Early last month, Rob Scott wrote an article chiding vendors and buyers alike for the shift in the climate of HR software that has customers buying into software solutions that do little to realize change in their HR environment.
The right HR software provides both a tactical ROI and potential for a strategic ROI. While a tactical ROI can be quantified and realized early, it is the extra piece that allows organizations to take on the long-term change that delivers strategic ROI.
Over the last year, we have seen many organizations buy technology to automate their existing processes without making any significant changes to their thinking or practice. While these organizations may not be experiencing long-term business success as a result of this technology, they are seeing fairly immediate bottom line impacts – a reason to be very happy with their solutions. Most organizations can realise a real, tangible tactical ROI from most software solutions, and that’s a completely valid result.
On the other hand, there are organizations looking for technology that supports a transformation. A move towards a more effective HR environment and a new way of doing business requires technology that aids and fortifies such a change. To say that those organizations buying a transactional solution with a strategy-based ROI are silly or are being ‘suckered into believing that a software implementation would improve HR services’ is to do them a disservice. It’s no secret that getting transactional processing under control and fully realizing strategic ROI is a multi-year process, involving significant change management considerations beyond just dropping in some magic technology. HR professionals and business leaders understand this.
It’s exactly why three or five year contracts make sense. They are sensible, responsible and required if an organization is to make a commitment to achieving a great strategic ROI. If, in the worst-case scenario, at the end of those three years, the organization has only realized a transactional ROI, they’ve still achieved more than they would have without the technology. Small to medium sized companies typically spend around 0.15% of total payroll running their annual remuneration review process, no matter what the final remuneration decisions are. For these same organizations, the cost with technology drops significantly. What’s important is that the investment made in technology is delivering an appropriate return – which it will, even if that’s only a transactional return. If that alone isn’t enough to justify addressing such a universally hated practice as remuneration reviews, remember that this is just the minimum benefit. The right technology will also set you up for greater returns with strategic enablement.
Many solutions, like eeStrategy’s, offer both a transactional and strategic ROI. In fact, eeStrategy sees this kind of successful change in our customers year after year. With technology and workforces that are in alignment with their organization’s long-term goals and strategy, our customers are able to evolve and refine their approach to managing talent while still seeing immediate transactional benefits.
While Scott suggests an increase of advisory capability from vendors to deal with disillusioned customers who have not realized their desired ROI, the real shift should be towards a realization within companies that there is latent capacity resident in their talent. An increased effort to unlock that capacity using technology solutions that offer both transactional and strategic ROI will enable organizations to achieve successful outcomes. The sooner the enabling platforms are in place, the sooner you can accomplish great things.
Implementing technology and achieving a transactional ROI is not a bad outcome. Obviously, achieving a better ROI or an ROI in a shorter time is the ultimate goal. eeStrategy automates your processes and improves operational efficiency to deliver a transactional ROI in mere months. With our revolutionary technology suite, eeStrategy’s sophisticated capabilities facilitate an even greater strategic ROI on top of that.
The question is: do you want to be a leader or a laggard?
Contact us at eeStrategy to become a leader and realize transactional and strategic ROI.