Easy 4-Step Plan to Calculate ROI Self-Service Benefits
Managing Benefit Plans (11/02) Vol. 18, No. 4 p.1; Perry, Scott

Anna Carsen, senior director of HR product marketing at ADP Employer Services, offers an easy three-step approach to calculating ROI analysis for a self-service application. Step one involves estimating current costs. Carsen says this requires that organizations "itemize and break down all HR processes," including salary changes, new hires, benefits elections, etc. that will be considered part of a company's self-service initiative. Step two involves estimating self-service costs and savings. This step calls for organizations to compare the current costs to the self-service costs. The difference is the "process savings" from self-service, which is then multiplied by the frequency of the action, resulting in the total savings. Step three involves adding up the investment. This final step refers to up-front costs and recurring costs. Up-front costs include those associated with software license fees, hardware, customization/development, integration with core HRIS, installation and implementation, and training.


Back   |  IRA.com Home   |  News Archive