Total Cost of Talent Acquisition

It’s the total cost, not just the price.

When the Avue Platform is deployed with the goal of acting as a force multiplier, the actual servicing ratio, outsourcing included, can achieve levels as high as 1:2,000 — one HR FTE for every 2,000 employees.

In evaluating alternative Talent Acquisition Solution and management system purchases it is imperative to avoid the classic fault of “knowing the price of everything but the value of nothing.” The business case analysis upon which any IT purchase should rest is the total cost of ownership of the solution.  In other words, all costs, expenses, benefits and savings should be taken into account, not merely the price.

This is especially true with a Software-as-a-Service (SaaS) offering, and in particular Avue.

While the “price” of a software purchase may be low in comparison to a SaaS offering like Avue, in fact it is almost certain that the total cost of ownership of the software purchase — whether or not done through another government agency such as NFC — will be orders of magnitude more expensive.

This illustrates Avue’s profound impact on the cost of operations.

For example, a popular metric to track is the “servicing ratio” — the number of HR staff supporting the employee population in the agency. The government-wide average servicing ratio is around 1:50 — one HR FTE for every 50 employees.

However, that ratio is misleading.

It does not represent the presence of shadow staff or outsourcing, whether to the private sector or another federal agency. For example, in one federal agency, the servicing ratio appears to be 1:219, but it proves to be false.

When the outsourced provider is incorporated, the ratio falls below the government average to 1:33.

When the Avue Platform is deployed with the goal of acting as a force multiplier, the actual servicing ratio, outsourcing included, can achieve levels as high as 1:2,000 — one HR FTE for every 2,000 employees.

Any cost-benefit analysis of the Avue Platform should take into account the costs associated with present day practices, technologies, shadow staff, and outsourcing.  Total benefit can be achieved by a blend of maximizing the Platform’s capability and creating an HCM vision that establishes dual targets for increasing value to mission-critical operations and reducing costs.

As many industries in the United States have come to realize, technology can be a significant force multiplier. In addition, with Avue it is imperative that manager and administrative officer time, not just HR specialist time, be considered in the analysis.

The extraordinary savings and benefits of the Avue Platform and Talent Acquisition Solution is illustrated by the charts on the following pages, which documents some of the cost/labor reduction and productivity increases.

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