How to convince upper management to invest in pay review software
Making the case for pay review software to upper management can seem daunting. In fact, CEOs are often cited as the common obstacle to digital transformation.
Despite this, it's important to remember that they want what's best for the company just as much as you do. They may have some concerns about the initial investment, but with the right information and data, you can show them how pay review software will benefit everyone in the long run.
In this article, we'll discuss the key points you should make when selling pay review software to upper management, so read on and get started!
Education
Your first concern should be whether upper management is even aware of the existence of pay review software - after all, it's hard to convince someone of an area of products they've never heard of. Dedicated pay review software is still a relatively niche market that many are unaware of. If that's the case, they're most likely wondering why you can’t simply use a spreadsheet for salary reviews.
Almost 80% of Amite surveyed companies still use spreadsheets to run their annual pay review.
So, in order to sell pay review software to upper management, you'll need to present it to them in a way that addresses those knowledge gaps. Describe to them how you currently run the process and why it's not working. If you're able to, it can be powerful to cite real examples of how the current process has affected the company negatively. Whether that be a data leak, wasted time, or publicly visible mistakes.
From there, you can show them how the new tool will address these issues, save time and money, and make the process of pay reviews better for everyone involved. With the right information and data, you can convince even the most sceptical upper management of pay review software's benefits.
If you need some examples, here's a list of issues that pay review software generally solves when compared to spreadsheets:
Comprehensive audit log and change tracking
Automation of tedious job evaluation processes
Security and centralisation of data sources
Easier collaboration
Better reporting
Addressing the cost
Regardless of how well you sell the first part of your pitch, there's still going to be that one subject that you can't avoid: the cost. Upper management might not consider the current process to cost anything. To them, it's just HR doing a job during their scheduled hours using a tool the company has already paid for (i.e. Microsoft Office).
To overcome this perspective, highlight the cost of the current, highly inefficient process. Sure, spreadsheets kind of get the job done, but their weaknesses are abundant and clear. In fact, Amite's research shows that only 1 out of the 10 critical Excel features we asked about received higher than a 50% satisfaction rating from pay review experts.
The story of companies trying to keep inefficient tools and systems in place to cut costs or reduce the friction of change is a tale as old as time. However, these inefficiencies have been shown to cost them 20 to 30% of their revenue each year. This is because inadequate tools and processes equal unhappy employees, and unhappy employees using outdated tools cause more errors. Can your upper management afford the consequences of a leak of the organisation's most sensitive data?
The improvement of one process also has knock-on effects. The massive boost in efficiency when conducting a pay review will mean far lesser detraction from the other work that the HR department could be contributing towards.
So, when presenting pay review software to upper management, be sure to stress these points and present data and evidence that supports your claims. With the right information, you can convince even the most sceptical upper management that pay review software is a necessary investment for the company.
Teamwork
When convincing upper management to invest in pay review software, approaching them as a team can be very powerful. After all, their ultimate goal is to see the company succeed. Additionally, for the company to succeed, they need their employees to be happy and use the best tools. Therefore, by presenting a united front and demonstrating the wider-reaching effects of your proposal, you can make a stronger business case that they will find more difficult to ignore.
To tap into this mindset, try presenting a united front and demonstrating the wider-reaching effects of your proposal. Knowing the whole team's strengths and weaknesses will help upper management understand how things affect different team members. Try identifying where each team member shines and where they need improvement to make a more convincing argument for the pay review software’s benefits.
For example, if you know that the current process wastes team member's time on repetitive data management, you can point out that the pay review software will help to automate tedious tasks and free up their time to focus on more important work. This type of tailored argument is much more likely to win over upper management than a broad overview of the pay review software’s features.
Of course, not everyone is comfortable working in a team. If that’s the case, then you can take a more individual approach. This involves sitting down with your manager and going through the pay review software benefits one by one. By doing this, you can address any specific concerns they might have and tailor your pitch to their needs.
Whichever route you decide to take, remember that it’s important to be prepared. This means having a clear understanding of what pay review software can do for your company, as well as being able to answer any questions upper management might have. With that in mind, go forth and conquer!
Using Data and Facts
If there's one thing upper management responds to, it's cold, hard facts and figures. They want to see evidence that the investment will be worth it, and this sort of data is one of the best ways to provide that. After all, numbers don't lie.
Now, when it comes to pay review software, there's not really any specific research that you can draw on. Regardless, you can look to the effects of software and digital transformation in general to find the backup you need.
Here are some stats to get you started:
The average large spreadsheet that uses calculations has around 755 mistakes
Nearly 70% of workers believe their organisation's outdated technology is creating a security threat
27% of companies say digital transformation is a matter of survival
By backing up your argument with research on the effects of outdated technology or wasted productivity like this, you can make a much stronger case for pay review software than simply listing its features.
So, if you're looking to convince upper management that pay review software is a necessary purchase for your company, ensure you have plenty of data and facts at your disposal! It might just be what tips the scales in your favour.
Time to pitch!
Remember the four key points: education, addressing cost, using teamwork, and supplying data. These are the things that your audience will be most keen to know about, and they'll want this information delivered to them as effectively as possible.
We hope this article has given you some insight into how to approach pitching pay review software to upper management. Whilst we can't guarantee you success, following this advice should have you well on your way to delivering a great presentation, no matter the outcome.