A formal business case is needed to gain support from the decision-makers who can authorize funds for a new or upgraded HRIS. The business case should closely align HR goals with the organization's business strategy and specify the anticipated impact on the organization's bottom line. Presenting a strong cost/benefit analysis to justify the costs of purchasing and implementing a new HRIS is necessary.
Because HR is not generally viewed as a profit center, the business case should focus on reducing administrative and processing costs, increasing efficiencies, and improving value-added knowledge from analytics while supporting the organization's principal business needs. To corroborate the value of a new HRIS, quantify the cost of providing the current level of services as well as future anticipated benefits against the new system's bottom-line impact.
When developing a business case, determine the quantity and quality of the department's services to enable an assessment of how a new HRIS will improve existing manual processes and deliver services more efficiently. Determine why the existing system is no longer sufficient and identify any weaknesses in the existing system processes and functions. Investments in integrated systems or cloud technology, while bringing HR to the technology table, must be well positioned to contribute to the organization's bottom line.
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