8 money-saving benefits of cloud HCM solutions
- Summary:
- More efficiency, less IT spending and improved talent management -- enterprises find their savings quickly mount up when they deploy cloud HCM solutions
Corporate financial statements are actually seeing the results of decreased pressures on IT, increased efficiencies, better employee selection, and labor-saving self-service opportunities, among other benefits.
The top 8 benefits companies are realizing from cloud HCM solutions are:
- Greater employee engagement and satisfaction. Cloud solutions provide secure access to various administrative tasks through an HR system’s self-service employee access portals. Users can access their personal HR data through mobile or desktop devices from virtually any location to view or revise their employee records, health benefit information, vacation requests, payroll, 401K withholdings, and so on. Being able to do all this — without outside assistance — improves their engagement and job satisfaction.
- Increased independence from on-site networks and devices. HCM in the cloud meets business needs without being limited to a physical/virtual network at the base office. Since HR seldom has dedicated IT resources, cloud systems provide an alternative means to have complete HCM functionality without needing on-site expertise for help with monitoring, maintenance, and repair.
- Automatic upgrades. Cloud-based software is updated as improvements are made, completely independent of the scheduled, labor-intensive internal upgrade strategies for systems managed at the corporate IT level.
- Transformation to strategic workforce analytics. In much the same way that Google Analytics helps monitor website traffic, HCM cloud solutions lend themselves to data gathering processes to better analyze, adjust to, and manage strategic business operations. For instance, cloud-based hiring solutions can take advantage of Big Data analytics and assessment results to identify the optimum candidates for hire, plus examine the potential career path and development opportunities of those candidates. This approach is called talent science.
- Highly-developed measures for securing sensitive HR data. Keeping data secure is one of the toughest challenges HR faces. The cloud addresses that seamlessly. Cloud-based HCM providers maintain the highest levels of data security, much more stringent than traditional corporations can match with an internal workforce stretched thin by many other wide-ranging responsibilities. Cloud vendors are the de facto experts at data security and would quickly be abandoned if data was not under constant analysis to make it immune to the latest viruses and made as hack proof as possible.
- Built-in integration with other solutions. Leading cloud vendors already have multiple HCM partners with whom they integrate their resources to share data as needed, maximizing an organization’s IT investment across various tools that were implemented at different times. Because cloud vendors already have these integrations in place, individual organizations don’t have to bear the burden of building custom connectors.
- Global support. With cloud-based HCM, simple-to-use, automated support is a reality and is independent of time zones or corporate office operating hours. Wherever you are, and whenever you need help, it’s available.
- Tools to simplify the HR function. Often, HR teams must be trained and/or certified on multiple software tools to be effective in all aspects of the job. Now, through a single plug-and-play solution that encompasses most, if not all, of those HR day-to-day tasks of workforce management, the learning curve is shorter and less confusing.
These are a few of the perks of cloud-based software solutions, especially in the HCM space. When these savings and efficiencies are spread over a large enterprise and tens of thousands of employees, the dollars saved per employee quickly mount to substantial sums.
For example, Hertz realized a 450% return on investment by its use of Infor talent science to reduce staff turnover rates by as much as a third to a half in some roles. The company estimated a savings of roughly 7 million dollars in lowered turnover costs over a two-year period. Hertz talks about their success in this MP4 video.
Watch the video below to learn more from the author about cloud-based HCM solutions.
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