HRIS Return on Investment

ROI can be a difficult thing to show when it comes to HR software. How do you quantify improving efficiency and more easily preventing costly fines related to compliance issues.

HRIS/HRMS helps HR staff to organize data and work more efficiently and frees their time to concentrate on more strategic tasks. Having the data easily accessible through the program and a number of standard reports helps HR to better serve employees and reduce turn over. On the same note, HR software can help HR to identify personnel problems and take corrective action early on.

Business Managers often see things only in terms of the bottom line and ROI. HR Managers need to take a look outside the box when trying to justify an HR software system. One way to do this is to document current manual processes and the time required to manage these processes. The time saved by implementing an HRIS can then be used to determine the savings in dollars. Historic and potential cases of compliance violations can be used to show how having the data organized in the HR software can help shield the organization from fines and lawsuits.

The justification for HRIS/HRMS systems is there, it is just a matter of presenting it in terms Business Managers will understand.