When it comes to go-to-market strategies, HR tech vendors are in the midst of a movetoward the middle. Most comprehensive systems initially eithermarketed toward small employers or toward benefits brokers; butacross the spectrum, tech firms have realized their tools need toserve both sets of users well.

Vendors who initially marketed more toward employers areincreasingly embracing brokers, and platforms that initially workedwith brokers are embracing a broader spectrum of HR offerings toserve employer users better.

Ultimately, this shift will produce better outcomes for allusers of the software. Because benefits is so intertwined with therest of HR, a system that serves the needs of everyone isoptimal.

However, this can create some complicated scenarios for techcompanies when it comes to user support and communication. Vendorsare pulled in both directions, supporting both the needs of brokersand their employer clients, and these can be choppy waters tonavigate.

With different needs and different expectations, how vendorsnavigate this duality will increasingly be a differentiator inservice and product development. Here are a few areas where thissplit matters, and how vendors may be thinking about this.

Feature requests

Product development represents significant time and investmentfor tech vendors. When it comes to feature requests and productdevelopment, what brokers request can be very different from whatemployers want.

Brokers are typically looking for very specific benefitcapabilities. For example, broker users may request the system adda benefit reduction schedule for spouse voluntary life that isbased on the age of the employee versus being based on the age ofthe spouse.

Employers, on the other hand, are not concerned with thisfunctionality. In many cases, they may not even understand what itis.

Conversely, employers are looking for more robust HR solutionsthat both impact and are impacted by benefits. For example, mostsmall and mid-sized employers are struggling to recruit and retain,and would like their HR system to offer applicant tracking. Indoing so, small HR departments can easily streamline hiring, onboarding, and benefits all in onesystems. It would be even better for HR if the system's applicanttracking system were integrated with job boards like Indeed.

But many brokers may not be familiar with applicant tracking,know what Indeed is or initially recognize the advantages oflinking the system that administers benefits — typicallyoffered to improve recruitment — and a hiring system.

System support

With both broker and employer users, how should vendors thinkabout tech support?

Because no one knows the intricacies of a small businesses'benefits plan as well as the broker—often including anyone at thebusiness itself—it's not possible for brokers to be completelyuninvolved in supporting the system and to still support iteffectively.

Employers rely on their broker, so it's natural that the vendorwill need the broker to help support the system. However, too manyresponsibilities on the broker can be overwhelming for thebroker.

As a result, vendors have to strike a balance of directlysupporting employer users, while still including the broker asneeded.

Vendor-employer communication

Another area that demands careful thought is the communication channels between the vendor andemployer end-users.

Brokers may initially have concerns about vendors contactingemployers directly, but email marketing, webinars and so forth arenormal communication channels between a technology platform and itsusers. This communication proactively addresses changes beforeemployers see them, contributing to a better understanding of theproduct and ease of use.

But this is another area where what employer users need and wantcan be a little bit different from what broker users need and want.Effectively balancing what these different sets of users want isbecoming more and more important for all of the vendors in thespace.

Ultimately, this dynamic represents something of a juggling act,and it's a skill that all HR technology vendors will continue tostrengthen as the market matures.