This is because processes in companies are becoming more complex, employee demands are increasing, and external influences – such as the Corona crisis – impact workflows. To remain competitive, adaptation to the market is unavoidable. You do not have to invest in a completely new HR management system for this because, thanks to individual interfaces, the cloud communicates effortlessly with other programmes.
A cloud-based HR solution in outsourcing offers many advantages. The most obvious: you no longer need your own software. Take payroll for example; your data is in the cloud. Companies need not be shy about this technological innovation because open technology platforms can be individually adapted to each customer and are intuitive to use. This makes it easy to use even for non-technical employees. The cloud also makes it possible to bundle and provide all important information from different company divisions in one platform – regardless of the data origin. All HR master data, for example, is then in one central location and does not have to be maintained in different systems.
Other programmes, such as personnel management systems, can be connected via standardised interfaces. This makes it possible to harmonise systems and processes, as different programmes can work together in one system landscape. Communication is possible between different SAP applications as well as between SAP and other systems. Employees can continue to work with the programmes they are familiar with, so they do not have to get used to them again.
Potential savings in operation, maintenance and administration
In many cases, interfaces can be completely eliminated thanks to outsourcing in conjunction with a cloud solution. Suppose the HR service provider takes over the payroll, or even mirrors the entire HR department; in that case, companies no longer need to worry about these areas and no longer need to keep the corresponding systems with their interfaces available themselves. Although interfaces have the immense advantage that different systems can be linked with each other, they sometimes also require maintenance. This is when new programme versions are installed, and the existing interfaces can no longer dock onto the newly versioned systems. With outsourcing, however, the service provider takes over the operation, maintenance and administration of the cloud. The potential savings in your own IT departments are enormous as a result.
If companies outsource complete work processes such as payroll, this brings many advantages. Instead of taking care of rather tedious tasks such as travel expenses and payroll, HR managers can dedicate themselves to other strategic tasks – thanks to the time saved – and bring the company forward through sophisticated talent management.
Bundled data in the cloud – more productive employees
Another advantage of the cloud is that it is web-based and can be accessed from any location. This solution not only simplifies the linking of individual company locations, but also meets modern demands for flexible working from different locations. The Corona pandemic has shown how important this is and how quickly companies may have to change work processes and locations. Those who had already created the necessary infrastructure in advance and switched to a cloud were clearly at an advantage.
In the current HR Technology Study by PwC, cloud users report better insights into the processes within the company and higher productivity and satisfaction of their employees compared to on-premise solutions. Why? Because in a cloud, information from the various company divisions is bundled; this increases transparency in the company. Employees can find the information they need much more easily and get answers to questions quicker.