Six Reasons why HCM Technology is Taking off
Tuesday December 2nd, 2014
Estimated time to read: 1 minute, 45 seconds
Nucleus Research, a company that evaluates technology ROI, recently published some interesting results about HCM technology implementation. The 42 case studies included companies from a wide range of industries and organization sizes.
- For each $1.00 spent, HCM technology returns an average of $9.13.
- Initial implementation of cloud-based HCM solutions can cost 79% less than on premise solutions.
- Companies experienced approximately 90% in savings for ongoing, standard maintenance.
Another Nucleus study found the cloud delivered 1.7 times more ROI than on-site deployments.
Here are six reasons to consider implementing HCM for your business:
1. Cloud-based solutions. This is one of the fastest-growing market sectors in HCM technology and is proving to be extremely cost-effective. With the steady ascension and competition of cloud-based HCM applications, vendors feel compelled to boost their investment dollars. They acknowledge the benefits of faster processing, reduction of constant support demands and enabling accessibility from any location, with any device. Users are no longer handcuffed to an on-site location to address functionality issues, and multiple customers can access the same application simultaneously.
2. Hardware/software upgrades. Some may recall when their company came to a screeching halt while IT hastily worked to install a system upgrade. With today’s technology, those days are gone. Cloud technology reduces the worry about hardware and software upgrades, as its multi-tenancy architecture will always provide the latest version. Companies can receive the perks of working with leading-edge functionality, while eliminating the drawbacks of conventional on-site software systems.
3. Data security. HR departments have always faced the difficult challenge of protecting private data. Cloud-based HCM providers secure data effortlessly, maintaining high standards and rigorous adherence to government compliance regulations. Reputable providers will house and safely protect important information using superior firewalls, encrypted transmissions from a secure host site, automatic failure protection and physical security.
4. Shorter learning curve. HR staff members must often be trained or certified in a variety of platform tools, which can be confusing and overwhelming. Using a single plug-and-play solution consolidates numerous tasks, leaving more time to focus on other HR related issues.
5. Tracking employee lifecycle. Capabilities for workforce management and core HR are commonly expected from HCM platforms, but some may overlook how beneficial HCM can be to the entire employee lifecycle. Additional functionality includes hiring solutions, onboarding, benefits enrollment and more.
6. Better employee engagement. Accessing personal employee data via a self-service portal makes taking care of departmental tasks a breeze. No matter where employees are located, personal data, benefits information, requests for PTO and payroll can be easily monitored or modified.
Craig Coleman, an executive with Coastal Payroll Services, has seen immediate results using iSolved’s cloud-based HCM solution. “Moving our data to the cloud means we can make changes in real time and release these to our clients. Payrolls are processed in a flash, and we no longer face hurdles on our busy days getting our payrolls out the door. As we begin to heavily integrate the full suite of Human Capital Management services to our clients, we couldn’t imagine a better platform to take us to the next level operationally.”
How has HCM technology benefited your company?
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