HR Transformation Survey 2016: The future belongs to the bold

HR Transformation Survey 2016

Businesses today are battling an array of complex and often unprecedented challenges, and cloud computing has unleashed game-changing new capabilities to respond competitively.

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Now is the time to be bold

Many organisations pursuing cloud computing to revolutionise the HR function with data-based decision-making, cost advantages and new value for the bottom line are discovering that HR transformation entails much more than simply plugging into the Cloud. Now in its 19th year, the HR Transformation Survey (formerly known as the Towers Watson Service Delivery and Technology Survey) reveals that a growing number of organisations that have selected new HRMS technology are opting for cloud-based solutions. Firms meeting expectations are relying on a strategic approach to change management that generates a broader and deeper range of transformational benefits.

Research and commentary from the report shows that organisations connecting their cloud technology to their people, processes, change management strategies and programs are succeeding in their HR transformation journey, while those who do not are largely failing to meet the mark.

Key highlights

  • Cloud is just a tool

Investing in cloud technology, along with improved data and analytics programs, are the most common HR initiatives among organisations. 69 percent of organisations said they looked forward to better functionality and 63 percent expected a greater ‘value add’ to their business from HR.

  • Strategic transformation takes HR from ‘steward’ to ‘strategist’

Despite expectations for Cloud HR, the majority of benefits being realised with existing cloud HRMS implementations are more tactical in nature. 24 percent reported that Cloud HR is delivering greater value, while only 20 percent reported the HR function is becoming more evidence-based via workforce analytics.

  • Intelligent change management is not optional for success

Implementing cloud technology to drive transformation is not simply a ‘plug-and-play’ strategy. A well-planned change management system must also be in place to help ensure enterprises are meeting expectations for improvements and progress.

  • You need to be bold to complete the journey

The HR transformation journey needs to begin with a clear vision of a desired end-state. Effective transformation is an opportunity for organisations to be bold, to better collaborate and to better leverage their people, processes and data insights to succeed.

Source: Cloud HR: the future belongs to the bold report, KPMG International, 2016.

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About this survey

During February and March of 2016, 854 executives from 52 countries participated in the survey. One-half of respondents were from companies that operated at a global level. Respondents represented a wide cross-section of industry sectors, led by Financial Services (19 percent), Industrial Goods and Services (15 percent), Technology and Telecom, Media (14 percent) and Professional and Business Services (12 percent). Forty-four percent of respondents were from organisations with more than 5,000 employees and 40 percent were vice presidents and/or heads of the organisation’s HR function. This marks the 19th consecutive year that this market study has been conducted.

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Our team can assist clients to navigate organisational design, change management, talent management, and HR function and workforce optimisation.

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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