Maximizing your return on investment with the Workforce Software solution
Motivated by the dynamics demanded by the 4th industrial revolution, the companies that want to keep up must undertake a digital transformation. It means that the investments in this type of modernization increase exponentially and, at the same time, bring on the same of high-profitability expectations. For many industries, it is vital to jump on the moving train; otherwise, the risks of loss of productivity are real. To not be able to follow the market and the competitors anymore will, slowly but surely, smother the energy representing the sustainability of the organization.
When we talk about the success of a project or investment, it is common to mention the return on investment (ROI) as the main indicator. In information technology, this digital clue is often a very good tool to measure the value and the benefits that flow from a project. If, however, the accounting aspect of the ROI is only the mathematical equation that correlates the expected benefits and costs, reality is totally different. Many less tangible external factors can enter in the assessment of the ROI to give a better consistence to it, but also a more global and believable picture of the impact of a technological investment.
Firstly, despite its rigid nature, the ROI is an indicator that managers always appreciate when calculating benefits and/or profitability. Some management software publishers make this indicator a selling point. They present the ROI as a differentiation factor offered by their solution. It is the case with WorkForce Software that, based on the Veneta study (2017), it would be the time management software offering the best ROI indicator (97.8%) when compared to the leading players on the market. This indicator emphasizes, among other things, the added value for the client, the acquisition cost, and the expected benefits from buying licenses.
WorkForce Software, with its 6 Personnel Management products (Forecasting & Scheduling, Time & Attendance, Advanced Scheduler, Absence Compliance Tracker, Fatigue Management and Analytics), insists on the importance of having a comprehensive solution guaranteeing value. The companies that use WorkForce succeed in attaining a break-even point on an average of 8.3 months following the start of using its modules. We can see a 51% reduction in errors in the payroll processing, of 19% in overtime costs and of 3% in administrative costs. Also, the solution will multiply by 4 the average revenue generated by a full-time employee and will allow obtaining a better global use of the staff with a productivity gain of 12%. These factors go together with the ROI maximization, which should be around an average of 300% on a 5-year period as per WorkForce.
Secondly, one of the major challenges in IT project management is quantifying the ROI components, which are difficult to measure. One of the reasons explaining this difficulty is that, in the technology sector, the companies mostly offer services to various users. Since such services are intangible, it makes evaluating their impact more abstract. On the one hand, to quantify effectiveness gains of any project would require a close collaboration with the client to be able to collect the necessary information (savings due to automation, staff costs, etc.). On the other hand, as mentioned above, some companies are obligated to begin a digital transformation to catch up. In this context, this investment aims at limiting business losses instead of generating profits. Given the above-mentioned considerations, it is clear the ROI is an indicator that presents specific limits.
Thirdly, it is important to consider that the ROI can encompass a spectrum of benefits a lot wider than simple digital indicators, particularly for technology projects. In fact, return on investment has been widely criticized due to its accounting aspect, which neglects the intrinsic value of many information technology projects. The WorkForce solution allows direct savings such as the reduction of infrastructure costs and of frauds due to falsification of hours and calculation errors, which have a direct impact on labour costs. The solution also allows intangible savings such as higher employee satisfaction that increases because of global productivity and process automation that brings a greater efficiency and a work allocation oriented towards value-added activities.
Briefly, the return on investment is an indicator deeply rooted in the modern management culture. WorkForce Software, with his comprehensive modules, optimizes the built-in added value of any IT project. This value, often ignored by numerous publishers, represents a differentiation element for the American company. Furthermore, the fact that the ROI is directly linked to the added value offered by the software explains why WorkForce is the ROI/TCO leader and in the Top 3 Global Time Management software leaders with Kronos and SAP, with their SuccessFactors and HCM modules.