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HR cloud

A launch pad, not a destination

Cloud-based systems have not been a panacea for HR—but then, they were never intended to be. Instead, they can give organisations a solid foundation for integrating the explosion of new tools that HR software vendors are now developing.

 

Over the last few years, significant progress has been made in HR’s move to the cloud. But although cloud computing platforms have, in general, been wildly successful, many vendors have had challenges keeping up with innovative talent management practices, driving organisations to adopt best-of-breed solutions to fill the gaps. In addition, many of the organisations adopting cloud-based human capital management (HCM) systems are not placing enough emphasis on complementary transformational activities such as redesigning their operating model, data architecture, and user experience. This is leading to technology implementations that are not delivering their full potential. Nonetheless, cloud-based HCM is establishing a foundation for change and innovation, enabling organisations to shift their energies toward more pressing challenges.

 

HR technology continues to be a major challenge. In this year’s Global Human Capital Trends survey, 74 percent of respondents rated the topic important or very important, and 21 percent called it one of the three most urgent topics their organisations faced moving into 2019. While billions have been invested in integrated cloud-based systems, many organisations tell us they are still not satisfied, and research shows that the average satisfaction with these systems is only 3.3 out of 5, a drop of 3 percent over last year.1 Despite the intense interest in better data management, only 26 percent of respondents report effectively using technology and analytics, and only 6 percent believe their HR technology is excellent. In fact, after investing more than US$20 billion in HR technology over the last five years,2 65 percent of our survey respondents still report that their technology is inadequate or only fair at achieving its overall objectives.

2019 Deloitte Human Capital Trends Report for South Africa
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