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How to maximise the ROI of HR

Problem

Organisations are not maximising value from their people investments.

HR is a critical part of any organisation. But in some cases, the systems and services provided can be viewed as a cost rather than an added value, especially when HR programs are underutilised.

Solution

Align your investments to key outcomes that HR can drive.

Find the right investments and programs that will have the highest impact to your employees and your bottom line.

Measuring the value of your HR investments


95%

of companies require financial justification on projects >$50,000 (Source: IDC)

In the push for new technology and programs to ensure organisations attract and retain talent while optimising costs, HR departments must be able to measure the value of their investments.

But how do you measure the return on investment (ROI) of a new Human Capital Management (HCM) system or wellbeing program? And why does ROI matter? Let’s take a look.

Nearly 50% of employees in the US are making the wrong or poor healthcare choices, 60% of employees will not be able to retire when they plan to, and over 64% are looking to leave. (Alight Workforce Mindset Study, 2021)

Developing the business case


Clients who have implemented multiple solutions from Alight have experienced:

5%

higher employee satisfaction
Source: 1 service to 3 service client analysis

10-point

increase in perceived value of benefits
Source: a large high-tech client, 72% to 82%

11%

lower employee turnover rate
Source: 1 service to 3 service client analysis

Mature HR organisations spend 1.5x more effort on measuring the ROI of HR initiatives and implementing corrective actions.

Prove and improve your HR ROI


After investing in an HR initiative, tracking your KPI's can answer a couple important questions:

  • Am I getting the value I expected?
  • What are my realised savings?

What's the key to proving ROI? Always knowing how your performance stacks up against improvement targets. Using real-time, interactive dashboards provides transparency around your KPIs, keeping your team on track and in the know.

Not only do dashboards identify pain points and valuable insights on your performance, they can help you understand the value achieved and identify optimisation opportunities that may have otherwise gone unnoticed.

Tracking and measuring value realisation on an ongoing basis using analytics is the best way to get a clear picture of your HR transformation initiative.

Getting started


Maturity assessments are an effective way to find out how your programs and technology compare to industry best practices. Take a short assessment to gauge your company's maturity across several dimensions and find out your strengths and opportunities.

HR Executive

An executive-level performance assessment of your company’s HR function

One HR

A multi-dimension maturity assessment across HR, Benefits and Payroll functions

Payroll (Multi-country)

A value-based maturity and performance assessment of your company’s payroll function

Financial Wellbeing

A value-based maturity assessment of your company’s financial wellness program

Interested in learning more?


Find out more about the value HR can deliver for your organisation's growth.

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The Era of the Employee

The Era of the Employee is here

There is a paradigm shift happening in the employer-employee relationship. This offers opportunities for both employers and employees as traditional workforce models are becoming less relevant.

Related Insights


Is your HR business case flawed?

Getting the right data and making sure the business case is factual is not always easy. This guide looks at some of the most common issues we tend to see in HR business cases and highlight some of the insights needed to successfully develop a business case.

Should you be afraid of data-driven HR?

Why do some people feel this emotion when talking about data-driven HR? Is it dangerous, painful, or harmful? A cynic might say, ‘All three!’ but it may be the fear of the unknown or doing something different. Should we really be scared about data-driven HR?

The Era of the Employee is here

There is a paradigm shift happening in the employer-employee relationship. This offers opportunities for both employers and employees as traditional workforce models are becoming less relevant.