Moving your HR to the cloud (1): challenges on the road ahead

Moving your HR to the cloud (1): challenges on the road ahead

Eline Jacobs Eline Jacobs - - Insights

The world is changing at a dazzling speed, and so are HR processes. Are your SAP HCM solutions and payroll future-proof? SAP recently confirmed that it will plan to offer a new on-premise HCM option based on SAP ERP HCM. This solution is planned for availability in 2023, with maintenance planned at least through 2030. On the other hand, SAP is clearly rethinking the way human capital management is organized, as they’re investing big in cloud-based HR solutions. What is the impact of this evolution on your existing systems? Do you have to re-evaluate your HR processes? How do you keep up with today’s digital transformation?

Many businesses are moving their HR processes to the cloud – whether it is talent management, time management, payroll or core HR. And what’s not to love about this move? Rapid deployment, improved flexibility, easy compliance with industry- and country-specific standards and legislation, frequent updates and new features, lower costs… These are just a few advantages of cloud solutions like SAP SuccessFactors. Still, there are some challenges, too. Make sure you’re ready to overcome them!

Are your IT and HR teams strong allies?

In the past, implementing an HR information system was an IT job. Of course, the HR department initiated the quest for a solution and specified the requirements, but deploying and maintaining an on-premise solution, requiring development, customization, integration and many other activities, was generally assigned to IT.

With the rise of cloud-based HR solutions, the balance tips, giving HR departments more responsibilities. They get to take over some of the day-to-day tasks of the IT department, such as project management, testing, issue and release management. More importantly, because of the nature of a cloud solution, an ongoing and coordinated collaboration between HR and IT will become essential to aligning business needs with cloud solutions, and embedding them within the general IT infrastructure. 

Are you ready to embrace flexible stability?

Fully customized solutions based on the company’s exact business needs and processes used to be mainstream. However, companies have now learned that cloud solutions offer the benefits they need to support the unstoppable and ongoing digital transformation in HR. What’s more: cloud solutions offer a great deal of flexibility when it comes to configuring your own platform based on the options available. In this way, they give you agility while enabling you to maintain a secure base.

It is, however, no longer possible to change the entire system like we used to do in the past. That’s why HR and IT professionals need to change the way they think about HR information systems – a necessary paradigm shift that often takes more time than actually implementing a cloud platform. 

Are you prepared to standardize and customize?

By standardizing your processes according to best practices, you dramatically increase your ability to adopt the latest innovations, keeping your business agile, modern, and supporting continued growth. But of course, you could argue that a single best practice for any business process is a myth. That’s why it’s essential to choose a cloud solution that you can configure to fit the needs of your business.

And if you do need functionality unique to our organization that is above and beyond what configurations allow, make sure that your cloud solution allows you to add it on your own, in a way that does not inhibit your ability to easily accept upgrades across the rest of your system.

Ready to move your HR to the cloud? Read on in part two of this series
Is moving to the cloud one step too far for your business? Don’t worry: there’s a way to keep running your HR on-premise

Tags:    SAP HCM  -  SuccessFactors  -  Payroll  -  Strategy
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