5 Tips For Making Your HR Tech Business Case
If you are a regular follower of DayoneHR on any platform, be that right here on our blog, or on our LinkedIn page or podcast, you will know we cannot stop talking about HR technology; why it is so important and the revolutionary benefits offered to HR teams, leadership and organisations as a whole.
The reality is that, even if it’s easy for HR professionals to appreciate the countless benefits of HR systems, in order to get buy-in from the wider business and senior management, you will need to build a strong business case.
Here are our 5 tips for building a successful business case for investment in HR software.
1. Identify the benefits in a digestible way
We all know that HR tech will make the life of HR teams easier. However, the decision to invest in HR software is often made by people who will not be heavy users of the system. It is your responsibility to be specific about the benefits of the technology to your organisation and how it will solve problems.
Be clear about exactly how things will change for the better and present the benefits in a quantitative way. For example, if you want a new system that includes e-signature capabilities, try to set out how much time, paper, and money this improved efficiency will save the company when it comes to managing employee documents.
2. Emphasise how the technology benefits the wider business
Make sure your business case isn’t only considered in HR terms, but that it takes into account the positive impact across the organisation. Emphasising the wider benefits in your business case will go a long way towards gaining that all important budget.
Self-service functionalities that give your people more control and visibility on things like personal data, training, PTO and benefits, for example, can do much to save everyone a lot of time as well as ensuring greater accuracy and improving employee satisfaction.
3. Demonstrate the ROI of new HR tech
It is important to back up your case for new HR tech by demonstrating how the business will get return on investment. An HRIS is likely to contribute significant financial savings at each stage of the employee life cycle. Your chosen or shortlisted vendors should be able to assist you in illustrating the financial benefits.
Moreover, if your proposed new solution offers additional modules for payroll or hiring, for example, that are less expensive compared to what the company is currently using, the ROI for those areas of the platform is easily calculated.
4. Explain the cost of doing nothing
Outlining the risks of doing nothing can be very persuasive. Are other businesses in your sector investing in HR technology? Where might that leave you in terms of competing with those organisations? Doing nothing could make you slower at hiring top talent and this inaction could have a negative impact on your growth plans.
An HR system that produces comprehensive reports can benefit your business in many ways. Is your current method of HR reporting up to scratch? Can your business afford to not improve your reporting features?
Here, you may also make the case for data compliance and consider any potential costs involved (both financial and reputational) in data protection breaches and how an HRIS solution can keep sensitive data secure.
5. Have a clear plan!
Our final tip for developing a successful business case for HR technology is to set out a comprehensive plan for the implementation of the new software. Here, you should outline not only the schedule and deliverables, but also the resources and team members needed as well as defining what a successful roll out will look like.
Having a clear plan for implementation will make your case more compelling and give decision makers confidence in your business case. For more insights into how to ensure a successful HR tech implementation, why not check out our blog on this subject here. You may also wish to learn about why our clients choose to work with us on their HR systems implementation projects. To read about this, click right here.
If you would like to work with DayoneHR on your HR technology project, we’d love to hear from you! Reach out to us here to arrange a FREE consultation with our industry experts.