HCM solutions are often one of the most important investments your organization will make. Not just because they are costly, but because they can change the way an organization operates. Whether you’re in the market for your first HCM system or looking to replace your current one, you should have a plan in place for measuring your return on investment (ROI). At the end of the day, the main reason to purchase a solution is the value you expect to get in return. This could be in terms of improved processes, increase in efficiency, reduction of overhead and more. The key is to identify specific metrics you can measure both before and after the implementation of the new system.
The Top Benefits of an HCM Solution
Here are four key areas to look for improvements in a new HCM system:
Reduction of Employee Turnover
Your HCM can assist you in employee performance and job satisfaction. You’ll be able to see warning signs right away and maximize the amount of time your most talented employees spend at your organization. If your company has a high turnover rate, observe how your new HCM system changes that and determine what replacement costs you avoided.
Streamlined Onboarding Process
Solutions that have a robust hiring and onboarding process can help your organization reduce time and administrative work that normally occurs when you bring a new hire from the application process to their first day on the job. If you can manage the hiring process efficiently, you save money and resources. A key point to look at: the average time to hire and cost per hire before you implemented your new HCM solution and where are you now?
Reduction of Recruiting Costs
Before you hire additional employees you actually have to find the talent. Your HCM should have strong recruiting features and can help you market your open job requisitions, connect easily with candidates, recruit on social platforms and manage employee referral programs. You will be able to gauge whether your system is achieving higher interview to hire ratios.
Improved Administrative Productivity
The most common tasks that takes up time in an HR department range from managing employee benefits to updating personal information and payroll data. When you integrate HR and payroll solutions, you’ll lift much of that burden off of your HR and payroll department. Your HR staff can then focus on more important issues, such as managing employee performance and increasing morale in the workplace.
Whatever the motive for a new HCM is, it’s a significant investment of both money and resources and you need to be able to measure if your solution is providing positive ROI. Selecting your HCM solution is only the first step in proving ROI – successful implementation, user engagement and ongoing post-implementation adoption will all impact the system’s value to your organization.
Let InfinityHR help you through the vetting process.
Download our free HCM System Evaluation Checklist.