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Building A Measurable Business Case For SAP SuccessFactors Employee Central

Case implementations of new technology help to ease out the trepidation upper-management have when it comes to spending money on innovative techniques. Project plans intending to move a company’s HR system into the cloud sets the stage. However, to convince the people that need convincing, there needs to be more than just a plan of action. The first step in finding success with an Employee Central project comes from undertaking an in-depth analysis of existing business practices. From there, the Employee Central project needs to align with the goals of HR. Finally, management must initiate buy-in to the project to make it a reality. Getting managers to buy-in is a lot easier with a business case study that has measurable results attached to it.

Business Cases Allow For Concrete Facts

Presenting a plan by itself lets management know that there is a roadmap for the company to follow. But the roadmap without measurable targets and comparison to existing operations is simply an idea. Employee Central will require significant investment for it to impact the business and management has to be aware of what the potential return on that investment will be. Cloud HR solutions like Employee Central will form the core of future HR development, but the statement without facts to back it up doesn’t make a good case for such a large volume of expenditure. A recent SAP Insider survey found that out of the companies that formed the average users, 42% of them stated that lack of a clear business case was the reason their company hadn’t moved into adopting a cloud solution for HR as yet.

Industry Leaders use Measurements to Track Their Success

The survey found that companies that stated they were achieving their goals regarding implementing a cloud HR solution relied on measurable metrics to determine the level of their success. The critical point to note is that leaders are more likely to invest in agile software that allows them to measure metrics which they can use to determine how successful their venture is. Because they form the vanguard of innovators, they need to be proactive in setting and achieving goals, and measurable metrics aid them immensely in this task. Conversely, the companies that could be considered the average or late adopters usually forge a more reactive route in their implementation.

Leaders tended to use specific KPIs for determining their ROI for their innovative implementation. Among the KPIs leaders tracked were:

  • Time to hire: This metric tracks both candidate experience and efficiency of the hiring process. It allows the company to see information about the cost, quality, and effort that goes into hiring for the company.
  • Rate of Retention: Turnover costs could be a severe concern to companies, and this metric allows businesses to understand and implement methodologies to increase their retention rates, alongside developing employee talent.
  • Employee Satisfaction: Satisfied employees tend to stay with the company over a more extended period than dissatisfied ones. Employee Central plays a critical part in helping the company meet employee expectations and allowing hires to access information that they would need to excel in their position.

How Does a Business Case for Cloud HR Help?

The capabilities of the HR applications that the company intends to implement need to be carefully considered before investing in it. Once the company confirms that the application implementation does what is needed, a business case can help by:

  • Allow management to see the benefits of the project financially. Measurable results can help to push the project as something that could save the company money through the presentation of factual data.
  • Track hidden employment costs. HR has many hidden fees that don’t show up in standard hiring practices, and a cloud HR solution like Employee Central would enable HR departments to quantify those costs better.
  • Lower Risk of HR investment. Having an idea of the actual numbers behind an investment helps to keep the project on track.

Track ROI over a year. ROI comes from measuring the right KPIs. By implementing a solution that offers KPIs that are measurable and trackable, a company can see how HR ROI affects their bottom line over time.

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