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Return on Investment?
One year?Three years?Five years?
Ever?Never?
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Return on Investment?
Traditionally…
DIFFICULTto calculate on Human Capital Management projects.
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Return on Investment?
Does a better Appraisal Process pay
off financially?
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Return on Investment?
If we
RECRUIT better, do we
save $?
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What if?
WHAT IF fully loaded human costs for a 10,000
person company is $300M annually?
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What if?
WHAT IF a great HCM solution could
trim the human cost by 1% annually?
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The Answer...
The
HCM ROI Model
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Step
fully loaded HR costs
Build out
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Step
the FULLY loaded human
cost
salariesbenefits
taxestraining
recruitingetc.
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Step
Capture HR METRICS
Examples:● Turnover %● Time to hire● Cost to hire● % hired direct● % hired via agencies● Cost to train● Headcount growth● Benefit cost growth
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Make rationalized projections about
improvements.
Step
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Can we reduce cost-to-hire by 2% with a better recruiting system?
Step
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Or trim employee turnover from 14% to 12%?
Step
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And how do these projections hold up over a three year horizon?
Step
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And... how confident are we in these projections of savings?
Step
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All of these factors come together in the Clarkston
HCM ROI Model...
Step
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...To establish a debatable,
challengeable, arguable, model of potential cost
reductions...
Step
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But wait… there’s more!
Step
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Our model must also realistically consider project
cost!
Step
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Step
Costs, Costs, & More Costs...
Such as:● Implementation● Maintenance● Consulting● Licenses● Upgrades● People
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Step
...With all costs spread realistically over a multi-year horizon.
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Step
What are the first year costs of
implementation, project team costs, and license costs?
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Step
What are the ongoing year by year costs of upgrades, additional training, etc.?
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Step
The Clarkston HCM ROI model layers all costs & projected benefits...
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Step
Result: A model of HCM ROI for your next project(s).
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Step
It is just that: a model.
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Step
● Debate it.● Discuss it.● Challenge it.
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Step
But now we can have the conversation!
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Want to Learn More?
Contact us today to learn more about the Clarkston
HCM ROI [email protected]
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