Why is it important to estimate the benefits to be derived from new HRIS functionality before you estimate the costs?

  1. Why is it important to estimate the benefits to be derived from new HRIS functionality before you estimate the costs? If costs were estimated first, how might this change the analysis?
  2. What makes indirect benefits so difficult to include in a BCA? What techniques might be used?
  3. What are the factors you would have to use in calculating a benefit-cost ratio to support a decision to purchase a new HRIS when the organization already has an HRIS that was acquired 10 years ago? Be sure to mention the factors that would comprise the costs, direct and indirect, and the benefits, direct and indirect, of the current system versus the proposed system.

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