A 33% reduction in recruitment time. An 18% reduction in time spent on administration. These are just some of the benefits of investing in technology such as an HR system.

Sound attractive?

Investing in your people is one of the most important business decisions an organization can make.

Do it right and your business will thrive.

Yet the HR and People teams are in fierce competition for this very important slice of the budget. Therefore, developing a solid and comprehensive business case is the most powerful tool that can be used to secure this investment.

Equipped with tangible benefits, clear facts about return on investment (ROI), and information tailored to meet the needs of key internal stakeholders, it can give decision makers the confidence to say yes.

Here’s what we cover in this article:

1. Define your business needs

2. Ensure that the HR vision fits into the company’s strategy

3. Identify the benefits of investing in new HR technologies

4. Define what success will look like

5. Compare providers

6. Identify and assess risks

7. Describe the requirements and make a recommendation

8. Get buy-in from management and key stakeholders

9. Demonstrate the return on investment of new technologies

10. Create a comprehensive plan

The numbers are on your side

1. Define your business needs

Every organization has its own unique needs.

You will have a range of reasons to invest in technology, and the best way to start a business case is to clearly state those reasons.

It is even more compelling if a cost can be attributed to these reasons, for example, the cost of doing nothing.

2. Ensure that the HR vision fits into the company’s strategy

A good business case defines what you want to achieve. Purpose can take many forms, but the most effective goals are purposeful, action-based, and achievable.

Next, align what you are aiming for with the overall goals of the organization.

Make sure your business case shows how the investment will directly help achieve them.

3. Identify the benefits of investing in new HR technologies

Be specific about the technology benefits to your organization.

Describe exactly what will be different and better in your operation using performance measures.

As well as exposing this in terms of human resources, make sure you also consider the impact and benefits for other functions and the business more broadly.

4. Define what success will look like

Make sure you can answer the question “Why are we doing this?” “.

A cost-benefit analysis is an effective tool for gaining buy-in. If your primary goal is to streamline your processes, make sure that new system will integrate with existing technology.

5. Compare providers

Research all vendors and their solutions thoroughly and make a rational and balanced decision.

Think about how the investment can achieve the goals you have set, which can include things like:

  • Initial cost

  • Long term cost

  • Peer reviews

  • Ease of implementation

  • Compatibility with your organization.

6. Identify and assess risks

Quantifying the cost of doing nothing can be very compelling.

Define what other companies are doing and where doing nothing might leave you in terms of competitiveness against other companies.

You may also want to consider things like the potential cost of a data law breach.

7. Describe the requirements and make a recommendation

After doing your research and evaluating all the options, make a clear recommendation that will benefit the business the most.

Ultimately, most business decisions come down to cost, so spell out the potential savings from streamlining your processes, automating administration, and giving company employees more time to focus on growing, thanks to your investment.

A rigorous business case will quantify these types of improvements using business-critical Key Performance Indicators (KPIs).

Yours may include reducing attrition, improving employee performance, or reducing time to hire.

8. Get buy-in from management and key stakeholders

Your business case may be flawless, but without buy-in from key stakeholders, you likely won’t get very far.

Consider the needs of IT, finance, legal, your CEO or GM, and your employees.

By involving them in the process, it can help you understand what the organization needs most and how you can align the benefits of your business case with those needs.

9. Demonstrate the return on investment of new technologies

When competing with other departments for the budget, it is essential to demonstrate that the investment proposal has a clear and demonstrable return on investment.

For example, Forrester Consulting report on the total economic impact of Sage People have seen significant financial benefits throughout the employee journey.

They created a composite organization, called Acme, to exemplify these benefits, including nearly $2 million in savings, a 33% reduction in recruiting time, and an 18% drop in time spent on administration.

10. Create a comprehensive plan

Cover deliverables, resources needed, implementation, deployment and training schedule, and expected return on investment.

Make sure the plan doesn’t get diluted with other distracting initiatives.

The numbers are on your side

More than 50% of midsize businesses are increasing their spending on HR technology. The top benefits they expect include improving employee performance (56%) and freeing up resources and staff to do more strategic work (54%).

In the end, you don’t need smoke and mirrors to convince others.

Make sure the numbers are an integral part of your business case and use these 10 steps to develop a rigorous business case that will be hard to say no to.

The 10-step guide to creating a compelling business case for an HR system

Use this guide to learn how to make the strongest and best business case for effective business buy-in to investing in HR technology.

Download your free guide


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