Building a Business Case for R.Review

A Business Case for implementing R.Review, the online remuneration & salary review software solution from Remesys

This document has been designed to provide Human Resources and/or Remuneration Managers with an outline for a business case for the implementation of R.Review.

Whilst HR and Remuneration Managers recognise how cumbersome and error-prone the spreadsheet driven salary and incentive review process is, most often IT, management and other decision makers who have not been as involved in the management of a review are unaware of the inherent risks of managing the process manually and the benefits that can be achieved by implementing R.Review.

Introduction

Provide concise and brief statement regarding what is being recommended. For example:

The purpose of this document is to provide a business case justification for the implementation of the Remesys R.Review solution. R.Review is an online remuneration review system designed to manage the salary review, incentive and/or equity process.

Feedback from our previous review process suggests that the current process can be improved significantly as it is exceptionally cumbersome, prone to errors, and increases security risks.

Currently, data from various sources is consolidated into a master spreadsheet that is sliced, diced and distributed to managers. This approach is time-consuming for both the HR team and managers and increases the possibility of errors occurring and the risk of confidential data being accessed.

By utilising an online solution, all users login to the same database allowing for real-time tracking, reporting and moderation of review decisions. The system ensures all reviews adhere to company guidelines. This streamlines the process, enabling HR to focus on strategic and people management issues and reducing the time spent by managers undertaking reviews. Furthermore the risk of errors and time spent in exceptions reporting and moderation is substantially reduced.

Current Situation

Provide information regarding the problems with the current approach. For example:

The current spreadsheet driven approach begins with a data dump from the HRIS system. This is then manually updated with data from various other sources including performance data and market salary data.

There is a master spreadsheet that can take (insert number) of minutes to open, as it is a large file due to the numerous calculations incorporated into the worksheets.

The master spreadsheet is then manually divided into smaller spreadsheets that are then distributed to the relevant managers. Currently HR is handling over (insert number) spreadsheets to manage the review process. Any changes identified after the spreadsheets have been distributed require new spreadsheets to be issued. This results in problems with version control.
Some issues we have with the current process include:

  • Developing and managing spreadsheets is very time consuming for both managers and for HR. It can take up to (insert number) months to prepare and distribute spreadsheets.
  • It is very easy for mistakes to be made when entering or re-entering data into the spreadsheet. There is no automated mechanism to check the data entered.
  • When an approving manager makes a change to a previous recommendation in a spreadsheet there is no automated mechanism for advising any other manager of the change
  • The spreadsheet format requires all the data to be available in one line that is not always easy to view. There are numerous columns and rows needed to hold the necessary data.
  • There are always issues with version control.
  • Although password protected, the data is not completely secure. It is possible for a manager to email a spreadsheet to the wrong person or to save it on a shared drive.
  • At the end of the review process, we then spend (insert number) days preparing, generating and checking letters generated via mail-merge.
  • Add any additional specific concerns relevant to your business.

 

Proposal Statement

Provide information on the proposed solution. For example:

After investigating various options we recommend implementing R.Revew, an online remuneration review solution that streamlines the remuneration review process.

R.Review V2 was selected as the Winner of the 2010 Australian Business Award for Best Business Product and Remesys was the winner of the 2010 Australian Business Award for Innovation and is the leading provider of online salary review solutions in Australia.

This solution will allow managers to make salary, bonus and performance rating recommendations online, provide all required information in an easy to view format, run reports, generate letters and provide HR recommendations.
Some of the benefits of this solution include:

  • Reduce HR resource requirements for the annual review
  • Reduce reliance on internal IT resources
  • Introduction of a streamlined process for reviewing managers to conduct salary reviews
  • Reduced duplication of information
  • Reduced errors
  • End to end tracking of budget allocations - ability to more effectively track annual review against agreed budget
  • Reduced timeframe to conduct the remuneration review process
  • Improved process that is user friendly and requires little or no user training
  • Improved ability to manage the different review requirements across the business
  • Improved data security
  • Ability to run what if scenario capabilities and salary planning
  • Introduction of workflow approval process based on our requirements

 

Relationship to Business Unit/Corporate Business Plan

Clearly describe how this solution will support the business plan. For example:

R.Review will reduce the administrative burden on the HR Team allowing HR to focus on strategic and value-add projects.

