Southern New Hampshire University HRIS Costs Discussion and Responses


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When determining the financial implications of an HRIS, there can be tangible and intangible costs. Identify at least one tangible cost associated with implementing a new HRIS and discuss the impact it will have on the HRIS implementation. What might be an intangible cost associated with not implementing an HRIS?

In responding to your peers, compare how the benefits identified outweigh the costs associated for the organization.


Peer reply #1Wendi Simpson posted Sep 12, 2022 10:20 AMSubscribePrevious Next This page automatically marks posts as read as you scroll.Adjust automatic marking as read settingHello Everyone,”Tangible costs are the obvious ones that you pay for, like office equipment and employee salaries and training. ” (Sherman, 2019) One tangible cost associated with implementing a new HRIS is the software associated with the HRIS.  Each company offers different prices for their products, as more aspects are added to the software the price increases. Organizations can select what aspects they  want to be added to the software based off of the companies needs. “The average cost for an HRIS system is $8,750 per user over a five year period or $145 per user per month. For larger companies, this cost increases to $11,200 per user over five years, breaking down to $187 per user per month.” (Software Path, 2021) “Intangible costs include the time it takes for your staff to learn a new computer system, and to adjust their work routines to the new technology.” (Sherman, 2019) An example of a intangible cost is a loss in job satisfaction. If the new system is not what was expected it may cause employees to become unhappy, this is seen more when the system is not user friendly. “outdated, annoying or confusing technology can also harm your organization’s ability to attract and retain top talent,” (Detwiler, 2021) Detwiler, B. (2021, March 28). Don’t let a bad tech stack hurt employee retention, use these tips to improve worker it satisfaction. ZDNET. Retrieved September 12, 2022, from, F. (2019, January 28). What are tangible costs & intangible costs? Small Business – Retrieved September 12, 2022, from Path. (2021, July 7). How much does Hris software cost? How much does HRIS software cost? Retrieved September 12, 2022, from to ThreadPeer reply #1Aimee Stacy posted Sep 12, 2022 5:57 AMSubscribePrevious Next This page automatically marks posts as read as you scroll.Adjust automatic marking as read settingGood Monday morning, everyone!Thus far in the course, I’ve focused on change management as an essential part of an HRIS implementation. Traumer (2021) states that “the costliest part of your HRIS implementation is not the HRIS itself, but the teams implementing and running the HRIS.”The tangible cost of change management in an HRIS implementation includes the obvious—the salaries of individuals hired to manage the change. If internal resources are allocated, the cost includes the time devoted to the change management effort as well as time lost on other projects. For example, if an HR business partner is allocated to be the change management point on the implementation, any other projects that s/he was working on will need another resource to step into his/her place. This will have a cascading effect—knowledge must be transferred; time must be spent bringing respective team members up to speed on their new projects.The cost of change management is dependent upon the size and scope of the project. In some cases, change management is relatively simple and can be limited to training. In others, such as in our case study, change management involves a transformation of functions associated with the HRIS. Such a transformation includes, but is not limited to, automation of processes, new operating models, job changes, and restructuring. Change management efforts should include preparing the organization for the change prior to the go-live date through communication and forums in which to address employee concerns. An intranet where frequently asked questions and their answers can be posted will provide support both technically and emotionally. (Traumer, 2021)Our case study has shown us what can happen when change management is not part of an HRIS implementation. The project team was focused more on their individual preferences and gains rather than working towards a common goal. Most of the time, it seemed as though neither team knew what the other was doing. All of this could have been avoided had the team understood why the change was necessary and had a corresponding sense of urgency. Change is difficult for people, no matter what stage of their professional career they may be in.HRIS implementations, or any other major organizational change, cannot be accomplished simply through flipping a few switches and sending out an email. Lack of change management can result in dissatisfied employees and low morale, which translate into high turnover. High turnover, in turn, becomes the cost of training new employees and decreases in productivity as understaffed teams struggle to keep up.Arguably the most important intangible costs include loss of reputation and degradation of culture. Both can take years to build, but can be destroyed almost immediately without proper leadership in the face of change. (Raglin, n.d.) Should the new HRIS automate or streamline processes to the point where reductions are necessary, lack of proper communication and support can turn a previously healthy corporate culture into one of fear as psychological safety is lost. Word travels; departing or remaining employees can influence how the organization is viewed in the labor market. Negative perceptions can make it difficult for the organization to attract talent in the future. Word may also spread to existing and potential customers, translating to lost revenue and lost opportunity for growth. (Raglin, n.d.)In summary, HRIS implementation costs do not stop with the purchase of the software or with the labor of the team assigned to integrate it into current infrastructures. Without proper change management, approximately 70 percent of initiatives will fail. (Tugela People, n.d.) Degradation of culture and reputation, loss of trust in senior leadership, low morale, and reduced productivity lead to costs that do not have an associated dollar amount but are nonetheless significant—lost market share, lost opportunities, lost customers, and the loss of the most important asset a company has: its people.Raglin, T. (n.d.) The cost of not changing: Tangible and intangible costs. Skillwork., R. (2021, November 24) The cost of implementing a new HRIS. LinkedIn. People (n.d.) Why is change management essential to an HRIS project?

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