion of these strategies
and tactics.
Table 1:
Marketplace of U.S. Companies
Company Size
Total Firms
Total Employees
10 to 19 employees
616,064
8,274,541
20 to 99 employees
518,258
20,370,447
100 to 499 employees
85,304
16,410,367
500 employees or more
17,367
57,677,735
500 to 999 employees
8,572
5,906,266
1,000 to 1,499 employees
2,854
3,474,455
1,500 to 2,499 employees
2,307
4,419,771
2,500 to 4,999 employees
1,770
6,063,596
5,000 to 9,999 employees
934
6,456,068
10,000 employees or more
930
31,357,579
Totals
1,236,993
102,733, 090
Companies have unique needs and characteristics according to where they reside i
n this spectrum of size,
as do the buyers within these companies. Across this spectrum we can state that
generally the human
resource function within an organization is responsible for all the practices an
d processes that impact the
company s most important asset their employees. From this general vantage point, a m
ore defined
segmentation then emerges.
The best companies within these pillars drive innovation and excellence in produ
cts and services according
to their field of specialty. The best companies are also able to engage prospect
s, customers, industry
influencers and content communities through their marketing strategies within th
e context of general
trends and industry developments.
HR Trends, Discourses and Pains
HR products and services represent a growth opportunity due to the modern dynami
c of the labor market,
the now demonstrable impact of human resources on corporate performance and the
increasing status
and purchasing power of HR executives and other HR buyers. Now more than ever, H
R-related initiatives
closely align with the overall corporate strategy. The key trends listed below s
hould be monitored along
with others according to a company s market focus.
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The War for Talent
McKinsey & Company has long espoused the seemingly perpetual War for Talent, fuele
d by globalization
and a projected labor shortage for skilled workers. As a result, companies are b
uilding their portfolio of
solutions that will help them find, hire and keep top-notch talent.
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Increased Use of Technology
More companies are leveraging technology to drive innovation than ever before. T
echnology trends
important to HR are the increased use of employee self-service tools, process au
tomation and workforce
intelligence. Increasingly, HR vendors deal with HR information systems and mana
gement systems
specialists (IT).
The leading association of HR professionals the Society for Human Resources Manage
ment (SHRM)
boasts nearly a quarter of a million members around the world, but HR Profession
als are not the only
buyers of HR products and services. This number increases significantly when com
bined with public sector
personnel directors, procurement departments, small and mid-sized business owner
s, brokers and
professionals in other areas, such as IT and finance, who play a key role in inf
luencing human resources
products and services purchasing decisions.
Demographics
What should you expect to find when you market to HR professionals and HR buyers
? For the answer, we
analyzed data gathered from leading software and services vendors. The data was
collected over a 12
month period from marketing campaigns targeted at HR executives. Due to the volu
me, quality and age of
this data, we can make certain business-validated observations about the typical
HR buyer:
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The demographic split should be watched as it will likely evolve over time and m
ay impact the
way some vendors market their services. For the marketing professional targeting
HR buyers, it
is worthwhile to note how these demographics match the make-up of your buyer(s).
Figure 1: Figure 2:
Small firms are more likely to handle HR activities in-house; one Professional E
mployer Organization
estimates the total penetration of its available market by all participants to b
e between 3-5%. This
supports the notion that today most small firms have the do-it-yourself mentality.
Mid-size and larger
firms are more open to outsourcing selected functions, such as payroll and benef
its. Small firms are also
less likely to have a full-time HR person while mid-size firms will typically ha
ve an HR generalist and large
firms will have several specialists reporting to powerful HR executives who mana
ge a complex and
comprehensive HR infrastructure.
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Table 2:
Company
Size
Small Employers
(< 50 Employees)
Midsize Employers
(51- 999 Employees)
Large Employers
(1,000+ Employees)
HR
Department
Structure
Less formal HR
department, with HR often
a non-core function of an
operations or office
manager position
Business owner typically
makes all HR-related
decisions
May contract with outs
HR services firm (i.e.
payroll vendor, PEO) for all
HR needs
Buying process varies,
often with conflicting
internal forces between
primary purchaser an
influencers
Formal, hierarchical HR
department including
specialists for primary HR
functions such as compensation
and benefits, recruitment,
training and compliance
Can be highly decentralized
purchases made at all levels
structured
Understanding who does what and where your contacts stand in the chain of decisi
on making is critical to
getting your message through and to making the final sale. In larger organizations
, vendors must
account for the director or specialist responsible for the product or service t
Compensatio
Compliance
Community relations
Crises com
Diversity
Employee recruitmen
Health and welln
Labor relations
Legal issues, including immigration
State and Federal regulations, such as overtime
Workplace safety, including domestic violence
External consultant
When selling into HR today, it is wise to quickly find a champion and
build a coalition through that person. In a small to medium-sized
company, target the HR generalist regardless of what product or service.
In large organizations, the specialist or director may be two to three
levels away from the vice president or senior vice president who can
actually make a purchase decision. One strategy is to make the first
sale with a specialist, which may be the easiest of many to be made
before actually closing the deal. Because these specialist champions
may pitch the sell by themselves, it s critical to provide in-depth support
and top-quality sales tools. Marketing materials must educate, inform and convin
ce this specialist and arm
him / her to mount an effective internal marketing campaign to multiple supervis
ors. However, if the
product or service being sold requires a significant investment and buy-in from
multiple departments, it
probably makes sense to start with the most senior executive that has influence
over HR purchase
Text Box: Magazines exist for one reason: to package a demographic and sell it t
o advertisers.
