Part 1 of our blog on selling your boss on HR technology took on the topic from your point of view – the HR practitioner in the trenches. In Part 2, we’ll look at the boss’s perspective … the view from high atop the checkbook.
If you’re to be successful in selling the boss on your need to upgrade to an automated HR information system, he or she must first learn about the benefits HR technology offers. In addition, the boss must see the business value that HR can contribute by using that technology. So your mission is creating a business case for making the technology purchase.
Crafting a business case doesn’t have to be a complex or intimidating process. You’re just giving yourself a framework or outline for talking the boss through the buying decision. Here are the points you’ll need to address:
1. Problems and costs. In business, a buying decision (for any business product) comes about because someone wants to solve a problem or make some kind of improvement. Your first task is to demonstrate problems and their cost to the business.
What do you spend time doing that you believe HR technology will help you do faster or better? Your challenge is to figure out how to quantify those issues for your boss. Maybe your problem is data scattered across your company. Show him or her how much time you have to spend collecting employee data from various sources. The cost of that is your hourly pay x the amount of time required. The savings HR technology will offer is the difference between that figure and your pay x the projected lower amount of time required if data is automated and centralized.
Another cost figure you can provide relates to self-service. In the last blog, we looked at the time HR invested in transactions that could be done by employee or manager self-service if HR data was automated. Make the same calculations: HR time x pay (without technology) – HR time (0) x pay (0) (with technology).
You get the idea – describe the problem, show what the costs to the company are if you make no changes, then show the projected cost savings HR technology will provide.
2. Discuss solutions. You need to show the boss that you’ve given thought to all the possible solutions available to solve the problem(s) you’ve identified. Describe potential fixes and their pros and cons. Again, you’ll want to reduce these options to the bottom-line (costs/savings) effect on your company.
3. Make your HR technology recommendation. Using technology to drive efficiency is the leading way HR functions achieve improvements in cost and work effectiveness. You can find numerous examples by doing an online search. Or check the BambooHR website for examples of small and mid-sized companies’ descriptions of the ways a web-based HR system solved their problems.
4. Explain implementation. You’ll want to conclude by describing what will be involved in implementing your HR technology solution. This gives you a further chance to show the boss that you’ve been thorough in investigating everything related to the buying decision and that you’re ready to move ahead when you receive the okay.
5. Reiterate the value of HR data. HR gains value because HR technology enables us to work more efficiently. But business leaders don’t care much about the mechanics of how we do our work. They gain value from the insights that we can provide them from accurate HR data – insights that can help them more effectively manage employees in order to maximize the contributions those workers make to the company. With accurate and easily accessible data, HR’s reports can show such vital information as workers’ skills, education, location, aspirations, levels of performance, and much more. Those are vital elements in achieving business results and growing any organization.
When you’ve presented your case and answered any questions, ask for the approval. If you need help at any stage of the business-case process, customer representatives at BambooHR welcome your call. We can provide information, testimonials, details about our product’s functionality, and even a free demonstration of Bamboo’s features.
If your company is serious about success, a BambooHR system can help drive HR’s contribution. Click here to start your convince-the-boss campaign with our free white paper, Why and When to Use HR Software.