If you’ve come across this article, you’ve discovered the increasing importance of data analytics and its interpretation in HR management. Like many other companies, you want to reap the benefits of this technology.
To avoid manual and time-consuming work in various Excel sheets, the question often arises whether you should buy a platform or develop an internal solution yourself. Even though we are obviously biased on this question, in this blogpost we want to point out the challenges and implications and show you the pros and cons as transparently as possible. That way, you can make an informed decision for yourself and your organization.
A self-developed HR solution has the advantage that it can be tailored exactly to your specific requirements and needs. This allows you to visualize and analyze very company-specific data and metrics. In addition, the self-developed solution is usually adapted to the processes and the data model in such a way that there is no need for any change in the organization. This is both a blessing and a curse. If the data model changes in the future because you want to use another or different HR software or organizational changes occur and therefore the processes are adapted, then the self-developed analytics solution must inevitably be modified. Even if existing analytics platforms have limitations in the customizability of the platform, they can be adapted very flexibly to new requirements or systems. In case of doubt, it is always worthwhile to contact potential providers to discuss your individualization wishes for the platform.
If your company has a competent team of data analysts and developers, it can use this know-how to develop a functional self-built solution. However, it is important to note that development and implementation efforts often incur high initial costs, and support, fixes, and maintenance are hidden ongoing costs for your company. So maintaining your own solution will continuously require the resources of your internal teams.
The main reason for many companies to build a solution themselves is the issue of data protection. At first, it sounds reasonable that employee data does not have to be put into the hands of external providers. However, this does not solve the data protection issue. In most cases, HR teams do not have the necessary skills to develop such a solution themselves. As a consequence, critical employee data must be made accessible to non-HR team members. No matter how you slice it, the data protection issue remains.
Another critical issue is the length of implementation. HR teams looking to BI/data teams for support are often not very high on their priority list, so other departments such as Sales, Marketing, and Product take precedence. And developing and implementing a solution also takes time, depending on the size of the team. So if you want to get started with people analytics right away, it’s much faster to turn to external platforms. With peopleIX, you can independently analyze your data in the platform within a few days and generate the right recommendations for action and insights.
As previously mentioned, time and resource savings are a big advantage. Instead of implementing your own solution over several months, it only takes a few days with an established platform. It also takes time for your own BI/data team to create individualized dashboards. When you purchase a platform, you immediately have a wide selection of premium dashboards and metrics at your disposal.
The user interface as well as the user experience of people analytics platforms are designed specifically for employee teams, executives, and management without relying on technical expertise. Tedious data cleansing in HR systems, also become a thing of the past. Our People Analytics platform automates this effort, allowing your team to save valuable time and resources. The platform is also easily customizable to meet your unique needs without relying on BI or data teams for support.
With us, you’re always in control of access to critical employee and applicant data. The platform allows you to choose which data and dashboards you share with your team or individuals via access. At the same time, you empower your team and managers to become their own data analysts.
Unlike a homegrown solution, which often has hidden and/or higher costs than originally planned, a subscription model provides complete price transparency. This way you always have clarity about your costs and can target your budget. Here you can see our prices transparently. Our ROI calculator also offers you the possibility to get a customized cost breakdown including potential cost savings by using our platform.
Finally, it is important to mention that external providers do not only serve you as a reliable partner. They provide you with an excellent user experience, expert knowledge and customer service to effectively drive your people analytics initiatives. This expertise is a great jump-start, especially without the necessary prior people analytics experience.
Deciding between buying or developing a people analytics platform in-house requires a thorough analysis. Start with an assessment of your requirements and goals to determine which option is the best fit. Consider resources such as financial resources, technical expertise, and time.
To calculate the total cost of an external solution over time, you can use our ROI calculator. Ultimately, the choice depends on how well the option fits your organization’s unique needs, goals, and resources.