HR departments are failing to take a strategic approach to using cloud technology, despite high levels of adoption and buy-in, according to a report from KPMG, seen exclusively by HR magazine.
The 2016 Global HR Transformation Survey found that a quarter of businesses (24%) believe that cloud technology is reshaping HR to deliver greater value within their organisation. Just under half (42%) of HR executives said cloud-based solutions will replace existing HR systems, and nearly two-thirds (63%) of respondents expected improved value-add from cloud HR systems, such as data-based decision-making and cost reduction.
However, the study, which is in its 19th year and surveyed 854 HR executives from 52 countries, found that despite high levels of adoption, companies are failing to take a strategic approach to using cloud technology in supporting HR transformation and integrating people, processes and technology.
Just 13% reported improved collaboration and feedback between employees, and only 20% reported the HR function becoming more evidence-based via workforce analytics as a result of cloud HR technology.
Robert Bolton, partner at KPMG’s global HR Centre of Excellence, said that the survey should serve as a “tale of caution” on the critical need to include organisation and change management for true HR transformation.
“Enterprises plan to spend money on new technology but there’s a ‘so what’ quality to their approach that raises questions about who the winners and losers will be in a game that has high stakes for the future,” he said. “Businesses need to overcome the common impulse to simply plug into new technology – what’s missing is a clear vision for the future of HR and strategic change management that brings the vision to life by integrating people, processes and technology.
“Investment in cloud technology continues to soar but it’s clear that many organisations still need to implement intelligently designed strategies that are crucial in maximising cloud computing’s impact,” Bolton added. “Unfortunately, some HR functions are ‘hitting the wall’ and getting stopped in their tracks due to their narrow focus on new technology.”
