BY VIZIO CONSULTING INC.
Organizations across industries seek Human Capital Management (HCM) solutions to transform their HR, payroll, and talent management processes.
This has been driven primarily by the need to remain competitive in ever-tightening labor markets. However, one of the most important decisions you will make when selecting a new HCM system is whether to use cloud-based HCM or on-premise HCM.
On-premise HCM is installed locally and usually comes with recurring fees for support, training, and updates. Cloud-based HCM, on the other hand, incorporates new approaches and best practices that aid in employee management and empowerment.
Cloud-based HCM solutions require less time to implement and ensure increased reliability and cost savings.
Here are seven reasons why it makes total sense for companies to move to HCM in the cloud:
1.Reduces Chances of Human Error:
Among the many advantages of the cloud, manual tasks and data integration automation can provide the most significant returns. Connecting data across the organization reduces the need for manual data entry. Workflow automation ensures that orders move quickly through the system or that a supervisor approves purchases. Your employees will be able to manage higher transaction volumes as you improve productivity and reduce errors, allowing you to grow the business without increasing payroll.
2.Greater Employee Engagement
Private HR data can be accessed safely via mobile or desktop devices with cloud-based HCM solutions. Through a self-service portal, consumers can virtually access employee records, health benefit information, vacation requests, and payroll information at any time and location, resulting in higher job satisfaction and performance.
3.Automatic Upgrades & Low Maintenance Cost
Cloud-based HCM can be automatically updated. This relieves your IT personnel of the time-consuming task of internally upgrading systems. Furthermore, they consume fewer material assets and are easily managed by shared IT assets. This contributes significantly to lower maintenance costs. Because the HCM solution is hosted in the cloud, it eliminates the cost of constructing server infrastructure and is exceptionally viable
4.Seamless Integration with Other Systems
Rather than upgrading old, on-premise HCM applications, HCM in the cloud allows you to take a hybrid approach by relocating some of your HCM applications to the cloud, such as talent and sourcing while keeping core HR activities on-premises. The powerful pre-integration potential seamlessly connects cloud and on-premise applications, automating the onboarding process and accelerating new hire productivity.
5.Enhanced Workforce Effectiveness
With robust reporting and deeper workforce insights, an HCM cloud solution like Oracle HCM Cloud can help manage workforce trends and create a competitive advantage. Businesses can use an HCM cloud solution to optimize hiring by leveraging big data analytics and assessment results and examining candidates’ potential career paths and development opportunities.
Collaboration is becoming more critical. The work-from-home or non-routine workforce is growing faster than expected, and employees require access to collaboration tools in more shared spaces. Cloud-based conferencing allows users to access meeting solutions via various devices more cost-effectively and collaboratively.
HCM cloud has made collaboration extremely easy, even during the pandemic. Whether your employees work from home, in the office, or on business trips, they can share and exchange ideas seamlessly.
7.Simplify HR Function
Most HCM cloud solutions include ready-to-use HR tools that help to simplify HR functions. Furthermore, HR teams do not need to be trained in multiple software tools to be effective at their jobs. HCM in the cloud plug-and-play HR tools shortens the learning curve while allowing HR teams to focus on their priorities.
As per a report, 41% of HR teams actively develop mobile apps to deliver HR services, and 33% use artificial intelligence (AI) technology to create HR solutions. This assists them in revamping HR processes, which is a critical success factor. The right HCM cloud solution can help businesses harness suitable digital and mobile tools to provide flexibility and agility to today’s digital working population.
A single cloud-based HCM solution reduces the possibility of human error, eliminates siloed information, and fosters organizational-wide collaboration, resulting in superior outcomes such as reduced administrative overhead and increased productivity.
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