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11 Nov 2015

10 HR Technology Cloud Myths

With the emergence of cloud based HR technology, HR, traditionally not the main buyer or project leaders, now find themselves thrust into a new position of responsibility. While HR technology offers promising and exciting opportunities, it is by no means an all-encompassing solution to all your HR issues.

In an attempt to shine a light on some common misconceptions surrounding cloud based HR technology solutions, here are 10 myths you need to know before you invest.

Myth 1: Cloud HR technology will make you a better practitioner

Many HR people think that technology will be their saving grace, magically providing them with credibility, organisational respect, new-found competencies and business influence. The facts is HR technology is a mirror: If you're bad at HR, your technology is going to reflect it. Consider only buying cloud HR software for things you are good at already, or areas you are certain the business will derive value from.

Myth 2: Cloud HR technology will save you money

While initial capital outlay is generally lower with cloud HR purchases, monthly operational costs soon add up. Buying into cloud is more manageable, but not necessarily cheaper.

There's truth to the idiom “you get what you pay forâ€'. Good cloud HR technologies cost money. Be wary of statements like “using 4 of our HR modules will give you a market capitalisation improvement of 23%â€'. You are unlikely to get proof of such a causal relationship or any guarantees of such statements.

Myth 3: Cloud HR technology will define your business processes

Moving to cloud HR is a fundamental shift to the way HR operates. No cloud HR system can automate your spectrum of HR business processes. It may automate logical system steps, but that's only half of what you need. Understand your cloud HR tool intent and design principles (they are different from Enterprise Resource Planning software) then be prepared to completely rethink your HR processes.

Myth 4: Cloud HR technology will make HR management easier

Unless you regard HR as mainly an administrative function, HR management doesn't get easier with cloud HR. It may make some things faster through automation, mobile access and end-user services, but system efficiency does not negate human complexity. Effective HR management delivery still requires HR professionals to apply reasoning, negotiation, innovation, judgement and evidence to successfully achieve measureable organisational goals.

Myth 5: Cloud HR technology will give you HR best practices

Some vendors say their product is built around HR best practices – there's no such thing. Your organisation is as unique as you are, and your needs will be different. Using the standard product solution approach will make implementation easier and there is a good chance it will be “decent practiceâ€' but not necessarily “bestâ€', and it may not necessarily suit your environment.

Myth 6: Cloud HR technology will make employees collaborate and embrace “socialâ€'

Mobile and social layers in Cloud HR technology need a clear strategy that is aligned to the organisational maturity level and culture. Engagement tools don't just get taken up – users need to immediately experience real and personal benefits. Organisational collaboration is broader than posting a status update on an enterprise social platform. It's about becoming a learning organisation that shares knowledge and is free of hierarchical boundaries. Having a supporting culture and leadership style are key success factors here.

Myth 7: Cloud HR technology makes HR strategic

It's a common misnomer, but using talent focussed cloud HR tools such as performance management, LMS and career planning does not equate to HR being strategic.

Many HR processes such as performance management are done because “HR says we shouldâ€'. If this is you, then your cloud HR solution will not return real value to your business and you'll be wasting money and resources.

Myth 8: Cloud HR technology is intuitive

In comparison to Enterprise Resource Planning solutions, cloud HR systems are easier to navigate and have an appealing user interface, but new complexity comes into play when you expect users to apply reasoning – that's not intuitive for users whose HR system experience has been mostly transactional in nature. The way cloud HR systems are designed require behaviour changes at leadership, manager and employee levels in order to derive the most value.

Myth 9: You can easily swap cloud HR technology if you don't like it

Of course, you can change your cloud HR system and vendor, just like your ERP system could be changed. However, the reality is that your HR cloud solution is probably part of a broader environment that includes complex technical integrations and embedded people collaboration and processes. Once you are on a cloud HR solution, the probability of changing products is less than 20% in the first five years. So choosing the right HR technology for your organisation is key- build your HR system requirements against a future focussed HR roadmap that is aligned to business objectives.

Myth 10: Cloud HR technology will make a manager's job easier

A manager's job will be different, not easier. A well-implemented cloud HR solution will increase and encourage manager-employee interaction through new and diverse channels. HR will need to focus on building new manager competencies and knowledge to support a cloud HR solution.

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