You can have the best, most game-changing idea in the world, but without the benjamins to back it, your idea will remain just that – an idea. So how do you get buy-in from leadership and the budget to turn ideas into action?
In this webinar, Parsons Strategic Consulting President Tracey Parsons and MasterBrand Cabinets Corporate Recruiter Erin Stevens share how to build a strong business case for recruiting and HR technology. While we strongly recommend you stream the webinar to hear straight from the experts, below are a few main takeaways from their conversation.
To bring ideas to life it takes two things businesses really care about: time and money.
In an ideal world, we could snap our fingers and make more budget appear or look into a crystal ball and prove that we’ll see returns. Sadly, this is not the case. To make time and money appear, we first need a strong business case.
HR and TA are typically seen as cost centers, and 50% of all new technology projects fail, so it is crucial to thoroughly show how we can create savings and efficiencies.
There are four steps to building a successful business case:
If you don’t already have budget carved out for a new recruiting automation solution, your options are to find money or get money.
Finding money means looking into your existing budget and resources to see where you can allocate spend or replace pieces of your tech stack. For most of us, that 10% of the budget left unallocated was either swallowed up by unforeseen circumstances or won’t be enough to cover the ground-breaking solution you are going to bat for. To make room in your budget, Parsons recommends looking at what is underutilized and looking at what is underperforming.
Once those are identified, you can slash licenses that haven’t been touched in the last 6 months or replace a patchwork of pieced together tools with an end-to-end solution. However, this is no easy task. This requires contract negotiations and change management. Prove to your team and leadership why the change will benefit them and have an adoption plan ready to go.
Getting money requires proving how creating new budget will produce returns. Specifically for recruiting, areas to focus on include:
Identify what problem you are trying to solve, and then tie it to revenue. Here is an example Parsons gives using a revenue per employee formula:
The average worker is on the market for 10 days. Currently, it takes us 40 days to fill a job. This costs our business $474,000/year. Reducing this by 25% would yield $118,000/year.
Be sure to back all of your numbers and be transparent about the assumptions you make.
When Stevens built a business case and pitched leadership on AllyO, the biggest obstacles were change management and finding the right data.
Stevens relied heavily on colleagues in the finance and accounting department to get the data needed to determine where they could see ROI with AllyO. She also pulled benchmark data related to their time to fill and cost per hire.
Stevens knew adoption is the #1 reason new technology products fail, so she took the time to survey and monitor team usage and explain the benefits of using AllyO.
When the MasterBrand Cabinets team piloted AllyO, they saw their time to fill decrease from 40-50 days to 14 days and reduced cost to fill from $237 to $131 per position.
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