It’s not uncommon in tough economic climates for people to try to evaluate the return on investment when making important purchasing decisions. This blog provides some high-level answers to the question that often arises in business meetings: “How will an HR Management System impact our bottom line?”
The bottom line refers to an organisation’s income after its expenses – or rather its net profit. The impacts that HR systems have on this net profit are exhaustive but the main impacts can be noted as follows:
- They enable business growth by providing you with powerful planning and decision-making tools which ensure you choose the optimal workforce configuration to meet your growth needs. A healthy return on investment of HR systems allows an organization to allocate more finances to other areas of business growth.
- HR systems impact an organisation by increasing operational efficiency. Administrative demands are slashed by providing you with electronic workflow and central record keeping which would normally waste an organisation’s most precious resource – time. There is also less duplication of employee data and all information can be used by multiple people simultaneously across the organisation. By increasing operational efficiency, more time can be directed towards improving the companies bottom line in other areas and less time is spent on people-related paper forms. With that being said, the ‘document and spreadsheet’ approach to performance management is long gone and performance appraisals are now simpler, faster and more accurate. More informed decision making can also increase operational efficiency through automated reporting and sophisticated HR analysis tools. All employees can achieve optimum productivity by having all their questions answered quickly by a central source of information and single version of the truth. Employee efficiency can also be impacted by HR systems through a workplace skills plan that can be easily put together using the right HR systems which can correctly direct the effort of the organisation’s workforce.
- There is always legislative risk in an organisation – that is the government could, through laws and regulations, impact the bottom line of an organisation if these laws and regulations are not adhered to accordingly. An effective HR system lowers legislative claims which if not lowered, can be quite costly and ultimately affect a business’ net profit. Lowering legislative claims is done by providing easy access, from any location to hundreds of processes including:
- Health and safety
- Equity reporting
Using an HR Management System ensures that all people information is instantly and securely accessible from any location, hundreds of processes and tasks are simpler, faster and more accurate than under the old document and spreadsheet approach.
Staff performance and development tools let you easily measure and develop individual and group output, alignment, motivation and more. Automated reporting and sophisticated HR analysis tools mean more informed decision making and built-in tools make equity reporting requirements and workplace skills plans a breeze.
GoSmartHR ensures that the bottom line of your organisation will be impacted positively and the return on investment will be well worth it.
Call today to schedule a free, no-obligation demonstration of how the product can benefit your organisation.