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Due to rapid expansion planned for the next few years, the HR manager at Ferries R Us, decided to invest in an automated resume tracking system. Currently, the company employs three full-time temporary clerical specialists to log applications and resumes, create files, and route the applicant files to the appropriate managers. These three temporaries cost $124,800 per year. The new system scans resumes to create an electronic record of the application or resume, places the file in a folder associated with each job, and allows managers to electronically view all the applications or resumes for the jobs which they are hiring. The cost of the add-on to the current HRIS is $80,000. Once the system is in place, the company will employee one full-time clerk to open and scan the documents and place the documents in a dated file for backup. The full-time clerk will be a company employee with annual pay and benefits of approximately $40,000. What is the ROI for the first year for the resume tracking system? What is the ROI for three years? What other expenses might be reduced by this system that could be included in the calculation for ROI? Show all calculations.
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