90% of regretful HR software purchases make the same fatal error.
We find that HR software represents the third most common source of purchase regret among B2B software categories, according to our 2025 Tech Trends Survey.* Why are so many HR software purchases going awry?
The primary culprit appears to be where HR software buyers get their information. A staggering 90% of regretful HR software buyers in our survey say they are likely to buy software based solely on vendor-provided information—forgoing important info from independent sources to round out their research and help them make a better purchase decision.
However, that’s not the only mistake that HR software buyers make. Before you purchase new HR software, read our insights into where regretful HR software purchases go wrong to avoid the same fate.
A single regretful HR software purchase can devastate a business: 62% of regretful HR software buyers describe the financial impact of their purchase as significant or monumental.
Buyers shouldn’t make decisions alone: 64% of regretful HR software buyers say they are the only person responsible for purchase decisions.
Being afraid to revise your list of options will lead to regret: Regretful HR software buyers are twice as likely to always purchase software from their initial informal list than successful buyers of all software.
You should have a complete understanding of the cost of ownership before buying HR software: The total investment being more expensive than expected is tied with the technology being too complex as the top product-related reasons for HR software purchase regret.
Regretful HR software purchases can cause lasting damage
With nearly 2,000 products on Capterra alone, the HR software market represents one of the most vast B2B software categories out there. Evaluating all of these options to find and buy the best software for your needs and budget is daunting as it is, and this decision is made all the more perilous by the lasting damage even one bad HR software purchase can inflict on your business.
Of the 28% of regretful software buyers in our survey that point to an HR software purchase as the cause of their regret, 62% describe the financial impact of that purchase as significant or monumental. Besides adding unnecessary cost when businesses have to replace their system, regretful HR software purchases lead to reduced employee productivity, security vulnerabilities, and even put businesses at a competitive disadvantage.
Unlike a lot of software categories that are siloed to a single team or department, HR software implementations often touch the entire organization. As a result, when a poor purchase decision is made, it has wide-reaching consequences. If your new employee scheduling system or performance management tool is lacking, HR departments, managers, and rank-and-file employees are all forced to deal with it just to do everyday tasks—giving them a massive productivity handicap.
Furthermore, HR software houses some of a company’s most sensitive information—data such as Social Security numbers, background checks, and employee addresses. If you purchase a product that isn’t as secure as you thought and become the victim of a cyberattack (which are increasingly common), you’re putting your employees in harm’s way and risking immediate reputation damage to your employer.
Businesses have no choice, of course. Today, you need HR software to effectively hire, manage, and engage employees. It’s why 19% of software buyers consider HR software a top investment priority in 2025, and why Gartner predicts the global HR software market to have an annual growth rate of 13.6% through 2028.[1]
But our data shows that regretful HR software buyers make specific choices throughout their purchase journey that lead them to a poor decision. Knowing what these follies are, and what you should do instead, can increase your confidence and reduce your odds of regret.
Relying solely on vendor-provided information is a recipe for HR purchase regret
HR software buyers have a dizzying amount of information sources to choose from when it comes to learning more about different products. Vendor websites are an obvious one, but there’s also product comparison sites, social media, advertisements, recommendations from experts and peers, and even large language models (LLMs) such as ChatGPT.
Knowing which sources to prioritize in your search is critical, and our data is clear on this: Relying solely on what vendors tell you about their product is a bad idea.
Vendors are important sources to learn about product facts such as price and features. Buyers shouldn’t dismiss them outright. But successful buyers go a step further and round out their product research by counterbalancing vendor information with what they learn from reputable third-party sources. Vendors will always say their product works great, but only real users or experts can tell you if that’s true.
This is why successful buyers of all types of software are 56% more likely to factor recommendations from experts and 52% more likely to factor information from product review and comparison sites when making their software shortlist compared to regretful buyers. If you only do one thing from this report with your next HR software purchase, do this.
Head to our HR software page to read verified reviews and round out your software research.
5 other mistakes regretful HR software buyers make
While banking solely on what vendors say or advertise is the biggest mistake regretful HR software buyers make, it’s not the only one. Our data points to five other blunders you should avoid.
1. Regretful buyers are the sole decision-makers
With so many factors to consider with every HR software purchase—functionality, usability, security, compatibility, etc.—placing the responsibility of evaluating all of this on one person, even at a small business, is a bad idea.
Compared to 52% of successful buyers of all software that lead or are a member of a purchase group, 64% of regretful HR software buyers say they are the only person responsible for purchase decisions.
The best software buying teams include a mix of IT specialists, management stakeholders, and prospective users to ensure you’re looking at any potential purchase from every angle.
2. Regretful buyers don’t make a plan
Recent trends, such as the rapid advancement of AI, have added pressure for businesses to buy new software just to have the latest functionality or stay ahead of the competition.
Having an external pressure like this might seem benign in theory, but the truth is this generic motivation leads to regretful software purchases a lot of the time. In fact, the top change regretful HR software buyers would make to avoid regret with future purchases is to clarify goals and desired outcomes (41%).
Instead of chasing the competition, focus on an internal goal with your software purchase. Whether it’s increasing your job candidate pool, making a certain HR process more efficient, or allowing for more data-driven insights to help with decision-making, being specific with goals and desired outcomes can give you and your team a north star as you weigh your different options.
3. Regretful buyers are hesitant to change their list of options
Buyers tend to make three separate lists as they go through their software purchase journey:
The initial informal list includes software that pops up in buyers’ heads as soon as they decide new software is needed, but before they’ve done any research.
After they’ve done research, buyers will revise their initial list into a researched shortlist.
The active engagement list comprises the options that buyers evaluate even further by interacting with vendors, attending demos, and doing free trials.
For simplicity’s sake, or just to save time, regretful buyers tend to not change their initial list. In our survey, regretful HR software buyers are twice as likely to always purchase software from their first informal list than successful buyers of all software.
If you come across a product you hadn’t heard of before doing research, don’t be afraid to consider it. Even if it wasn’t on your initial list, it could end up being the best option for your needs and budget.
4. Regretful buyers rely too much on Google and ChatGPT
Google is a good starting point for HR software research, but buyers should be careful not to rely on it too heavily. When doing research to make their shortlist, regretful HR software buyers say they are influenced as much by Google as they are by customer reviews.
Google may tell you who can dedicate the most resources to owning the top search results, but it won’t help you learn which products are rated highly by users or which products have the specific features you need.
We find that regretful HR software buyers also lean more on ChatGPT and other generative AI tools more than successful buyers. Large language models (LLMs), such as ChatGPT, have skyrocketed in popularity as a way to shop and do research, but these tools still pose considerable risk. As recently as August 2024, researchers found that GPT-3.5 (the free version of ChatGPT) produces incorrect information as much as 30% of the time.[2] As a result, they should be avoided when doing this research.
5. Regretful buyers don’t understand the total cost of HR software ownership
While the subscription license is the biggest cost with B2B software, it’s not the only one. Buyers that don’t know this can quickly regret their purchase when they blow past their budget. It’s why the top product-driven reason for HR software purchase regret is the total investment being more expensive than expected (37%).
When engaging different HR software vendors, make sure to ask if there are any costs associated with things like setup, data migration, customization, user training, or customer support.
Make better software purchase decisions with our 2025 Tech Trends Survey
If you’re in the market for something other than HR software, we have the insights you need. Check out some of our other reports below to learn how successful buyers of all shapes and sizes find and buy software that fits their needs.
Note: Regretful software purchases are defined as purchases where buyers seek major remedial action, like replacing their system.