HR has evolved significantly over the years, from its early days as “Labor and Industrial Relations,” to today’s “Organizational Capability” function. Data and information needs have also evolved. Tools to support these needs have thus moved from employees as end users, to employee-centric tools, increasing engagement and productivity. In addition to being easy-to-use and accessible anytime, there are several benefits that HR departments are seeing when they move HR to the Cloud.
1. Lower Total Cost of Ownership (TCO)
Cloud technology is less of a capital expenditure since there is no need for hardware or an infrastructure to support it. Organizations no longer need to own the IT solutions since the cloud provides a subscription-based service that is typically charged per user. There is no longer the need to purchase hardware that must be maintained by IT. Costly upgrades and deployments are eliminated. Systems can always be current, with new functionality released on a quarterly basis.
2. Flexibility and Scalability
Unlike traditional ERP implementations, cloud implementations enable organizations to focus on their key pain points and alleviate them immediately. If recruiting is a key area of focus, start there. Increase or decrease the amount of functionality you need, when you need it. Don’t pay for more than what you need. In the past, IT had to maintain a system and configuration. When you move HR to the cloud, it really is easy for your HR admins to handle the day-to-day administration of the system.
Cloud technology empowers your workforce to complete their tasks from several locations and devices. Access to HCM applications via mobile devices advances the shift from HR-centric processes, to employee-centric processes. Tasks that used to require significant paperwork, or access to a central database, such as accessing and changing personal information and requesting time off, can now be done easily “on the fly” from anywhere. Cloud tools that support employee-owned activities, such as career development planning and training, further increase employee connection and engagement.
4. Better Analytics and Reporting
Cloud HCM systems can offer a unique ability to provide real-time, dynamic reporting. Talent Management decisions can be made based on live data, rather than data that may have previously taken days, or even weeks, to consolidate. Not only can more real-time decisions be made based on current data, but the ability to see and analyze this data can feed the much more critical predictive analytics craved by organizations. This allows you to see more insightful workforce analytics related to employee health, performance, and potential.
5. Seamless Integration
Talent management systems have historically been siloed, focused on supporting individual HR processes. HR Executives are increasingly demanding systems that seamlessly integrate, providing bigger-picture information needed to provide strategic insights to the organization. Even more important is the demand by employees to have a more integrated view of all of their dynamic information and development needs. Cloud technologies provide the ability to continually add new applications, functionality, and extensions without disruption to existing processes.