Is an HRIS worth the cost? Your HR team is spending time on administrative tasks that they could use for initiatives that will directly impact your bottom line. This HR software savings calculator helps you see how much your organization could save each year with HR software.
Reducing turnover and building a culture of performance excellence isn’t just to give employees a great experience—it also reduces recruiting, training, and administration expenses. Companies can lose thousands of dollars on inefficient people processes, and the impact on productivity can stretch even further. Read on to see how HR software changes four important areas for the better: onboarding, electronic signatures, time-off management, and administrative tasks.
There’s a lot that goes into onboarding an employee. Well before the orientation meeting, you need to coordinate team introductions, workstation setup, setting software permissions, and more. Missing these steps leads to a slow start for new employees and an increased time-to-contribution average. Without an HRIS, HR professionals spend an average of 11 hours per employee just taking care of onboarding basics. With an HRIS, the average drops to 5.5 hours per new employee, freeing time for your organization to truly welcome employees and help them hit the ground running.
ROI: 5.5 hours per new employee
Implementing electronic signatures with HR software saves an average of two hours per document. With an average of 15 documents required during the onboarding process, making this change can save the equivalent of a part-time employee’s workweek, giving HR more time to focus on people work instead of paperwork. And as for paperwork, electronic signatures save an average of $300 per new employee in printing, faxing, and copying paper documents. That’s not just better for the environment, but better for your bottom line as well.
ROI: 30 hours and $300 per new employee
Employees take an average of three unreported PTO days per year. This might not seem egregious, but unreported absences impact employee productivity and lead to excess payouts when employees leave the company. With an average employee salary of $22.12 per hour, the cost of three unreported PTO days comes in at $530.77 per year, for every employee. HR software can help eliminate these issues by making it easier to request, calculate, approve, and track PTO. Simplifying this process also encourages employees to communicate in advance about their time off needs, knowing that it won’t be a waiting game.
ROI: $530.77 per year per employee
The average HR professional spends five hours of their day on administrative tasks—entering information, ensuring compliance, responding to employee requests, and more. This figure includes the time spent transcribing information recorded on paper to electronic systems. Providing employees with cloud-based self-service for some of these tasks can reduce this average to three hours per day, freeing up time for both HR professionals and employees to collaborate, focus, and develop professionally.
ROI: two hours per HR professional per day
Results based on reported averages for HR generalist salary/benefits1, employee salary/benefits, unreported PTO2, time spent on HR-related tasks3, and costs for printing, faxing, scanning, and overnighting documents4.
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