The HR in Cloud: Major Challenges for Organizations Unfurled

By Published September 8, 2017
HR Recruitment Software

Cloud computing is the new buzzword in the world of human resource management. The global marketplace in human resources has been busy embracing.

Cloud computing is a pool of abstract, extremely scalable, and managed HR recruitment software that is proficient in hosting customer applications as well as consumption. This computing model has been observed as a key factor for gaining competitive advantage as well as sustainability in a globalized marketplace.

Further, human resource managers are also using cloud computing technologies for their day-to-day operations, like tracking applications, searching resumes, creating mobile human capital, enhancing flexibility, monitoring performance, quick decision-making, and others.

However, on the flip side, some of the challenges that arise while reaping the benefits of cloud computing are the security issue, privacy issue, misuse of data, and data loss. Implementation of sufficient approval, validation, observing, applying filters, and others could help in dealing with the challenges of cloud computing, and accomplish long-run sustainability in global market place for human resource management. An active collaboration of cloud computing model and human resources will help in enhancing the performance, intellectual capital, and innovativeness of an organization.

So, what are the challenges that a possible cloud HR recruitment software or implementation of cloud can have for an organization? Let’s take a look.

HR Recruitment Software

#1. Scope and understanding of the cloud technology

The cloud technology in HR and recruitment software is comparatively new. Therefore, before moving towards it and completely embracing cloud recruitment HR software, the organization will need to gather enough information about the technology and analyze whether the technology will be able to work for their business and bring in any form of benefits. Employees will also have to be trained regarding the proper functioning of this technology, and of course, certain measures are to be taken in case of any emergency. And, for this, the firm will have to spend valuable time and decision-making that can end up having an adverse impact on employees and the organization as a whole. Moreover, some employees may have a negative approach towards a sudden change in the way the firm functions. This may result in reduced productivity and poor morale and might lead to conflicts between the employers and the employees.

#2. Confidentiality and issues related to security

When it comes to HR recruitment software, most companies opt for a public cloud instead of a private as the former is more cost-effective. However, data and information stored in the public domain are readily available to hackers across the globe. There is a high risk of data being misused and can bring down even some of the biggest MNCs to the ground. Sometimes even in private cloud solutions, the company needs to put in place certain mechanisms for the concealment of data to any third party ensuring better security.

#3. Increased dependency on the third party

When an organization deals with a cloud service provider, they share a lot of valuable data and information with the third party and gradually end up being heavily dependent on the same. This often land up the organization on the verge of being exploited. Moreover, since most public service providers are based out of a remote location, chances that a user will not be able to delete any data from a cloud are typically high. Often due to situations like cloud vendor lock-in or others, the user may not even be able to access their stored data and information if vendor encounters any problem.

#4. Not always all encompassing

Different cloud vendors provide several different sets of solutions regarding HR recruitment software. These sets may not always be able to perform all the assigned functions that an employee wishes to present with them. For example, a company may implement a particular HR cloud package in their firm that encompasses recruitment, selection, payroll and even data management.

However, the software does not touch upon the aspect of learning, training, and development, thus leaving the firm in search of a second HR cloud package that can eventually fulfill the need. This, in turn, does not only increase the expenses bore by the organization, but also leads to a wastage of time and even valuable resources.

Cloud computing is an essential part of disruptive technologies that are rooting deep in the domain of HR recruitment software and is fast catching up globally. This innovation has been tremendously fruitful for HR. Right from decision-making, talent management, succession planning to complete payroll systems and compensation management.

The market for cloud solutions in HR has grown exponentially over time, and MNCs like Oracle, IBM, Microsoft, SAP, and Amazon hold a significant share in this developing market. While the benefits of this new aspect of HR recruitment software are ample and holds an enormous potential for the future, certain challenges cannot be overlooked.

A lot of aspects of the cloud computing technology need to be worked upon, and many others issues need to be solved before this innovation finds a strong foothold in the market. Despite its flaws, this new technology has successfully captured the human resource market like a raging fire and is of course here to stay in the forthcoming years.

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  • Swati Chaturvedi

    Great article…. Good insights..