HR and cloud computing: The silver lining
Cloud computing has taken the world by storm and is used for almost every business function but still very few people know how it is used for HR functions and why. Read on to find out what are the:
- Benefits of cloud computing for the HR function,
- Trends in HR cloud computing, and
- Rules you should follow when choosing an HR software/application for your company.
Benefits of cloud computing
During the research stage of this article, I picked the mind of Phil Lötter, CEO of HR software start-up Piilo Software and expert in the fields of international business consulting, HR, technology and business management.
Phil explained that for small businesses, cloud computing is making people automation possible by providing a broad range of solutions that can assist them in improving the way they manage their employee administration.
1. Key benefits of HR in the cloud:
- Manage time and leave online with instant employee information updates,
- Reduce the risk of data loss by uploading all employee data online with supporting documents like IDs and copies of qualifications, and
- Manage your entire employee life cycle.
2. Social benefits
The cloud enables companies to incorporate social aspects into their solutions. Gamification is a concept that is infiltrating performance management and skills development, while social media is being integrated into recruitment and employee engagement. Social technologies, together with the cloud, are increasing work satisfaction and the level of employee engagement.
HR cloud computing trends
Forty-six per cent of the buyers of cloud consists of executive management while only 7% is made up of IT management, says Phil. This shows that IT has become a topic understood and discussed by management as they use the technology daily.
“The take-up of cloud in South Africa, specifically, is driven by SMEs as they now have the ability to afford solutions which were previously limited to bigger corporates. We see, however, in the rest of Africa, that bigger corporates are moving over to cloud more easily, as they want to harvest the benefits of cloud computing immediately. In South Africa, the slower take-up by bigger companies could be because of the current IT investments made or a ‘wait-and-see’ approach where companies will convert only after the cloud reaches critical mass.
“Based on the business maturity, smaller businesses tend to focus on automating their people management – example employee data, time and leave management. More mature businesses are using cloud to drive their talent strategies across their organisations with a focus on performance management, career and skills development. They tend to have a longer-term focus to develop and retain their employees.
“Social media is playing a much bigger role in HR as it increases the level of employee engagement. Our customer feedback on Piilo Software is that the simplicity and user-friendliness create higher levels of buy-in to the talent management process as managers now understand what they need to do,” explained Phil.
7 Steps you should use when choosing HR software
Phil gave me seven brilliant tips to assist you in choosing an HR software solution for your company:
1. Look at your present and future needs: You need a software solution that will grow with your business needs and that stays relevant.
2. Ensure the provider constantly updates and improves on its solutions: This ensures that you are getting a better product over time and that it doesn’t become outdated. Think of Android and Apple software and service providers: they always bring out updates to improve their products and keep up with the current market
3. Assess the providers’ data privacy and security policy: Make sure that they are accredited for international data privacy and security.
4. Ask if the solution is appropriate for your corporate culture: There is no sense in buying a solution that focuses on social media if your workforce doesn’t use or have access to social media at work.
5. Limit the need for change management: You need a piece of software that doesn’t require huge interventions in your organisation. You shouldn’t have to guide your employees through the change process.
6. Check the level of support offered by the software: Will there be people on standby to help resolve any technical or functional issues?
7. Make sure there is a quick-to-reach backdoor: You need to make sure that you can have access to your data if you want to discontinue their services in as short a timeframe as possible.
Frew Murdoch is the assistant editor of HR Pulse. She is currently completing the last semester of her BA degree in Communications and English. "I stumbled across your review of our Ethics Guide published 28 June 2012 and wish to thank you for the positive and complimentary comments made – this was a lovely surprise and most rewarding. I will certainly pass this on to all co-authors of the Guide."
Christine Botha, co-author of 'Ethics in HR Management: A guide for HR professionals and line managers', had this to say:
