Investing in resource management software is a crucial step towards digital transformation in any organization. This step is always accompanied by the question of return on investment. What will be the return on my digital transformation investment?

 

One of the most common responses to this question is, "It depends." But it doesn't have to be that way. With the rise of cloud technology and SaaS resource management systems, fewer variables exist. As a result, calculating ROI is simpler.

Here are our three suggestions for improving return on investment when implementing digital automation solutions for resource optimization since the ROI of digital automation depends on the business case and where to start.

 

Determine the purpose of your software.

 

Several software options provide various services and assist the company. As a result, evaluating ROI for technology investments may differ based on the industry and the use of the software you choose. You can calculate the ROI by knowing these two. 

Before spending money on software, you must first determine what areas of your company need improvement. This will assist you in identifying the kind of software solution that will ultimately aid your company. 

 

Why measuring resource management software ROI is essential?

Any kind of business solution or piece of software needs to be assessed and tracked using metrics that consider ROI information. But because it shows how effectively your resources serve your organization, resource management software is especially dependent on ROI.

 

What is the ROI of using resource management software?

 

Based on the methods outlined above, resource management software can have a demonstrable influence in various business impact areas. 

 

• Improvise work quality.

Resource management software assists organizations in motivating and recognizing their personnel regularly, directly impacting the quality of work. Employees who lack motivation or are disengaged are less likely to offer their all, and their work is more prone to error or poor quality. 

A tool that allows for real-time evaluation and praise can help to decrease disengagement and increase work and output quality.  

 

• Encourage a strong company culture.

When we examine it thoroughly, we can see that resource management has a direct impact on company culture. Highly engaged employees create a favorable work culture that allows for high levels of performance and motivation. 

 

On the other hand, an organization's culture directly impacts engagement levels.

In either case, resource scheduling software may assist in creating an ecosystem of open communication, recognition, and real-time feedback that leads to an empowered culture and a high level of engagement that are interconnected and interdependent.

 

A high-performance culture fostered by high levels of engagement also affects the business's bottom line.

 

1. Create a strong bond between business owners and employees.

Utilizing resource management software, businesses can determine how likely it is for employees to refer friends and colleagues to their place of employment. 

Maintaining employee engagement helps businesses achieve high eNPS, which boosts referrals for any business. This invariably generates more referrals of higher quality and quantity, which frequently has a stronger positive effect on the bottom line.

 

• Client Satisfaction.

Resource Management Software can assist managers in keeping track of team members in real-time and identifying potential dangers that could affect customer happiness and experience. A resource management tool can help the organization to evaluate all such difficulties before they surface to ensure they are addressed proactively with the correct conversations, whether it be low motivation levels or the possibility of unexpected turnover. 

 

Unlocking the Value: Key Metrics for Measuring the ROI of Resource Management Software

 

While we have covered extensively the influence a resource management tool can have on an organization, it is also crucial to consider the indicators that can assist organizations in assessing the ROI of utilizing the tool.

 

Like any other key business choice, investment in resource management software must be supported by data-driven returns to promote long-term commitment. 

Here are a few methods for calculating the ROI of Resource Management Software to develop a business case:

• Attrition

To assess the ROI of resource management software, start by measuring the drop in attrition after the tool's implementation. It's also a good idea to figure out how much it'll cost to hire and train new personnel to replace the old ones.

 

This can also be described in monetary terms. According to research, the average cost of attrition for each employee might range between 50% and 250% of their yearly income. The cost of attrition is determined by the position of leadership, experience, and institutional knowledge.

 

• Productivity

 There is sufficient data to suggest that when employees are highly engaged, they are more productive, resulting in higher profitability and outcomes. As a result, the next metric to assess the ROI of resource management software would be productivity levels. 

 

Measuring productivity can have several metrics depending on the company's vertical. Firms must select the appropriate productivity measures to accurately assess the ROI of resource management software. 

 

• eNPS

The eNPS, or employee net promoter score, is one of the final indicators that should be included when assessing the ROI of resource management software. The possibility of an employee referring others in their network to work for their organization is referred to as eNPS.

 

It goes without saying that employees will only refer a company to others if they are engaged, happy, and satisfied at work. 

 

As a result, performing an employee pulse poll to assess eNPS can be an excellent ROI indicator. 

 

• Absenteeism 

The next measure to consider when calculating the ROI of resource management software is absenteeism. Employees take time off for various reasons; although some are genuine, others may indicate disengagement at various levels. 

 

Employee disengagement can also contribute to burnout, which adds to sick leave. However, the correct resource management software can assist firms in anticipating and addressing absenteeism signs. Thus, ROI can be estimated based on reduced absenteeism and more active involvement at work. 

Key Notes

Throughout our discussion, it became evident that resource management software may be a vital tool for enterprises to attract and retain the best individuals in their industry and directly and favorably impact their financial performance.

 

With robust and all-encompassing resource management software, organizations can gain valuable insights into their team's strengths, obtain practical guidance on resource engagement, and equip managers with the tools they need to succeed.

If you want to accurately measure various facets of resource management, facilitate your managers' growth, and increase participation throughout the engagement lifecycle, consider scheduling a free demo with eResource Scheduler today.