Webinar Recap: Ensuring the Value and Efficiency of Your HRIS Investment
Investing in a Human Resources Information System (HRIS) is a significant commitment for any organization, making it essential to maximize the return on investment (ROI).
In a recent PBO Advisory Group webinar with Sensiba (“Do You Have the Right Systems in Place for Your Business?”), three industry experts discussed strategies to ensure that your HRIS delivers the value you expect. PBO Advisory’s Consulting Chief People Officer Nicole Devine and PBO’s Consulting HR Director were joined by Sensiba’s Sage Intacct Practice Director Tom Achor for an in-depth look at how companies should assess, select, and optimize HRIS for business success.
>>> WATCH THE FULL WEBINAR HERE <<<
Below are the key takeaways on how to measure and enhance the ROI of your HRIS.
- Measuring Direct and Indirect ROI: Direct ROI is easier to quantify, such as the cost savings from automating tasks and reducing manual labor. For example, you know how much it costs to pay your accounting staff, but we can estimate how much an HRIS will reduce the need for hands-on work and determine a cost-savings ROI. This frees the accounting team to do more valuable, strategic work. Indirect ROI, however, is more challenging to measure but equally important. This includes the system’s impact on strategic decision-making, employee experience, and overall business efficiency. Tom noted, “Our main objective is to get the stakeholders what they need in order to make proper strategic decisions… those are much harder to put a value on, but they’re clearly very important.”
- Improving Efficiency and Employee Experience: When employees must navigate multiple systems, productivity suffers. A well-implemented HRIS can streamline processes, reduce frustration, and significantly enhance the employee experience, which indirectly contributes to ROI.
- Phased Implementation Approach: One key strategy to maximize ROI is to adopt a phased approach to implementation. Start with the core features that are essential to your business, such as payroll and timekeeping, and add more advanced functionalities as needed. Tom explained, “Starting with your core requirements… and then adding on as you go, you won’t be so inclined to pay for users or applications that you’re not using.” This approach not only helps in managing costs but also allows your team to become proficient with the system before introducing more complex features. It also mitigates the risk of paying for features that might not be utilized immediately, thereby improving the ROI.
- Avoiding Overspending on Unused Features: Another crucial point discussed was the importance of not getting locked into contracts for features that won’t be used right away. PBO’s Consulting HR Director warned against being oversold by skilled salespeople, advising businesses to analyze their needs to get what they need “not what the salesperson is telling them what they should have.” By carefully evaluating what is essential at the outset and only adding new features when necessary, businesses can avoid the common pitfall of overspending on an HRIS and ensure that every dollar spent contributes to improving operations.
Maximizing the ROI of your HRIS involves a combination of careful planning, phased implementation, and a clear understanding of both direct and indirect returns. By focusing on immediate needs, improving efficiency, and strategically adding features over time, organizations can ensure that their HRIS investment not only meets current demands but also supports long-term growth and success.
Previously in this series:
