The Shocking Truth: 80% of HR Tech Providers Are Failing Their Clients - Here's Why

A new report by isolved has shed light on a staggering gap between client expectations and the offerings of Administrative Service Organizations (ASOs), Professional Employer Organizations (PEOs), and Payroll Service Providers (PSPs) in the HR technology sector. The study reveals that a whopping 80% of ASOs, PEOs, and PSPs are holding back on offering new HR tech solutions, despite an overwhelming demand from their clients.

This remarkable insight was announced by isolved, the most-trusted human capital management (HCM) partner, at the NAPEO conference in Orlando, Florida. The report is a wake-up call for HR tech providers, highlighting the need to bridge the gap between client expectations and their current offerings. The study also underscores the strong opportunities for growth that exist for HR tech providers who can meet the evolving needs of their clients.

The report's findings are based on a comprehensive analysis of the HR technology landscape, which included surveys, interviews, and focus groups with clients and HR tech providers. The study aimed to identify the key challenges and opportunities facing the HR technology sector, with a particular focus on the gaps between client expectations and bureau offerings.

Some of the key takeaways from the report include the need for HR tech providers to prioritize innovation and invest in new technologies that can meet the evolving needs of their clients. The study also highlights the importance of client communication and collaboration, emphasizing the need for HR tech providers to work closely with their clients to understand their needs and preferences.

The report's findings have significant implications for HR tech providers, who must now confront the reality of a rapidly changing market. As clients increasingly demand more sophisticated HR technology solutions, providers who fail to adapt risk losing market share and revenue. On the other hand, providers who can innovate and meet the evolving needs of their clients are poised to reap significant benefits, including increased customer loyalty and retention.

The isolved report serves as a timely reminder of the importance of innovation and adaptability in the HR technology sector. By highlighting the gaps between client expectations and bureau offerings, the study provides a valuable roadmap for HR tech providers looking to stay ahead of the curve and capitalize on the opportunities for growth that exist in this rapidly evolving market.

For ASOs, PEOs, and PSPs, the report's findings are a call to action. It is time to re-evaluate their current offerings and invest in new technologies that can meet the evolving needs of their clients. By prioritizing innovation and client communication, HR tech providers can bridge the gap between client expectations and their current offerings, driving growth, customer loyalty, and retention in the process.

The full report is available on the isolved website, providing HR tech providers with a valuable resource to inform their strategy and decision-making. By embracing the insights and recommendations outlined in the report, HR tech providers can position themselves for success in a rapidly changing market, meeting the evolving needs of their clients and capitalizing on the opportunities for growth that exist in the HR technology sector.