The unexpected areas of ROI for HRMS


Few companies realistically expect something for nothing. But they do expect something for something, and when you’ve invested time, money and effort in a new HRMS, you expect to see a return on that investment.

HRMS ROI boils down to:

  • Knowing what improvements and benefits you expect from your new system.
  • Collecting information and data that will prove (or otherwise) those improvements.
  • Deciding whether the ‘return’ was worth the ‘investment’

Usually, the pay-off of your new HRMS is in terms of faster, more efficient HR transactions, HR freed up for other, less routine work, cost savings and perhaps, headcount savings too. Not all are so obvious.

Unexpected returns from your HRMS

1. A less hierarchical organization

The social features of some modern HRMS options bring social media communication tools – instant messaging, chat groups, comments and likes/endorsements – into the workplace and new tools inevitably have an impact.

Check out this guide to calculating your HRMS ROI 

The defining feature of ‘social’ comms is their informal nature. Groups and connections arise out of common interests or goals, creating an alternative organizational structure alongside the traditional role- and discipline-based silos. These casual online meetups are an ideal environment for less pressured, more creative thinking and feedback and it’s an environment you can create organization-wide, thanks to your HRMS.

2. The introduction of AI to your organization

Okay, so this is something of an exaggeration but… more advanced HRMS and HR technology options are making use of robotic process automation (RPA) to streamline and automate routine, day-to-day, rules-based processes. A human is still required for decision-making or for interpreting data, but AI can be used for data collection (from existing files or systems), data verification, pre-population of standard forms, automatic running of reports, and managing pro forma emails.

With AI chatbots entering the customer service realm too, AI-enabled HRMS has the potential to be at the forefront of the ‘normalization’ of artificial intelligence in basis.

3. Better teamworking

Whether through traditional or social tools, HRMS and associated systems bring more communications options to the workplace and as well as breaking down old barriers, this also enhances the potential for teamworking; especially for virtual teams operating from a number physical locations. Not only do such tools enable rapid-response, casual but non-face-to-face communication between team members, they also accelerate the forming process for newly-created teams or the induction of new workers in an existing team.

Furthermore, although it is common for colleagues and teammates to connect on global social media platforms such as Facebook and Twitter, many people prefer a clearer work-life separation and balance and keep their personal social media personal. For them, such tools in the workplace offer convenience and ease without sacrificing privacy.


While ‘classical’ ROI is still a fundamental of your HRMS project, remember to look for any less obvious benefits that employees are experiencing as a result of HR technology.

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Dave Foxall

About the author…

Dave has worked as HR Manager for the Ministry of Justice for a number of years, he now writes on a broad range of topics including jazz music, and, of course, the HRMS software market.

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Dave Foxall

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