HR and the cloud: A burgeoning trend for 2012

by 01 Nov 2011

Cloud computing is changing the face of HR, and according to new research, is enabling even small organisations to operate on a global scale.

Deloitte research has shown that 84% of surveyed companies have either begun transforming or plan to transform how they handle HR functions - and much of the transformation is centred on implementing cloud technologies.

A research indicates that the reason for this transformation couldn’t be more straightforward. Some 85% of business said their chief motivator was cost cutting.

The take-up has been unprecedented, and is principally due to the sheer number of benefits cloud computing offers, including:

  • No additional infrastructure required
  • No maintenance
  • Minimal training, most use a web 2.0 style interface
  • No expensive software or licensing fees
  • Simple web browsers such as Internet Explorer or Google Chrome allow HR to connect to any cloud system and use all the facilities online.

A distinct feature of cloud computing is that in many cases there are free trial periods, and unlike traditional software licensing models where there are ongoing fees including annual maintenance contracts, using a cloud means a company can move on without any strings attached.

In terms of practicalities for HR, cloud computing can offer a middle ground between in-house dedicated HR tech specialists and outsourcing the process, because using the cloud allows software to be hosted off site while managing HR processes in-house.

A good cloud computing HR system will enable the entire recruitment process to be managed online, and provides a system of induction, managing employee database and history, issuing performance appraisal notices, generation of any letters from leave to hiring to compensation, and in some cases will tie in with attendance and payroll.

Using the cloud also ensures that the HR managers no longer have to manually fill out reports and excel sheets on HR activity, and instead have the time to provide value to the company by ensuring that employees are looked after, motivated, and appropriately advised.


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