For midsize organizations with a global workforce, managing HR processes efficiently while ensuring employee engagement and compliance is increasingly complex. These firms often operate with smaller HR teams that must support dispersed workforces, navigate varying local labor regulations, and run talent acquisition across multiple time zones — all while working with limited IT resource and budget. Disconnected systems and manual processes often lead to inefficiencies, inconsistent employee experiences, and limited visibility into workforce data. Automating routine tasks and centralizing workforce information can help HR leaders improve operational efficiency, enhance employee experience, and support business growth.
Sage People provides a unified, cloud-based HR solution that supports organizations in streamlining core HR processes, from tracking and managing employee data to delivering performance reviews and engagement programs. The platform also offers integrated recruiting, onboarding, and payroll capabilities, which can help HR teams and managers support talent attraction, retention, and compensation.
Sage commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Sage People.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Sage People on their organizations.
152%
Return on investment (ROI)
£914K
Net present value (NPV)
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four decision-makers with experience using Sage People. For the purposes of this study, Forrester aggregated the experiences of the interviewees and combined the results into a single composite organization, which is a midsize organization based in the United Kingdom that operates in four European countries and employs 1,000 people.
Interviewees said that prior to using Sage People, their organizations relied on a mix of standalone tools, manual files, and spreadsheets. However, prior attempts to streamline HR processes yielded limited success, leaving them with them with disjointed systems, inconsistent practices across countries, and no single source of truth for people data. These limitations led to difficulty accessing accurate information, limited visibility into workforce data, and inefficiencies for HR and managers.
Interviewees explained that after investing in Sage People, their organizations had a dedicated HR solution that centralizes people data, enables employee self-service, and frees HR teams to focus on high-value activities. Key results from the investment include HR and manager time efficiencies, cost savings from recruiting and legacy system elimination, improved strategic visibility onto people data, and a better overall employee experience.
Key Findings
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
Recruitment and onboarding cost reduction. Sage People’s talent acquisition and onboarding capabilities enable the composite organization to reduce its reliance on third-party recruitment agencies (worth £300,000 in the first year) and streamline onboarding activities, which yields time savings equivalent to four FTEs. Over three years, the present value of these combined savings is £828,000.
Efficiency improvement from faster data retrieval and reporting capabilities. Sage People’s reports and dashboards eliminate the composite’s need for lengthy manual analyses and reduce the effort required to prepare for audits. By streamlining reporting workflows and centralizing people data, the composite avoids the labor previously spent producing, validating, and consolidating HR reports. This results in savings worth £116,000.
HR tickets reduction of 30%. By providing employees with self-service access to HR information (e.g., pay slips, personal data, and general HR documentation), Sage People reduces the composite’s volume of HR support requests by 30%. This lowers the manual workload on its HR teams and eliminates effort associated with addressing routine inquiries, resulting in efficiency improvements worth £97,000 for the composite organization.
Performance review time savings for managers. Sage People streamlines the composite organization’s performance review process by standardizing workflows and centralizing employee data, which enables managers to save an average of 30 minutes per review per employee. By reducing the manual effort required to prepare, complete, and document reviews, the composite realizes productivity gains for its managers. These time efficiencies yield a benefit of £73,000 for the composite organization.
Legacy systems cost elimination. By consolidating its previous mix of standalone solutions into Sage People, the composite organization eliminates £90,000 in annual costs tied to legacy solutions, and it avoids the need for two developers who previously maintained those systems. Over three years, these reductions reduce costs by £402,000.
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
Improved workforce visibility and strategic decision-making. By centralizing all people data into a single platform, Sage People provides the composite organization with real‑time visibility into workforce trends, organizational structures, and engagement patterns. This improved access to real-time and reliable data enables the composite’s leaders to monitor changes more effectively, identify issues earlier, and make more informed strategic decisions based on accurate, consolidated insights.
Enhanced HR process transparency and accuracy. Sage People improves the consistency and integrity of the composite organization’s employee data by automating updates, enforcing approval workflows, and maintaining a full audit history of changes. With all information stored in one system of record, the composite benefits from more transparent processes, fewer discrepancies, and an accurate view of data that employees and managers can trust.
Retained high quality talent through tightening talent performance management. Sage People strengthens the composite organization’s ability to identify high and low performers, track performance outcomes over time, and intervene earlier when issues arise. Standardized scorecards and real‑time insights support better talent decisions, while improved visibility into recruitment data contributes to stronger hiring outcomes and better retention of high‑quality employees.
Improved employee and manager experience and engagement. Sage People modernizes the experience for employees and managers by offering intuitive self‑service capabilities, more transparent access to information, and streamlined workflows that eliminate manual steps. The platform reduces friction across day‑to‑day tasks and enables managers to better support their teams through increased visibility and easy access to relevant data. This ultimately leads to an increase in employees engagement. According to Forrester research, disengaged employees are less productive, more likely to leave, and slower to adopt new processes.2
Reduced errors and improved HR process reliability. Automation of core HR processes reduces the composite organization’s risk of human error and ensures that changes follow standardized, trackable workflows. The composite benefits from more reliable approvals, consistent data updates, and greater confidence that critical processes (e.g., employee changes, payroll‑related actions) are executed accurately and in compliance with internal policies.
