Human Capital Management

The Race to HR Cloud – Formula 1 or Wacky Races (Part 1)

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The flippant title is not to suggest that there isn’t a systematic process for the push to cloud software, but more that whilst Cloud is all about best practice, the solution maps for customers appear more like ‘man-in-a-shed’ drawings than state of the art design. Whilst HR or IT Directors seek a single box or perhaps a single cloud on a blue sky horizon, actually there are more tubes, connectors and boxes than a plumbing store.

Typical HR Solution Map

This is not a criticism but a reflection of reality. HCM software has always struggled to chase investment. As a non-revenue earning function HR has had to find a business case on a conceptual or efficiency basis rather than in pure profit/loss terms. This has led to a disparate patchwork of solutions added as need has forced a gap to be filled. HCM providers have fought a long battle to sweep up the market with end to end solutions and a package for every process. But the modern world of employee interaction, self-service and mobile access have meant that the technical design investment in ‘on-premise’ both as a software provider or a purchaser has become preclusive. Markets have turned to cloud to provide the flexibility, intuitive design and lower cost model as a way to solve these problems.

The issues come in many forms. Part of this is the solution sophistication of cloud software which wants take on the might of ‘on-premise’ solutions but is not there yet in many cases and in some will never be there. Will cloud providers ever develop their own complex solutions for expenses, time processing or payroll? Unlikely, when packaged integrations are much simpler and cheaper, and service providers are becoming larger and larger. This inevitably means that integration solutions will always be part of the process.

It doesn’t mean that we should give up, more that we should be realistic in approach. In this blog series I would like to talk more about this issue – How HR can rise to the challenge of fighting process over bureaucracy and start to win the race, regardless of how complex the solution map.

 

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