Tuesday, August 9, 2011

Tangible Benefits | Business Rationale


Tangible benefits can be measured and attributed to the transformation programme, and crucially to particular budget holders. Therefore, as well as identifying the benefit, it is important to determine the recipient or recipients of that benefit and ensure that they buy-in to it, as they need to be accountable for the delivery of that benefit.
For example, if we consider online recruitment, who will be the beneficiary of reduced agency fees: the HR function or a business unit? The answer depends on how costs are allocated in the organisation but, whichever it is, a tangible benefit will accrue to the budget holder(s) for those costs. The following table shows examples of tangible benefits for a selection of HR services' constituent processes and potential beneficiaries.
HR service
Constituent process
Resource management
Recruitment and selection
People development and performance management
Learning and development
Retention and reward
Reward strategy and reward levels


Tangible benefit
Beneficiary
Reduced agency fees
Business unit heads
Reduction in external training costs
Vice President, L&D
Manual reward data processing eliminated
Compensation and Benefits Manager

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