Unlocking Employee & Manager (ESS/MSS) Productivity with ESS 2.0
In our second blog posting, I showed how to calculate the total transactions and ultimate productivity gains leveraging some example variables such as time savings associated with various transaction types; frequency of example transactions; estimated average salary and overhead for the majority of our employees. With our total ESS transactions for ABC Company running close to 3.5M transactions per year I estimated the time savings and then mapped the time savings to the average cost per employee. In terms of employee productivity alone a conservative estimate of nearly $1M per year in savings for ABC Corporation may be associated with ESS 2.0 oriented self service delivery for HCM.
The third blog posting dealt with estimated manager savings and again using example variables such as time savings associated with various transaction types; frequency of example transactions; estimated average salary and overhead for the majority of our managers – I was able to derive ESS 2.0 manager savings. In terms of manager productivity alone an estimate of nearly $2M per year in savings for ABC Corporation may be realized with ESS 2.0 oriented self service delivery for HCM.
As illustrated in figure 1, over $9M in three year total savings exists between an ESS 1.0 and an ESS 2.0 deployment.
Figure 1 Total Three Year ESS 2.0 (Employee & Manager) Productivity Savings Estimates $9,092,534
Saving Shared Services Support Costs with ESS 2.0
In blog posting #4, I estimated shared service savings associated with ESS/MSS transactions at ABC Corporation leveraging variables such as # of employees – 30K; time associated with various transaction types; frequency of example transactions; estimated average salary and overhead for the majority of our employees; estimated average salary and overhead for the support personnel; and percentages of transactions requiring support in the ESS 1.0 environment as compared to the ESS 2.0 environment. In terms of shared services savings for employee and manager self service transaction of all frequencies, just over $1.7M per year in estimated savings for ABC Corporation may be realized with ESS 2.0 self service delivery for HCM.
Figure 2 Total Three Year ESS 2.0 Shared Services Savings Estimates $5,354,648
End User Training with ESS 2.0
Now in blog posting #5, I modeled training savings associated with ESS/MSS transactions at ABC Corporation using variables such as estimated average salary and overhead for training personnel; and percentages of transactions requiring training in the ESS 1.0 environment as compared to the ESS 2.0 environment). In terms of training savings for employee and manager self service transaction of all frequencies, the conservative estimate is over $1.1M per year in savings (or $3.4M for total of 3 years - see figure 3) for ABC Corporation associated with ESS 2.0 self service delivery for HCM.
Figure 3 Total Three Year ESS 2.0 Training Savings Estimate $3,484,440
Realizing Developer and Deployment Savings with ESS 2.0
As discussed, the option to leverage an off-the-shelf solution significantly accelerates business value while avoiding the commitment to long-term maintenance and support obligations for internal solutions. Modeling this information using development metrics such as total number of forms, the number of countries involved in the deployment, the costs for in-house and third party developers and support professionals, conservative estimates of nearly $1M worth of savings over the initial three year deployment period for ABC Corporation may be realized with ESS 2.0 self service delivery for HCM.
Figure 4 Total Three Year ESS 2.0 Development, Deployment & Support Savings Estimate $1,385,721
Figure 5 illustrates that ABC Corporation will be able to recoup their investment in less than 6 months based on these gains and savings.
Figure 5 ESS 2.0 Cumulative Return on Investment for ABC Corporation
Figure 6 Topaz Bridge Interactive ESS 2.0 Business Value Calculator
