We’ve all heard the buzz about the cloud and how it is revolutionizing the way our society stores, accesses and uses information. In the HR realm, the cloud is heralded as the solution that will streamline the constantly growing administrative tasks of this field. Despite these promises, one question remains: Is human capital management (HCM) cloud technology here to stay?  

The ABCs of HR Cloud Technology

We’ve all heard the buzz about the cloud and how it is revolutionizing the way our society stores, accesses and uses information. In the HR realm, the cloud is heralded as the solution that will streamline the constantly growing administrative tasks of this field. Despite these promises, one question remains: Is human capital management (HCM) cloud technology here to stay?

Before we get too far into our discussion of this technology, let’s first define this term. Cloud technology is defined as a system that offers users the ability to pay a subscription fee to access software over the internet rather than licensing and running it in-house. Specifically, HCM cloud technology is referred to as Software as a Service, or SaaS.

More than just being a cool acronym, SaaS is having a notable impact on the HR industry. According to Gartner, it is estimated that the HCM market will reach $10 billion in 2015, with 75 percent of that market coming from SaaS technologies. In response to HR professionals’ desire for more in-depth and easier-to-access information, technology companies are developing new, more comprehensive HCM products.

Larry Dunivan“SaaS companies like Dayforce HCM ensure that organizations receive a fast and efficient return on their technology investment. Specifically, these cloud-based platforms give businesses tools to take their operations to the next level and strengthens their ability to meet their goals,” said Larry Dunivan, Executive Vice President at Ceridian.

The ABCs of HR Cloud Technology

What are the benefits of HCM cloud technology compared to legacy platforms? To answer this question, let’s brush up on our ABCs and take a look at the basic, yet influential, benefits of cloud-based, SaaS technology.

Affordable. SaaS technology offers consistent, pay-as-you-go fees, which greatly simplifies the budgeting process. These regular expenditures replace the expensive, budget-draining upgrades and infrastructure required by legacy, on-premise systems.

Bountiful Data. The business world’s focus on big data requires HR departments to use analytics to operate strategically. SaaS, cloud-based platforms provide organizations detailed, instantly usable information that aid the decisions of workforce scheduling, time and attendance, and leave management. Additionally, the tracking of employee activities in HCM software enables organizations to spend less time on administrative HR tasks.

Convenient. With real-time access to information, businesses that use SaaS platforms are able to proactively tackle potential human capital management problems before they happen.  Additionally, employees’ ability to access the HR application via the internet provides them greater flexibility and choice. Employees’ lives are simplified through SaaS systems, which automate vital HR processes like upgrades, regular system backups and disaster recovery precautions.

Companies that invest today in SaaS, cloud-based technology will position themselves for significant success in the future. This technology provides organizations the tools, data and knowledge that will empower them to make smart decisions in the area of human capital management.

For more information:

  • Discover the ways Dayforce HCM is transforming workforce management
  • Read Ceridian’s Transformative Technology for Human Capital Management white paper
  • View Ceridian’s 12 Steps to Determine Whether You Need Human Capital Management infographic