HR organizations deal with massive amount of talent data and financial data which must be accurate, efficient, and compliant with all regulations imposed on it at the local, national and international levels. Businesses thrive if and only if they get the most out of their HR data and leverage that to attract, recruit and develop talents and maybe more important than all, retain and motivate the talents to be high performers.
Tying the compensation with performance requires solutions and tools that track, analyze, and manage team compensation, salary and benefits in the most effective way without adding a huge load of work to the busy schedule of the line of business managers or human resources professionals.
We all can agree, with a high level of certainty, to the fact that a technology that supports payroll, compensation, benefits, time management and performance management in one platform and adheres to the latest compliance and regulatory requirements, can’t be limited to the boundaries of the on-premise world.
Businesses need to move all HR and finance applications to the cloud to benefit from all capabilities with the lowest maintenance and effort to control and update the systems. According to Deloitte, “using the cloud, organizations can see structural benefits that lie beyond technology advantages and makes it possible to connect various HR initiatives and technology across the enterprise, so that design, portals, and the nature of service delivery itself are consistent and appropriate.”
A cloud workforce rewards solution can bring many direct and indirect benefits to any organization. Here are ten benefits in moving your workforce to the cloud:
A unified compensation and performance management solution helps to focus on performance improvement, recognize the high performers and reward them based on their achievements on the spot. In this way, companies can reduce attrition and increase the employee satisfaction as well as access to better business performance across the board. This can’t be achieved with fragmented technologies and multiple pieces of applications that don’t talk to each other. Moreover, AI and machine learning can take this factor to the next level by predicting high performing employees, salary trends, potential risk of attrition and flight risk to help businesses to stay on top of competition by focusing on their most valuable resource, talents.
Integration shouldn’t be a boundary. Having payroll, compensation, workforce management and performance management as parts of one unified system ensures organizations that HR data format is consistent with compensation and payroll formats and styles, so system admins won't need to deal with every single entity and manage information in small portions.
By selecting the right vendor in the cloud, the sensitive HR data and financial data become secure and safe. A reliable technology enables IT departments to focus on business impacts and support the lines of business.
Embracing cloud technologies empowers businesses to load and store all data from disparate sources in one single place, data warehouse or data lake. In this way, organizations can track the changes, extract more impactful insights and provide access to richer data for analytics across the board. I have seen among multiple HR customers, how having a single source of truth takes the reporting to the next level and helps all managers to generate trustworthy and credible reports in real-time with the best available information.
Businesses can use the database and data warehouses that are precisely the right size for their current need and be able to expand them in future as the business requirements change, they expand their geographical presence, hire more, or acquire new companies.
Moving to the cloud provides an opportunity to transform business processes if it’s seen as a holistic move that covers all aspects of the business and focuses on the way the work can be done efficiently.
Monitoring the processes to ensure compliance needs intelligent solutions that can detect any anomaly and enable all workers to perform in the right direction, aligned with the business objectives. The goals should be defined concerning all regulations and proper risk management practices should be acknowledged and rewarded.
Great user experience starts with attractive user interfaces and includes all processes across the entire enterprise. Users need to be able to learn how to use a system intuitively and once they learn a process, they should be able to apply the same knowledge across all applications and tools; here is where the consistency plays a vital role. To keep systems usable, with simplified interfaces and streamlines processes, organizations need to make sure they are continuously improving the experience and upgrade the solutions with the latest and greatest trends and technologies.
HR departments need to reduce their dependency on IT departments. Lower dependency frees time of IT to focus on critical problems and helps HR to deliver their services without interruption with instruments that they really need.
In the end, any investment should have a positive return of investment (ROI). Based on a research by PWC, 44% of organizations see the lower cost of ownership as the top motivation to use cloud for HR processes. Reducing the total cost of ownership (TCO) by removing the hardware costs and labor costs of on-premise scenario can be a significant step to have higher ROI.
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