With the initial downturn in the economy a few years ago, HR executives were pressed even more than usual to justify their expenses. Savvy executives know how to present the return on the investment (ROI) for investments in training and processes that go along with the HR department.
They know that recent research and measurements are the key to getting top-brass buy-in on new HR investments.

Regarding Research:

  • Begin collecting research reports and articles that show the benefits and costs of new elements you’d like to see in your company. Being able to cite industry experts that support your directive can be very helpful with establishing that something is showing a big benefit to other companies in your industry and that your company should start implementing too. 
  • When collecting research, don’t forget some of today’s options, including speeches recorded on sites like YouTube and TED.com. Playing part of a speech may be more impactful to your leadership than a ten page report. Also, reach out to your peers in other companies and use sites like LinkedIn to ask questions of peer in finding supportive research. 
  • Also, remember to collect research on some of the thing you don’t want to do, which intern can help support that you do want. For example, you need to know the cost of hiring consultants to run some training, so you can cost-justify using internal resources. Or, vice-versa, you may want to document the real cost of performing some training internally, so you can justify outsourcing it.

Measure Current state and results to show improvement:

Measuring your internal results for HR efforts and processes can be tricky, but there are many tools you can utilize to apply numerical measurements to your HR team’s efforts. Think about:
  • Measuring increasing enrollment rates in optional wellness programs in the benefits package.
  • Surveying different segments of staff for their current attitudes toward their work, leaders, equipment, training, and loyalty to the company.
  • Running reports on retention rates of different segments of the employees like leadership, management and line-level workers.
This is some of the preparation you’ll want to have on-hand when presenting a case to leadership for and investment in an aspect of HR. As conversations rise higher in the organization, the tendency is to focus less on “soft” aspects and more on the financial aspects of the money spent and the benefit derived. HR is perfectly capable of presenting its value in these terms, if you come prepared.
Modern Business Associates is an HR company that focuses on payroll and HR outsourcing. We routinely work with clients on benefits and HR management. As a Professional Payroll and HR outsource organization, our clients rely on us to help them effectively deal with these kinds of topics.