{"id":1076,"date":"2019-06-27T00:00:00","date_gmt":"2019-06-27T00:00:00","guid":{"rendered":"https:\/\/sage-new-clone.local\/en-au\/blog\/?p=1076"},"modified":"2026-02-10T22:13:27","modified_gmt":"2026-02-10T11:13:27","slug":"making-a-business-case-for-a-new-hr-system","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-au\/blog\/making-a-business-case-for-a-new-hr-system\/","title":{"rendered":"How to make a business case for a new HR system"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tPeople & Leadership<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tHow to make a business case for a new HR system\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tLuke Thomas<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

A robust and comprehensive business case is the most powerful tool you can use to achieve your HR technology investment ambitions.<\/p>\n\n\n\n

Packed with tangible benefits, clear facts about ROI<\/a>, and information tailored to meet the needs of key stakeholders, it can give decision makers the confidence to say yes.<\/p>\n\n\n\n

Here are five critical elements to include in your business case:<\/p>\n\n\n\n

1. Outline the need for change<\/h2>\n\n\n\n

Without stating the compelling need for a new HR system, it will be hard for key decision makers to justify the investment. State your needs succinctly and without exaggeration.<\/mark><\/p>\n\n\n\n

For instance, HR may be held back by manual and time-consuming processes. The current HR system is outdated and can\u2019t scale with company growth. Or HR needs more visibility to identify employee strengths and resolve issues.<\/p>\n\n\n\n

2. Identify the benefits of investing in new HR technology<\/h2>\n\n\n\n

While there are many benefits to investing in the latest HR technology<\/a>, it\u2019s important to highlight those that solve for your company\u2019s needs or challenges.<\/p>\n\n\n\n

These can include increased productivity through automation of manual processes, more visibility of your workforce so you can pro-actively address issues, more efficient management of personal data to ensure compliance, and many more<\/a>.<\/p>\n\n\n\n

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Free research report: The changing face of HR<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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Seismic shifts in the way organisations operate, work, and manage their people are occurring. We surveyed 500+ HR leaders to discover how they are responding.<\/p>\n

Uncover insights on how to stay ahead and transform HR from a process focused function to a people driven business.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tDownload Report<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n\n\n

3. Demonstrate the ROI of new technology<\/h2>\n\n\n\n

When you\u2019re competing with other departments for budget, it\u2019s essential that your investment proposal has a clear, demonstrable ROI.<\/p>\n\n\n\n

This may mean calculating, for instance, the labour costs the HR department can avoid by automating processes or gaining more workforce visibility.<\/p>\n\n\n\n

A good example of how you can present a breakdown of ROI is Forrester Consulting\u2019s study, The Total Economic Impact\u2122 of Sage Business Cloud People<\/a>, which outlines the cost savings and business benefits of the system.<\/p>\n\n\n\n

4. Highlight the opportunity costs<\/h2>\n\n\n\n

Along with cost savings, don\u2019t ignore the potential cost avoidance benefits. What is the cost if the business doesn\u2019t implement a new HR system?<\/p>\n\n\n\n

For instance, without a new system, you won\u2019t have the latest tools to seek out the best talent ahead of competitors. Nor the visibility to ensure you meet the needs of your employees and prevent them from leaving the business. And you\u2019ll lack sufficient control over your workforce data, which may one day result in non-compliance, a data breach or fine.<\/p>\n\n\n\n

5. Gain early support of key stakeholders<\/h2>\n\n\n\n

Your business case can be flawless but without key stakeholder buy-in, you\u2019re unlikely to get very far.<\/p>\n\n\n\n

Choose carefully on whose heart and mind you should win over to gain an influential ally who understands and can help you realise your HR ambition.<\/p>\n\n\n\n

Remember to consider the needs of IT, Finance, Legal and Compliance, your CEO or MD, and your employees. By getting them involved in the process, you can make the final purchasing process quicker and easier.<\/p>\n\n\n\n

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Free research report: The changing face of HR<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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Seismic shifts in the way organisations operate, work, and manage their people are occurring. We surveyed 500+ HR leaders to discover how they are responding.<\/p>\n

Uncover insights on how to stay ahead and transform HR from a process focused function to a people driven business.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tDownload Report<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n\n

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Subscribe to the Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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Get a roundup of our best business advice in your inbox every month<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tSubscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n

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Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t
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