There has never been a better time for companies to think thoughtfully about how they collect and use data. Access to better and faster data via cloud-based HR solutions is increasingly allowing HR to thrive as a value creator and a strategic partner within any company.
In today’s technology-enabled world, data is king. Whether it’s tracking consumers’ spending habits, search engine optimization or simply determining the next song on a playlist, data drives nearly everything – particularly when it comes to how companies make decisions about capital expenditures. For too long, HR has been left behind in this decision-making process but access to better and faster data via cloud-based HR solutions is increasingly helping HR leaders find their place at the table.
Access to better and faster data along with technology such as AI and analytics has allowed HR to dynamically aggregate information and use it to help drive strategic business initiatives. Data from cloud solutions allows HR to create more robust hiring and talent management strategy grounded in facts. From the time workers are being recruited until well after they are onboarded, data from the cloud provides insights that will automate the candidate funnel process, identify at-risk employees, pinpoint problems with engagement and monitor compensation relative to other comparator organizations.
Insights supported and provided by data from cloud systems also provide HR clearer line of sight to benefits costs allowing organizations to better track where dollars are being spent and/or left on the table by employees, where there are opportunities to save costs, or where benefits dollars can be maximized both by employers and employees. This deeper set of analytics allows HR to bridge the gap between benefits and finance—providing an in-depth analysis of spending and how it impacts the organizations’ bottom line—making HR a more meaningful partner and decision maker.
While moving to the cloud is an exciting prospect and comes with a host of benefits, it isn’t as easy as flipping a switch and companies should be sure to do their due diligence before embarking on this journey. For HR leaders, there are three important steps to focus on before considering a move to the cloud:
Define the strategic objective.
Companies should consider the intent of their cloud initiative. Think about the long-term vision for the entire organization and identify how this initiative will help reach that goal. For example, if your organization is eminently looking towards a costly software update to a legacy system or racking up annual maintenance costs, a move to the cloud will help create a standardized process for updates and ongoing maintenance that will drive down operational costs.
When determining the objective, companies should also carefully consider their employee population and how the cloud might most benefit their specific population. A multi-generational workforce, for example, might mean that an organization should look at cloud options that connect to the technology preference of a wide age range. Millennial workers will often demand experience with more technology whereas other workers want to keep it simple.
Get buy in.
It is essential that c-suite leaders are aligned with that same strategic vision for the move to the cloud. HR leaders should conduct a stakeholder analysis and then give these stakeholders an opportunity to provide input on how to design the data and processes as well as identify potential problem points with the implementation.
In addition, once the decision is made to move to the cloud, there are a number of business decisions that will need to be made quickly so it is essential that leadership is aligned and has established a clear governance structure that outlines roles, decision owners and ensures that those decisions are properly vetted against the strategic objective of the organization.
Prepare for delivery.
With the objective of the move identified, leaders should consider how the cloud will support or help achieve that objective among the targeted stakeholder group. For example, if the company’s objective is to drive greater self-service of employee health and wealth benefits, how will the new platform deliver on that goal? Leaders should think about whether an online user portal can be successful on its own or if a combined approach featuring a self-service portal, customer service desk and mobile application will increase user engagement.
There has never been a better time for companies to think thoughtfully about how they collect and use data. Successfully transforming the HR function to a cloud-based function will allow HR to thrive as a value creator and a strategic partner within the organization.