Cloud HR

Cloud HR: the future belongs to the bold

The future belongs to the bold.

HR cloud

Now is the time to be bold

Many organizations pursuing cloud computing to revolutionize the HR function with data-based decision-making, cost advantages and new value for the bottom line are discovering that HR transformation entails much more than simply plugging into the Cloud. Now in its 19th year, the HR Transformation Survey (formerly known as the Towers Watson Service Delivery and Technology Survey) reveals that a growing number of organizations that have selected new HRMS technology are opting for cloud-based solutions. Firms meeting expectations are relying on a strategic approach to change management that generates a broader and deeper range of transformational benefits.

Research and commentary from the report shows that organizations connecting their cloud technology to their people, processes, change management strategies and programs are succeeding in their HR transformation journey, while those who do not are largely failing to meet the mark.

Key highlights

  • Cloud is just a tool

Investing in cloud technology, along with improved data and analytics programs, are the most common HR initiatives among organizations. 69 percent of organizations said they looked forward to better functionality and 63 percent expected a greater ‘value add’ to their business from HR.

  • Strategic transformation takes HR from ‘steward’ to ‘strategist’

Despite expectations for Cloud HR, the majority of benefits being realized with existing cloud HRMS implementations are more tactical in nature. 24 percent reported that Cloud HR is delivering greater value, while only 20 percent reported the HR function is becoming more evidence-based via workforce analytics.

  • Intelligent change management is not optional for success

Implementing cloud technology to drive transformation is not simply a ‘plug-and-play’ strategy. A well-planned change management system must also be in place to help ensure enterprises are meeting expectations for improvements and progress.

  • You need to be bold to complete the journey

The HR transformation journey needs to begin with a clear vision of a desired end-state. Effective transformation is an opportunity for organizations to be bold, to better collaborate and to better leverage their people, processes and data insights to succeed.

Cloud HR

Source: Cloud HR: the future belongs to the bold report, KPMG International, 2016.

View the full infographic (PDF 479 KB).

Webcast: Ready, set, bold

On 5 October KPMG International held a webcast which discussed the findings and their implications for organizations, from this year’s HR Transformation Survey. The focus was on what organizations need to know when building a strategy for change management, cloud investment and HR transformation. If you were unable to make the webcast we invite you to listen to the replay and download  the presentation (PDF 1.2 MB).

About this survey

During February and March of 2016, 854 executives from 52 countries participated in the survey. One-half of respondents were from companies that operated at a global level. Respondents represented a wide cross-section of industry sectors, led by Financial Services (19 percent), Industrial Goods and Services (15 percent), Technology and Telecom, Media (14 percent) and Professional and Business Services (12 percent). Forty-four percent of respondents were from organizations with more than 5,000 employees and 40 percent were vice presidents and/or heads of the organization’s HR function. This marks the 19th consecutive year that this market study has been conducted.

KPMG Powered Enterprise

KPMG Powered Enterprise is designed to create a faster way to achieve transformation goals in the cloud. It leverages decades of KPMG business and technology experience to help clients realize the true value of finance, procurement and HR transformation. KPMG Powered Enterprise is a strategic way to help you achieve a greater step change in value. It includes a pre-defined set of operating models, implementation tools and cloud technologies that are built on the 80/20 rule, allowing users to customize to their unique needs and speed up implementation. For more information, go to KPMG Powered Enterprise.

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