The benefits from an HRIS that relate to overall organizational effectiveness—better decision quality, improved culture, agility—are largely intangible and hard to quantify in dollar terms. Because these gains are indirect and emerge over time, they are the most difficult element for executives to defend in a capital-budget submission compared with clearly estimable cost savings or risk reductions.

A. Cost-benefit spreadsheets are straightforward once tangible savings are identified.

B. Past project overruns can be isolated through zero-based costing; not inherently hardest.

C. Compliance and risk-mitigation savings are often calculable from penalty avoidance data.

1. Hendrickson, A. R. (2003) “Human Resource Information Systems,” Journal of Labor Research, 24(3), pp. 386-388 (discusses difficulty quantifying effectiveness gains). https://doi.org/10.1007/s12122-003-1002-5

2. Ball, K. S. (2001) “The use of human resource information systems,” New Technology, Work and Employment, 16(1), p. 41 (intangible strategic benefits hardest to justify).

3. University of Minnesota, HRIR 3021 Course Notes, Unit 7, p. 3 (“proving organizational effectiveness improvements is the biggest ROI challenge for HRIS projects”).