Why is Human Capital Management Important in Organizations
What is the biggest important asset in a business organisation above all? The answer is employees. The best CEOs understand that the Innovation and the growth of the business are completely dependent on the talented individuals who will help to shape the future of the business. Employees are the largest investment any modern company make into its future because a company cannot beat it's competitors or cannot grow in the market having wrong people in the staff. Hence, it's utmost important that HR department of the organisation makes correct talent acquisition strategy to recruit, promote and educate employees. The roles and responsibilities of an HR Recruiter specialist can be challenging and fast paced. With the rapidly evolving employment marketplace organisations need to establish fully optimised talent acquisition which will be able to get adapted to everyday changes of the industry. But today's HR systems are noticing disintegration and ineffective change management which is refraining them from being strategic in people management. They have realized the necessity of a common unified approach to improving people management.
Cloud Computing infrastructure is the new salient trend in the IT industry which helps not only to expand business globally also provides a sophisticated and successful strategy to make business more reliable and flexible. So why not to use the cloud system to improve the HR's daily challenging situation easy? Here is the context of cloud-based HR system comes up. It is called Cloud Human Capital Management (HCM). According to Gartner's prediction, by 2019 nearly 60% of the HR leaders will use cloud-based HR solutions.
Let's look at why do organisations need cloud-based HR system in upcoming days.
No more upgrades
Once you buy cloud system, you don't need to worry about up gradation. That is the best part about cloud solutions. You get rid of the frustrating cycle of up gradation as software in the cloud gets automatic updates of the newer version leading cost savings.
Companies spent a lot of money on installation of on-premises systems, and they often consider it time-consuming and expensive. Maintaining those legacy systems not only makes the entire hiring, recruiting and people management complicated but also increases lots of junk work creating an ultimate situation of confusion and stress. Moving to cloud system can be one stop solution for all these problems. Cloud-based HR software provides you with a suite of automated and scalable tools for customizability and integration.
No more paperwork hassles
Paperwork is something hiring managers are getting tired of because filling up employee forms, hunting for employee data in separate tools and systems, documenting and attesting them takes a toll on effectiveness and productivity and compliances. With cloud-based HR system, the onboarding process became easy by eliminating paper-based process giving admin more time to concentrate on hiring and talent management.
More user-friendly interface
The major challenge that any company faces before buying a new software is people might not use them. Cloud made it simple. The majority of the cloud managed service providers offer user-friendly software interface where employees can easily manage their deadlines, leaves, reports and timesheets anytime, anywhere. Cloud vendors are focusing more on building consumer-friendly, mobile supported software making adoption of new features by young employees more likely.
Easy to switch
With the huge growth of cloud industry, there is more and more cloud managed service providers coming with innovative cloud-based solutions for employee recruitment, training and onboarding process making it easier to switch vendors. According to the new research of Forbes, 24% of companies have confessed that cloud-based models are best for business solutions and it reduces switching cost to some extent as well.
Cloud Human Capital Management (HCM) systems have been incorporated into enriched resources and tools to make HR managers day to day job easy providing online recruitment tools for global employment. HCM providers will equip you with scalable software which will help in managing new talent, payroll, time, attendance, leave management, application tracking, e-signatures, old records, time-off-reporting, seamless calendar integration and managing contingent worker through the hire-to-retire process.
Cloud computing is all about accessing data anytime, anywhere from any devices leading HR managers getting more work done on the way. Performance management has become immensely convenient with mobile technology. Creating jobs in the website, importing and parsing resumes, managing employee records, updating careers section in company's website, creating custom reports and communication with employees globally has become much more convenient and optimised than ever before with HCM tools. Employees can complete tasks easily on a cloud platform without any assistance of the HR Manager. Also, HR managers can integrate with specific departments with easy collaboration feature of cloud services.
Simple and unified technology with a simplified set of solutions makes it much easier to respond faster to the needs of the business. Hence, small to large business companies are rethinking to innovate tomorrow's workforce by shifting HR applications into a cloud system.
About the author
Vlad is a dynamic and organized specialist with over 10 years’ experience in sales, service administration and IT. He lives in Dubai and takes care of existing Oracle SaaS customers. He ensures that customers are happy with their cloud SaaS solutions. Views are his own.