Filetype Excel XLSX | Posted on 10 Aug 2022 | 3 years ago
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156x Filetype XLSX File size 0.11 MB Source: www.silvercloudhr.co.uk
Sheet 1: Introduction
| © Silver Cloud HR Ltd, June 2020 | |||||||||||
| Silver Cloud HRIS Business Case Calculator | |||||||||||
| We have been supporting our customers with writing their business cases for Digital HR transformation projects for many years. Details on what should be included in a business case can be found in our resource below but it is also important to back up your business case with some tangible numbers to show how you will get a return on investment. This calculator has been put together to help you with some of the most common calculations used in an HRIS business case. Of course, every business is different so we have left the calculations unlocked so that you can adapt them to your own needs. If you need any support with your business case please do contact us on info@silvercloudhr.co.uk |
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| Resource: How to create a watertight business case for Digital HR | |||||||||||
| Contents | |||||||||||
| General HR | |||||||||||
| Current HRIS costs | |||||||||||
| HR to employee ratio | |||||||||||
| Onboarding savings | |||||||||||
| Holiday request savings | |||||||||||
| Sickness absence savings | |||||||||||
| Voluntary resignation savings | |||||||||||
| Reporting savings | |||||||||||
| Recruitment | |||||||||||
| Cost per hire savings | |||||||||||
| Time to fill savings | |||||||||||
| Recruitment agency savings | |||||||||||
| Learning | |||||||||||
| Training costs savings | |||||||||||
| Note: This Business Case Calculator has been written and published by Silver Cloud HR Ltd and is protected by copyright. This document is available for download from www.silvercloudhr.co.uk and is free to use. We ask that you do not change the content and reference Silver Cloud HR as the source. | |||||||||||
| Current and future HRIS costs | |||
| When and how to use | |||
| Before you can begin any business case you need to understand your current costs. Use this calculator to work out your current spend on HR technology. Add in any additional to get the total figure. | |||
| You can then compare this against your chosen system(s). It is often the case that new technology is more expensive, especially if you are moving to the cloud for the first time. You will need to justify the additional cost by the savings you will make elsewhere. This calculator will help you to understand if there is a return on investment in some key areas. | |||
| Current state | |||
| Current number of employees | 0 | ||
| HCM annual licence fee | £0.00 | ||
| HCM annual support fee | £0.00 | ||
| Average annual cost of consultancy | £0.00 | ||
| Current server cost (if current system is hosted on-premise - ask IT) | £0.00 | ||
| Any other annual costs | £0.00 | ||
| Total HCM spend per annum | £0 | ||
| Total HCM spend over 5 years | £0 | ||
| Total current spend per employee per year | #DIV/0! | ||
| Total current spend per employee over 5 years | #DIV/0! | ||
| Future state | |||
| HCM annual licence fee | £0.00 | ||
| Total implementation cost (assumed spent in year 1) | £0.00 | ||
| Total internal implementation costs (e.g. Project Manager - assumed cost occurs in year 1) | £0.00 | ||
| Total HCM spend in year 1 | £0.00 | ||
| Total HCM spend in year 2 and ongoing | £0.00 | ||
| Total HCM spend over 5 years | £0.00 | ||
| Total current spend per employee per year (year 2 onwards) | #DIV/0! | ||
| Total current spend per employee over 5 years | #DIV/0! | ||
| HR to employee ratio | |||||
| When and how to use | |||||
| The HR to employee ratio is a common metric used across the HR industry and is useful to benchmark against other companies in your industry. This ratio shows the number of HR professionals you have for every 100 employees/workers and is shown as a decimal. When calculating HR FTE you should include HR generalists plus those who work in benefits and compensation, organisation effectiveness and employee relations. It should exclude payroll and training and development. | |||||
| We have provided the global benchmark figure with appropriate references for you to use. If your HR to employee ratio is higher than the benchmark this may be because your processes are too manual or over-complicated and a new HRIS system with more automation and workflow capabilities, plus additional self-service, will help with reducing the HR FTE required. This isn't always the case but it is a good metric to use if you need it. | |||||
| Current state | * Benchmark references | ||||
| Source: Bloomberg Law’s Annual HR Benchmarks Report 2018 | |||||
| How many HR FTE (full-time equivalent) do you have? | 401 | ||||
| How many employees/workers do you have? | 25000 | Source: XpertHR | |||
| Average HR annual salary (optional) | £38,000.00 | ||||
| Your HR FTE to Employee FTE ratio is: | 1.60 | ||||
| Future state | |||||
| The benchmark ratio* for your business is | 1.6 | ||||
| The number of HR FTE you should employ in your business to meet the benchmark is: | 400.00 | ||||
| The number of HR FTE you would need to reduce by in order to meet the benchmark is: | 1.00 | If this is a minus number you need to increase headcount to meet benchmark | |||
| Total possible annual benefit | £38,000.00 | If this is a minus number this is the additional cost of additional heads | |||
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