Have you ever pitched management on a really great idea, but just couldn’t get the funding to try it? Even though numerous studies have shown the benefits companies realize by using assessments in their recruiting and development practices, I still hear the universal complaint from HR leaders that they’re underfunded and don’t have the budget to try them.
The looming question is, how do you calculate the return on investment for assessments? We developed this outline that will help you develop a business case for assessments that clearly demonstrates to management why they should fund your initiative. (And if you're just trying to figure out for yourself if assessments will ad value, it will help you figure that out, too.)
To develop a successful business case for assessments – or for any HR initiative - you have to keep in mind the people you’re creating it for; often business people with a background in finance.
That means they’re looking for numbers. And the most important number of all when asking for funding is your return on investment (ROI). How much money am I going to get back by funding your initiative? Imagine being in a meeting making your case and being able to pull out real, verifiable numbers to show them how much integrating assessments into your processes was going to save the company. Now imagine if that number was huge, because it’s going to be.
That’s the question you have to answer and that’s the question we’ve set out to provide a framework for in our Building a Business Case for Talent Assessments guide.
The guide provides an example of how to calculate the ROI of assessments using a fictitious company and then provides all the calculations and explanations to allow you to build your own case.
There are methods for calculating returns in:
- Employee turnover
- Customer retention
- Employee engagement
Download the guide and build the business case that will enable you to get your initiative off the ground and show management how you can deliver real, bottom-line results.