Yes, You Can Make the Argument for Spending on Technology – Even in This Economy
HR and payroll departments are buckling under the weight of federal and state legislative actions affecting benefits and payroll processes. When these issues are compounded by downsizing and right-sizing in both of these business units, the employees inside and outside HR feel the effects of mounting paperwork. A sizeable reduction in paperwork, time and effort is available through employee self-service (ESS) software. Although many of you may believe you can’t approach your executives with a request to buy anything at this time, you may be mistaken. Technology as a solution for decreased spending and increased productivity over the long haul will get everyone’s attention in a positive way if you present your argument in a well-prepared business proposal aligned with business strategies and goals.
“Increase productivity while decreasing costs” is likely to be on your CEO’s list of business goals for 2011. Defining a delivery model for HR and payroll processes in support of business goals, transforms HR from a service delivery unit to a strategic partner in business operations. Creating a repository of information that can then be used to drive business decisions is a key component of the employee self-service system. Moving information more efficiently reduces costs and improves productivity. Let’s review just how this happens.
The benefits of an ESS system include:
- Employees’ have the ability to manage their own demographic information. Employees can update changes in family status and addresses; check W2 info; request leave and have it approved0—all without the distracting paper processes.
- Automating administrative processes reduces manual data entry, costs and errors. Eighty percent of HR’s time is spent on low value routine processes. That translates into 6 hours of everyday processing, tracking and updating at a relatively expressive cost per hour. These processes do not add directly to the bottom line. Transfer this process to technology and the service delivery model improves without an increase in costs.
- Better data leads to better reporting and analysis. Developing an information asset allows HR to provide improved organizational support through analysis of facts and data gathered through the ESS system.
Understanding the advantages of ESS within HR and payroll may seem obvious once you start looking seriously at the benefits such a system can provide. But how do you convince the keepers of the cash? You have to speak their language. In doing so, you learn how to move your HR department from being viewed as service providers to being recognized as strategic business partners.
Building the business proposal:
1. Identify functional requirements for a system. Consider cost savings, data integrity, time savings and reduction of duplication in effort.
2. Explain why the status quo needs upgrading. Emphasize the lack of functionality, the lack of integration between business management systems and the resulting data integrity issues.
3. Determine the immediate needs to be met by an ESS system. Include information about availability to employees (24/7), process standardization, quality improvements and reduction in transaction costs.
4. Review potential solutions. Identify all costs associated with your top 3 vendors including, additional hardware and integration needs, as well as the cost of future upgrades.
5. Calculate your Return on Investment (ROI). Do this for the first 3 years as costs are often loaded at the front end. In order to do this, you are going to need to know what it costs your department to perform these same tasks manually now.
6. Assess the value of the changes. Think in terms of decreased costs, improved automation and delivery of services. Document the values as they relate to established overall business goals and objectives.
The proposal is ready. By following this outline, keeping strategic business objectives in mind and reviewing current costs, it’s relatively easy to make the argument for the value of an employee self-service system. In addition, by building an understanding of how HR and payroll operations affect the business overall, you’re developing skill sets and competencies for analyzing and modeling best courses of action for the organization. With the time saved by a self service systems, your HR and payroll departments can focus on increasing services and becoming a more strategic partner to your business.

During the summer it reminds us that, for most employees, the highlight of the year comes when they are able to take their vacation. However, recent studies show that more Americans are working throughout the year without taking a break. This is attributed to being overwhelmed with job responsibilities and not wanting to have to catch up after being away. But health experts say that it is important for people to take time off for physical, mental and psychological reasons.
When the economy slows, businesses tighten their belt and look for ways to cut costs and get more work accomplished with fewer resources. That’s why more companies today are challenging their human resource (HR) departments to make more strategic contributions to the organization. While HR is traditionally viewed as a cost center saddled with time-consuming and paper-intensive administrative tasks, it’s a necessary burden in order to comply with governmental regulations that require specialized reporting. The question is this … how can you streamline your HR processes to minimize that burden and transform HR into a model of efficiency with meaningful impact on the bottom line? For some, the answer is automated HR software. Let’s take a closer look.

