Technology has been instrumental in the overhaul of human resources departments the world over, streamlining processes by moving from paper-based to electronic solutions. However, as the needs of HR departments continue to grow more and more complex, the process of rolling out new software changes often becomes difficult to manage. Combine this with the fact that HR managers are increasingly under pressure to make their processes more efficient and what you have is a situation where HR departments must prove the ROI of the applications they use, to justify their cost.
This challenge of proving ROI is further complicated by the fact that HR doesn’t rely on one application alone. Instead, the department will use multiple applications or separately-priced modules to fulfil various needs, from timekeeping and payroll to employee benefits. This means that HR has to justify the need for all of these, something which many professionals find difficult to do. Part of the solution is identifying what the value of ROI should be weighed against – such as employee retention – and then investing in tools which can improve those areas. But how do you demonstrate that software is delivering the business benefits it is supposed to?
The Difficulty Of Measuring The ROI Of HR Software
It is difficult to assign a monetary value against the worth of HR applications, which is why businesses instead assess their cost in relation to their benefits. For example, one company might judge their HR software against the time it saves, while another may use the quality of the data, or how often engage with the software. The one common thread is that most departments find it difficult to prove their worth.
A recent survey of UNLEASH attendees by digital adoption platform developer AppLearn, showed that 73% of respondents find it difficult to demonstrate the ROI of HR applications. Without a clear way of measuring ROI, putting steps in place to increase it can be difficult.
No matter how big or small a business is, time is money, so any software that can be used to streamline processes should have time as its ROI. It should be assessed on whether its cost is justified by the time, and therefore cost, it saves for those using it.
The AppLearn survey also found that one way in which HR professionals are looking to improve how they measure the ROI of the tools they use is by investing in a digital adoption platform, with 67% of those surveyed saying they were planning on investing in a digital adoption solution.
What Are Digital Adoption Platforms?
To understand how using a digital adoption platform can improve the ROI of HR applications, it is important to first understand what its purpose is. Simply put, a digital adoption platform (DAP) is a piece of software that can be integrated with existing applications as an additional layer which guides users through the various functions and features of the software in question. Their main purpose is to facilitate meaningful digital adoption within organisations and help them improve the ROI of the software they invest in.
Benefits Of Investing In A Digital Adoption Platform
Digital adoption platforms form part of the solution. When deployed correctly, they can help to improve the ROI of applications, including those used by HR departments. While the overall goal of using a digital adoption platform is to support digital transformation, one of the knock-on benefits is the improved ROI of the applications that an HR department already uses. By providing real-time training to users, DAPs can increase user engagement with HR applications, which is often one of the measurables used to assess their worth.
DAPs can also offer the kind of meaningful measurement and analytics that are integral for tracking and improving ROI. When used in combination with other information sources, such as data from the HR software itself, they can be used to accurately measure the business benefits of various HR solutions, and how these can be improved.