Building a Winning Business Case for HCM SaaS


One constant in today’s Human Resources (HR) organizations is change. Not only is the human component of HR constantly changing—there are always new hires and promotions, new skill requirements, new professional development goals and new reporting protocols—but the larger dynamics of the field are also constantly evolving.

Managing a multigenerational and multinational workforce in the midst of all this change is a challenge for every enterprise. On top of it, HR leaders are increasingly expected to deliver analytics that answer important business questions: How does employee performance contribute to business objectives? How do we address talent shortages in our emerging markets?

The promise of consumer-grade, mobile technologies designed specifically for HR, featuring intuitive workflows and embedded analytics, is gaining the attention of HR and IT leaders across industries. However, the price tag on these solutions can cast a dark shadow on the decision-making process if it lacks the support of a sufficiently comprehensive financial business case.

Today, more than 70 percent of companies are either in the process of migrating to a Human Capital Management (HCM) software-as-a-service (SaaS) environment or will be making such a transition in the next two years. Those that have already adopted an HCM SaaS solution are finding it to be an opportunity to substantially improve processes, increase data accuracy and accessibility and constantly enhance functionality. Many have been able to reduce headcount and cycle time for processing payroll, improve adherence to compensation budgets and significantly increase self-service adoption.

The process of developing a list of the functional and technical benefits of an HCM SaaS solution is fairly straightforward. While it’s not difficult to make a simple comparison of the initial price of an HCM SaaS subscription versus the cost of staying with the status quo, arriving at a convincing financial business case for change can be a bit more challenging.

To learn more about the key components of developing a solid HCM SaaS business case, read my new white paper: HR Goes Digital: Building a Winning Business case for HCM SaaS. Or contact me directly to discuss further.

About the author

Mark Bray is a Principal Consultant with over ten years of experience in the sourcing industry in the areas of HR, finance and accounting and information technology. Mark is equipped with a comprehensive set of skills including financial modeling, contract review, pricing normalization, ARC/RRC analysis, break-even analysis, NPV/IRR analysis, and statistical trend analysis. He has extensive experience in the development of numerous products including Financial Base Case, Financial Business Case, RFP Pricing analysis, Strategic Assessments, and Mark-to-Market analysis