Welcome to CompareHRIS.com’s Human Resource Software Technology Forum.
Topic: Getting Approval for a new HRIS
Message Date/Time: 10/6/2009 3:30 PM Message: The biggest problem that I encounter with my clients is HR trying to sell an HR system to management who view this request as a HR 'nice to have' not as a business solution. A 'business needs assessment' should be conducted with business executives and cross section of business leaders to identify business requirements, not just HR requirements. Involve key business leaders in the process and selection, partner with the CFO to get a financial analyst who will work with you to build a believable business case, using your own company's financial numbers. Meet with each of the 'decision makers' with the 'draft' business case, get their input, issues, etc. After you have made appropriate changes from all the individual meetings, your business case will have significant support and appropriate funding, because it will be seen as a business solution and not just a HR tool. Reply: Reply |
Message Date/Time: 8/7/2008 5:55 PM Message: I am curious, have any of the vendors had success selling their systems by showing a ROI from HR software. The problem that I have always seen is that the direct cost savings tend to be soft costs. Such as the companies turnover rate is currently 15%. A HR system may be able to reduce that turnover by 20% so, the cost of replacing a handfull of employees is saved by utilizing an HR system. As someone who studied Accounting in School I would think selling ROI for HRIS software is a tough sell, especially when you are selling to a finance person, who is used to dealing with hard numbers not soft costs. Is that your experience? Reply: Reply |
Message Date/Time: 8/6/2008 8:59 AM Message: One of the critical pieces is providing an ROI (Return on Investment) analysis to your upper management that justifies the expense of a system. This should include "transactional" type savings from automating processes (i.e. Open Enrollment), and also capture the more strategic components (ability to identify key performers, reduce turnover, increase productivity, on-time reviews, filling open positions with internal staff first before going outside, succession planning, etc. The ROI needs to come from a business perspective. Don't focus on all the bells and whistles or time savings to HR. Rather, focus on what the system will do for the organization, how it will help support the business objectives, allow you to easily assimilate new employees, plans and cultures from M&A activity, grow/expand internationally, help with SOX controls and documentation (reduce risk), use it as a tool for driving retention rates and rewarding key performers, integrate with financials and other systems to provide meaningful data/business intelligence on the company's workforce, trends, costs of your human capital, etc. These items provide a more compelling argument for your management instead of just selling an HR system. Reply: Reply |
Message Date/Time: 8/4/2008 2:29 AM Message: I will be going through this process in the near future, any advice that can be offered will be helpful. Reply: Reply |
