Is your HCM really on the cloud?

Is your HCM really on the cloud

HR Directors: Many of your peers and acquaintances in other companies keep talking to you about their shiny new cloud HCM platforms that they have decided to implement or, in some cases, have implemented already. You listen graciously to their successful and less successful stories, but never for a moment ask yourself if your organization should think about doing something similar.

After all, you regularly access your pay check and enter your time off requests via your web browser, so your HR and payroll systems must be in the cloud, right?

Well, not necessarily. While the experience may be comparable to web browsing to you as a user, thinking that this automatically means that you are “on the cloud” could be a dangerous assumption to make.

In fact, this is only possible thanks to the VPN in your laptop that allows you to access information stored on local servers in the same way as you access google.

Luckily, you can find out if your HCM are really “on the cloud” by asking your key stakeholders a few simple questions:

Finance Controller

  • Can they explain the cost structure of your HR systems and infrastructure?
  • How predictable are those costs?
  • Were there any hidden costs over the last few years related to unforeseen maintenance and upgrades?
  • Are those costs categorized as capital expenditures or operational expenditures?

IT Director

  • How much effort does it take to maintain servers, upgrade the platform and provide basic troubleshooting?
  • How is data security managed and what business continuity plans are in place?

This is especially the case, if servers are inaccessible for extended periods of time, particularly during payroll cut-off.

HR manager

  • Is employee or manager self-service functionality available?
  • Do they use advanced analytics when making key business decisions?
  • How do they ensure compliance with the latest legal regulations in every country they operate in?
  • Can employees request or approve simple HR tasks such as time off requests on their mobile phones?
  • What is their level of data visibility in the system, both for themselves or their peers or teams?

By asking these questions, doing so not only you can find out if you’re “on the cloud”. Alongside opening your eyes to the benefits and positive outcomes this technology can bring to your organization and achievements.

With this clarity on how revolutionary cloud technology can be, it’s possible to envision a path towards transformation that will meet the needs of your business and your people, as described in this blog.

In fact, moving to the cloud is increasingly becoming more than just a preferred option. With mainstream maintenance for many SAP on-premise systems scheduled for sunset beginning in December 2025, it is, for many companies, a top priority. The time is now to determine if a move to the cloud is right for you.

Gianmatteo Masala Strada business consultant

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