Many organizations looking to the cloud’s immense capability to transform the HR function are discovering a stark new reality, according to KPMG’s 2016 Global HR Transformation Survey.
Companies pursuing cloud computing to revolutionize 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. KPMG’s HR Transformation Survey (formerly known as the Towers Watson Service Delivery and Technology Survey) provides a timely tale for caution.
“The Bulgarian market, included in KPMG’s survey, is no exception: the global nature of Cloud technology provides the same opportunities and challenges to the local entities and many have already embraced Cloud technology in some form or another, including in their HR systems,” commented Nikola Nyagolov, Director, Advisory. “Opportunities for Cloud driven transformation, unleashing new, improved business and operational models are readily available but they should not be undertaken without understanding and preparing for the inevitable change in the organization and its processes, assessing the impact of the disruption and potential value of the implementation,” Nikola said about the way forward.
As every journey, HR transformation needs to begin with a clear vision of a desired end-state. Effective transformation is an opportunity for organizations to be bold, to better collaborate and to better leverage their people, processes and data insights to succeed. “No strangers to change and captivated by the opportunities offered by Cloud HR, Bulgarian companies are also starting to explore new platforms and systems. KPMG’s survey gives them the chance to benchmark their practices and identify new ways for enhancement,” shared Dimitrina Ivancheva, Manager, Recruitment & Outplacement Services.
Investing in cloud technology, along with improved data and analytics programs, are the most common HR initiatives among organizations. 69 percent of organizations said they looked forward to better functionality and 63 percent expected a greater ‘value add’ to their business from HR.
Despite expectations for Cloud HR, the majority of benefits being realized 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.
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.
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During February and March of 2016, 854 executives from 52 countries, including Bulgaria, 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 organizations with more than 5,000 employees and 40 percent were vice presidents and/or heads of the organization’s HR function. This marks the 19th consecutive year that this market study has been conducted.
© 2018 KPMG Bulgaria OOD, a Bulgarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.