Enhanced employer brand visibility and talent attraction. By supporting modern recruitment journeys, branded candidate experiences, and integrated application flows with third party-channels, Sage People helps the composite organization strengthen its employer brand. It improves its candidate quality and engagement, with more applicants proactively seeking opportunities due to improved visibility of job postings and a more professional, consistent recruitment experience.
Strengthened security and compliance. Sage People’s secure architecture, access controls, and built‑in audit trails enhance the composite organization’s ability to protect sensitive employee information and comply with regulatory requirements. Centralized data management and encryption capabilities provide it with stronger protection against unauthorized access, while automated authorization processes help it enforce internal compliance standards across the employee lifecycle.
“No longer having a separate payroll systems has been an improvement for us. Having pay slips, HR data, and personal information all in the same platform has benefited the organization.”
CPO, manufacturing
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
Deployment costs of £253,000. The composite organization incurs deployment costs that include six months of effort from four internal FTEs, as well as a Sage deployment fee.
License fee of £199,000. The composite organization pays an annual license fee for Sage People, which provides ongoing access to the platform.
Ongoing costs of £150,000. The composite organization incurs ongoing costs that include one FTE dedicated to managing and administering Sage People, as well as external consultancy fees for configuration updates and enhancements to the platform.
The financial analysis that is based on the interviews found that a composite organization experiences benefits of £1.5 million over three years versus costs of £602,000, adding up to a net present value (NPV) of £914,000 and an ROI of 152%.
“Managing people, managing their recruitment, managing their pay, and managing their changes deserves respect, and it should be done properly with the right tool.”
CPO, manufacturing
Key Statistics
152%
Return on investment (ROI)
£1.5M
Benefits PV
£914K
Net present value (NPV)
7.0 months
Payback
Benefits (Three-Year)
[CHART DIV CONTAINER]
Recruitment and onboarding cost reduction
HR analytics and reports savings
HR efficiency Improvements
Performance review time savings
Legacy systems cost savings
The Sage People Customer Journey
Drivers leading to the Sage People investment
Interviews
Role
Industry
Region
Number of employees
People system partner
Pharmaceutical
Global in 6 countries (HQ: UK)
2,800
Chief people officer (CPO)
Manufacturing
Global in 10 countries (HQ: UK HQ)
900
Head of people
Recruiting
Global in 4 countries (HQ: UK)
390
Lead systems analyst
Media
UK
1,200
Key Challenges
Interviewees noted that before adopting Sage People, their organizations relied on a mix of disconnected standalone tools, manual files, and spreadsheets to manage core HR processes and store people data. With no centralized platform serving as a single source of truth, employee information was spread across multiple systems that did not communicate with one another.
Interviewees noted how their organizations struggled with common challenges, including:
Fragmented systems with no single source of truth for employee data. Interviewees said that before Sage People, their organizations relied on a mix of separate HR systems, spreadsheets, and manual files that did not connect or share information. Without integration or single-sign-on, HR teams and employees had to navigate multiple tools, reenter data manually, and reconcile inconsistencies across systems. These fragmented environments made it difficult to maintain accurate records or access reliable, organizationwide views of employee information. The head of people at a recruiting firm said, “A lot of the data was lacking and not recorded before [using Sage People].”
Inconsistent processes and data across countries and regions. Because each location maintained information differently and relied on its own systems and manual practices, the organizations lacked standardization in how employee data was captured, updated, and validated. This resulted in uneven data quality, inconsistent HR processes, and limited visibility into workforce trends across countries and departments.
Poor user experience. Interviewees described their organizations’ previous environments as outdated, difficult to navigate, and not engaging for employees who struggle to access basic information. Additionally, managers had limited visibility into their teams, which increased dependence on HR support and impacted interactions.
Lengthy manual processes. Some of the interviewees described extensive use of manual steps and physical paperwork for core HR tasks (e.g., onboarding, updating employee information, managing changes). These processes resulted in inefficiencies, increased the risk of errors, and made it difficult for HR teams to track activity or maintain up-to-date data.
Solution Requirements/Investment Objectives
The interviewees’ organizations searched for a solution that could:
Serve as a single source of truth for their organizations’ employee data.
Unify all countries under a single platform.
Provide real-time visibility and insight across the workforce.
Ensure transparency, integrity, and validity of people data.
Deliver actionable and strategic insights based on accurate workforce information.
Improve the employee experience with a modern, intuitive self-service solution.
Be configurable and adaptable to business needs and ways of working.
Accommodate future growth and geographical expansion.
“We looked for the solution that had strong core HR capabilities and functionalities that could be expended in a step-by-step process.”
CPO, manufacturing
Composite Organization
Based on the interviews, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the interviewees’ organizations, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Description of composite. The composite organization is an industry-agnostic company headquartered in the United Kingdom, with operations across four countries. The organization employs 1,000 people globally, including 150 managers with direct reports and an HR team of 20 professionals responsible for overseeing core HR processes, compliance, and workforce development.