The HR team will be able to spend more time guiding and providing advice to managers and ensuring that the review process is managed in a fair and equitable manner. One of our core goals is to create a performance culture that rewards our high performers. One of the R.Review clients noted that "The system gave managers a better understanding of our rem policy, market positioning and internal relativities. This increased their confidence to make informed decisions that they could justify to their staff." R.Review will allow us to easily manage our salary planning process, to agree upon budgets and assess where increases are most required. In addition, HR recommendation tables can provide managers with recommended guideline increases based on the employee’s performance and their position to market or in their grade/band. We need to ensure that we look after our talent and this solution will assist us to reward employees appropriately.

Costs

Specify cost projections and funding sources as defined below. For example:

Is this a budgeted item ___ Yes ___ No

  • If Yes: State the amount and where in the budget.
  • If No: State how the project will be funded.

Detail Initial and recurring annual expense (This is all available in the R.Review quote).

Alternatives

Provide potential alternative solutions (if available). For example:

We can continue with the current spreadsheet based approach or implement an online solution.
Following are alternate solutions to R.Review.

  • Compensation module of existing HR/Payroll System – This module is not best of breed and does not have the functionality of R.Review. Any changes to meet our process will require extensive customisation (if possible at all). Customisation of the module to meet our specific requirements would be very expensive. In addition, this option does not provide the intuitive interface for our managers that R.Review provides.
  • Internal development of a system – Building a salary review tool in-house will be expensive and present us with ongoing maintanance issues and costs. R.Review has a number of useful functions that would be difficult to replicate in an in-house solution given our timeline. The IT department do not have the resources to take on the project and provide the ongoing commitment required.

 

Resources Required

Provide information on the resources required and the costs of the implementation. For example:

Given that R.Review is delivered as software-as-a-service solution (SaaS) there are no requirements for any IT resources or hardware. All that is required is an internet connection to access the application.

The most time consuming aspect of the project is the development of the requirements specification and the associated needs analysis. Remesys will work closely with us to complete this phase of the implementation. We envisage that no more than 2-3 weeks of work is required for the initial implementation and the time commitment required will be significantly less than the time required for our current approach.

Below is our projected timeline: (You can get this from your Remesys quote)

Risks and Concerns

Provide information on any potential risks. For example:

We have not identified any risks associated with implementing R.Review. We have carried out extensive reference checks and all the referees have advised the Remesys have delivered the projects well within the agreed timelines and have service levels far in excess of most service providers.

R.Review is delivered as SaaS and the information provided on the hosting environment provides comfort in relation to data security, backup and other technical requirements.

The Remesys quote provides a detailed and clear outline of the costs involved in implementation and ongoing fees.

Cost/Benefit Analysis

This is vital part of the business case and should include some of the following information. For example:

Using the Remesys ROI Calculator we have calculated the payback period on the investment to be (insert number) years.
Additionally we should implement R.Review to reduce the current exposure we face in the business:

  • R.Review will reduce risk, removing the chance of confidential information being emailed to the wrong people or saved on the shared drive
  • R.Review will reduce erros removing the opportunity of calculation errors in spreadsheets that result in overpayment of salaries or bonuses
  • R.Review will improve our ability to comply with legislative and other requirements and complete audit checks
  • R.Review will provide HR and management with automated salary planning and reporting capabilities in order to to manage budgets and cost appropriately
  • R.Review will guide managers through process and enforce compliance to company policies
  • R.Review can provide savings of up to 70% of HR time and 50% of manager’s time
  • R.Review can assist us to increase employee satisfaction as reviews will be handled in a fair, transparent and equitable manner