HRMS Cost-Saving Calculations
An HRMS isn’t just a trendy tool for early adopters. It can save your business tens of thousands annually by streamlining HR, reducing risks, and boosting engagement—more than offsetting its cost and delivering ROI that grows with you.
Big Savings - See how it adds up.
Below is a detailed breakdown of cost-saving areas for a 50-person company where an HRMS can help your business save money by eliminating common HR inefficiencies.
| Cost-Saving Area | Estimated Annual Savings |
|---|---|
OnboardingManual onboarding wastes time, drives up costs, and slows productivity. HR and managers spend hours on paperwork, chasing signatures, answering questions, and tracking tasks—while new hires take longer to get up to speed. Learn More |
$3,000 |
Time-Off TrackingWithout automation, time-off is mismanaged, leading to inflated balances, unearned time off, and inflated year-end payouts. HR spends time tracking, employees manually check and request time off, and managers deal with high-touch approval processes. Learn More |
$37,000 |
HR AdministrationHR staff dedicate considerable time to repetitive tasks such as recruiting, onboarding, tracking time off, updating records, answering questions, emailing, and processing documents. Automating these tasks eliminates a significant number of hours of manual work each month. Learn More |
$17,000 |
Paperless OperationsPaper-based HR leads to higher costs—paper, printing, storage, filing, misfiling, distributing, and time spent chasing signatures. It also creates data security risks and an environmental footprint. Learn More |
$10,000 |
Performance ManagementFor companies who currently manage performance, HR and managers spend too much time manually tracking, filing, and conducting document-based reviews. |
$7,000 |
RecruitmentManual recruiting processes lead to a cascade of inefficiencies that inflate costs at every stage of the hiring process. These include higher cost-per-hire, extended timelines, reduced team productivity, missed opportunities with top candidates, and long-term risks to your employer brand and compliance. Learn More |
$100,000+ |
Legal DisputesPoor documentation of employee records or unclear and unsigned policies can lead to costly legal disputes. An HRMS ensures proper recordkeeping and policy communication/sign-off. Learn More |
$12,000 |
Employee TurnoverImproved engagement and a better employee experience reduce turnover, saving on recruitment and training costs. Learn More |
|
Monitoring AbsenteeismAbsenteeism costs businesses in lost productivity and additional coverage expenses. An HRMS's tracking and reporting tools help identify patterns and address root causes. Learn More |
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Employee EngagementEngaged employees are more productive and less likely to leave. An HRMS provides tools for surveys, feedback, and goal tracking to boost engagement. Learn More |
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Each HR cost-saving area should be evaluated individually, as some calculations may overlap with those in other areas. Focus on the areas that resonate most with your business needs—each one alone can typically offset, and often fully recoup, the cost of the software while delivering a significant ROI.