Deployment characteristics. The composite organization begins using Sage People in Year 1, following a six-month deployment period. It deploys its core HR capabilities along with people management, performance reviews, dashboards, and analytics. Thirty HR professionals use the platform to manage day‑to‑day HR tasks while the organization rolls out the system to its global workforce. The composite also gradually introduces Sage People’s recruitment capabilities across its operating region, starting with two countries in Year 1 and expanding to the remaining two by Year 3.
KEY ASSUMPTIONS
HQ in the UK
Operations in 4 countries
1,000 employees
150 managers
20 HR FTEs
Analysis Of Benefits
Quantified benefit data as applied to the composite
Total Benefits
Ref.
Benefit
Year 1
Year 2
Year 3
Total
Present Value
Atr
Recruitment and onboarding cost reduction
£340,956
£331,506
£324,756
£997,218
£827,926
Btr
HR analytics and reports savings
£46,684
£46,684
£46,684
£140,052
£116,096
Ctr
HR efficiency improvements
£37,369
£39,237
£41,199
£117,805
£97,353
Dtr
Performance review time savings
£29,261
£29,261
£29,261
£87,784
£72,768
Etr
Legacy systems cost savings
£161,600
£161,600
£161,600
£484,800
£401,875
Total benefits (risk-adjusted)
£615,870
£608,289
£603,500
£1,827,659
£1,516,018
Recruitment And Onboarding Cost Reduction
Evidence and data. Interviewees mentioned that with Sage People, their organizations streamlined both recruiting and onboarding processes, which reduced reliance on third-party providers and eliminated associated costs. They noted that Sage People centralized candidate data, automated key steps in the hiring and onboarding journey and removed manual HR tasks previously required for onboarding. Interviewees described Sage People’s contribution to recruitment and onboarding improvement in the following ways:
Elimination of third-party recruitment costs. The lead systems analyst at a media firm said that prior to using Sage People, their recruiting and onboarding processes were fully managed by a third-party provider. After transitioning those processes into Sage People, the organization “eliminated third-party costs-related to recruiting and onboarding.” The CPO at a manufacturing firm similarly noted: “Previously, we had no internal recruiters. We worked with agencies for our hiring needs.” They added that after adopting Sage People, the organization no longer incurs agency fees and now operates with internal recruiters. They explained: “On average, we would spend from £200,000 to £500,000 per year for recruiting only to agency fees … but now, Sage People improves the overall recruiting and onboarding process from initial communication with candidates onward.”
Streamlining of onboarding and removal of manual setup work. The people system partner at a pharmaceutical firm shared that Sage People significantly reduced time spent on onboarding activities. They said: “We do a lot of recruitment, and Sage People has helped save time. The system pretty much handles everything.” They explained that new hires move seamlessly from candidate to employee without HR manually creating profiles for each onboarding cycle. The lead systems analyst at a media organization also noted that Sage People now fully handles onboarding, which they said is “eliminating manual processes and integrations with third-party providers” while enabling real-time tracking of onboarding progress. And the CPO at a manufacturing firm further highlighted the automation benefits of onboarding. They said: “[With Sage People,] applicant details automatically populate in the HR system.” The CPO estimated saving about one FTE equivalent in each region for onboarding, which totals four FTEs across the firm’s operations.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Prior to using Sage People, the composite recruited employees through a third-party agency.
The fully burdened annual salary for a recruiter is £40,500.
The composite gradually deploys the recruitment functionality across its four countries of operations.
The composite has an 80% productivity recapture rate, which means 80% of the time saved through efficiency improvements is used for productive work.
Risks. Risks that could impact the realization of this benefit include:
The organization’s prior recruiting process and internal capabilities.
The organization’s countries of operations.
The salaries of recruiter and HR specialists.
The organization’s prior onboarding process and environment.
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of £828,000.
4
Onboarding labor FTEs avoided
“For onboarding new employees, it’s now much easier with Sage People. It’s a click of a button to allocate a license to a new employee and send a welcome email. It’s easy because it’s all in one platform.”
Lead systems analyst, media
Recruitment And Onboarding Cost Reduction
Ref.
Metric
Source
Year 1
Year 2
Year 3
A1
Prior recruitment agency fees
Interviews
£300,000
£330,000
£363,000
A2
Newly created recruiter FTEs
Interviews
2
3
4
A3
Average salary for a recruiter
Composite
£40,500
£40,500
£40,500
A4
Onboarding labor FTEs avoided
Interviews
4
4
4
A5
Average fully burdened salary for an HR specialist
Composite
£49,950
£49,950
£49,950
A6
Productivity recapture rate
TEI methodology
80%
80%
80%
At
Recruitment and onboarding cost reduction
(A1-(A2*A3))+(A4*A5)*A6
£378,840
£368,340
£360,840
Risk adjustment
↓10%
Atr
Recruitment and onboarding cost reduction (risk-adjusted)
£340,956
£331,506
£324,756
Three-year total: £997,218
Three-year present value: £827,926
HR Analytics And Reports Savings
Evidence and data. Interviewees said that prior to using Sage People, reporting for audits and board meetings required extensive manual work and that data was scattered in spreadsheets, separate systems, and inconsistencies across regions. They highlighted that Sage People’s pre-configured dashboards, audit trails, and real-time data views streamlined these processes by centralizing information and reducing the effort required to collect, validate, and compile HR data. As a result, their organization experienced improvements in audit preparation, compliance reporting, and leadership reporting efficiency.
