Measuring the ROI of global mobility technology for HR 

Industry
Measuring the ROI of global mobility technology for HR 

HR departments around the globe have rationalized their operations over the years with the help of software. Meanwhile, software developers have increased the pace of innovation and the complexity of their solutions. Even a few dozen years ago it was way easier to measure the ROI of a single technology. For example, transitioning from paper files to electronic data has cut the costs and increased employees’ efficiency almost immediately. But with today’s HR tech it’s not that simple to measure the investment return in one day.

 

Hard and soft ROI

 

The problem is that measuring ROI in HR is highly debatable since it’s intangible; and the majority of the HR tech initiatives are subjective. That’s why the terms of hard and soft costs were invented by ROI analysts, which mean direct and indirect cost return respectively. Basically the hard one can provide a specific financial value, whereas soft ROI may provide less of an immediate financial value but will lead to certain cost savings at some point in the future. Expanding the scope of the hard and soft costs may include assessing other incidental or peripheral costs which result from implementing a new solution.

 

Global Mobility Services (GMS) are new on the market and it is not quite understandable yet how to measure their ROI. As research shows, mobility spendings are neither budgeted nor understood in many organizations. So how to accurately show either hard or soft ROI of this HR technology?

 

Hard ROI in GMS

 

Relocation supply chain consists of many elements that are variable and can lead to overestimation when calculating costs. Being able to produce cost projections quickly and efficiently is a real advantage of the GMS. Depending on budget, it can potentially save millions of dollars per year. GMS reduces relocation costs and that’s the most obvious direct ROI.

Secondly, reducing labour costs can be achieved thanks to automation. Cost estimation is normally done manually though outsourcing, and it can take up to several days to deliver. GMS can do these calculations in less than one minute; moreover, they allow free and unlimited revisions and recalculations. With the implementation of GMS the entire outsourcing budget can be saved.

Besides the immediate profit of GMS that affects the ROI directly, there’s another part to it that we call soft ROI.

 

 Soft ROI of GMS and how to measure it

 

Because relocation is a complicated process, that can range from immigration and tax preparation to physically moving the employee to their new accommodation, HR professionals are overloaded with various tasks. This can affect the overall performance and lead to miscalculations, misunderstandings and, as a result, errors.

With the GMS the tasks are more automated; therefore, more time can be freed up for the tasks that can add more value to the company. But not only timing matters, let’s take a look at what can assess the effectiveness of the GMS long term.

  1. Time-saving. This is what HR tech was created for in the first place. This factor directly affects employees’ productivity and improves general performance if we are talking about HR professionals. For assignees it means unlocking admin time to devote to their direct goals and talent development.
  2. Reducing attrition. Human mistakes are inevitable when people are juggling lots of tasks. GMS can be handy with managing vendors, pricing analysis, etc.
  3. Easier compliance with global and local regulations. This is one area in particular where humans alone can do less than humans with HR tech together.
  4. More efficient data-driven decision-making. All these factors lead to better decisions made efficiently, using a combination of human expertise with the help of technology.

Clearmove as a perfect example of a positive ROI

 

Our unique Atlas platform is created to ease the life of HR professionals in terms of solving relocation issues. It is not just a single managing application but a whole ecosystem that hosts different moving tasks under one roof.

 

If your company often needs relocation for your employees, especially abroad, Clearmove technology is a perfect solution, boasting a strong ROI. In terms of efficiency this is a perfect tool for HR professionals that helps to streamline the process of moving employees across the globe without a hassle. If we are taking into consideration all 4 measurements described before, Clearmove ticks all the boxes and is a perfect model of GMS. Our unique software saves time, reduces human mistakes, eases the processes and renders decision-making more efficient.

If you are considering purchasing Clearmove technology for your business, please contact us for more details.

 

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