Spilling the beans: 7 typical mistakes to avoid when buying market research data in HR
You work in Employer Branding and wonder which market research to buy and what to avoid? Let me give you some life-saving advice.
No matter if we talk about employer rankings, benchmarks, surveys, user tests, image or campaign research… choosing the right providers is a competence on its own.
This may be the strangest article I’ve ever written because it’s so niche. But I think it’s important someone put it down once. And since I’m just now leaving market research firm Potentialpark after 22 years, it seems like the right time to spill some beans!
I think Potentialpark covers the points below very well. But among hundreds of clients, I have seen some turn research into miracles and others totally wasting it. So this serves as a general guide to help you choose research providers and also get the most out of the data. Let’s go!
Mistake 1: Buying the headline, not the use case
Our consumer brain makes us buy chocolate because of its clever branding and positioning at the supermarket checkout. Similarly, when buying research data, some go by what “looks interesting”, what “everyone buys” or “whatever has the right topic written on it”.
But research does not help just because it's interesting. It exists to be applied and put into practice (as opposed to academic studies).
Try to think from the end and picture the situation once you have it. Consider different use cases for members of your own team as well as other stakeholders. Will the data support strategic decisions? Or does it come with hands-on advice? Will it help you choose providers and instruct them? Or all of the above?
By the way, “what exactly can I do with it” is a fantastic question to ask the research company’s salesperson. They should be able to show you a preview or demo with specific applications for your situation. An answer like “you can use it for whatever you want” won’t cut it. Don’t just buy what’s interesting, buy to apply.
Mistake 2: Missing the stakeholder power
50% of the value of market research is in its stakeholder power.
Take employer rankings for example. Everyone generally likes to complain about rankings as being an extra layer of judgment (except when they win). And yet this totally misses the point: rankings are an instrument of change.
When you fare badly in some ranking category, you should be happy: it’s an excellent opportunity to bring all your stakeholders on board and get buy-in for improvement. Nothing moves mountains (and budgets) faster than bad rankings, especially when your competitors are ahead of you.
And once you rank better or even win an award, it’s your time to shine and prove your work has been successful. Particularly HR teams should be happy about every chance they get to make some noise.
Rankings are just one example here. This is really true for all market research data: use it as an arsenal of arguments for discussions, presentations, business plans and budget negotiations. Research that does not lend itself to stakeholder management is only half as valuable as the one that does.
Mistake 3: Unrealistic expectations
Market research, by definition, is imperfect. The reason is that it follows an economic logic, not an academic one: it needs to offer practical answers to practical questions, quickly, at an acceptable price. Thus, it can't be all things at once.
Any good research provider can explain the validity as well as the limits of their approach. And it's good to check them up on that.
But a mistake I often see is Employer Branding teams (especially people who are proud of their own academic background) who spend a lot of the time in delivery meetings critiquing the methodology, searching for limits and errors or discussing details. Or, another classic behavior: questioning a study that shows results they are not happy about ("kill the messenger").
You can do that, but remember: it's your data, your time. You paid for it. So while critical feedback is important and helpful, the optimal mindset I can recommend for a data delivery is: even if it's not perfect - what can I learn from this? Make sure to get the most out of it for your own sake.
Mistake 4: Cut market research in crises
We all know this discussion from advertising: is it a cost or an investment?
Or think of how HR routinely argues with other departments: if we cut costs in HR, it will backfire later when we try to win the people back we lost and have to rebuild our damaged brand.
Similarly, I'd be careful to cut market research expenses too generously in a bad economy. It might be that you saw off the branch you sit on.
Not using the right data in challenging times is like throwing away the map in the middle of the jungle. You will just run more efficiently in the wrong direction.
Good research data gives you orientation, saves you time and avoids costly errors. A smart client once said "I buy research data so I know and don’t need to guess.” And when is that more important than when budgets are tight and you need to prioritize?
In the years following the pandemic, it almost seemed like money was thrown at anything that moves. Now the ROI filter is back on, companies are more cautious with spending. Market research helps you connect your projects to business needs and make them harder to cut. Besides being your map, data can also be your umbrella in the rain.
Mistake 5: Missing how data defines your role
I remember this funny story of the German vs. the American version of a Global Employer Branding manager. Both are presented with a market research offer. The German manager says, can you downsize it? I'm a hero when I save costs. The US manager says, can you upsize it? My title is Global Employer Branding Manager, no one takes me seriously unless the data covers the whole world.
Easy to forget: market research is not only insight, but also a signal to others, it defines you. If you buy too little, you may unintentionally downsize the impact of your role. Movers and shakers typically have lots of data to make things happen. Some of its power is not in what it tells you, but what it tells others about you.
Mistake 6: Missing that data advances your career
Strangely, this one never makes it into the sales slide deck of research companies: “buy our data to get a promotion”. Employers, especially corporations, expect you to document and communicate your successes for them to be rewarded. Research helps you tell your success story.
The logic basically goes, “as the data shows, we were in a bad situation, then I did this and this, and now the data shows we’re much better”.
For that reason I strongly recommend zero measurements of your situation before you start changing anything. This way you can later measure the improvement you achieved.
I have rarely seen anyone make a career in a large organization without using research data (including rankings) to claim their successes.
Mistake 7: Appointing a “research person” in your team
I'm always puzzled when Employer Branding teams appoint a “research person”. I get why they do it, but it really doesn't make a lot of sense. It's a team member who takes the time to sit through all demos and pitches from various research providers. They dutifully ask methodology-related questions, take careful notes of the prices and report back to their team lead who decides what to buy.
It sounds like an efficient specialization. The problem is that it puts a middle-person where none belongs. This person will often focus on superficial and technical aspects, not ask the right questions and not fully understand the value because they are not the actual experts for each area.
So my recommendation: don’t appoint a “research person”. Instead, connect the right person for each area of expertise with the right providers and let them judge their offers first-hand.
There’s a lot more to say...
...about good and bad research and how to make the best of it. I tried to focus on typical errors that I have seen over the years that for some reason are rarely talked about.
Research data can be a mighty and indispensable tool if chosen and applied wisely. It’s a passion of mine, so do get in touch if you want to discuss this more or need help and advice. Any time!