HCM systems are moving into the Cloud as a new generation of technology refreshes gets underway – that’s the unmistakable conclusion from a new global survey from HR consulting firm Tower Watson.
The study – which polled 444 HR managers in Canada, the U.S., Europe, Africa and Asia-Pacific – cited the recessionary pressures of budget cutting as one driver for the move towards the Cloud’s promised cost-arbitrage, but there’s also a renewed emphasis being placed on putting strategic goals first.
A majority of respondents (62%) say they have undertaken initiatives to reengineer key HR processes while 43% is working to redefine the roles of HR business partners, and more than a third (37%) is implementing new or leveraging existing self-service functions. Seen as a whole, Towers Watson considers that these initiatives enable HR to rethink its own role in providing greater value to the business.
And Cloud – or software as a service (SaaS) is very much on the rise. More than half (54%) of the organizations surveyed are either using or planning to implement a SaaS solution. With nearly a quarter of respondents that plan to implement a new HRMS still evaluating new options, the consulting firm speculates that there is a significant migration toward newer HCM technologies.
The Towers Watson study notes:
It adds:
Quick implementation, better functionality and ease of ongoing management were the main benefits reported by users of Cloud HCM systems as well as lower and more predictable ongoing and up-front costs, and no need to upgrade. Among those who have not moved to the loud, inability to customize, lack of data ownership and data security were cited as the main barriers to adoption. The nature of Cloud HCM solutions on offer has also evolved, empowering greater user adoption in turn. Towers Watson notes:
This renewed interest in a new breed of Cloud HCM systems was well in evidence at the 14th Annual HR Technology Conference in Las Vegas this week. ADP introduced ADP Vantage HCM, a Cloud-based HCM offering which the veteran payroll services provider calls :
Regina Lee, President, ADP National Account Services, Major Account Services, GlobalView and ADP Canada, said:
Meanwhile SuccessFactors introduced a new user experience that gives managers the ability to efficiently deliver higher quality performance reviews that are aligned with business strategy and improve business results, as well as SuccessFactors Jam, its social collaboration and learning software with rich media capabilities.
SuccessFactors Jam, which combines the social collaboration of CubeTree with the video and learning capabilities from Jambok to “empower employees to explore and improve their own knowledge set in the context of their everyday work”, says the company. The new user interface provides a smoother process for performance reviews, making it easier for managers to write higher quality reviews and prepare for the conversation with key data at hand, such as an employee’s overall score, team rank and differences between manager and employee ratings.
Additionally, the new team view helps managers to ensure their reviews are consistent and fair across the team. Managers can request peer feedback from within the system, instead of emailing individual team members. Dmitri Krakovsky, vice president of global product management, SuccessFactors, said:
With Oracle’s next generation Fusion HCM applications also set to be the focus of attention at that vendor’s OpenWorld conference in San Francisco this week, it looks increasingly likely that 2012 will be the year of the HCM systems refresh – and of increased competition in the market.
That should be good news for end users as vendors chase their business and enable customers to strike good deals. It should also – hopefully – results in a new generation of HCM applications that empower HRDs to achieve more in their day to day jobs.
