In the past 18 months we’ve seen dramatic change in how we work, driven by the need to adapt quickly to the challenges imposed by a global pandemic. Many in the workforce abruptly learned to do their jobs remotely, and at the same time companies of all types looked to technology to support business processes in new ways. In other words, they embarked on digital transformation to handle the sudden change in the business environment.
As a result, it’s now clear to leaders that creating, maintaining and refining a winning employee experience is an essential aspect of digital transformation – every digital transformation involves a people transformation. HR leaders must understand that cloud-based technology is the most effective way to create an experience that delivers for people and the company alike.
A digitalized, streamlined HR technology solution must support a few key capabilities.
First, it must give people the HR-related service and information they need from any device.
Second, it should allow HR professionals to spend less time chasing new-hire documents or answering ad hoc questions and more time developing a workforce strategy that supports business goals.
And third, it should be built around a secure and scalable data architecture that provides HR with a holistic view of the workforce and its impact on business outcomes.
But this is the most important thing to understand: When the only business certainty is that change is coming, everyone and everything needs to be agile. A well-designed cloud based HR system allows people to be at the center of transformation, driving change rather than reacting to it.
HR, elevated
A centralized, scalable, cloud-based HR technology platform is more agile, supports better decision making by providing a single source of truth, and allows for automation of routine tasks. Many leaders were caught flat footed in 2020, struggling to answer seemingly basic questions like “who works for me?”
According to Deloitte’s 2021 Human Capital Trends report, just 11% of organizations said they were able to produce information on their workforce in real time. With ongoing uncertainty and uneven recovery, some sectors are having a tough time finding enough workers and others are focused on managing resources with tight precision, reinforcing the need for HR tech that provides agility and information flow. Other capabilities to keep in mind include:
The little moments that matter
A modern HR system doesn’t just give people easy access to their benefits or payroll information. It can help drive well-being by nudging employees when they’re due for time off or help managers and employees identify training and career advancement opportunities.
The big details that reverberate
HR has always had a role in supporting regulatory compliance, especially the need to stay current on tax changes that hit employee payroll. In the wake of COVID-19, staying current on regulations is even more important.
In Italy, for example, the government created tax incentives but also suspended tax contributions, changed deadlines for insurance premiums and updated regulations on sickness pay. These changes were automatically updated through SAP’s cloud HR solutions. Regulations continue to evolve rapidly, making embedded localization features a key requirement for HR leaders.
Agility and continuity
HR systems in the cloud help standardize data, processes and information. This gives HR a holistic view of the workforce and a single repository of people data, allowing it to be a more strategic partner to the business –identifying, hiring, training, and retaining the right people to pursue new business models.
In addition a well-architected solution will provide a platform that allows for secure and scalable customization and extensibility. For instance, a specialized app like Ingentis allows HR managers to model different workforce scenarios by simply dragging and dropping individuals or entire departments in response to, say, an acquisition or the need to shift resources amid a strategy change.
Ingentis automatically calculates the impact of each move, be it the effect on salary or diversity. Modeling tools like this help ensure that small and large changes alike don’t leave individuals or groups unaccounted for, and can help identify people with needed skills to be elevated into critical roles.
When the pandemic set in during 2020, American convenience store chain Love’s, (with more than 500 U.S. locations), needed to adjust its performance goals as shoppers were no longer hitting the road, much less shopping for snacks and other items along the way.
Love’s, which had already shifted HR to the cloud six years prior, used SAP SuccessFactors Performance and Goals to adjust its goals and targets to suit the sudden change in shopper traffic. Goals could even be modified daily through the app so there’d be no ambiguity about people’s responsibilities. The information about people’s performance against their new targets was collected and used to compile reviews on time, remotely, without disruption.
HR cloud tools also proved their mettle midway through the pandemic as Pfizerprepared its long-anticipated headquarters move from to a new location on the opposite side of Manhattan.
As employees began planning their return to work, the company quickly deployed a new application that gives people access to the physical and technical resources they need. People can also use a program to tell the company on which days they plan to be onsite. That way, people have a space to work at a safe distance from others and the company knows who was in the building, should a positive coronavirus case be discovered.
An easier way to work
As companies look to the future, it’s clear that the clever use of technology will be one of the keys to success. It’s also clear that the ability to drive change and adapt to new business imperatives depends not just on technology, but also on people.
Moving key systems to the cloud is a first and necessary step towards digital transformation across the enterprise. By focusing on the HR systems that support your people, you can more easily develop a workforce that’s engaged, ready to adapt, and help your company thrive in any environment.
In addition, you’ll streamline operations, reduce IT complexity, and give your HR leaders the information and tools they need to drive workforce strategy and have greater business impact.