With the right HRMS, your company can excel in a number of areas, such as workforce productivity and efficiency. But how can these gains be quantified?
When making the decision to implement a new HRMS, you need to be confident that your investment will be worthwhile before you make it, and you don’t have to be a CFO or a business leader in HR to agree. But if you make the correct choice, your investment may significantly boost that crucial bottom line.
Between the two goalposts of an improved revenue and a better culture, there are a number of variables that can affect your return on your investment in an HRMS.
The ROI analysis
Before continuing, let’s review the essential calculation that an organisation should consider before making any significant investment:
Now that we’re up to speed, let’s examine some of the issues you should think about.
With the correct HRMS, your company may excel in a number of areas: team collaboration can be increased, communication can become a lot more efficient, employees can enjoy more autonomy than ever before, and an integrated learning culture can be established.
But how can these gains be quantified?
Consider how learning has a positive impact on reducing the time to capability; how team collaboration speeds up project completion; and how autonomy positively impacts culture.
Efficiency in recruitment and administration
Only by understanding the strengths of your current workforce can you go out and find the people you need with the necessary behaviours and skill sets to form a comprehensive, future-proofed workforce.
The right HRMS will make the employee performance targets easily accessible, motivate your staff to take initiative and achieve their objectives, and automate administrative tasks as much as is practical and beneficial.
Where people strategy and data collide
Although creativity and the elusive notion of finding a “spark” are frequently associated with innovation, statistics can play a significant role in a successful people strategy. Giving your staff access to personnel data over the full employment lifecycle not only produces considerable administrative savings but also fosters engagement and trust. Making the proper HRMS instant access and employee-focused will offer you the edge you need.
A single hire typically costs around £3,000 in total. The price of keeping your staff content so they don’t quit for greener pastures ranges from the concrete, like bonuses, which cost an average of £1650 per year, to the intangible, like team dynamics and development.
An HRMS that gives your employees freedom to develop, learn, and cooperate will significantly lower attrition and, as a result, improve the return on investment of the HRMS.
Employee HR experience
The HR experience is still primarily transactional for certain firms. It is practical and not a place to find inspiration. But there has been a shift taking place for some time now.
Employees are empowered by modern Human Resources Management Systems such as that provided by XCD to manage their own data, training, and goals and performance monitoring. Self-service usage and adoption rates are closely correlated with engagement, benefits satisfaction, and a lighter administrative burden on HR.
Calculating the exact ROI of your HRMS is difficult, but it’s apparent that technology is an enabler more than ever; an empowering tool that transforms HR from a cost centre to an employee turbo-charger that not only saves you money but also invests in your company’s most valuable asset – its people.