The ROI of HR tech: How to build a business case for investment

In an era of tighter budgets and heightened accountability, every investment needs to prove its worth, especially when considering human resource tools. The right platforms can transform how your organisation hires, engages and retains talent, but even the most promising solutions require a compelling case to win leadership buy-in. 

Even though the value of investing in your people is clear, it can be challenging to build a business case for HR tech investment. 

The guide will teach you how to:

• Measure and communicate HR software ROI (both in hard numbers and in strategic impact).
• Structure your case for maximum clarity and influence.
• Use our ready-to-go template to fast-track your proposal.

Who is the resource for?

• HR professionals
• People and culture teams
• Strategic operations professionals

We’ll break down how you can connect human resources outcomes to broader business goals and speak the language of the C-suite.  

Download the guide now.

Why building a business case for HR tech matters

Being able to demonstrate human resources management systems (HRIS) return on investment (ROI)  is more important than ever in today’s economic climate where investments in new tools face more scrutiny than ever before. CFOs and executive teams want clear, data-backed evidence that every pound spent will deliver measurable value. For human resources leaders, that means moving beyond broad statements about ‘improving engagement’ or ‘modernising processes’ and instead presenting a tangible, credible case for change.

Gone are the days when new software could be signed off as a nice-to-have. With tighter budgets and competing priorities, HRIS needs to be positioned as a strategic, revenue-impacting necessity. Whether it’s reducing turnover costs, improving compliance or accelerating time-to-hire, you need to demonstrate how your proposed solution directly supports the company’s financial and operational goals.

The key is to build a business case for human resources tech that aligns human resources with broader organisational outcomes. When you can clearly connect technology investment to priorities like growth, profitability and risk reduction, you not only strengthen your proposal, you position human resources as a driver of business success, not just a support function.

What is HR software ROI and why it’s hard to measure

When we talk about HR software ROI, we’re talking about the value your organisation gains from investing in HRIS technology, compared to the cost of that investment. On the surface, the calculation seems straightforward; savings and benefits minus costs. In practice however, it can be more nuanced. 

A strong HR technology ROI story often includes both tangible and intangible returns. Tangible outcomes might include:

• Time saved by automating manual processes, such as payroll or onboarding.
• Fewer errors in compliance reporting or data entry.
• Better hiring decisions that reduce turnover and shorten time-to-fill.

Intangible benefits, while harder to quantify, can be equally powerful. These might include improved employee experience, stronger company culture or more informed decision-making from better human resources analytics.

This is where the challenge comes in; traditional return on investment formulas were built for straightforward financial investments, not people-focused technology. While you can measure cost reductions and efficiency gains, it’s harder to assign a dollar value to things like increased engagement or reduced burnout—yet these outcomes have a profound impact on business performance.

Understanding and communicating both sides, quantitative and qualitative, ensures your business case reflects the full value of the investment, not just the easy-to-measure metrics.

Factors to consider when investing in HR tech

Before you start building your proposal, it’s essential to step back and assess whether your organisation is ready and where the biggest opportunities for impact lie. You should consider: 

• Current pain points and inefficiencies – Identify the challenges your human resources team faces today. Are manual processes slowing down hiring? Is payroll accuracy an ongoing issue? Are compliance tasks eating up valuable time? The more specific you can be, the easier it will be to link these problems to measurable improvements with technology.
• Cost of inaction – Delaying investment has its own price tag. Extended hiring timelines, preventable compliance fines and disengaged employees can cost far more in the long run than the software itself. Including the cost of doing nothing strengthens your business case by showing the risk of maintaining the status quo.
• Hidden costs – Manual processes, poor data accuracy and the risk of non-compliance often create invisible expenses. Lost productivity, reputational damage and rework can quietly drain resources and hinder growth. These hidden costs should be part of your ROI assessment.
• Organisation size and complexity – The scale and structure of your business will influence the type of solution you need. A growing, multi-location organisation may require more advanced features, integration capabilities and compliance coverage than a smaller business.

By evaluating these factors upfront, you can ensure your investment aligns with both immediate needs and long-term business goals, making your eventual business case stronger, clearer and harder to ignore.

Winning the case for HR tech investment

Building a business case for HR tech and securing investment takes more than enthusiasm, it requires a structured, evidence backed approach. But knowing where to start and how to present the ROI of a  new initiative isn’t always easy. 

This is where our helpful free resource comes in. Download our guide today to get your hands on:

• A business case for HR tech readiness checklist
• A 4 step outline for building a compelling business case
• An implementation plan timeline
• Adoption KPI’s
• Tips for presenting to stakeholders
• And more

Download the guide now.