With human capital management (HCM) a top-of-mind issue for executives in every industry, human resources (HR) organizations are poised to have their day in the sun?proving not just their administrative worth but their strategic value as well.
To make good on that promise, however, HR must modernize. Indeed, if HR is to act as an agent of change?providing the swift reallocation of employees and the rapid absorption of employee data required for enterprises to shift course on a dime?it must first deal with the disruptive change at its own front door. And increasingly, that means choosing the right technology and human resources management system (HRMS) for managing the entire employee lifecycle.
Unfortunately, for most organizations, this task has proved easier said than done. This is because while much has been written about advances in HRMS technology, until recently, most of those advances took the form of disparate on-premises solutions designed to serve very specific purposes. Although this may have resulted in key competencies in certain areas, it also meant that processes for core HR functions like payroll and benefits were being carried out in separate systems from those used for talent management, workforce optimization, training, and so on. With no integration?and no single system of record?processes were disconnected, ease of use was impeded, user experience was diminished, and vital data was left untapped.
Today, however, that scenario has begun to change, and end-to-end cloud-based HCM solutions have moved from wished-for innovations to real-life solutions. Why, then, have HR organizations been so slow in adopting them? The answer?it would seem?is, ?It's complicated.? So complicated, in fact, that 45 percent of the respondents to PwC's ?Annual HR Technology Survey? (for 2013) reported having no formal HR software roadmap, and 40 percent stated that they ?did not know? whether their organizations would be increasing their use of cloud or software as a service (SaaS) for HR.
Clearly, HR organizations need help sorting through the morass of HR software options confronting them. But just as clearly, there's an enormous opportunity awaiting those that do. The trick will come in charting a course that allows HR to leverage existing technology while investing in the cloud-based solutions that will deliver the end-to-end processes, easy-to-understand analytics, and superior adaptability required to simplify?and add value to?every aspect of employee management.
The Opportunity therefore is to cut costs, drive Innovation, and increase engagement by moving to cloud-based HCM. Then you will benefit from one Interface, leverage many access points, and gain at-a-glance insight across your entire workforce.
With many legacy on-premises HR systems not being efficient anymore and cloud-based, integrated systems that span the range of HR functions finally reaching maturity, the time is ripe for moving core HR to the cloud. Indeed, for the first time ever there are more HRMS replacement initiatives than HRMS upgrade initiatives under way, and the majority of them involve moving to the cloud per Cedar Crestone's 2013-2014 HRMS survey.
Anke Mogannam brings more than 16 years of marketing and human capital management experience in the technology industries to her role at Oracle where she is part of the Human Capital Management applications marketing team. In that role, Anke drives content marketing, messaging, go-to-market activities, integrated marketing campaigns, and field enablement.
Prior to joining Oracle, Anke held several roles in communications, marketing, HCM product strategy and product management at PeopleSoft, SAP, Workday and Saba. Follow her on Twitter @amogannam