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

courbe roi
Morgane Lança
May 29 2023

Do you want to implement an HR software solution to save time and gain efficiency on a daily basis? You’re not the only one: in the past few years, HR technology has become a pillar of successful business processes and people management, and a worthy investment for large companies and SMBs alike.

Don’t just take our word for it, and read on to discover the return on investment you can expect when implementing an HRIS solution.

Psst… You will find a free downloadable document on ROI on HRIS at the end of this article!

Explanation of ROI (Return on Investment) and How to Calculate It

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!

Main Financial Benefits of Investing in HR Software

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!

Essential ROI on HRIS Statistics You Need to Know

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!

Final Words Before You Take the Plunge

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!

Find out more about the return on investment of HRIS solutions:

Download our free ROI on HR software document!


Related articles

How to Convince Your Boss You Need an HRIS

It’s not always easy to convince your management to invest in HR technology to achieve your business goals…

Read more
How an HR Software Helped an SMB Save $175,000 in One Year

We often hear about HR technologies and the value they bring to the organizations that use them, but what about the facts? This case study, conducted by an external human resources consultant, highlights the various positive impacts…

Read more
The Pros and Cons of Different Performance Appraisal Methods

Choose the right performance appraisal methods by understanding their pros and cons for your business context.

Read more
7 Staff Management Software Solutions for Canadian Companies

Here are our tips for implementing the best staff management software in your company, as well as a list of software solutions available in Canada to help you make your final choice.

Read more
Complete Guide to HR KPIs in 2024

In recent years, KPIs (Key Performance Indicators) have become increasingly important in human resources management, and for good reason: they allow for simple and reliable measurement of HR performance throughout an organization.

Read more
Human Resources Today