You have been retained by the Vice President (VP) of Human Resources (HR) of this company to recommend to the company an optimum (the Best Fit) HRIS and Payroll system that would be appropriate for the concerned company. This company is currently using ADP as the outsourced payroll service and a paper based model for all their HR administrative process.
The VP of HR would like your expertise to recommend to the company an integrated Payroll and HRIS system that would be appropriate for the company and fit the company’s needs. The company does not want to outsource any Payroll to HR Administrative Processes.
Your task in this consulting assignment is to recommend to the VP of HR two to three HRIS/Payroll integrated systems that the VP can include in her final due diligence before she selects the “right” system for the company.
The specifications and features that are her musts are the following:
– Automation of HR Administrative processes.
– A Compensation Administration module.
– A Benefits processing module.
Remember in your project work you have address the cost of purchase which should include the cost of customization to convert the off-the-shelf purchased system into a ready to use turn-key HRIS/Payroll integrated solution for the company. Also, training costs of current employees in the use of the new system should be included.
There are hundreds of systems in the market and therefore the VP of HR needs your help to narrow down the options to TWO short-listed HRIS / Payroll vendors that would provide your client the highest value and return on investment.
Remember, the VP of HR must justify the purchase and implementation of the HRIS system to her boss – the CEO. This justification must be done using the Return on Investment (ROI) logic. The ROI of HR programs usually explains the financial return for investing in a program, process, or initiative.
ROI is usually developed for HR Initiatives by calculating the benefit (return) of an investment and dividing by the cost of the investment. The result being expressed as a percentage or ratio.
So, the ROI Calculation can be done by the following formula.
ROI = Net Project Benefits divided by Project Costs.
So, say the Cost of project is $250,000 and Benefits of project (1st year) $310,000.
Then the ROI will be equal to, $310,000-$250,000/$250,000 = 0.24 x 100 = 24%.
It is understood that most of the benefits of a HRIS system is in the following, 1) processing time saved, 2) increased productivity, 3) savings in staff costs and 4) increased employee satisfaction. The cost of investment can be calculated direct by recognizing the, 1) cost of the software, 2) the cost of implementation consulting and 3) the cost IT staff who will be engaged to customize the software for the company.
It is also understood that some of dollar value of the benefits is not easily quantifiable.
To summarize, your task for this Project is to research the literature on the ROI HRIS Investments. There is a lot of material on this subject on the web. After you have done the research you need to write a paragraph and also add to your PowerPoint presentation some rationale that the VP of HR can use to justify this HRIS investment to the CEO who would have to approve this cost outlay. Please review the grading rubric below to ensure you meet all of the criteria to maximize your final grade.
Grading Rubrics
The following information must be included in your paper and use the headings outlined below.
Headings Description Points
Introduction Introduction provides sufficient background on the topic and previews major points. 10
Analysis and Recommendations
A thorough web based research study to find and recommend to the VP two off-the-shelf purchasable turn-key hybrid Payroll/ HRIS system suitable to satisfy the wants of this company
As a team, you are to do your research and develop a PowerPoint with voice over presentation that can be used to make a formal presentation to the VP of HR. Please note you are making this presentation to your Professor who is the VP of HR for this company.
Remember in your project work you have address the cost of purchase which should include the cost of customization to convert the off-the-shelf purchased system into a ready to use turn-key HRIS/Payroll integrated solution for the company. Also training costs of current employees in the use of the new system should be included. You also have to clearly lay out the benefits of the two
Your paper and presentation has to also include a ROI Analysis and Commentary based on research you do on ROI for HRIS Acquisitions. 240
