OrangeHRM Blog
Voice of Free & Open Source HR System

Archive for November, 2016

3
Nov

Vulture Marketing - The Silent Killer

Posted in General  by admin No Comments

Search the web and you will not find a definition for the term “Vulture Marketing.” It’s shocking as there is such a great use for that term. I’ve long felt that organizations that take advantage of the less fortunate were vultures. They specifically target people that are vulnerable to products/services that take advantage of their vulnerabilities. The people these vultures target will never be able to improve their lives as long as they keep falling victim to these vultures. Their vulnerabilities can include, poverty, mental illness, addiction, language limitations, and more.

There is a very solid argument to be made that there is a negative correlation between vulture marketing and the economy (I’ll explain this below.) Without naming specific companies, I’m going to provide some examples of vulture marketers below:

Payday Loans & Cash Advance:

These places prey on people that are either poor, uneducated, newcomers, and/or out of options. They usually charge a 20% interest rate for a payday loan. 20% interest for a 14 day loan? That’s absolutely ridiculous. It’s obviously taking advantage of people that are very desperate or that don’t understand how high of an interest rate they’re paying. It’s no coincidence that the majority of payday loans locations are in areas with a high rate of poverty. Casinos also charge similar outrageous interest rates when offering cash advances of credit cards. I’ve even seen casinos that offer payday advances. Would an individual that is in a good state of mind and without a gambling addiction gamble their future paycheck knowing the odds were against them and that there was a 20% interest rate? No.

Guaranteed Approval Used Car Loans:

I once briefly worked for a car dealership that guaranteed approvals on used car loans. The cars were 20-30% overpriced and the interest rates were anywhere between 20-30% per year. I was shocked as the dealership sold more of these type of deals than new cars and commercial vehicles combined. The people who went for these bad deals were often new immigrants with no credit history or people with horrible credit. The dealerships know that customers have very little leverage because they have no other options for obtaining a vehicle. Due to this, they overprice the car and offer interest rates over 20%.

Cash For Gold:

Pawning items is one of the oldest forms of commerce and I love the show Pawn Stars. Although pawn shops indirectly target vulnerable people, I wouldn’t classify it as vulture marketing. Places that primarily offer “quick cash for gold and jewelry” would be classified as vulture marketers. A lot of people that own gold or silver don’t know the true worth of their jewelry and don’t realize that they are being offered well below scrap value for their jewelry. If the price of gold is $60/gram, “the cash for gold” places will offer you anywhere from 10-40% of its scrap value. You will always get substantially more by selling it privately on Kijiji or letgo.

There are multiple other types of vulture marketing tactics that victimize people that are vulnerable. Some tow truck drivers often scam and take advantage of people who are in a stressful situation. This video by CBC Marketplace is very informative on this issue. Some moving companies scam and take advantage of people and hold their positions for ransom on the day of a move because they know that people’s options are limited on a moving day. How do they find these vulnerable people? They typically do this by offering very low prices to target people who can’t afford professional movers. Again, this video by CBC Marketplace is very informative on this scam. High interest rate credit cards, 2nd & 3rd mortgage lenders, Multi-level companies, the list of vulture marketing tactics are limitless.

To be clear, there are a lot of professional and reputable moving companies, tow truck drivers, 3rd mortgage lenders, etc. The term vulture marketing should be only be used if the organization is targeting people who are vulnerable.

What are the impacts of vulture marketing on the economy?

My hypothesis is that vulture marketing is negatively affecting our economy.We can confidently assume that the people that are more likely to fall victim to vulture marketing are people that are below the poverty line. If these people continuously fall victim to vulture marketing tactics and continue to pay outrageous interest rates, they will never be able to grow financially and get out of poverty. That can’t be good for the economy. It would be a stretch to link vulture marketing to suicide rates and addiction rates without research, so I won’t go there.

I typically won’t write articles that are controversial, but I felt that this issue gets nowhere near the level of attention it deserves. I’d love to hear everyone’s thoughts on vulture marketing. Please share your thoughts!

