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The vast majority of HR teams today use resources ranging from simple Excel spreadsheets to complex tools developed by internal teams to manage the wide span of HR activity across the business. Often, the management of these tools is entrusted to an internal team or contracted out to a third party.
With all these helpful resources available to them, it’s understandable that some HR teams wonder what incentive they have to make the shift to the cloud.
To appreciate the value of cloud HR technology, it’s worth examining a parallel we can all relate to: the relationship between an individual and their banker.
Imagine for a moment that rather than having my paycheck deposited in my bank account each month, I could instead ask my employer to pay me in cash directly In order to manage this money, I would need a secure place to store it in my home, which would require me to invest in safe and an alarm system. As I’m not a security expert, I would have to ask my landlord to choose the best alarm model for me
Security aside, I would also have to dedicate much more time to managing my budget as I wouldn’t have my bank to keep track of my transactions and account activity. I’d also have to make many more trips to the post office as I’d be doing my taxes and paying bills in person.
Despite being autonomous and knowing my money is safe, I would have much less time for activities that are of more interest to me, like reading a book or seeing friends.
Convenience and peace of mind are incredibly important to me, which is why I prefer to entrust their money to a Bank. Moreover, bankers are experts in their field and can help me keep my finances in order with minimal risk and a relatively small time investment.
Turning back to HR and the cloud now, HR teams can choose to manage their own activities and tools, and perhaps turn to the company’s IT experts for guidance where their technical expertise is limited. Of course, just like I would have to invest in a security system to protect my money at home HR teams will need to incur the cost of maintaining heavy technologies like hardware servers.
With the cloud, HR directors have gained access to effective (and often better) management systems at lower cost and can rest assured they are working with the latest innovations to their HR applications. The time and money they save from not having to manage their IT resources will in turn allow HR to focus on delivering more proactive, flexible services to the business.
With predictive HR tools optimized in the cloud the business as a whole will find itself in a position to become more productive. A study by Deloitte found that companies who invest in analytical and predictive HR management technologies outperform their competitors in terms of the quality of recruitment, skills and retention rates. They also fare better when it comes to brand management.
The cloud is becoming the new norm for modern businesses and as a result internal procedures are becoming more streamlined. The time has now come for HR to position itself as a driver behind this cost optimization and in the rationalization of business processes, a goal it is ideally placed to achieve with the cloud.