It is inevitable nowadays to avoid the references to cloud technology in Human Resources. Technology advancements have unquestionably been an influence, as organizations seek a transition from traditional HR systems, and towards up to date HR technology trends.
Despite the mass migration to the cloud and speed of technology, some HR leaders and organizations are uncertain about the payoffs and implications of such critical business decision.
HR Technology implementation challenges
The real problem is not the cost, but the adoption of new technology among employees – especially baby boomers. Whether organization make a full HR-suite upgrade or introduce a robust resume parsing software or Applicant Tracking System within existing systems – There is always a doubt how successfully the employees will embrace it. Subsequently, the added expense and time for customization is another reason for concern.
It is apparent that starting the cloud adoption journey is not easy and requires a detailed execution plan. The HR leaders must begin first by evaluating existing processes and whether there is lack of efficiency. Next, the organization must decide which technology functions are needed to support employee procedures and programs and how the technology implementation will impact the workforce.
The bottom line of HR department has benefited with the increased availability of cloud technology, both for efficiency and cost.
According to Katherine Jones, a leader in Mercer’s North American Talent Business,
“there is substantial demand for cloud-based economical models of human resources information systems, which have huge implications for streamlining the HR processes, work flexibility and how Human Resources can budget for technology costs.”
Cloud Computing is a driving force behind HR Technology Trends
For the HR department, cloud computing can help to facilitate organizational transformation by increasing workforce performance and insight, simplifying day-to-day processes and developing a greater strategic advantage.
Mercer reported in its recent study that,
“Out of the 500 participants 45% had executed a new HRIS within the past five years; of those, the majority had deployed that system in the cloud, using Software-as-a-Service (SaaS) delivery model.”
Shifting from on-premise to cloud-based HCM (Human Capital Management) solution is one of the significant HR technology trends that cannot be overlooked, according to PwC.
Benefits of moving to the cloud
If planning a cloud migration and wondering it is a right decision for your organization and what the transition would be like. Take a look at following benefits and justifications for HR and business in the cloud.
1. More agility
Selecting the cloud-based HR platform brings an opportunity for an organization to develop greater flexibility and agility. Today, HR is working out of different locations and demand an easy way to access, respond and manage workforce requests. Here, cloud not only empowers the self-service and accessibility to team needs but also lessen the stress on Human Resources personnel.
2. Lower costs
The biggest cost-saving achieved through cloud migration is the elimination of on-premise software maintenance, expensive licenses, and sensitive hardware and disaster recovery scenarios. Therefore, no more expensive installments as SaaS business model are subscription based – where you only pay for what you need. It not only improve the efficiency also helps to avoid risks and costs of traditional deployments.
3. Deeper Insight
All the digitally collected information (Big Data) is useless if an organization fails to organize and apply this data in a meaningful way. Leaders of the 21st century, including both Millennials and Baby Boomers, are now relying more on evidence-based decision making, opposed to past dependence on gut feeling. Hence, presenting the organization and HR with copious opportunities.
It is not just the predictive analytics. Also, HR can leverage the talent science application in new tools to develop a more disciplined methodology to connect the dots between business results and employee data.
4. Increased innovation
With the cloud adoption organization and especially HR have a greater ability to innovate. The cloud computing and SaaS based models let enterprises adopt new tools easily and cost effectively. For instance, when software is updated with new features, cloud technologies are automatically refreshed without causing any disruption to HR processes. Moreover, it also empowers HR personnel to make real-time configurations to match dynamic organizational goals. Therefore, expensive and time consuming manual upgrades are eliminated. It implies organization can now innovate more efficiently and economically than ever before.
5. Greater security
Data Privacy is another major concern for organization regarding cloud migration. Who can blame them, when corporate security breaches are announced publicly on almost daily basis? Well, cloud computing is now at more mature stage as compared to five years back scenario. Of course, security of proprietary data is expensive, but it is also a primary job of cloud-computing vendors.
Cloud vendors provide much higher security of virtual systems and data centers than most companies can develop on their own. CareerBuilder India recently released an article on 7 Must-Ask Cloud Security Questions that can be used for better understanding on cloud-based software purchase.
Leading cloud vendors have made massive investments in the most advanced security procedures and tools available that organizations can benefit from.
It is imperative that HR must look beyond agility and cost saving when considering the cloud migration. Contemplate extended day-today benefits including, sharing insights across the organization, data security, and preventing non-compliance issues. Also, elevating HR performance by slashing the complexity.
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