Audit preparation efficiencies. The people system partner at a pharmaceutical firm noted, “Audits are very strict in our industry, and it would take a long time to gather the data … but Sage People’s approval workflows and audit trails massively improved the process.” They highlighted that annual audits now rely on a comprehensive pre-built report in Sage People. The CPO at a manufacturing firm described similar improvements: “Sage People made B Corp, CSRD (Corporate Sustainability Reporting Directive), and parent-company audits very easy by providing real-time, accurate information on any field. Pre-Sage, the process would have been a manual nightmare, and we would have needed up to two HR [workers] just to stay on top of the data.”
Faster people data retrieval. The head of people at a recruiting firm said, “Responding to audit data requests improved from half a day of work to just 10 to 15 minutes occurring a few times a year.” They added that the process of creating board reports also improved significantly: “It would take weeks [to collect the data and build a report] instead of just an email now. … Overall, we have saved about one FTE or 40 hours per week for data admin management, compared to just 30 minutes of work now to get the data collection done.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
The composite undergoes five audits yearly.
Two HR analysts dedicate five days per year to audit reports.
The fully burdened annual salary for an HR analyst is £49,950.
The composite’s HR team produces board reports twice per year.
Risks. Risks that could impact the realization of this benefit include:
The number of audits the organization performs annually.
The number of board reports the organization produces annually.
The salaries of HR specialists.
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of £116,000.
“With Sage People, our HR team now has so much data available. They have a dashboard they didn’t have before, and they can generate reports to go see the data without having to guess where to look. This made things more efficient for the team.”
Lead systems analyst, media
HR Analytics And Reports Savings
Ref.
Metric
Source
Year 1
Year 2
Year 3
B1
Audits
Interviews
5
5
5
B2
FTEs dedicated to audits
Interviews
2
2
2
B3
Time per FTE dedicated to audits (days)
Interviews
5
5
5
B4
Fully burdened salary for an HR analyst
Composite
£49,950
£49,950
£49,950
B5
Audits effort savings
B2*B3*B4/260 working days
£1,921
£1,921
£1,921
B6
Board reports (FTEs)
Interviews
2
2
2
B7
Saved board reports (FTEs)
Interviews
1
1
1
B8
Board reports savings
B7*B4
£49,950
£49,950
£49,950
Bt
HR analytics and reports savings
B5+B8
£51,871
£51,871
£51,871
Risk adjustment
↓10%
Btr
HR analytics and reports savings (risk-adjusted)
£46,684
£46,684
£46,684
Three-year total: £140,052
Three-year present value: £116,096
HR Efficiency Improvements
Evidence and data. Interviewees explained that Sage People’s self-service capabilities and automated workflows reduced the volume of HR emails and tickets, enabling HR teams to reallocate time toward higher-value tasks. They noted that tasks that previously required HR manual intervention (e.g., updating employee details, processing title or salary changes, managing probation periods, supporting basic access issues) are now handled directly by managers or automated in the system, which improved both efficiency and data accuracy.
The lead systems analyst at a media firm highlighted that single sign-On (SSO) “really reduced the amount of support requests to HR, mainly around resetting people’s passwords.” They also added that Sage People manager-initiated workflows now automate updates like job title changes: “Before, managers would contact HR. Now it’s initiated through Sage People, goes through an automated approval process, and updates records without much HR intervention.”
The people system partner at a pharmaceutical firm described how automation replaced previously manual tasks. They said: “Our organization’s HR specialist in India was doing everything manually. Now, many of these tasks are automated. … For instance, with probation periods notifications to employees, everything is now triggered automatically, from the date to the email sent to the employee saying their probation period has passed. This has freed up time they used to spend doing this.” The interviewee also noted, “HR requests have dropped a lot as managers can now submit their own transactions for title changes, salary updates, or department moves — all captured in the system’s approval trail, and without having to send an email to HR.” They said this provides “drastic time savings for the HR team.”
The CPO at a manufacturing firm highlighted additional benefits of workflow automation benefits: “There are a lot of tasks now automated that would have been a saga before. Now, when someone is leaving the company, IT gets automatically notified now. Before, HR would have to manually notify the team.”
The head of people at a recruiting firm noted that self-service capabilities of Sage People reduced HR ticket volume. They said, “For PTO requests, HR previously received three to four tickets per week, which has now dropped to zero.” They added: “Overall [with Sage People], the HR tickets fell by more than 30% — from 50 to 60 per day to 20 now.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
The composite’s HR ticket volume prior to using Sage People was 15,600 annually.
