Why HR Cloud Technology isn’t Mainstream – But Will Be Soon



Organizations are facing different challenges today than they encountered 30 years ago. Limited access to external funding, stricter compliance standards and a growing need to streamline important processes are three of the biggest concerns many companies face. They must focus on minimalism and automation to reach these goals. HR cloud technology is making it easier for them, so a growing number of companies are investing in cloud-based HR tools.

Unfortunately, there are still some obstacles that have kept HR Technology from being universally adopted by companies around the world. Nevertheless, it offers a number of great benefits to businesses of all sizes. In the future, almost every organization will use HR cloud software to oversee their workforce.

Implementing cloud software helps a business to save time, connect globally, keep safe and stay up to date. Cezanne HR state that HR software takes the pain out of HR management, helping everyone to work smarter and, as a result, achieve more.

Here are some of the primary reasons companies are using cloud-based HR technology.

Improving employee engagement

David Hope, president of Asia Pacific Japan at Workday, states that HR technology is already helping companies trim their overhead. It also bolsters employee engagement, which has improved employee productivity. It has made big waves in the financial industry.

“While technology has brought new forms of competition from organizations that operate in niche services banks once dominated, such as peer-to-peer lending, forex trading, investment advice, deposit-taking and money transfers, technology also offers solutions to help banks solve the profitability problem. One way full-service financial institutions can increase productivity is through more effective workforce management. Studies have shown that more engaged employees deliver better customer service.”

A recent survey from PwC found that 73% of respondents had at least one tool in the cloud. Slightly over half of those companies stated that their employees for using those tools regularly.

Cost-effective solutions for smaller organizations

Fortune 500 companies have relied on sophisticated, data-centric HR systems for years. Similar state-of-the-art tools were not available to smaller companies until very recently. The 2016-17 Sierra-Cedar HR systems survey found that cloud technology has made comparable solutions available to smaller companies in recent years.

According to People HR, small companies often have difficulty finding qualified HR professionals, so human error often leads to a number of expensive problems that are rare with larger companies. They can use the systems to streamline their HR functions without the liabilities of a bloated HR department.

More efficient integration than other HR systems


In the past, HR systems were very cumbersome and difficult to set up. Newer cloud-based HR applications are more seamless and easier to integrate into the organizational infrastructure. This is a significant advantage for smaller companies with limited resources that don’t want to restructure their entire IT system.


Challenges with cloud-based HR systems

Well, there are numerous benefits of cloud-based HR applications, there are also some challenges that organizations need to overcome. The technology to address these issues is already available, but companies need to take the right steps.

The most important concern is security. With a growing number of IT security breaches, companies must be cautious about storing their sensitive data on the cloud. Some cloud environments are much more secure than others, so companies need to choose their cloud solutions carefully.

Complaints is another issue that companies need to address. Some jurisdictions have very strict policies on storing employee data. They need to make sure the servers are located in their own jurisdiction, so unauthorized access isn’t permitted.

Cloud Technology Is the Future of HR

Cloud-based technology has touched every facet of management. It has made a major impact on the human resources departments of many organizations in various industries. Some technical issues still need to be sorted out before it can replace traditional HR functions entirely, but they are already making a big difference.