The decision to acquire a new HCM platform, or any new HR technology, is a multifaceted process.
Consider that each department within your organization is vying for a portion of the company budget. Sales, marketing, and production all must convince the board that their latest initiative is the most critical.
As a result, it is imperative that HR acquire the vernacular of the C-suite. It is time to begin analyzing the data to demonstrate the return on investment.
Paul Burrin, VP at Sage People, was interviewed by HR Tech News. He provided an explanation of why the cost of new, more integrated HCM platforms is well worth it.
“Investing in HR technology is akin to investing in your employees, who are frequently an organization’s most valuable asset for driving performance and growth,” Burrin clarified. “Your organization’s prosperity necessitates it.”
The benefits that HR technology and cloud solutions are providing to the business are well-known to HR and people leaders; however, quantifying them for the broader business can be more challenging. You require concrete figures regarding your return on investment.
“We commissioned a study by Forrester Consulting that utilized a comprehensive Total Economic Impact™ methodology to determine the return on investment (ROI) of deploying and utilizing Sage People.” It discovered a total benefit of nearly $2 million, a return on investment (ROI) of 62% over a three-year period, and the greatest savings were in analytics.
Burrin emphasized that it is challenging to quantify the indirect ROI of cloud HR systems. Nevertheless, there are a few areas that can be quantified to demonstrate the extent of the impact of these investments. As an example:
- Increased productivity by optimizing time
- Enhanced employee engagement Decreased attrition Enhanced employee performance
- Decreased time to employ
- Easier adherence to local and global regulations
- Improved decision-making based on data.
Cloud solutions are the future. Organizations are missing out on a significant amount of potential by neglecting to invest in these HCM platforms, in addition to limiting their overall organizational potential.
“A traditional HCM platform is essentially transactional,” Burrin continued, “whereas a modern global cloud HR and people system surpasses the capabilities of a traditional approach.”
“A contemporary global cloud HR and People system enables organizations to establish relationships with their employees, thereby enhancing business performance and enhancing the quality of the workforce experience.” It is secure, adaptable, and can be utilized globally, in addition to offering assistance for on-demand and mobile work.
“For instance, cloud HR technology can facilitate the generation of actionable insights with the simple click of a button.” New forms of automation reduce the probability of human error and the necessity for manual reworking, while simultaneously providing lead indicators that foresee and prescribe potential actions to achieve desired outcomes.
“Cloud also allows businesses to be adaptable and responsive to evolving market and customer demands by configuring new working methods, rather than coding them.” And most importantly, the most effective technology frees up HR and People executives to focus on what is truly critical: delivering increased business value through a productive, engaged, and forward-thinking workforce.