Because the composite organization increases adoption of Sage People over time, the percent of tickets reduced of tickets is 35% in Year 1, 37% in Year 2, and 39% in Year 3.
The average time per ticket is 20 minutes.
The fully burdened hourly salary for an HR specialist is £24.
The composite has a 90% productivity recapture rate, which means 90% of the time saved through HR tickets efficiency improvements is used for productive work.
Risks. Risks that could impact the realization of this benefit include:
The organization’s prior number of HR tickets.
The average resolution time per ticket.
The salaries of HR specialists.
Results. To account for these risks, Forrester adjusted this benefit downward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of £97,000.
35%
HR tickets reduction in Year 1
“There are a lot of different tasks that we have now automated and that freed up time from the HR team.”
People system partner, pharmaceutical
HR Efficiency Improvements
Ref.
Metric
Source
Year 1
Year 2
Year 3
C1
Tickets before using Sage People
Interviews
15,600
15,600
15,600
C2
Ticket reduction with Sage People
Interviews
35%
37%
39%
C3
Tickets with Sage People
C1*(1-C2)
10,140
9,867
9,580
C4
Average time per ticket (minutes)
Interviews
20
20
20
C5
Time savings (hours)
C4*(C1-C3)/60
1,820
1,911
2,007
C6
Average hourly salary for an FTE
Composite
£24
£24
£24
C7
Productivity recapture rate
TEI methodology
90%
90%
90%
Ct
HR efficiency improvements (rounded)
C5*C6*C7
£39,336
£41,302
£43,368
Risk adjustment
↓5%
Ctr
HR efficiency improvements (risk-adjusted)
£37,369
£39,237
£41,199
Three-year total: £117,805
Three-year present value: £97,353
Performance Review Time Savings
Evidence and data. Interviewees said that prior to using Sage People, their organizations either lacked formal performance review processes or relied on disparate systems and manual files that required significant effort from managers to locate the right information. They explained that Sage People centralizes employee data, standardizes review workflows, and provides structure scorecards and competency frameworks. As a result, managers spend less time preparing review and more time engaging in meaningful performance discussions with their teams.
The CPO at a manufacturing firm noted, “Managers now have a proper performance manager solution where there are insights.” They added that Sage People “helps track objectives and ensures integrity in the scores they are giving, which, in turn, strengthens leadership interactions.”
The head of people at a recruiting firm described the shift from having “no proper performance review before” to having a fully embedded process using Sage People’s competency framework. They said: “Managers now do performance reviews regularly. … It gives us the data on employee performance and behaviors, and it gives us a score.” They further explained that managers gained visibility into performance patterns across the business — going from a single metric to four to five metrics that help identify intervention areas and respond to performance issues rapidly.
Overall, interviewees reported that Sage People’s centralized and structured performance management environment significantly reduced the time managers spend searching for information, preparing evaluations, and following up manually.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
The composite organization’s managers perform two reviews per employee annually.
The composite organization has 150 managers who perform performance reviews.
The average time saved per review is 30 minutes.
The average fully burdened hourly salary for a manager is £41.
Risks. Risks that could impact the realization of this benefit include:
The number of managers at the organization who conduct performance reviews.
The number of performance reviews per employee.
The average salaries for the organization’s managers.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of £73,000.
850 hours
Annual time saved on performance reviews
“Sage People has helped improve visibility of high-performing individuals across our organization and [also helps us] track lower-performance employees and develop them.”
CPO, manufacturing
Performance Review Time Savings
Ref.
Metric
Source
Year 1
Year 2
Year 3
D1
Time saved per review per employee (hours)
Composite
0.5
0.5
0.5
D2
Reviews per employee
Composite
2
2
2
D3
Managers
Composite
150
150
150
D4
Average fully burdened hourly salary for a manager
Composite
£40.5
£40.5
£40.5
D5
Direct reports
Composite
850
850
850
D6
Reviews conducted by managers
D2*D5
1,700
1,700
1,700
D7
Total time saved on performance reviews (hours)
D6*D1
850
850
850
Dt
Performance review time savings
D7*D4
£34,425
£34,425
£34,425
Risk adjustment
↓15%
Dtr
Performance review time savings (risk-adjusted)
£29,261
£29,261
£29,261
Three-year total: £87,784
Three-year present value: £72,768
Legacy Systems Cost Savings
Evidence and data. Interviewees mentioned that prior to using Sage People, their organizations relied on a mix of legacy HR tools, standalone solutions, and manual integrations that generated licensing costs and required dedicated developer resources to maintain. But they explained with Sage People, their organizations were able to consolidate these disparate systems into a single cloud-based platform, eliminating multiple legacy tools and reducing associated operating costs.
The lead systems analyst at a media firm described their organization’s prior environment: “Before, we had several standalone tools, but none of them was integrated. … Each came with separate license costs and required dedicated support.”
