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Revolutionizing HR demands bold strategies for success

Revolutionizing HR demands bold strategies for success

Key lessons from KPMG’s 2016 Global HR Transformation Survey.

Mike DiClaudio

Principal, Advisory

KPMG in the U.S.


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Investment in Cloud HR is soaring and for good reason. Cloud computing has immense power to propel the HR function into the 21st century and deliver new levels of value via data and analytics, improved decision-making and cost advantages.

But as KPMG’s 2016 Global HR Transformation Survey reveals, many Cloud HR initiatives are getting stopped in their tracks. Lacking a clear strategy for well-designed change management that integrates people, processes and technology, many firms are using the cloud to generate a wealth of important new data that no one really knows what to do with.

As those organizations and their HR leaders are discovering, plugging into cloud systems with narrowly focused initiatives will not automatically generate the technology’s revolutionary capabilities to transform HR.

The survey’s key findings reveal that despite expectations for Cloud HR to deliver new value to the bottom line, the majority of benefits being realized with existing cloud HRMS implementations are more tactical in nature. For example:

  • 57 percent of respondents reported increased use of manager and employee self-service
  • 53 percent of respondents cited improved processes and process management, including workflow
  • 53 percent reported improved access to management information.

Relatively fewer firms met expectations for transformational improvements that reposition HR to add real value – such as becoming more evidence-based using data and analytics for smarter decision-making. For example:

  • only 24 percent reported that cloud HR is delivering an ability to reconfigure the HR function to drive greater value
  • only 20 percent reported the HR function becoming more evidence-based via workforce analytics
  • just 13 percent reported improved collaboration and feedback between employees.

Those firms surveyed that are meeting expectations to redefine HR are dedicating the time and resources to planning and deploying strategic change programs deemed crucial to transforming HR into a value driver for the business.

Clearly, then, organizations struggling today to generate effective change have remained too narrowly focused on technology alone. For Cloud HR to propel organizations toward next-level savings, efficiency and decision-making, HR leaders need to reimagine what HR should deliver to the business and then strategically map out a precise road to success.

Strategic transformation can deliver a much-needed shot of energy and focus as organizations seek to make today’s complex business issues more manageable. But there’s no time to waste. Businesses will need to demonstrate a greater sense of urgency to catch up – or risk being left far behind by the competition.

For more information, visit Cloud HR: the future belongs to the bold

Harry Ross is back in the case of the missing benefits

Cloud HR: the future belongs to the bold report (based on KPMG’s 2016 HR Transformation Survey) explores the ways that organizations are using cloud computing to revolutionize the HR function. The perspectives of 854 executives, from 52 countries drive the survey’s insights, and a new video shows how HR detective Harry Ross leverages evidence-based HR and the Cloud to drive results for clients.

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