2
Nov

6 Questions You Must Ask When Considering HRMS Software

Posted in General  by admin No Comments

So you’ve been asked to look into Human Resource or HRMS software for your organization. A quick internet search turns up a large number of companies that appear to have similar offerings. In fact, there is a wide range of systems available that target different markets. Some claim to work for any organization, whereas others appeal to specific verticals like construction, oil and gas, and manufacturing. Some may seem “fully loaded” with features you may never use, and others may be too simple for your level of customizations. Above all, they each come with their own unique price tag that may or may not suit your organizational budget.

The search for “HR Software” can often become more cumbersome than it needs to be if you’re not asking the right questions. Therefore, we’ve compiled a list of the “Six Questions You Must Ask When Considering HRMS Software.”

Is The System Cloud-Based?

These days, there seems to be two main pricing and delivery models available for purchasing software. One is similar to buying a car with a full payment upfront, whereas the other is more like leasing a car with lower monthly payments.

If you’d like the software to reside on your servers, behind your own firewall, tended by your own IT staff, you’re more than likely going to lean toward the traditional licensed software model. This means you pay one lump sum for the system, plus an annual maintenance fee for support and updates. Your company will be in control of your system, and your IT team will be responsible for the data security and system up-time. On the contrary, if you’d prefer to make your own decisions for your department, without waiting for the IT team, the hosted or “cloud” model may suit you best. This option would grant you access the system from anywhere in the world at any time through the web, with no need for IT to install any software or tweak any hardware on your systems.

With the latter option, you’d pay a low monthly fee for each user on the system, and the vendor would be responsible for guaranteeing the safeguarding of your data, and keeping the system working. Generally you can pay for a cloud solution out of your operating budget instead of asking for approval for a capital purchase.

Is the vendor willing to provide a reference when asked?

Have you ever heard the saying “we’re only as good as our customer’s say we are”? Well, it’s true. You can’t afford to rely solely on what the software vendor says, you should always ask for case studies or the contact information for a reference customer so you can get the real story. Ideally, you’d like the reference account(s) to be in the same or a similar line of business so that it’s more relevant to your needs. Ask them how smoothly the installation and training went, how gracefully the vendor handled any issues and what’s keeping them a customer. The vendor’s attention to customer service should figure prominently in your purchase decision.

Are there any external human resource organizations or associations that endorse or stand behind the software?

You may come across a large organization that stands behind the vendor because they truly believe in the system. There are a number of large government and industry organizations that will endorse vendors they believe are superior in the industry. If you recognize an organization that stands behind a particular vendor, you can feel an added level of comfort regarding the software’s functionality and the company’s reputation.

Will the software be able to handle the growth of my company?

While most software companies appear to have everything you need to properly manage your HR program, it’s important to think of how your needs will shift in the long term. If you were to double the size of your workforce, would the system hold up? Would the cost of the system remain affordable? It’s vitally important that your systems grow as your company grows. Ensure your vendor is able to facilitate the organizational growth while attending to any additional requirements or customization you may require in the future.

How well does the vendor understand your industry and HR challenges?

Any organization can claim that they know your industry, but a vendor that can demonstrate success with other companies in your industry would have already dealt with the nuances that your company requires. It’s important to question how many customers they have in your sector, or how many of their customers face similar challenges. The vendor’s expertise in your line of business saves you the trouble of educating them about how your industry works. It’ll allow you to receive advice and best practices for solving common problems in your field (an added bonus that not many vendors can provide).

Can your vendor provide you with a custom guided demo over the Internet?

Many companies offer a free trial but leave you alone with the help button to navigate your way through the system. Ask the vendor if they can provide you with a custom demo over the web to walk you through how it’ll meet your specific needs. Request to engage with a real person as opposed to a “helpdesk”. You want the ability to schedule a demo in your own time and when it works best for you. A guided demo will allow you to ask questions, schedule a meeting with the key decision makers in your company, and get everyone’s opinion on whether or not it’s a viable option for your organization.

Before the demo, it’s easiest to make a list of features that you want to see. See if the vendor can load your actual employee information or present their sample data in a way that’s familiar to you and your colleagues. As the demo unfolds, study how user friendly the system seems to be, and how well it solves the problems you throw at it. Do you need to manage employee training and leave? A successful demo will let you clearly visualize how the system would be used in your organization.

Selecting a HRMS software can be as simple as it sounds. Let OrangeHRM walk you through a guided demo and answer your questions today.

 

Copyright © 2017 OrangeHRM Inc All rights reserved. Powered By WordPress