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How the Cloud Is Transforming the HR Industry

June 4, 2018

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“Wash, rinse and repeat.”

That’s how Justin Watras of Brooks Brothers described the paper-based process that used to take up hours whenever they wanted to hire a new employee.

Nowadays, things are a little different.

“We went from the Dark Ages to The Cloud,” he adds.

And it’s true: cloud technology is transforming the way almost every industry in the world operates. Aside from simplifying day-to-day transactions, the paper-based process has been eliminated.

Now, all can be resolved with an email with the link to the online equivalent of the paperwork — and that’s it!

But what is the cloud and why you should care about it?

Well, as PC Mag puts it, with the cloud you can simply store and access your data and programs over the Internet instead of your computer’s hard drive.

And for which department does the cloud work best?

Human Resources. Many human resource management companies have fully embraced the cloud and its capabilities — almost 42% will replace their existing HR system with a Cloud-based solution. What benefits can the cloud offer to HR?

In short:

  • More secure data that’s quicker to access
  • The ability to search, analyse and report across all HR data, improving the credibility and timeliness of your information
  • Access to the latest versions of software – often automatically
  • Better engagement with staff through self-service portals
  • The ability to configure a solution that fits your exact needs.

In more detail, there are multiple ways in which the cloud has influenced HR – and briefly listed below are some of the most important ones.

CAPACITY

The cloud is limitless. Since the cloud has drastically reduced manual processing, all of the data is now digitally stored, can be accessed anywhere, and is updated in real-time.  Less need for storage space equals more room to hire the staff needed to provide these services. And companies who offer outsourced HR services can increase their capacity to take on more clients than ever before — thus enabling their business to grow.

CONNECTIVITY

Want to make your HR services global? Thanks to the cloud, HR companies can now serve nearly any business with access to a stable internet connection. HR companies can exchange data and reports with clients across the state, and across the world, which means that less time is spent gathering and compiling information in a readable format that can be accessed by clients whenever they need it.

CLARITY

Having a dedicated partner in managing HR can alleviate the stress and burden that an in-house HR department faces on a daily basis. An internal HR professional can struggle to keep up with the challenging compliance landscape: but the cloud allows HR companies to seamlessly interact with their clients, provide solutions and updates on compliance requirements, as well as offer a third party perspective. With all the stress gone, HR professionals can focus on improving how they tackle a problem, rather than spending time plowing through HR work.

CONSISTENCY

The cloud allows HR providers to send automatic updates to their clients, as well as guides and resources to help them understand the new regulations, how they might affect them, as well as how to update their system in a timely and efficient manner. And when a company has the latest and most accurate data for their own needs, they don’t have to worry about missing an update and reporting an incorrect amount in their payroll tax payments. The cloud helps owners and providers alike to manage these changes and execute adjustments effectively and on time.

But for a successful HR transformation, you need some of the best practices.

  1. Start with a solid vision: you need a very clear vision of your goal.
  2. Success is not automatic.
  3. Realizing those benefits requires precise planning, resources, energy and time.
  4. Change management is crucial: changes via cloud can be surprisingly fast and far-reaching.
  5. Data insights demand expertise.
  6. Don’t ignore HR skills.
  7. Collaboration is key.
  8. Challenge the status quo.
  9. Be bold.
  10. Stay the course and deliver tangible improvements that will keep the change process moving toward success. Effective transformation is not a sprint; it’s a marathon.

Is cloud computing today’s big disruptive technology?

Maybe you’re still a skeptic, but facts are facts: cloud is changing how business operate, opening up a whole new world of possibilities for the HR industry.