Learn how to measure and optimize the return on investment of your HR software with these tips on defining goals, choosing software, implementing and promoting it, and evaluating results.

Organizational Change Management (OCM) is a very critical work stream during deployment of the new tech. Many successful development , integration and final implementation may have ROI impact if OCM is not handled thoughtfully and effectively. One important aspect is to plan the right kind of investment for OCM work stream in any kind of tech transformation.

How do you maximize ROI with HR software?

Human resources (HR) software can help you streamline your HR processes, improve employee engagement, and reduce costs. But how do you measure and optimize the return on investment (ROI) of your HR software? Here are some tips to help you get the most out of your HR software and demonstrate its value to your organization.

1 Define your goals and metrics

Before you invest in any HR software, you need to have a clear idea of what you want to achieve and how you will measure it. Do you want to improve recruitment, retention, performance, or learning? Do you want to save time, money, or resources? Do you want to enhance compliance, security, or quality? Depending on your goals, you need to identify the key performance indicators (KPIs) that will show the impact of your HR software. For example, you could track the time to hire, turnover rate, employee satisfaction, or productivity.

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2 Choose the right software for your needs

Not all HR software is created equal. You need to find the software that matches your needs, budget, and culture. You also need to consider the integration, scalability, and usability of the software. How well does it work with your existing systems and processes? How easy is it to adapt and customize to your changing needs? How user-friendly is it for your HR staff and employees? You can research and compare different software options online, ask for recommendations from your peers, or request a free trial or demo from the vendors.

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Debjit Bhattacharya

Director@ Deloitte | Digital Transformation | HR Tech Consulting, Implementation & managed Services | Practice Leadership & Growth strategy | Program & Change Management | Gen AI Adoption
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Its very important the organization leadership is aware of the current Digital maturity or readiness Current Talent density of the firm. Also, what upskill program are in place & what is the learning culture in the organization, what is the appetite & savviness to leverage & adopt the selected technology. Even if the tech budget is adequate, chasing the new shiny toy or buying the best tech off the shelf does little for transformation if the tech selection & implementation is not aligned with the existing data capital & processes.

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3 Implement and promote the software effectively

Once you have chosen your HR software, you need to ensure that it is implemented and promoted effectively. You need to plan and manage the installation, configuration, and testing of the software. You also need to train and support your HR staff and employees on how to use the software. You need to communicate the benefits and expectations of the software to your stakeholders. You need to create a feedback loop and a continuous improvement process to monitor and optimize the software.

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Pradeep Prahlad Setlur

Vice President - HR , Global Talent Mobility and Global Immigration.
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Organizational Change Management (OCM) is a very critical work stream during deployment of the new tech. Many successful development , integration and final implementation may have ROI impact if OCM is not handled thoughtfully and effectively. One important aspect is to plan the right kind of investment for OCM work stream in any kind of tech transformation.

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4 Evaluate and report the results

Finally, you need to evaluate and report the results of your HR software. You need to collect and analyze the data from your KPIs and compare them to your baseline and targets. You need to identify the strengths and weaknesses of your software and the areas for improvement. You also need to communicate the results and the ROI of your software to your senior management and other relevant parties. You need to showcase the value and impact of your software on your HR goals and your organizational performance.

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Apurva Karandikar

Ingrain passion and compassion in your work and you will succeed.Business HR Partner, POSH committee member, Wellbeing champion, HR automation & transformation expert
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While measuring the effectiveness/result of HR software ensure that it is compliant with your internal governance policy. Also, regular audits should happen to ensure access controls and understand the vulnerability. While measuring the ROI, organization/decision makers should conduct a quick survey to understand the experience of users, if the purpose is achieved, analytics of change (situation before implementing the software vs. after), and most imp if this automation is cost-effective or not. Even if organizations have sufficient budget to digitize the processes through software, they need to ensure that such change is getting handled maturely and learners' abilities should be considered.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Vedansh Dubey

HR Business Partner | Top 10 B-School Leader India, Rank-1 XIMB Unstop | Content Creator | 500k+ impressions | Nat’l Winner TATA Steel-a-thon | XIMB-HR'23 | Nat’l Runner up Capgemini WOrkathon | Wipro(PPO) | Ex-TCS
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Any software will be effective only when it is used properly and wisely. Having a capability of software and using it wisely for the given purpose are two different things. It is important to figure out why and how before proceeding.

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How do you maximize ROI with HR software?

1

2

3

4

5

1 Define your goals and metrics

2 Choose the right software for your needs

3 Implement and promote the software effectively

4 Evaluate and report the results

5 Here’s what else to consider

Human Resources

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How do you maximize ROI with HR software?

1

2

3

4

5

1 Define your goals and metrics

2 Choose the right software for your needs

3 Implement and promote the software effectively

4 Evaluate and report the results

5 Here’s what else to consider

Human Resources

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