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Use TCO methodology to expose process improvement opportunities

 
 

Uncovering both the visible and hidden costs of HR reveals opportunities to make cost savings

Human Capital is a company’s most important asset and Human Capital Management — or HCM — has become an essential component of today’s corporate strategy. That’s the reason why companies invest in systems enhancements and in people to manage HR processes. However did you know that for many multinational companies, hidden costs can represent 63% of HR spending?

Whether your focus is on management, HR, finance or IT, discover how you could make up to 26% savings and help your people better focus on strategic goals.

Select your role:
 

CFO Executive Brief
 

The financial case for HR transformation

Businesses are under constant pressure to reduce their costs. The biggest costs relate to people - who are, of course, the drivers of any company’s revenue. Cut people-related costs too far and there is a risk the business will not generate any revenue at all.

Underestimating costs

Research commissioned by the ADP Research Institute confirms that companies often have a poor grasp of their HR TCO. “The cost analysis is too complicated with our current system,” commented one of the 1,004 executives from midsized companies surveyed for the study. Another said: “We do not keep track of TCO.”

 

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Use TCO Methodology to Expose Process Improvement Opportunities.

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HR Leader Executive Brief
 

HR at the crossroads

HR is at a critical stage in its journey - from transactional back-office operator to true business partner, but the function has hit a roadblock. Recent research suggests that in many companies HR teams are still not adding as much value to the business as they could.

Understanding the total cost of ownership of HR

Simply automating and outsourcing administrative processes is not the answer. HR leaders need to work out the likely return on these investments. And to do that, they need to understand how much they are currently spending on HR processes – their total cost of ownership or TCO.

CIO Executive Brief
 

Technology alone fails to deliver results

Businesses in all industries are under constant pressure to achieve efficiency savings – to do more with less. In response, many have automated and outsourced core HR processes such as payroll, time & attendance, HR data administration, and talent management. Have these projects, typically led by senior IT professionals, achieved the savings and productivity improvements that were expected? Probably not.

CEO Executive Brief
 

How much is HR really costing?

People are not just a company’s most valuable asset, they are also its biggest cost. Business leaders often have little idea of the total cost of ownership (TCO) of people-related processes such as payroll, time and attendance, HR data administration, and talent management.

More than meets the eye

Clearly visible costs include the initial investment in payroll and other HR systems, along with the salaries and benefits of employees who operate these systems. But these costs are just the tip of the iceberg.

 

Understanding TCO

"Payroll and HR Administration: Use Total Cost of Ownership Methodology to Expose Process Improvement Opportunities."

Do you know how much HR is really costing?

 

Use TCO methodology to expose process improvement opportunities