HR Software ROI: What You Can Expect

The market for HR software has grown and changed in the past few years with advances in technology and the growing focus on this area of business for cost savings and increased competitive advantage. There are literally thousands of human capital management solutions available on the market, and it can be overwhelming to know which one is the best value for your unique business needs. Further, ROI is always a question when you’re making an investment in software and trying to choose the right system. While ROI is different for every system and every business, there are some averages that you can use as a guideline for HR software ROI and cost savings.

Most companies can quickly realize a return on investment in less than 15 months. Other studies show that in a typical business, the average annual cost of HR is $1900 per employee and companies who automate their processes can reduce this cost by $200 per employee. Let’s put this into perspective:


It is important to judge the impact and ROI of your HR software in terms of both tangible and intangible factors which is why it is important to consider, in addition to the savings defined in the chart above, all of the benefits discussed in past articles including:

It is important to remember that an investment in human resource management software is more than a technology investment, it truly is an investment in your employees and the true value of modern HR systems brings more than just a financial ROI. From recruiting to onboarding, talent development, and everything in between HR software helps businesses of all shapes and sizes attract and retain the top talent they need to increase competitiveness and create an engaged workforce.

There are literally hundreds of products on the market today that provide some (or all) elements of the modern-day HR business application. It is impossible to cover all of these applications in depth in a single review or blog article. As such, we’ve designed an HR Software Buyer’s Guide to highlight some of the major considerations that should be given to HR vendors and their business applications with a summary of some of the leading applications available on the market today for your specific ERP business system. Click below to get your copy.

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