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.