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decisions. In a small or medium company, this is probably a board member, the CE
O or some other CLevel
executive. In a larger company, this is generally the most senior HR executive.
Inroads may also
frequently be established with other executives like CFOs or COOs. Target the ul
timate decision maker
first and gain executive sponsorship early before getting tapped down to the s
ta
of the committee or buying coalition.
The hallmark of great marketing is results. Do it right and you end up selling m
ore products to more
people more often to paraphrase Sergio Zyman, former chief marketing officer for t
he Coca-Cola
Company. The first goal of marketing is to identify your target buyer and then t
o generate the appropriate
volume of qualified sales leads. The only way to consistently generate quality l
eads is to expose a sample
of your target message to repeated impressions of your value proposition. Repeti
tion combined with
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Text Box: You repeat your message because most prospective buyers need to be exp
osed six or more times before they actually recognize your company and take acti
on.
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contextual relevance (especially when the message is relevant to a genuine marke
t need) is the only
formula for success in marketing. Get the rig
c
You repeat your message because most prospective buyers need to be exposed six o
r more times before
they actually recognize your company and take action. This law of repetition hel
ps explain why compa
th
Even though prospects hear your message multiple times, they also need to experi
ence it in multiple
ways. Some people are compelled by images; others prefer to read. Some of your p
rospects will want all
the details; others will respond to a high-level summary or a more emotional app
eal. By using multiple
approaches and media, you ll broaden your ability to get your point across
and make the sale. The following are marketing channels that may be
utilized to send your m
im
Direct marketing
Use a current, targeted list and contact prospects by print and / or
email at least once a quarter. Feature compelling offers like a fre
w
Telemarketing
Follow up those responses to whitepapers and webinars and the leads you ca
e
Advertising
Advertising still works and it doesn't have to be expensive. A simple listing in a
product directory
is a minimal investment. Depending on your product, other forms of advertising,
including pay-perclick
ads, can be a good addition t
b
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Speaking engagements
Speaking at key industry events helps establish you
y
Bylined articles
An 800 to 1,000-word bylined article in a key industry trade
publication generates awareness and respect. You can
c
White papers
Create longer reports that share your insights on current industry
challenges. Make
e
Special events
Host webi
p
Award recognition
Winning industry or commu
1. Informational Databases
HRmarketer s informational databases track and maintain information on human resou
rces and
related associations, publications, journalists, editorial calendars, byline art
icle opportunities,
advertising and promotional information, list rental sources, analysts, trade sh
ows, speaking
opportunities, exhibiting fees, sponsorship opportunities, award competitions, o
nline buyer
guides and more. Data is also easily segmented by sales channel including resour
ces targeted
at HR decision makers at public and private employers, unions, employee benefit
brokers and
niche industry segments like IT, healthcare, retail, food services, gaming / ent
ertainment and
others. Members may also post their own industry experts and webinars on a highl
y visible Web
directory accessed by the media, conference organizers and thousands of human re
source
decision makers.
Text Box: If the HR marketplace is an exclusive club, HRmarketer is the VIP pass
, providing access to all the most important influencers
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2. Press Release Distribution Tools
Send unlimited press releases to journalists covering the human resource and wor
kforce
industry including trades, eNewsletters, local business journals, national newspap
ers and
business periodicals. Releases are also distributed to Internet search engines a
nd news portals
with guaranteed placement on Yahoo!, Google and hundreds of other search engines
.
4. Business Intelligence
HRmarketer's HRintelligence feature tracks media and advertising placements of a
ll HR service
providers in the top industry print trade publications. Alerts can be setup to n
otify users when
their company or competitor shows up in an industry trade.
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About HRmarketer
HRmarketer is the #1 on-demand marketing and media visibility service for compan
ies selling to human
resource departments and / or targeting employee benefit brokers and consultants
. Founded in 2000,
HRmarketer is used by hundreds of human resource suppliers including recruitment
and staffing, payroll,
employee benefit, training and development, outsourcing, HRIS and other firms. H
Rmarketer combines a
database of marketing and public relations (PR) information with press release d
istribution, campaign
management, business intelligence, advisory services and much more.
Figure 4:
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HR Pillars
Recruitment and Staffing: these organizations provide products and services to h
elp employers search
for and hire new employees.
o Workforce Planning
o Contingent Staffing
o Security
o Affirmative Action / Diversity
o Executive Search and Placement
o Relocation
o Job Boards / Online Recruitment Sites
o Background Screening
o Staffing Technology (i.e., Applicant Tracking)
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o Disability
o Wellness
o FMLA
Talent Management / Employee Relations: includes all the human resources service
s related to
managing the individual once they are hired.
Training and Development: employers invest in training and developing their empl
oyees.
o Corporate Learning
o Legal (i.e., Harassment)
o Department Specific (i.e., Sales)
o eLearning / Software
o Instructor / Classroom Training
o Orientations and Evaluations
o Video Conferencing
o Conference / Meeting Sites
o Diversity
Compliance: employers must make sure they are compliant with all the regulations
and other laws.