The CPO at a manufacturing company also noted cost savings associated with payroll consolidation, explaining that their organization benefited from no longer maintaining a separate payroll system because Sage People includes these capabilities.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
The composite organization’s annual cost of legacy systems was £90,000 annually.
Two developers were fully dedicated to the previous systems.
The fully burdened annual salary for a developer is £70,000.
The composite has an 80% productivity recapture rate, which means 80% of the time saved through efficiency improvements is used for productive work.
Risks. Risks that could impact the realization of this benefit include:
The number of legacy systems the organization replaces with Sage People.
The annual cost of legacy systems.
The number of developers dedicated to prior solutions.
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of £402,000.
“Having the ability to self-serve in a world where people want things on demand is really important. So, [it’s important] for the people to be able to access the system with ease and access their information. Sage People makes it really easy for them.”
Head of people, recruiting
Legacy Systems Cost Savings
Ref.
Metric
Source
Year 1
Year 2
Year 3
E1
Cost of previous system
Composite
£90,000
£90,000
£90,000
E2
Developers dedicated to previous solution
Interviews
2
2
2
E3
Average hourly salary for an FTE
Composite
£70,000
£70,000
£70,000
E4
Productivity recapture
TEI methodology
80%
80%
80%
Et
Legacy systems cost savings
E1+(E2*E3*E4)
£202,000
£202,000
£202,000
Risk adjustment
↓20%
Etr
Legacy systems cost savings (risk-adjusted)
£161,600
£161,600
£161,600
Three-year total: £484,800
Three-year present value: £401,875
Unquantified Benefits
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
Improved workforce visibility and strategic decision-making. Interviewees noted that Sage People provided their organizations with a level of insight and visibility into workforce data that was previously not available due to their fragmented and manual environments. They said that after the deployment of Sage People, their companies improved their ability to monitor organizational trends, identify issues early, and make more informed decisions based on accurate and real-time data. The CPO at a manufacturing firm said: “The people dashboard view is distributed to our executive team regularly. It provides an overview of the organization and how it’s structured by profile. It also provides information on employee engagement. It’s a rich platform of insights to the company that drives thinking and decision-making.”
Enhanced HR process transparency and accuracy. Interviewees reported that Sage People significantly improved the transparency, consistency, and accuracy of people data across their organizations. By centralizing employee information in one system, Sage People provided their organizations with real-time, reliable data. The people system partner at a pharmaceutical company said: “The data is more accurate with Sage People because of the overall approval process in place. … Managers can look back at the changes that took place previously. So they now have a view on the history, which helps them in their decisions.” The same interviewee also noted: “As soon as changes take place and are effective, they are visible to the employee right away. This is an important improvement for employees to get real-time accurate information on their data.”
“We’ve gone from having no data analysis to having sophisticated data outcomes that are presented to the board, informing decisions on our people workforce.”
Head of people, recruiting
Retained high-quality talent through tightening talent performance management. Interviewees said Sage People improved visibility into high and low performers, strengthened the integrity of performance scoring, and enabled earlier and targeted intervention that improved overall workforce outcomes. Some interviewees also reported improved recruitment quality. The head of people at a recruiting firm said: “With Sage People, we have real-time data coming through from the system around both performance and behavior. … We’re able to respond to performance issues in no time.” They also added: “Having this data helped us having interventions early on, which then helped increase our performance target turnaround from 20% to 50%.” The CPO at a manufacturing company described the impact of Sage People on candidates and retention. They said: “With Sage People’s [recruiting capabilities], we have good quality candidates and no difficulty recruiting. … With the data collected through the platform, we’re retaining the right people.”
Improved employee and manager experience and engagement. Interviewees said Sage People improved both the employee and manager experience across their organizations. Prior to using Sage People, employees had access to disconnected tools, limited visibility, and lack of intuitive interfaces. With Sage People, they gained self-service access to their information, while managers benefited from visibility into their teams and streamlined workflows that replaced previous manual steps. The lead systems analyst at a media firm emphasized the contrast with their organization’s prior environment, “Sage People is more intuitive from a user experience perspective — much more than our previous systems.” They added that Sage People consolidates information and reduces frictions for users: “It’s a one-stop shop where we can find all employee data from work details to rewards information. Everything is contained within this one system, and employees no longer have to look through different places.” Interviewees also said Sage People’s configurability and branded experience contribute to a more engaging and modern platform for employees. The lead systems analyst in media explained: “The look and feel of Sage People is very important. It’s more engaging for employees and managers. We can brand the platform with our own corporate colors, which helps make the platform more engaging.”
“Sage People has made us a far more transparent business in terms of who we are, who’s in our business, and what’s the cost. If we were to acquire another company, I’d hope to have the same values available.”
