We want a lower total cost of ownership. We want faster software updates. We want fewer software vendors in our HR technology portfolio. We want a better user experience (leading to higher user adoption rates). These are some findings from recent surveys by PwC and Sierra-Cedar.
Essentially, we’re saying we want efficiency. We want systems that work together to drive productivity and engagement, producing a quick and enduring return on investment. Cloud Human Capital Management (HCM) solutions are uniquely positioned to deliver on these aspirations.
Lower total cost of ownership
Cloud HCM offers many of the same benefits that cloud-based ERP does. One of the most significant of those benefits is a low cost of ownership.
- Cloud HCM requires minimal IT requirements, both from a hardware and a personnel standpoint.
- Cloud HCM implementations are typically completed more quickly than on-premise implementations, speeding your route to ROI.
- Cloud HCM follows a pay-as-you-go model, minimizing up-front costs and thereby freeing your company’s cash flow.
- Cloud HCM is typically budgetable as an operational expense, while on-premise applications are not.
Faster software updates
This is where cloud HCM really excels. Software updates are handled by the publisher, so you’re always running the most current version without the operational interruptions that can occur when an on-premise application is updated.
Cloud HCM is an evolution of HRMS. It goes beyond the basics of HRMS to incorporate additional functionality like recruitment, performance management, and compensation management. By integrating all people-focused functions into one comprehensive solution, you can eliminate the disconnected applications you may be relying on now.
A better user experience
Low user adoption rates negate the promised benefits of any new technology solution. A significant factor in low adoption rates is complexity. If the technology is too difficult to use, we’re less likely to use it. As an application designed to be utilized (at least in part) by virtually everyone on your staff, usability is a tremendously important attribute in a cloud HCM solution. Solution providers understand this, and design user interfaces that require little or no training. Intuitive functions, familiar mobile interfaces, and clear, uncluttered screens guide even unsophisticated users through their interactions in a friendly and unintimidating way.
Cloud HCM works to drive productivity and engagement, and its predictable cost of ownership can speed your return on investment. It’s an efficiency engine that’s worth exploring further.