Navigating Cloud HCM Implementation: Key HR Tech Roles & Best Practices

According to Gartner, by 2025, 60% of global midmarket and big firms would have invested in a cloud HR and people management suite. Within the next year, 60% of big worldwide organizations will use at least five HCM and digital workplace technologies to fulfill employee experience demands.  

Cloud HCM suites have effectively become the focal point of most HR software portfolios. Many HR technology executives believe that deploying or reimplementing a cloud HCM suite will address all of HR's current technological concerns. However, many cloud HCM installations have failed to meet the (sometimes exaggerated) expectations of many organizations owing to a lack of awareness of the suite's capabilities or inadequate pre-implementation planning. 

What is Cloud HCM (Human Capital Management)? 

Human capital management (HCM) is an amalgamation of practices concerned with human resource management. These practices are executed in three areas based on the organizational need to deliver certain competencies: workforce acquisition, workforce management, and workforce optimization.  

Why do organizations fail in effectively implementing HCM?  

On a strategic level, most organizations have a basic knowledge of what they want from HCM cloud solutions. They frequently struggle, however, to plan suitable resources and dedicate them to ongoing change management. In fact, according to the 2021 Gartner HR Technology Leaders Survey, one-third of respondents spend 25% more time operating their cloud HCM suites than original projections from implementation partners (IPs). Without the necessary resources and administration, cloud technology may fall short of realizing the full benefit of HCM cloud.  

How can organizations effectively implement Cloud HCM?  

Due to limited resources and the urgency to make an immediate effect, HR technology executives may explore new strategies, such as agile and product management methodologies, in some cases. However, implementing agile and product management for cloud HCM necessitates a paradigm shift in organizational approach.  

It takes time to change culture and blur the basic distinctions between HR and IT through agile or product. As a result, HR technology executives who's agile or product strategy is not yet comprehensive or in place require a comprehensive plan for the degree of resources and capabilities required for their immediate cloud support demands. Therefore, organizations need to assign tasks and responsibilities across each role to implement Cloud HCM effectively. 

• HCM Suite Product Owner: The person in this position oversees making sure that the work of the development team and the organization's main HCM suite use cases bring the most value and results to the project. 

• Vendor Management Lead - This position is in charge of managing vendors in order to eliminate bottlenecks and delays.  They also reach an agreement with internal and external parties who will exchange data with the prospective solution on data extraction techniques and timetables for data transfer. 

• HR Analytics - This position collaborates with the HR function's talent analytics team and the IP to deliver reporting, analytics, dashboards, and data management to provide enhanced HR reporting and analytics capabilities.  

• Business analysts: They enable process harmonization and design workshops with HR subject experts to proceed towards the future-state solution — a single instance of HCM. Business analysts examine the existing and future solutions to provide a fit-gap evaluation. They indicate pertinent process gaps that must be addressed outside of HCM. They additionally perform analysis, process mapping, and workflow mapping.  

• SaaS Config Specialist - A SaaS config specialist, also known as an application specialist, modifies the cloud HCM system. To suit user demands, an application platform as a service (aPaaS) is frequently employed to supply new features or limit the SaaS system modified within established parameters. When it is determined that a PaaS extension is the most effective solution, PaaS Specialists who have been educated in its use take up the role. 

How to ensure a smooth functioning of the entire Cloud HCM ecosystem? 

When a new cloud HCM suite is introduced, organizations frequently struggle to allocate resources to continuous change management. It is highly unlikely that a single resource will have the whole set of skills or bandwidth required to operate cloud HCM on its own.  

As a result, HR software technology executives should create a cooperation charter for their HR and IT teams. They should assist the two departments in orienting themselves around a set of common goals to deepen their collaboration, and they should delegate responsibility for specific tasks and ongoing change management across the teams depending on their talents and resources.  

Best practices for a successful Cloud HCM implementation 

Training and upskilling are the necessary requirements for successful cloud HCM implementation.  

Cloud HCM suite users who need skills transfer during deployment. The client's administrators, super users, and transactional users learn system administration and configuration through this transfer. How the implementation provider's capabilities match the organization's needs should be a crucial consideration for talent transfer. HR technology executives can identify skills to transfer and design a learning plan for internal teams during the implementation process.  

Also Read: Navigating HRIS, HRMS, and HCM: A Comparative Guide 

HR management software leaders should consider the following areas when creating their learning plans:  

• Work-based learning and coaching: Include a provision in your service provider agreement for work-based training and coaching in change management, release management, and functional knowledge throughout the project.  
• Avoid key-person dependencies:To eliminate key-person dependency, assign at least two employees to learn the same material and encourage them to exchange notes to verify their understanding. 
• Train enough: If you buy cloud HCM suite training services, be sure the credits cover the number of individuals and education subjects needed for knowledge transfer. You should budget for extra training and refresher following implementation.  
• Schedule training: Understand that your teams learn differently and must prioritize their present task. Plan for these elements in your training.  

 
When should the skill transfer happen? 

Transfer of skills occurs before, during, and after implementation. HR software management executives must constantly evaluate the transfer process in order to identify knowledge gaps and training requirements. HR technology executives can also inquire with central IT about the transfer and administration of cloud application management skills to other functional business areas such as finance and marketing. They can next investigate if the same approach applies to an HCM suite.  A good skills transfer strategy is important to the success of cloud HCM suite adoption and assisting organizations in realizing their intended ROI.  Driving success with Cloud HCM needs organizations to effectively understand, plan, allocate and train resources to gain the maximum benefits from the software for the business. 

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Frequently Asked Questions 

1. What are the major challenges faced during successful cloud HCM adoption? 

Data Security Concerns: Addressing data privacy and protection problems is vital to gaining confidence in Cloud HCM. To protect sensitive HR data, organizations must follow security and compliance processes. Encryption, access limits, and security audits protect employee data. 

Integration Challenges: Cloud HCM integration with legacy systems needs careful design and smooth interaction. APIs and middleware help data and processes move between software platforms. 

Change Resistance: Effective change management is needed to manage employee resistance during the shift. Communicating the benefits and reasons for using Cloud HCM helps employees accept change. Employees may confidently adopt the new system with extensive training and support. 

2. What are some future trends in cloud HCM? 

AI and Automation: Cloud HCM's AI and automation technologies will streamline HR operations and save HR professionals time. HR professionals will focus on strategic duties while AI-powered chatbots and virtual assistants address regular questions. AI-powered computers will analyze massive volumes of employee data to identify top talent, anticipate churn, and personalize learning and development. 

Improved Analytics and Insights: Cloud HCM solutions will use big data and sophisticated analytics to provide organizations new worker insights. Strategic workforce planning using analytics technologies will assist HR professionals integrate human capital with business goals. Data-driven analytics will reveal trends, talent shortages, and employee productivity, enabling wiser HR decisions. 

Mobile Accessibility: Mobile-first Cloud HCM software will give employees and HR professionals 24/7 access to important HR operations. Employees can use smartphones or tablets to submit leave requests, timesheets, and performance reviews. HR teams can quickly respond to employee requirements and company expectations with mobile access to HR data and decision-making.