Human Resource is essentially the backbone of every organization. Its main responsibility is to provide and maintain the workforce of an organization. However, HR is the also one of the most neglected units of the organization. In fact, in a survey of over 2,000 CEOs conducted by Russell Reynolds in their publication Digital Pulse 2015, 80% of the correspondents said that “HR is the function least able to help businesses transform.” Management normally sees HR as cost center and does not necessarily bring in revenue. While it is partly true, it is undeniable that this unit still needs management attention especially now that the business landscape and the workforce dynamics are changing.
So how does one streamline these costs while still improving on performance and efficiency? Maybe the answer is in the cloud. As Workforce Guardian, Australia’s leading HR and employment relations service for employers, mentioned, if used correctly, digital tools can help organizations save time and money on HR functions.
According to Bersin by Deloittle’s research findings, most companies use on-premise legacy technology for their HR systems that averages about 6.5 to 7 years old. However, this phenomenon changed as nearly 60% of organizations already made the move to implement new HR or talent management systems that is based on the cloud. This demand for HR technology systems is led by the top three specialists in core HR technology – Oracle, SAP and Workday. In addition to these three giants, a large number of startup companies specializing in HR technology have sprung up to address this market need.
Among the solutions these HR technology companies are offering include:
- Talent management – aims to simplify recruiting, training, learning, staff appraisals and collaboration
- Talent analytics – aims to predict which job candidates or employees are fit for a specific task
- Talent retention – aims to predict when talented staff are likely to leave, thus giving companies the opportunity to intervene to retain them
HR Cloud Technology Benefits
So what exactly are the benefits that companies can expect if and when they move from their legacy technology to the new HR management systems?
Fast access to innovation
- Unlike legacy technology that uses on-premises software, cloud technology allows companies to provide software release updates to HR departments and employees company-wide automatically, on a regular basis throughout the year.
Simple user experience
- HR technology that runs on cloud software offers a user-friendly design that requires little training programs. HR technology companies can now deploy this software directly to HR people rather than through the IT department because of the simplicity of the design.
- Because the technology is in the cloud, there will be no need to buy hardware (i.e., database servers), software licenses and other related stuff. And without the hardware, companies will not carry the burden of additional power consumption to keep the machine running.
- With lesser hardware to manage, there will be lesser IT support needed. If there’s a problem, companies can just call for support – which can be free or for a minimal fee depending on the contract.
- Cloud computing costs normally includes subscription fee and a one-time implementation, customization and training costs.
Easier scalability and more flexibility options
- Cloud technology offers the mobility option for users. Employees have the option to access the work through cloud wherever they are and in whatever device they have.
- Cloud technology is also faster to deploy to meet use needs, offers the option of setting up or changing user access levels.
- Most HR companies offer cloud technology on a subscription basis making it is easier to for companies to manage payment-wise; companies do not need to shell out huge amount of capital to switch.
Why join the switch?
Most of the organizations that are not still using the cloud-based HR offerings of tech giants are held back by their resistance to change, fear of the unknown or the aversion to spend to protect current investments. While all of those concerns are valid, the biggest risk that these companies are facing is actually the possibility of missing out on the innovation cloud technology offers to HR and the entire organization. Being HR as the backbone of organizations, switching to cloud-based HR can help improve the overall health of the firm. It can help propel them to the future – the future that is more innovative, more user-friendly, and more cost efficient.
About HR Technology Congress Asia 2016
HR Technology Congress Asia 2016 (20-21 Oct 2016, Bali) helps companies to lead, engage and reinvent human capital towards sustainable growth and profitability by reducing uncertainties from global mega-trends and ensuring you build competitive advantages as quickly as the world turns.
Magnify value through industry benchmarking, relationships and partnerships in overcoming hesitations to upgrade systems and update people processes. Email hrtech(at)arcmediaglobal(dot)com to register! Quote AMOS10 to benefit from 10% discount!