The ROI of HR technology: How to obtain maximum productivity

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

There are several studies that highlight how digitization has become one of the priorities of companies today, and one of the axes of change that underpins the transformation of human resources departments. In this way, some of the trends revealed by experts in the field of people management go through the use of data analytics and the implementation of new digital systems to streamline all processes that have to do with attraction, selection, management and talent development. However, one of the great 'workhorses' of the professionals of the area still has to convince the General or Financial Director about the benefits that these technological solutions bring in terms of productivity.

Although there are more and more managers who are aware of the advantages of investing in technology, that referring to the management of people is still in question due to the difficulty, in some cases, it can be to demonstrate what the return is of the investment (ROI) of said digital tools, mainly due to two reasons that Meta4 experts have made known in an ebook. As detailed, this is due, on the one hand, to "not investing in redesigning the processes and in generating commitment in the users, neither in the appropriate way nor at the right time", and on the other, "to be it aims to obtain a productivity index in too early stages."

For this reason and in order to analyze the challenges faced by HR to demonstrate the ROI of their technology, as well as reveal the keys to obtain maximum productivity in an HR solution and to know which is the best time to start measuring it, Meta4 tells in its ebook the steps to be followed by professionals in the area, starting with the definition of the phases that includes the implementation of a solution:

• Project phase, when some systems are replaced by others.
• Phase of first use, of one year.
• Continuous use phase, during the second year of use and when users have already internalized the use of technology normally.

In this sense, according to the experts, "although the initial acceptance of a technology is a very important step for the success of any adoption of a software, the long-term viability will depend on the success in the continuity of its use", that is to say, in the phase of continued use.

However, despite this, Meta4 indicates that usually in the processes of implementing a new technology, organizations tend to focus on the initial phases, and do not dedicate enough time or investment to the third stage. "Thus, all efforts to invest in processes of change management, transformation of procedures or user loyalty, are often insufficient, inappropriate or inefficient," they declare.

"If things are done well, investing in changing processes and loyalty to people, this third phase becomes key and can be the germ that leads to the plateau of productivity," they add from Meta4 comparing this fifth stage of the "Hype Cycle", which reflects the maturity, adoption and commercial application of a specific technology and represents that moment in which "the benefits are widely demonstrated and accepted" with the phases of adoption of a technology in a company previously cited.

The importance of defining a BIS and its transformation

On the other hand, regarding the measures to be applied in this third phase in order to obtain productivity and ROI, the ebook highlights the "process transformation with BPI" (Business Process Improvement), a strategic planning methodology aimed at identifying both operations as employee skills that can be improved to obtain more fluid procedures, more efficient workflows and overall business growth.

As they explain, it is a "process of functional improvement" that consists of five phases: Mapping of existing processes; analysis of said processes, establishing the points of improvement; Redesign of the same based on the objectives to be achieved; implementation of new processes and training of users; and analysis of achievements and readjustment.

"The first stages of the BPI, those that do not concern the user but only the IT manager, must be done before the moment of choosing a technological solution, since it will be fundamental that the software we choose can accompany us in the new processes that we want implant in the organization," explained Meta4 that also affect the importance of loyalty to professionals during the phase of continued use of the new technology implemented in HR.

Likewise, experts warn of the cost of not keeping users motivated and detail what it is that allows them to do so, citing the theory of "Expectation-Confirmation". Of her they emphasize "the key importance of the 'satisfaction' of the user at the time of returning to use the software or of reacquiring the product", as well as of "the expectations at the time of constructing this satisfaction." 

"This close relationship between satisfaction and expectations is - according to Meta4 - fundamental," as well as two other values: the "performance" itself, for which it is key "to have good support that supports the product" and the "ease of use of the application" and / or the "utility".

Finally, by way of conclusion, the experts point out "the big mistake of trying to measure the ROI and the productivity of the technology as soon as the implementation has been made, with the consequent disappointment and entry into the vicious circle that implies having to carry a system change every so often, instead of looking for longer-term productivity based on the reformulation of processes and user loyalty, aspects that will be key to obtaining a return on investment and to be productive."

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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