Return on Investment of HR Software Guide
Find out exactly how much time, money, and headcount your organization can save by switching to a modern HR platform and build the business case to get leadership buy-in.
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Why you should use this guide
Calculating the ROI of HR software is the first step most HR leaders take before presenting a budget request to their executive team. Our tool helps you get a clear view of the numbers and benefits you should highlight in your presentation.
Common questions about HR software ROI
Get quick answers on your questions about the return on investment of HR software.
How do I calculate the ROI of an HRIS for my organization?
Start by identifying your current costs: hours spent per week on manual HR admin, payroll processing time, cost of compliance errors, and any tools you’re paying for that would be replaced. Then estimate the time savings the new system would generate, convert those hours to dollars using average salary rates, and subtract the software cost.
How long does it take to see a return on investment on HR software?
Most organizations reach their payback point within 6 to 18 months. Teams with high payroll complexity or heavy manual admin tend to see returns faster, sometimes within the first quarter after go-live, or even mere weeks after implementation.
What costs should I include when building an HR software business case?
A complete business case should account for both hard costs (current software subscriptions, paper and printing, payroll error corrections, compliance penalties) and soft costs (HR staff time on manual tasks, manager time spent on approvals, employee time lost to self-service friction). Soft costs are often underestimated — and usually represent the largest opportunity. Our calculator prompts you for both categories.
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