Now that you know who to influence, you need to make it as easy as possible for them to say yes.
By giving your key stakeholders the most convincing reasons to invest in a new HR system, you stand a good chance of getting what you want. To do this, you need to create a compelling, rigorous and well-balanced business case for investment.
To help you cover every base in order to build a successful business case, here is a checklist that you should consider:
Each business has its own unique needs. You probably have a range of reasons to replace your HR system and the best way to start your business case is to set them out clearly. You can be even more persuasive if you can attribute a cost to them – either the potential ROI or the cost of doing nothing.
Key drivers for change can vary from one business to another. For the most part, however, they include the ongoing global skills crisis, with a relentless war for talent. In addition, there’s a need for greater workforce insight, which is still poor for many organisations. Drivers for change also stem from a need to change traditional HR systems that are no longer fit for purpose.
Finally, employee engagement is still stagnant in many businesses, despite advances in ways of working.
Other examples of why your business might need to replace its HR system are:
Implementing a new HR system can transform your people strategy, and the role your department plays in the organisation can have a hugely positive impact in achieving the goals of your business as a whole.
Your vision for HR can take many forms and be as simple or complicated as you want. However, the most effective visions are single-minded, action based and achievable.
For example, a powerful HR vision could be: “To put people at the heart of our business by delivering the best workplace experiences.”
It’s important to remember that to achieve your goals, your vision needs to support the overall goals of the business. If you expand on your vision you can quickly identify clear benefits to your business strategy, including your ability to:
There are many benefits of updating your HR system and investing in the latest technology. You should think carefully about how these benefits relate specifically to your business and outline them clearly in your business case.
Such key benefits range from:
By defining what will make your new HR system a success, you can find the solution that’s best aligned to the needs of your organisation.
Drawing up a cost vs. benefits analysis is an effective way to get buy-in. It’s as simple as asking yourself “why are we doing this?” If your focus is improving employee engagement, make sure the system offers good ways of boosting communication. If your main aim is to streamline your processes, make sure the new system will integrate with existing technology.
There are also business savings that can be made. According to Forrester’s Total Economic Impact Study8, these are the average business savings from implementing an HR system and automating HR processes:
7% Talent acquisition labour savings
15% People management labour savings
37% HR and People analytics savings
Investing in a new HR or People system is a big decision. That’s why it’s important to research all of the vendors and their solutions thoroughly and make a rational, well-balanced decision.
When comparing different solutions, some of the key factors to consider are:
How much does the system cost to buy and integrate?
What are the ongoing costs such as training, maintenance and support
Which systems are your competitors using and what do they think of them?
Will it be straightforward to implement the new technology and train employees?
Will the new system integrate with legacy IT systems across the business?
Remember, a low cost solution doesn’t always mean value for money, and you should only choose the system that provides everything your business needs to grow.
Demonstrating the risks of doing nothing can be a very persuasive part of your business case. Remember, you can still frame these points as benefits. Here are just a few examples, but there are likely to be others specific to your business:
The best businesses in the market are already adopting new technology and using it to boost insights and drive growth. Can your business afford to fall behind?
With businesses facing tougher regulation on how they handle data, you need to be sure that your HR system is up-to-date, secure and compliant. Failure to protect employee, customer and client data can have serious consequences.
The most valuable people want to work at companies on the cutting edge. By failing to embrace innovation, your business risks losing the war for talent.
After you’ve done your research and evaluated all of the options, you need to make a clear recommendation for the HR technology investment that will benefit the business most. This involves going into depth about the benefits of the system you have chosen and why it’s preferable to other solutions.
This could cover:
In the end, most business decisions come down to cost.
The upfront expense of introducing a new HR system often depends on the size of the business and what’s required. Ongoing charges vary depending on the support you need and the package you opt for. But more important are the potential savings of streamlining your processes, automating admin and giving employees across the business more time to focus on growth. By providing a simple cost-benefit analysis, you can demonstrate the ROI of the new system.
Your business case can be flawless but without key stakeholder buy-in, you’re unlikely to get very far.
Remember to consider the needs of IT, Finance, Legal and Compliance, your CEO or MD, and your employees.
By getting them involved in the process, you can make the final purchasing process quicker and easier.
For each key stakeholder, it’s important to think about:
Early involvement of key stakeholders is vital for buy-in. It can also help you understand what the organisation needs most and how you can align the benefits of your business case to those needs.
When you’re competing with other departments for budget, it’s essential to demonstrate that your investment proposal has a clear, demonstrable ROI.
Articulating the benefits of modern, data-driven HR and People software is the best way to ensure you get the funding you need. The positive impact that implementing a new system can have on engagement, productivity and growth is clear.
$1,950,709 Total quantified benefits to a medium sized business9
To get all the facts and figures on the benefits of investing in a new HR system, download our latest report: The Total Economic Impact of Sage People
Finally, it can be beneficial to develop a project plan that covers deliverables, resources required, time allocated for implementation, roll out and employee training and expected ROI.
Other factors to think about include:
Introducing a new system can be disruptive, so a phased approach can help, particularly if your system needs to be integrated with other technology across many departments.
Delegating responsibility to team members you rely on can help you achieve what you need quicker and with minimal stress. You will also have more time to make sure the whole project runs to plan.
Bear in mind that people are always keen to know what’s happening with new technology that will have an impact on their working life.
By keeping key stakeholders across the business involved, you will ensure they have a vested interest in the success of the implementation.
Keep track of successes, challenges and risks as they arise and tackle them quickly. Also, remember to keep a log so you can overcome them quicker if they arise again.
Minimise ‘scope creep’ where other initiatives are added to the project. This will prolong the work, distract your focus and further eat into your budget.
