Return on Investment on HR Software: What You Need to Know

ROI measures the benefit and profitability of an investment in relation to its cost. To calculate it, you simply have to divide the benefit of the investment by the cost of the investment, and multiply it by 100.

When it comes to Human Resources Information Systems (HRIS), you need to consider the initial cost of the implementation, the annual or monthly fees, the time spent setting up the software platform and training your teams to use it, and compare this data to the money your HR software will save you. In that case, financial gains will mainly come from time savings, efficient and streamlined processes, and improved employee experience. But more on that later!

We all know that human resource management systems help managers and the HR department save time and gain efficiency. But how does that translate into financial gains for your company? Here are a few examples of the financial impact HRIS can have on your processes and management costs:

• Time savings on core HR administrative tasks, meaning less paid hours spent on manual processes that could be automated;
• Improved time-off management processes by tracking overtime and managing PTO and absences;
• Integrated tools for better productivity and efficiency, such as payroll and HR software integrations;
• Reducing the costs of employee turnover and increasing employee engagement.

These examples are crucial assets for your company, and daily time and money savers. However, it can be challenging to consider how important the ROI will be depending on your business reality. That’s why we have gathered essential statistics to help you get an idea of the benefits HRIS can bring to your organization!

Here are essential ROI statistics and insights we have collected from our clients following the implementation of our all-in-one HR software:

• The implementation of an HRIS can reduce your current turnover rates by 5 to 15%. For a company with 120 employees, these improvements translate into more than $41,000 saved per year!
• An all-in-one HR platform can save you up to 800 hours annually, meaning you would save up to $25000 on payroll per year.
• An HRIS will help you gain efficiency on numerous processes such as performance reviews, training and career management, employee onboarding and PTO requests.
• Generally speaking, the return on investment on an HRIS is achieved within a few weeks after the implementation.

Do you want to know the details and discover more return on investment on HRIS statistics? Download your free ROI document for insightful information!

By this point, you are more than likely convinced that HR software implementation is a worthwhile investment for your company. Now is the time to convince your boss to take the plunge!

Our advice is to use insightful resources such as case studies on business savings following HRIS implementation, or guides on how to convince your boss to invest in HR software. Luckily for you, you will find everything you need on our blog!