5 Things to Consider When Building a Business Case for New HCM Technology
The way we work has changed – perhaps permanently. Employees are now in the driver’s seat when it comes to choosing when, where, and how they work. According to a recent Microsoft report, over 40% of employees say they are considering leaving their current employer in 2021. 46% say they’re likely to move because they can now work remotely.
Businesses are under pressure to shift away from core HR technology that only manages payroll and performance. They need to implement Human Capital Management (HCM) technology which takes a more comprehensive view of the employee experience.
But in the current climate, how can you effectively build a business case for a new technology investment? How can you justify the spend when budgets are already tight, and the need might not be widely understood?
Here at Rizing, our recommendations are always based on the individual business and its specific needs. However, we typically focus on five key considerations:
#1. Opportunity cost – the risk of doing nothing
Employees are increasingly calling the shots about when and how they work. To attract and retain the best staff, businesses need to accommodate employees’ evolving demands and devise strategies for keeping staff motivated and loyal.
It’s important to have sophisticated, professional, and easy to use HCM systems in place.
To justify the cost of investing in new HCM software, consider the cost of doing nothing:
- What opportunities will your business miss out on by continuing to use the systems and processes you have now?
- Will you fail to attract or retain key staff by not providing the optimal employee experience?
- Will staff miss out on learning and development opportunities?
- What time and cost savings will you be missing out on by simply using the systems and processes you have now?
#2. Staged investment – a phased approach is often the best approach
When making your case for a new HCM solution, emphasize that an investment in new technology doesn’t need to be an “all or nothing” scenario. A new solution will often get better traction if it’s implemented gradually, with staged financial commitment.
A solution like Synchrony People, which is built on SAP SuccessFactors, includes multiple modules. Each module can be integrated individually and can fuse seamlessly with the systems you already use.
For instance, a growing business may start out by investing in the Synchrony People Talent Acquisition module.
Once new people have been brought on board, the business may then identify a need to more effectively onboard new team members and up-skill existing employees. The Learning module will meet these requirements.
Over time, this business may then decide to implement other modules – like Performance and Goals, Compensation and others.
A “big bang” technology implementation can result in change fatigue and result in employees not using the new technology to its fullest.
A slow and gradual implementation can lead to much higher overall acceptance and uptake, which has far-reaching financial benefits.
#3. The value of insight
A new HCM solution can also unlock company-wide insights, leading to:
- Essential cost and time savings
- More streamlined reporting
- More efficient operations
A Synchrony People solution can be integrated with your existing business systems and can help you unlock valuable data from across your business.
Equipped with this data, you can take proactive steps to rectify issues before they escalate and become costly to the business. Or you could use data relating to employees’ work-from-home preferences to inform your company culture and the policies you are putting in place to support remote work.
#4. Reduced workload for your HR teams
The COVID-19 pandemic has significantly increased the demands on many modern HR teams.
HR professionals are now responsible for:
- Ensuring regulatory compliance
- Meeting workplace safety requirements
- Creating policies and procedures for remote working, safety, salary reviews
- Much more
With the right HCM technology in place these efforts can be streamlined, automated and consolidated.
HR staff can be free to focus on attracting and retaining the best people and ensuring the company culture remains positive and supportive.
#5. Improved accuracy and compliance
Businesses commonly waste tens of thousands of dollars addressing administrative or compliance issues relating to HR management and payroll. Typical error rates are 1% to 8% of total payroll when companies don’t use robust payroll solutions.
Also, the cost for non-compliance can be significant. Most companies underestimate the risk of using dated payroll software.
By investing in a modern solution, the business benefits from having accurate, automated and centralized data that is compliant across multiple countries and jurisdictions.
Find out more
At Rizing, we are highly experienced in helping our clients prepare a business case for their investment in new HCM technology. If you want to learn more about how we can help, get in touch.