In direct estimation used for HRIS benefits, which type of benefit is estimated?

• A. Legal requirements compliance
• B. Increased productivity
• C. Customer satisfaction
• D. Innovation value

Answer: (A)

Direct estimation focuses on benefits that can be measured in monetary terms right away, typically those that directly reduce or avoid costs due to the HRIS. Legal requirements compliance fits this, because implementing the HRIS helps avoid penalties, fines, audits, and the administrative costs of staying compliant. These savings can be quantified in dollars, making it a direct, assignable financial benefit.

In contrast, gains like increased productivity, customer satisfaction, or innovation value are broader and often rely on indirect measures or proxies. They can be real but are harder to pin down to a specific dollar amount without additional assumptions, so they’re not the typical targets of direct estimation.