Return on investment (ROI) is a performance measurement used to evaluate the efficiency and profitability of an investment. For your HRIS, this ROI can be compared to your previous productivity reports before implementing HRIS into your systems. A high ROI means that the investment gains compare favorably with the cost of the HRIS. In other words, the investment into the system, software, or service was worth the price.
How To Determine ROI for Your HRIS
In the context of an HRIS, ROI is a measure of how much value the system provides to the company as a whole. Is it making the HR employees’ jobs easier? Are the functions of the HRIS helping your company’s processes become more efficient?
The ROI can be determined by dividing the benefits created by the HRIS by the total cost of the system. The benefits can range anywhere from improved efficiency to cost savings. The total cost of the HRIS must include the initial cost of the software, the resources it took to implement it, as well as the ongoing training and maintenance.
A good ROI can vary depending on the size of your company, the type of software, and the different resources you allocate for the software implementation.
What Does ROI Look Like With Your HRIS?
Whereas ROI is usually quantified to look like a normal percentage, there are other, more qualitative ways to measure the ROI of your HRIS. Of course, the time, resources, and money aspect of the ROI is essential. You’ll want to be sure that your company has the bandwidth to afford the implementation as well as the time to train your employees on the new software. However, there are many benefits that come with an HRIS that may not be measured with numbers and percentages but are indicative of your HRIS ROI.
There are many features that an HRIS possesses that allow employees to use technology to assist their everyday tasks. This can help with monotonous tasks or tasks that may take too long for a single person to complete manually. Some tasks that your HRIS can help with are:
- Centralizing information
- Automating tasks
- Creating workflows
- Staying up to date with compliance and tax regulations
Enhanced Company Culture
With the help of your HRIS, the HR team may have more time to think about their employees and ways that they can further improve the company’s culture. This energy can be put into different wellness programs, team-building activities, or small celebrations for the company. These initiatives have been known to boost the company’s morale. Your HRIS can also allow your employees to connect with one another through message boards as well as access information on new events and workplace policy changes.
Engaged Remote Workers
An HRIS is built with remote workers in mind. With its built-in features such as real-time feedback, schedules, and productivity tracking, your whole remote team will always be on the same page. This makes remote workers’ ability to collaborate with their coworkers much easier. Your HRIS can also help employees track their availability, ensuring that they’re working at times that work best for them. Implementing systems that foster a remote-friendly workplace can open your company’s doors to talent you otherwise wouldn’t have access to.
Your HRIS can help you find said talent quickly and efficiently. Your hiring and recruiting processes can be streamlined with your HRIS. Additionally, your HRIS can help you find the best candidates with their keyword filtering and progress tracking. That way, you won’t have to lose out on top talent due to area restrictions or long turnaround times.
Improved Employee Wellness
All-in-all, your HRIS will improve the wellness of all your employees. Of course, your HR team will reap the many benefits associated with the HRIS features and functions. However, your company as a whole will also feel these benefits with the increased access to resources and the improved company culture. Your employees are your number one asset. They’re the backbone of all the day-to-day operations, so ensuring their health is a top priority.
How To Maximize Your HRIS ROI
The best way to maximize your ROI with an HRIS is to make sure that it meets all of your needs and wants prior to implementation. The wrong HRIS can slow down processes and reduce productivity. Taking the time you need to make the right decision the first time will maximize the benefits of using an HRIS. Even if you’re in a rush to get software implemented, it’s important to slow down to maximize the ROI with the new system.
You’ll also want to make sure you’re using as many of the features as possible. There are a huge number of ways that your HRIS can help you to automate, simplify, and otherwise improve your HR processes and strategies. If you’ve already paid for these features, then it’s ideal to get all of your employees fully trained and on board with using them. That way, you’ll get the full benefits of using the HRIS.