Cloud HR Development Yearns for the Dauntless

Cloud HR Development Yearns for the Dauntless

Soaring to new heights of value with Cloud Human Resources.



Soaring to new heights of value with Cloud Human Resources demands bold transformation schemes that facilitate integration of people, processes and technology, according to a recent KPMG International survey.

Nowadays, businesses are facing unparalleled hurdles riddled with complexity including, but not limited to, changing demographics, rising talent wars and digital disruption. In an effort to simplify matters, a number of organisations are looking to the cloud’s massive potential to transform the HR function. However, the harsh veracity is that plugging into the latest technology without future planning ultimately will not lead to HR metamorphosis.

KPMG’s survey supports this notion as it was noted that a number of firms are reaching their goals to reshape HR by proposing and utilising strategies to modify management, hence producing more benefits and enabling the sowing of fresh competitive gains.

Cloud HR brings quick, cheap development, an innovative user experience, a level of efficiency previously unheard of and overall a more calculated HR function to the table. Nevertheless, the ‘so-what’ approach companies are adopting, as described by Robert Bolton, Partner at the KPMG Global HR Centre of Excellence, is destructing these very advantages. HR functions of today can play it safe and rely on obsolete practices or break into 21st century operations, fuelled by data-driven insights, better workforce mobility and ever-improving scalability and flexibility. 

The survey revealed that although Cloud HR is becoming the top modus operandi for leading organisations, only 24% report that it delivers the capability to reconfigure the HR function and in turn, drive greater business value. A planned system is required so as to reap maximum benefits, consisting of wholly utilised functionality multiplied with evidence-based practice, enabling change management and a capability build for HR managers.

In pursuance of forming a more alert establishment, the focus on HR tasks has changed from ‘steward and operator’ to ‘strategist and catalyst’. The stakes for Cloud HR are high, yet its merits have tactical characteristics. Processes and their management are being refined at a higher rate. Furthermore, those who partook in the survey and use newer HR systems, as opposed to legacy HRMS, obtained 14-21% higher scores, reinstating the advantages Cloud HR offers when made use of correctly.

Unfortunately, as mentioned earlier, the low percentage of testified reconfiguration (<25%) points towards the disappointing fact that ‘behind the scenes’ improvements are not being realised on a large scale. More often than not, these enhancements are the most critical. A meagre 13% of respondents told of an enrichment of internal collaboration and feedback.

KPMG’s assessment reveals that investing solely in new technology is futile as firms which follow such misguided principles are struggling to generate productive change, if any. Careless operations compensate time for business-related success. On the other hand, those that invest precious time and resources to scheduling and implementing strategic programmes claim to be deriving success and satisfaction. 

HR has been rewarded with a more commercial and paramount role at the stewardship table and its influence and impact on the business can be heightened through new cloud systems. Then again, the involvement of IT and procurement have lead HR teams to hope for the best by switching to the cloud, rather than picturing what their future will look like.

Addressing the diverse elements which must be in place to generate the sought after change must follow cautious forecasting. Indeed, corporate banking behemoths Mizuho Financial Group are seeking to adapt and apply this method. Creating a new systematic tool which manages and develops talent worldwide requires an intricate plan of action, involving multiple threats and uncertainties.

The previously mentioned ‘strategist and catalyst’ perspective is an asset to change, yet experts cite that its implications, such as time, costs and planning, causes it to creep slowly forward, rather than leaping across boundaries and shifting HR practices and policies forward.

Firing up the latest, intuitive cloud technology is failing to deliver a broad range of value-driving requests, and leading certain enterprises to lose their footing unless a keen sense of determination has been fostered.

HR functions are getting accustomed to using the latest technology that can provide results but are inept when it comes to translate data to insights. Crucial alteration can deliver a heavily-needed boost of energy and concentration so that organisations simplify compound issues to make them more controllable.

An example of an establishment which has honed its approach to overhauling is Swiss Re Group. In recent years they have defined a new scheme, serving as a foundation to build on, which permits focus to shift towards creating true value and groundwork for the future. AXA has followed the same route, and changes are already coming to light. Leave approval time has been slashed from minutes to less than five seconds, providing an unprecedented level of convenience in the long run.

It is clear that corporations embarking on a journey towards HR evolution must plan a daring, sophisticated idea of their destination and the course towards it. Searching questions must be asked, and once a relative level of comfort is achieved, work must not be put on hold. HR transformation is a constant marathon, entailing time, energy, grit and pluck. 

© 2022 KPMG, a Maltese civil partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

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