HR Technology is fast changing enterprises’ approach to managing people for best productivity. A number of modern tools are making work faster, easier, and more value-adding to business. Yet, the first step to realize these benefits and create competitiveness from one’s people resources is to embark on an HR transformation. For this the CTO, the CIO, and the CHRO, along with other business heads, must create a business case for the adoption of HR Tech. Many of them still struggle to gain the necessary CEO buy-in, leading to widespread losses for the organization.
Investment in HR Technology is essential, and for this a compelling business case must be created. While much is being written about the value of HR Tech to business, very few managers and professionals are able to convince the CXO cadre about the tangential benefits, leave alone the intangible ones. The outcome is that corporations struggle to make HR Technology a mainstream way of working, and then find themselves losing the competitive advantage they once enjoyed. It is important that HR professionals learn how to showcase the people benefits and translate them quantitatively to cost and productivity benefits.
1. Highlight cost savings: CEOs understand concrete numbers, especially when they relate to direct benefits such as cost savings. Deep dive into the HR Technology that you are pitching and present the cost advantages, both short-term and long-term.
2. Show how to solve bottlenecks: Showcase a problem resolution approach while presenting upcoming HR Technology solutions. List the bottlenecks that the organization is bogged down with, and point out how and which functionality of the HR solution can address those. For example, a delay in hiring can be correlated to business lost due to the position lying vacant. A lower level of employee engagement can be expressed in various ways, one being absenteeism—express that in terms of business hours lost. Talking people metrics will have you on the same page as the CEO, and will make the business gains appear more real.
3. Talk about the company-wide impact: More often than not, CEOs think in terms of pan-organizations solutions, unlike other CXOs, who may limit their outlook to their respective functions. While proposing an HR Tech, it is important to highlight the impact across departments, functions, hierarchies, geographies (if applicable), and so on. A wider impact is not only regarded as a stronger impact, but it also appears fairer, since it reaches a wider base of population.
4. Provide an external view: Conducting a preliminary benchmarking exercise to highlight what competition is doing in the HR Tech arena is a good eye-opener. Talk to outsiders in the industry and share their live experiences of how HR Tech bettered the organization. This can create a compelling case by serving as a head-start on how and where to start your journey.
5. Talk about the skill aspect: A business case for HR Technology must be complete in all respects. Put yourself in the shoes of the CEO and think costs, resources, skills and talent, change management inputs, and so on. Detailing the inputs versus the outputs will provide a clear picture of the required investment. A clear draft plan indicates clarity of thought and a good know-how about the process, and is more likely to give you the investment you need.