Calculating ROI for a talent management solution can be complex. Here are some things to include when taking on the task:
- Time spent by managers, subordinates and human resources personnel in administering and completing appraisal forms, especially if the process is currently paper-based.
- Costs associated with printing, moving and storing paper forms.
- Intangible costs such as lack of compliance, uneven application and lack of availability of information that can impact all aspects of talent management.
Compare the above costs of current practices with:
- Costs for purchasing licence, hosting, training, maintenance and consulting
- Time spent implementing and learning the new system
- Intangible benefits such as improved processes, improved security, link to employee development, compensation, succession planning, goals and workforce alignment, retention
You can find plenty more information on how to build a business case for your talent management investment in this HR Center of Excellence on the topic.
Thoughts on implementation
Having come through the previous steps, you have chosen and purchased a talent management solution and are ready to implement. Here are some things to consider:
- What are our indicators of success and how can we measure them?
- Implement across the organisation or pilot first? There are pros and cons for each. A pilot programme would give you a chance to work out the bugs and enlist early adopters who can help ease the broader implementation. But then you would have to manage two different processes and the benefits of an across-the-organisation implementation would be delayed.
- Should we use the implementation as the mechanism for making across-the-board improvements, or make process improvements first?
- How much should we bend our processes to avoid costly customisation?
- Who will be most impacted by the changes and what can we do to make sure their transition is as smooth as possible?
- How shall we conduct training and how long should we provide ongoing support?
- What is our process for evaluating results, fixing bugs and continuous improvement?
- What is our implementation timetable and milestones?
- What is our communication plan?
The vendor of your talent management solution should be able to help you work through these questions and walk beside you through a successful implementation of a system that will help you better recruit, develop, manage and reward your most important assets - your people.
Sean Conrad writes about talent management best practices and helps companies worldwide improve the way they manage their workforces. He's a senior product analyst at Halogen Software.
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