Building vs. Buying a People Analytics Platform
Are you a data-driven decision-maker stuck in the eternal struggle of whether to build or buy a people analytics platform? It's like a modern-day Shakespearean dilemma: "To build or not to build, that is the question."
In our latest people analytics series, eqtble sat down with Shain Zaidenberg, an experienced people analytics professional, to help organizations solve this very conundrum.
Involving Stakeholders in the Decision-Making Process
To start, Shain emphasizes the importance of including the right people from the outset, particularly the IT and engineering teams. They are the ones who will ultimately bring the solution to life. As Shain explains, "ensuring that you bring them along the journey from the very beginning is critical."
Comparing the Options: Building vs. Buying
To make the best decision, Shain suggests creating a comprehensive comparison chart to weigh the pros and cons of building versus buying a people analytics platform. She recommends focusing on three main factors: cost, time, and ongoing resource requirements. Shain shares her strategy with us: "I always like to do a comparison chart that really looks at cost, time, and ongoing resources required to build something versus buy."
Cost-effectiveness of Buying a Solution
During the conversation, Shain reveals that buying a people analytics solution has consistently proven more cost-effective than building one in-house in the long run. She emphasizes, "there's never been a situation in which buying ended up being more expensive than building in-house long term." While a custom solution might seem appealing initially, it's crucial to consider the time, effort, and resources required to develop, maintain, and update the platform. Often, these factors outweigh the advantages of a tailor-made solution.
Leveraging External Expertise
Keep this in mind: the expertise and experience of external vendors specializing in people analytics platforms can be invaluable. These vendors have a history of delivering tested and proven solutions, saving organizations considerable time and resources in the long run.
Conclusion: Making the Right Choice
In conclusion, while the allure of a custom people analytics platform may be strong, organizations should carefully consider the long-term costs and resource requirements before embarking on such a venture. In most instances, investing in a reliable and proven platform saves time, effort, and money, allowing organizations to focus on making data-driven decisions that benefit their workforce. Shain's insights underscore the importance of early stakeholder involvement and thorough evaluations in making well-informed decisions in the realm of people analytics.
Connect with Shain Zaidenberg.