Make Sense and Cents with Automated HRMS and ESS Software Solutions

close up of businessman going through stack of formsYou work in HR and know that investing in a strong Human Resources Management System (HRMS) and Employee Self Service (ESS) software would make your life easier and free up time to do what you’d like to be doing: contributing to your organization’s goals and strategic planning. You want to help people—but, not by filling out onboarding forms, changing employee data, or recording PTO requests.

Significant additional time is taken up by manually transferring data from printed forms to an electronic system. A strong, fully-automated HRMS system could do that for you.

How to convince the C-Suite

HR needs a solid business case showing how purchase of HR technology will make a difference both in the time HR can spend on strategic projects and in the cost of completing routine tasks.

If you’ve been looking for numbers and research to back up what you’ve known in your gut for years, a study by Ernst & Young (EY) released at the end of last year may be just what you’re looking for: “Estimating Labor and Non-Labor Costs Associated with Common Human Resources (HR) Functions/Tasks.” It examined the seven HR functions (and related tasks) listed below:

  1. Onboarding new hires
  2. Benefits enrollment
  3. Learning management
  4. Expense management
  5. Time management
  6. Performance management
  7. Employee separation from the organization

Who was surveyed?

EY surveyed 504 individuals who work in Human Resources in a supervisory role or in executive/senior leadership positions at U.S. companies ranging from 250-4,999 employees. These companies were ones that did not have a fully-automated employee self-service or HRMS software. The goal of the study was to establish an average cost of a single data entry in the above seven categories when completed without full automation.

EY determined average cost of individual tasks using information gathered on time spent completing the tasks, hourly wage of those doing the work, the percentage of records that contained errors requiring reentry and the time required to do that, and non-labor costs (e.g., printing, copying, and postage) associated with the tasks.

Businessman looking up at chalk-drawn row of light bulbs. One has a dollar sign in it.

What the numbers say

The report provides details on the survey methodology, each task evaluated, and its corresponding cost. The tables and figures make accessing this information easy, and taking a look is well worth your time. Here are a few take-aways:

  • $4.39 – the average cost per data entry across all tasks evaluated
  • $18.47 – cost per data entry in Benefits enrollment for obtaining/providing info about benefit plans changes. (something employees can do on their own with ESS solutions)
  • $17.89 – cost per data entry in Training for preparing and distributing training materials for employees
  • $13.46 – cost per data entry in Separation for shutting off system/facility access
  • $8.32 – cost per single I-9 record

Individually, these costs may seem insignificant, but when multiplied by hundreds of employees or by tasks performed hundreds or thousands of times a year, they add up.

Automation makes sense and cents

In addition to saving money, automation can drastically reduce errors that result not only in more costs, but also in compliance risk. Fines for incorrectly completed Form I-9s, for example, increased substantially in 2016 to “catch up” with inflation (See the Federal Register).

Young people using mobile devicesBetter employee engagement is another plus of an automated HRMS/ESS system. People feel trusted when they have control over their own information and are empowered to make changes in personal data, enter PTO requests, and sign up for benefits enrollment on their own. They also appreciate access to information and processes on mobile devices at the time and place most convenient for them. With an ever-changing workforce of younger digital natives, employees have come to expect this level of accessibility.

What are you doing to bring automated HRMS and ESS to your organization?

We’d like to help

Delphia Consulting offers free live webinars, recorded webinars, and information on Sage HRMS, Sage HRMS Employee Self Service, and Sage HRMS HR Actions, a web-based paperless form solution that can help automate your HR. Visit our website or give us a call at 888.421.2004. We are happy to listen to your needs and see if we might be part of the solution.

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Mary van Balen
Mary van Balen
Technical Writer at Delphia Consulting
Mary is our copy editor and writes for the Delphia blog on Human Resources issues and product news.