Generally, when we think of cloud computing, departments such as Finance and IT immediately spring to mind. Reducing the costs of expensive infrastructure, scaling-up technology resources quickly, and making it easier to test and pilot new ideas are all benefits that resonate with a certain segment of the C-Suite. But what about Human Resources? When dealing with a company\u2019s most valuable assets, its people, are CHROs leveraging the power of the cloud to its full potential?<\/p>\n
Unfortunately, HR seems to be one of the last major business departments to embrace cloud technology en-masse. While there are a number of cloud-based software applications HR departments are using, the benefits of the cloud go well beyond software as a service. There are a handful of forward thinking HR leaders who are starting to see the benefits of cloud computing in three key areas: analytics, social computing and flexible working.<\/p>\n
One of the arguments against analytics in HR was the idea that people are significantly more complex and heterogeneous than other company assets such as inventory or infrastructure. Therefore, the argument goes, trying to add an objective categorisation to the entirely heuristic process of measuring human performance and impact is neigh-on impossible. It\u2019s why analytics in HR (reporting, actually) usually sought to answer more measureable questions. How long did it take to hire an employee? How much did it cost to do so? How well does she understand, retain and apply the training we\u2019ve provided? How well did he meet his defined objectives? While these are good reactive reporting metrics to consider, they don\u2019t really do that well in predicting how well an employee will do within your organisation.<\/p>\n
But now with the continued growth of cloud-based employee activity, organisations have access to a vast amount of employee engagement data that smart companies are leveraging to predict which employees are most at risk for leaving (and why), or what early performance indicators will identify which employees are most likely to succeed (and how to apply to the hiring process), or how to best align business units around shifts in business strategy. Predictive analytics can also help determine the right mix of software and hardware tools for each employee that maximises productivity and reduces cost.<\/p>\n
The hardest part isn\u2019t capturing the right information from the huge volume of employee data in the cloud. Rather, the difficult part is finding people with the right skill-set (part statistics professor, part organisational psychologist and part business strategist) to know what to look for in the cloud to turn all that data into very specific insight.<\/p>\n
Take, for example, JustGiving<\/a>. While their advanced analytics focuses on their donors than their employees, they\u2019re using advanced analytics \u2013 examining complex social connections in more than 361 million<\/em> relationships to align donors with causes that have the most meaning and relevance to them. Read their case study here.<\/p>\n Consumerisation of HR is a bit of a misnomer (we\u2019re really talking about the consumerisation of IT), but as employees adopt new cloud-based technology at home and integrate it in their personal lives, there\u2019s an increased expectation that this same technology will available to them in the workplace. This expectation has a huge impact on HR leaders in finding talent and increasing productivity. Many candidates will look at a company\u2019s use of social media, for instance, as an indicator of how in-touch that company, and by extension how well-suited that company is to compete in its respective industry.<\/p>\n And this technology it\u2019s not just seen as a corporate perk. It has bottom-line impact on productivity. In their personal lives, employees have become accustomed to sharing ideas and information around the globe on cloud-based social platforms. It naturally fits that they would want to apply that same mode of interaction to everything from launching a new product to reviewing financial audit documents.<\/p>\n Take, for example, RSA<\/a> \u2013 one of the world\u2019s leading general insurers. Although they\u2019ve been around for more than 300 years, nearly half their workforce are millennials (the generation born after around 1982). By implementing Yammer, Microsoft\u2019s social networking platform, they were able to improve employee engagement, reduce churn, and increase overall productivity.<\/p>\n A third area of cloud computing that has significant implications for HR departments is how your company thinks about flexible working. As the workforce continues to evolve with more diversity in terms of how employees work (full-time, part-time, freelance, etc\u2026) and where they work (remote working, hot-desking, etc\u2026), HR leaders need to develop a mobile strategy that provides every employee, no matter where they are, access to the tools and information that will maximise their productivity. That access happens through the cloud.<\/p>\n But a cloud solution for flexible working is not just a matter of creating a digital connection for remote employees. Bringing together the right set of software (as a service) and devices, ensuring company maintains data security with increased mobile working, and understanding the best ways to make this varied mix of employees productive and happy cuts across departments. It starts, however, with people. It starts with HR.<\/p>\n One great example of how flexible working is helping people for whom working together face to face was a physical and medical<\/em> impossibility is the Cystic Fibrosis Trust<\/a>. By implementing Office 365 suite, they have been able to include everyone in the daily business of the organisation, regardless of their geographical location. Remote staff are able to join virtual meetings and to share documents, via Skype for Business, which has a positive impact on both productivity and staff morale.<\/p>\n If you\u2019re a senior HR leader, your company may be ahead of the curve when it comes to seeing the benefits of the cloud. On the whole, though, HR has a long way to go to catch up to some of their company\u2019s other departments when it comes to turning the promise of the cloud into tangible and measurable organisational benefit. Of course every company is different, so in order to get a better understanding of how the cloud can benefit your workforce, All About People (June 8-9 in Bournemouth)<\/a>,\u00a0is a good place to start.<\/p>\nSocial computing: the consumerisation of HR<\/h2>\n
Flex that works: keeping employees connected wherever they are<\/h2>\n
What the cloud means for HR Leaders<\/h2>\n