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How to maximize the ROI of HR

Problem

Organizations are not maximizing value from their people investments.

HR is a critical part of any organization. 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 underutilized.

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 organizations attract and retain talent while optimizing 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 U.S. 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 organizations 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 realized 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 optimization opportunities that may have otherwise gone unnoticed.

Tracking and measuring value realization 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

Health Programs and Technology

A maturity assessment of your health programs/technology

Payroll (North America)

A value-based maturity assessment of your company’s payroll delivery

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 organization's growth.

How leadership, culture and data define profitable employee experiences

A 2021 Harvard Business Review Analytic Services report, sponsored by Alight

How to engage employees in their benefits throughout the year

How do employers create an ideal experience for their employees to drive true benefits engagement and utilization?