Cloud HCM: A Single Integrated System, Stay Ahead!

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Human Capital Management (HCM) widely used term alternative to Human Resource Management Systems (HRMS) or HR systems is a set of practices managing an organization’s employees right from acquiring, training, managing & retaining. HCM is an integrated Solution of Talent Management, HR Ops & Business Technologies.

Typically organisations have more than two HR systems of record & the dependency on IT team to install, configure, and customize software. Most of these HRMS technology have been disparate, on premise solutions designed to serve very specific purposes. The core HR functions like payroll and benefits are carried out in separate systems from those used for talent management, workforce optimization, training, and so on. These systems typically do not communicate well. There is no integrated single system of record due to which user experience and ease of use getting declined.

According to Greg Bell, Principal, Advisory, Information Protection at KPMG, “Elevating Business in the Cloud”, 2014 Cloud Survey Report, KPMG “Five years ago data loss and privacy risk were primary concerns and contributed to slower cloud adoption rates. Today, most organizations realize that cloud is a platform they have to integrate and support, so they’re more focused on operating effectively. The question is no longer: ‘How do I move to the cloud?’ Instead, it’s: ‘Now that I’m in the cloud, how do I make sure I’ve optimized my investment and risk exposure?’ ”.

The scenario is changing, HR World is shifting from legacy silos to a single integrated system – Moving towards Cloud HCM. Organisations continue to see benefits from the new Cloud HCM environments, including higher user experience scores that is higher end-user adoption, fewer HR technology headcount required for implementation and support, and faster implementation times.
According to Sierra-Cedar 2014–2015 HR Systems Survey results “Cultivating a Culture of Change Management pays off by reducing costs of HR technologies by more than half and increasing perception of HR as a strategic partner ($302 per employee in organizations with a continuous culture of change vs. $691 among those not practicing Change Management)”.

Companies across the world recognize the importance of implementing HR technologies with integrated cloud-based solutions with intention of easy to use, and mobile-accessible. According to PwC’s Annual HR Technology Survey:

  • 64% respondents said companies see cloud as a way to lower their dependence on an IT function that already has a full plate
  • 63% Respondents said they see cloud as a way to lower the cost of ownership.
  • 45% Respondents hope to stay ahead of internal customer demand by taking advantage of more frequent software innovations
  • 76% Companies in Latin America and 75% in Asia Pacific tend to be most concerned with cost savings.
  • 57% North American companies are more focused on innovation and 45% EMEA firms are pushing mobile

Mobile is the way people work now. Mobile is the big driving force behind Cloud HCM applications that are social and collaborative. Millennials expect to have access to the best tools for collaboration and execution. By moving to the cloud many managers and employees are able to leverage mobile for processes like work-flow approvals, file sharing etc. According to PwC’s Annual HR Technology Survey 40% of respondents use mobile for work-flow approvals. Below is the survey chart.

Source: PwC’s Annual HR Technology Survey

The Bottom Line is Organisations are moving away from combined point solutions in favour of integrated application suites that span competencies of core HR, talent management, and workforce management. Cloud based HCM solution replaces disparate systems and bolted-on analytics provide seamless access to real-time information.

To learn more about cloud HCM please email us at

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  • Vikas

    Thanks for the blog.

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