How to Calculate ERP ROI (With a Simple Worked Example)
A practical method for calculating ERP return on investment: which benefits to count, which to leave out, how to estimate costs honestly, and a worked example you can adapt.
Solution · Finance & People
Overview
ERP HR provides employee records, leave, attendance and expenses, with payroll either processed natively where localisation supports it or integrated with a specialised provider.
01Typical problems
Managers unsure who is available.
Slow reimbursement and no policy control.
Licences, visas and certifications missed.
Hours and allowances typed into payroll manually.
02Capabilities
Contracts, roles, documents and history.
Allocations, requests and approvals.
Clock-in via kiosk, web or mobile.
Receipt capture, policies and reimbursement.
Reviews, goals and skills matrices.
Native payroll or integration with payroll providers.
03Workflow
Employee created with contract and documents.
Attendance, leave and timesheets captured.
Managers approve requests and hours.
Payroll calculated or exported to provider.
Labour costs posted to accounting.
04 — Technical notes
Payroll is heavily country-specific. We use native payroll only where the localisation is mature for your jurisdiction; otherwise we integrate with an established payroll provider.
HR data is sensitive. Access rights limit who sees salaries and personal information, and we review them during design.
Where it applies
Insights
A practical method for calculating ERP return on investment: which benefits to count, which to leave out, how to estimate costs honestly, and a worked example you can adapt.
ERP for small business: what to implement first, realistic budgets and timelines, free and low-cost options, and how to avoid buying too much system.
Cloud ERP vs on-premise ERP compared on cost, control, security, performance, customisation and compliance, with the hybrid and private-cloud options most comparisons ignore.
FAQ
In some countries with mature localisation, yes. Otherwise we integrate with a payroll provider.
Yes, with receipt photos and policy checks.
Yes, as documents with expiry alerts.
Next step
We will map your people processes.