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How to prove the ROI of your HR tech

Now you’ve seen the benefits of your HR software, it’s time to prove it to your executive leadership team!

Investing in your workflows, HR software, and hardware has several benefits. Whether it’s automating performance appraisals, helping develop a company’s succession planning or financial forecasting, investing in HR tech can help save costs, improve your employee’s performance and in general boost your HR functions.


HR tech can come in many different forms, you could invest in a Learning Management System (LMS). An LMS is a platform that allows you to manage every aspect of workplace learning, from design and delivery to scheduling and reporting. Streamlining several aspects of your business, an LMS ensures your organisation remains compliant, whilst providing your people with access to eLearning, as and when they need it. This would help with any courses that need doing that employees haven’t completed, with an LMS you can see completion rates, as well as who is engaged and who isn’t.


Or you could invest in a specific HRIS, otherwise known as a Human Resource Information System. A HRIS provides a centralised database that stores everything from applicant tracking functions, onboarding, employee demographics, time-tracking, and so much more. It’s a central hub for your employee data with up-to-date information on your organisations hiring trends and employee retention.


But explaining their benefits to other people, especially your executive leadership team, is a different story. They need facts and evidence that this investment will be successful, that it will achieve a large or high ROI, i.e return on investment.


This is where we can help.


We’ve outlined an in-depth guideline below, detailing how you can prove the ROI of your HR tech investment.

Many businesses find that the efficient execution of basic HR processes is their greatest challenge. An effective HRIS, like our HRIS Sapling, can produce significant gains in productivity, and decreased costs from your people operations team. With Sapling, you will have:

  • Streamlining onboarding
  • Centralising employee demographics
  • Retention and succession planning
  • Time-tracking, leave management, and scheduling
  • Payroll and benefits administration
  • Data analytics for in-depth reporting
  • Employee self-service options


Know what your business needs in terms of ROI

The first thing you’ll need to consider is identifying what your business needs in terms of ROI. Ask yourself certain questions such as:

  • What is your cost of capital?
  • Who from your business does it involve?
  • What is your project budget?
  • What other projects will you be competing with?

You’ll need to be clear in terms of what your organisation needs in terms of ROI.


Be specific with your numbers

As previously discussed in our how to build a successful business case, you need to be as accurate as possible with your calculations. Know exactly what your businesses targets for the year are, and how the HR tech you want to invest in can help. Then you can do the standard ROI formula:

ROI = Net income / Cost of investment x 100.


Focus on what matters

Have a plan or a blueprint for how your HR tech will have a positive impact on your business, how it will have a positive ROI. Explain how your proposal will help your business spend less. For instance, with our HRIS, Sapling, you’ll be providing your employees with an incredible onboarding experience. In fact, investing more in communication and engagement during pre-boarding process can improve the onboarding experience by 83%.

You should also ask yourself the following questions:

  • How does your project create opportunities to spend less?
  • Will this require less resources?
  • Is it going to drive efficiency across the board?

We suggest implementing quarterly KPIs, and analysing how these can or will be met.

The right HRIS will allow your HR team to work smarter and save time. It’ll empower them to provide strategic guidance to your company’s decision-makers. By having a HRIS like Sapling, you will be able to address your company’s current needs, planned growth and future business objectives.

A simple solution that can make dramatic improvements.


Speak to one of our experts today to find out exactly how Sapling can help and support your business’s success and growth.

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Written by Claire Moloney

Claire is an enthusiastic and meticulous content writer whose passion is to support growth and continual learning for everyone.


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