HR systems in the cloud are winning
Recent research from KPMG IT Advisory shows an increasing number of suppliers who offer their HR system based on cloud and SaaS techniques. Traditional on premise offerings, where the software is installed and maintained in the IT network of the customer, become rare. For some HR solutions the ratio “on premise” VS “cloud” is 1:4. Meaning cloud solutions are sold four times more often than on premise solutions.
How to tell them apart?
The research also indicates modern HR systems hardly distinguish themselves as far as basic functionality for HR-processes is concerned. The capabilities for maintaining employee data and payrolling are usually of high quality. Differentiation is accomplished based on the support of tactical and strategic HR processes, like competency management, talent management and succession planning. When selecting HR software, it’s important these functionalities match the way your organisation handles these issues.
Cross border HR systems
More and more vendors position themselves as an international solution. One of the drivers for this internationalization is of course the cloud. A local support organisation is no longer needed. A multilingual helpdesk should be sufficient. It is interesting to observe these vendors leave payroll functionality out of the equation. This is understandable, because payrolling has to comply with local legislation which changes at least annually. Payrolling is usually performed by a specialized local partner.
HR systems move up the corporate ladder
Traditionally, HR systems supported the registration and execution of employment contracts within the legal boundaries. These applications were primarily designed for maintaining employee data and payrolling. Due to the increasing strategic emphasis on recruiting, developing and retaining excellent staff and high potentials, HR systems move up the corporate ladder. Modern HR systems have to support decisions regarding career planning, talent management and competency management.