HR doesn’t operate in a vacuum, people are an organisation’s greatest (and often most expensive) asset, so how we manage them, and their data, is key to business success.
HR teams live with the pain of a poor or outdated HR systems every day and can see the benefits of changing.
But it is a significant investment of money and time to change, so we need the rest of the business to come along for the ride with positive and proactive contributions throughout.
Key to the success of the project will be that everyone can see “what’s in it for them”. And this is where the business case comes in.
Read on for tips on what to include and how to approach getting the business case for your new HR system; to get it approved and the project underway.
- Data
Leaders need tangible bottom line improving reasons to sign off on any project.
Focus on the “why this is a benefit” and ensure that all the answers are quantifiable financial outcomes.
For example, we save time not re-keying the same data into multiple systems which means that we have time we can reallocate to actively managing a specific area of the HR agenda, for example sickness management. Which means that we will save money and/or increase productivity across the teams by managing sickness absence better.
- Adjust the business case for the audience
Get buy-in from all senior leaders making sure you adjust the business case to each one, e.g. Operations, Finance, IT, CEO. Securing support from the start means you won’t waste time on selection processes that go nowhere.
Focus on the priorities of each area of the business, identifying the specific problems that will be solved and which ultimately lead to saving money or increasing productivity.
Make sure to think about the priorities of the person you are talking to, CTO, CFO, CHRO, and adjust your approach accordingly.
- Show the need for the new system
Business leaders want what’s best for the future success of the organisation. A new HR system is a significant investment (especially if it also incorporates payroll, recruitment, learning, engagement etc) so it is essential to demonstrate the need for change rather than sticking with the status quo.
Present the problems and their negative impact on the organisation. Then present your solution and the positive impacts that will bring.
Positive impacts will carry more weight and add more value to the business case if they can be associated with demonstrable cash savings. So, not just that the HR team will be happier but that the new system will lead to reduced turnover and associated training costs.
- Identify the risks of inaction
Saving money and resources should and will be the priority of the business, and this can lead to decisions to not instigate change, if there will be costs incurred.
However, opportunity losses from not continuing investment are a critical consideration.
The organisation will have a strategic plan for the next 3-5 years which the current HR technology stack may not be able to support at all or which it might hinder significantly. For example, if it cannot operate in countries the organisation plans to expand into or does not have the range of tools for communications and engagement that employees, especially Gen Z, expect and demand from their employers.
Highlighting how the change cannot wait for the next 3-5 year buying cycle and the strategic benefits of acting now and reaping the rewards of the change sooner can be compelling reasons to go ahead and start the implementation as soon as possible.
Summary
Building a robust business case for investment in a new HRIS is ever more important, and being able to make this process run smoothly and provide the information that each stakeholder needs builds credibility for the HR team.
By planning and preparing for this process the route from idea to implementation can be sped up meaning that the HR team, and wider business, can start to benefit from the investment more quickly.
Other tips to consider
- Start talking to people early, the business case should not be a surprise when it lands on someone’s desk
- Show you’ve done your due diligence on the vendor(s) you want to work with
- Demonstrate that you’ve considered how the project will be accomplished – so many projects fail due to poor implementation planning
- Detail the objectivity of your approach to selection by using standardised criteria and scoring matrices to give confidence of a robust decision-making process.
Resources from vendors
Ciphr – https://www.ciphr.com/guides/c-suite-business-hr-software
Cezanne HR – https://cezannehr.com/l/build-a-compelling-business-case/
SagePeople – Assessing the value of HR tech: going beyond the numbers
HiBob – HRIS ROI calculator: Is an HRIS worth it? (hibob.com)
Dayforce – Dayforce – A complete buyer’s guide to HCM technology