CPO, manufacturing
Reduced errors and improved HR process reliability. Interviewees noted that Sage People reduced the risk of human error and improved the reliability of HR processes. Prior manual steps and spreadsheets created inconsistencies in employee data and introduced risk for errors. But they explained that with Sage People, approvals, workflows, and data updates are automated and controlled within a single platform, ensuring that changes follow the correct flows and remain transparent, trackable, and compliance. The people system partner at a pharmaceutical company mentioned, “With automation, we know that the risk of errors is reduced.” They further explained that Sage People’s sandbox environment adds an additional safeguard by allowing the HR team to test changes safely. The CPO at a manufacturing firm highlighted how Sage People has strengthened reliability and governance across HR processes. They explained that the platform enforces proper authorization steps before new hires move from candidate status into active employment, ensuring that payroll actions cannot occur without the required approvals. They said: “Sage People helps with our internal rules and processes. Nobody is recruited until they are activated as an employee in the system, and nobody is placed on a payroll unless they’ve gone through the proper authorization process.”
Enhanced employer brand and talent attraction. The CPO at a manufacturing firm described improved brand awareness and candidate quality driven by Sage People’s recruitment capability, integrations, and branded candidate journey: “Sage People helps us promote awareness of our brand. We can have direct applications through our website, which is connected to the platform. It’s also connected to our company’s social media pages, so it’s improved our visibility on there. We now have people writing to us wanting to seek opportunities, which never happened before.”
Strengthened security and compliance. Interviewees reported that Sage People’s secure architecture, access controls, and authorization processes improved their organization’s security posture and supported compliance with data protection requirements. The lead system analyst in media said: “The underlying architecture is very secure. We had a cyberattack a few years ago with thousands of applications coming through the recruiting portal, but they never infiltrated. That really reassured us from the security aspects. … We’re able to encrypt certain data in the platform we weren’t able to do before.” The CPO at a manufacturing company said: “An important aspect is on the protection of data. Being cloud-based, it complies with all legislative requirements. It has restricted access, so we know the data is safe and secure.”
“Our line managers didn’t have the ability to service their direct reports because they couldn’t see details about them. Now they’ve got a wealth of information about their teams and reports they can run. It’s allowed managers to take control of their teams without having to reach out to HR.”
Lead systems analyst, media
Flexibility
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Sage People and later realize additional uses and business opportunities, including:
Configurability and scalability by internal HR teams. Interviewees highlighted having the ability to configure Sage People flows and fields without custom code, which enables faster adjustments for evolving needs or when organizational changes are introduced. The lead system analyst at a media firm noted: “From a configuration perspective, it’s highly configurable and there is no coding needed. We can have different kind of automations, visuals, and graphics implemented in the platform.” The people system partner at a pharmaceutical firm described how Sage People’s sandbox environment helps with the configuration of the platform. They said, “The Sandbox helps minimizing errors with flows and testing some configurations before going in production.”
Integration capabilities. Interviewees mentioned that Sage People integrated with other platforms they were using, enabling flow of information across platforms. The lead systems analyst at a media firm said: “We have several integration with other systems. … For instance, we linked Sage People to our intranet, which allows users to see only content relevant to their job family. It’s giving us the ability to pinpoint information we want certain communities of employees to see.”
Multicountry deployment. Interviewees from organizations operating across regions or planning expansion highlighted the value of Sage People’s ability to localize processes and user experiences. The people system partner in pharmaceuticals said: “Sage People is so scalable that it was easy to tailor it to different countries’ specific needs. … We are planning to implement translations and customize the experience for each country for a more personalized experience.”
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Total Economic Impact Approach).
“The main benefit of Sage People is how customizable it is, and how easily we can make changes and adapt the platform to our needs.”
People system partner, pharmaceutical
Analysis Of Costs
Quantified cost data as applied to the composite
Total Costs
Ref.
Cost
Initial
Year 1
Year 2
Year 3
Total
Present Value
Ftr
Deployment costs
£253,000
£0
£0
£0
£253,000
£253,000
Gtr
License fee
£0
£80,000
£80,000
£80,000
£240,000
£198,948
Htr
Ongoing costs
£0
£60,500
£60,500
£60,500
£181,500
£150,455
Total costs (risk-adjusted)
£253,000
£140,500
£140,500
£140,500
£674,500
£602,403
Deployment Costs
Evidence and data. The interviewees described their organizations’ deployments costs for Sage People. They mentioned deployment periods of approximately six months that required full-time effort from four internal FTEs — a project manager, an HR lead, and developers — to configure and implement Sage People. In addition to internal labor, the interviewees said Sage charges a one-time, fixed deployment fee. They also noted that Sage provided support throughout implementation, including guidance from a technical expert and a Sage consultant who assisted with initial integration and outlined activities required of internal teams during the transition. Some interviewees also highlighted workshops focused on data preparation and migration as part of the deployment process.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
The composite’s initial deployment duration is six months.
Four FTEs are fully dedicated to the deployment of Sage People.
The fully burdened monthly salary for an FTE is £5,833.
Risks. Risks that could impact this cost include:
The complexity of the organization’s previous environment and ecosystem.
The salaries of deployment team members.
The organization’s use cases and functionalities for Sage People.
The scale and pace of deployment.
Results. To account for these risks, Forrester adjusted this cost upward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of £253,000.
“Sage consultants managed the initial integrations, but they would always keep us involved so we knew how to configure and support changes moving forward.”
