3 keys to squeezing your HR tech solution into the 2023 budget

Leapgen CEO stresses the importance of 'time to value'

3 keys to squeezing your HR tech solution into the 2023 budget

There are three keys to having senior leadership sign off on your HR technology solution for 2023, according to Jason Averbook, co-founder and CEO of Leapgen, a Minnesota-based HR consulting firm.

First, you must look at current and future business goals and objectives, making sure your HR tech initiatives are tied directly to them. Then, you need to find support within the rest of the C-suite or the board of directors for the investment you’re hoping to make. Finally, you have to know your numbers.

Listen: Episode 10 – Budgeting for your 2023 HR tech solution

“It’s not just the cost of software,” Averbook told HRD.  “It’s the cost of the software license combined with the change management required combined with any sort of partner required to help make sure people will use it. Don’t just float a number because when someone asks for more detail, you could end up going back and forth and missing the window and the next thing you know, they say, ‘let’s just do that next year.’ Make sure from a financial standpoint that you have all questions answered.”

Budgeting for HR tech is even more important in 2023 considering the state of the economy in the United States. Since the summer, high-profile brands throughout the country, especially in California, have been announcing layoffs, job cuts, hiring freezes and slowdowns ahead of an anticipated recession. In order to avoid budget cuts within your department, Averbook says, you have to show time to value, specifically how fast your HR tech solution will provide ROI.

“A lot of HR tech initiatives have taken two to three years before they’re done and ready to move to ‘phase 2,’ where they’ll start to show value,” Averbook says. “That can’t work anymore, especially with the economic headwinds we have right now. Today, it’s all about recruiting talent, inspiring the talent I have and if I need to cut talent, making sure I’m cutting the right talent from a workforce planning standpoint.”

“You might be buying the exact same tech, but it’s shifting the way you talk about it and the way you implement it to show that time to value upfront,” Averbook adds.

In this episode of HRD Talk, Averbook breaks down everything HR leaders need to know to purchase the product that will best suit their needs.

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