HR Transformation needs more than just Cloud
Having just returned from HR Tech in Amsterdam I am sure many who attended noted the palpable euphoric rush to take HR into the cloud with many conversations focused around the cage fight between SuccessFactors and Workday. My concern though, is that in the headlong rush to get HR into the mystical Cloud, are organizations missing the opportunity to truly transform?
Replacing an old On Premise HCM solution with an exciting Cloud platform seems to miss many of the transformation opportunities including process standardization, global payroll, application management, and even HR Outsourcing services. From experience, it is only a few companies who are truly using the opportunity to completely transform HR, rather than just swapping out their existing HR technology.
Does your plan for a new Cloud HR platform allow for a thorough review of your global HR business processes and process standardization? Whilst there is a little ‘chicken and egg’ going on, should you get your processes standardized first (egg), or implement a new platform and then try to use brute force to change your processes (chicken)? What is the Employee Experience likely to be on each approach?
Have you considered how your payroll data will automatically feed data into your Cloud HR platform? Are you seriously considering maintaining different payroll platforms and providers in each country, and then supporting 20, 50 or even 100 different payroll interfaces? Surely we should have learned by now that a key failure with the previous generation of HR technology was the requirement for so many divergent interfaces that never really worked. What is needed is one bi-directional, real-time interface for all global payroll information or your analytics will never deliver the expectations.
Replacing HR Technology does not deliver transformation by itself. What is expected is a better Employee Experience, easier to use technology, and greater business insight. Also, this transformation must provide financial savings. It is therefore incumbent on HR decision makers to actively consider Shared Services (that actually save money) or HR Outsourcing services when looking at Cloud HR.
Buying a new Cloud HR platform is not the complete answer…..