Lead systems analyst, media
Deployment Costs
Ref.
Metric
Source
Initial
Year 1
Year 2
Year 3
F1
FTEs required for deployment
Interviews
4
F2
Deployment duration (months)
Interviews
6
F3
Average monthly salary for an FTE
Composite
£5,833
F4
Sage deployment fee
Interviews
£80,000
Ft
Deployment costs (rounded)
F1*F2*F3+F4
£220,000
£0
£0
£0
Risk adjustment
↑15%
Ftr
Deployment costs (risk-adjusted)
£253,000
£0
£0
£0
Three-year total: £253,000
Three-year present value: £253,000
License Fee
Evidence and data. Interviewees said their organizations pay an annual platform fee to Sage determined by the number of employees and administrators using the system. The license fee provides ongoing access to Sage People’s core platform and capabilities, regular feature updates, and platform support.
Modeling and assumptions. Based on the interviews, Forrester assumes the composite’s annual license fee is £80,000.
Risks. Risks that could impact this cost include:
The organization’s size and number of users.
The organization’s use of Sage People.
Results. To account for these risks, Forrester adjusted this cost upward by 0%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of £199,000.
License Fee
Ref.
Metric
Source
Initial
Year 1
Year 2
Year 3
G1
License fee
Interviews
£0
£80,000
£80,000
£80,000
Gt
License fee
G1
£0
£80,000
£80,000
£80,000
Risk adjustment
0%
Gtr
License fee (risk-adjusted)
£0
£80,000
£80,000
£80,000
Three-year total: £240,000
Three-year present value: £198,948
Ongoing Costs
Evidence and data. Interviewees said that after deployment, their organizations required ongoing internal effort to manage and maintain Sage People. This includes one system lead FTE responsible for day-to-day platform administration, configurations, and coordination with Sage on platform changes. Interviewees noted the need for external consultancy support for integrations or configurations that could not be completed in-house.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
One FTE is fully dedicated to managing the solution.
The fully burdened annual salary for the management FTE is £50,000.
The composite organization hires a third-party consultancy firm to perform certain configurations and integrations.
The annual fee paid to the consultancy firm is £5,000.
Risks. Risks that could impact this cost include:
The number of FTEs dedicated to managing the platform.
The salaries for FTEs managing the platform.
The number of configurations and integrations performed by any third-party consultancy firms.
Consultancy fees.
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of £150,000.
Ongoing Costs
Ref.
Metric
Source
Initial
Year 1
Year 2
Year 3
H1
Management FTEs
Interviews
0
1
1
1
H2
Salary for a management FTE
Interviews
£0
£50,000
£50,000
£50,000
H3
External consultancy fee
Interviews
£0
£5,000
£5,000
£5,000
Ht
Ongoing costs
H1*H2+H3
£0
£55,000
£55,000
£55,000
Risk adjustment
↑10%
Htr
Ongoing costs (risk-adjusted)
£0
£60,500
£60,500
£60,500
Three-year total: £181,500
Three-year present value: £150,455
Financial Summary
Consolidated Three-Year, Risk-Adjusted Metrics
Cash Flow Chart (Risk-Adjusted)
[CHART DIV CONTAINER]
Total costsTotal benefitsCumulative net benefitsInitialYear 1Year 2Year 3
Cash Flow Analysis (Risk-Adjusted)
Initial
Year 1
Year 2
Year 3
Total
Present Value
Total costs
(£253,000)
(£140,500)
(£140,500)
(£140,500)
(£674,500)
(£602,403)
Total benefits
£0
£615,870
£608,289
£603,500
£1,827,659
£1,516,018
Net benefits
£-253,000
£475,370
£467,789
£463,000
£1,153,159
£913,615
ROI
152%
Payback
7.0 months
Please Note
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Sage People.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that Sage People can have on an organization.
Due Diligence
Interviewed Sage stakeholders and Forrester analysts to gather data relative to Sage People.
Interviews
Interviewed four decision-makers at organizations using Sage People to obtain data about costs, benefits, and risks.
Composite Organization
Designed a composite organization based on characteristics of the interviewees’ organizations.
Financial Model Framework
Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
Case Study
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Total Economic Impact Approach
Benefits
Benefits represent the value the solution delivers to the business. The TEI methodology places equal weight on the measure of benefits and costs, allowing for a full examination of the solution’s effect on the entire organization.
Costs
Costs comprise all expenses necessary to deliver the proposed value, or benefits, of the solution. The methodology captures implementation and ongoing costs associated with the solution.
Flexibility
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. The ability to capture that benefit has a PV that can be estimated.
Risks
Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
Financial Terminology
Present value (PV)
The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PVs of costs and benefits feed into the total NPV of cash flows.
Net present value (NPV)
The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made unless other projects have higher NPVs.
Return on investment (ROI)
A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs.
Discount rate
The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%.
Payback
The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.
Appendix A
Total Economic Impact
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
Appendix B
1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
This study is commissioned by Sage and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in Sage People.
Sage reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
Sage provided the customer names for the interviews but did not participate in the interviews.