Unlocking the Potential of HR Automation Through Cloud HCM Technology

6 min read
December 27 2022

Using various clunky processes and systems to perform everyday HR tasks is common. These processes can be incredibly manual, and multiple systems usually require numerous logins, workflows, and redundant data entries.

Disjointed workflows may leave HR teams feeling cynical and bracing for unanticipated disruptions. Automation is a key ingredient in achieving greater efficiency and effectiveness.

In this article, we'll explore the following:

  • The benefits of automation in Human Resources.
  • What you can automate with cloud HCM technology.
  • Actionable steps you can take immediately to put your organization on the path toward unlocking the potential of automation through modern cloud-based tools.


The Benefits of HR Automation

Cloud-based human capital management (HCM) software has become a go-to solution for modern enterprises looking to streamline their human resources processes. Cloud-based HCM offers many automation benefits, including cost savings in hardware and IT infrastructure, improved accessibility, enhanced scalability, and faster payroll processing. Cloud-Based HCM makes automated HR tasks like filing, tracking hours, onboarding, managing benefits, and record-keeping much more manageable.

Cloud HCM technology is revolutionizing how HR departments approach personnel management processes and enterprise productivity via employee self-service tools. It also simplifies data analysis from an administrative standpoint by providing real-time reports and analytics on employee time and attendance. This data makes it easier to create efficiencies while firmly aligning HR duties with the organization's goals.


A Simple & Secure Way to Access Data

More than half of HR leaders are considering switching HCM platforms within the next 12 months. Why? Security issues.

Swapping clunky tech tools for a cloud-based HCM gives access to all the data you need from a single source. This technology shift means the days of remembering multiple logins and passwords can be put in the past. A single source of truth also reduces the risk of human error and improves productivity because data only needs to be entered once.

In addition to simplicity, the cloud provides security – which is of utmost importance to most business leaders. In fact:

The cloud can help ease security concerns. HCM platforms hosted with a top cloud service provider have multi-layered defenses that safeguard critical information.

Additionally, HCM platforms should have formal and comprehensive security protocols put in place to:

  • Ensure the security of data
  • Protect against security threats
  • Prevent unauthorized access
  • Reduce human risk due to off-site data storage
    • With a lack of physical access to files, the likelihood of someone on-premise finding sensitive information and using it negatively decreases.


Software Flexibility via Customizable APIs

The pandemic of 2020 highlighted the importance of flexibility within an enterprise. But outside the need for flexible technology that can support a remote workforce, your HR department also needs scalable technology that can integrate with other tools and services.

Cloud HCM platforms with open application programming interfaces (APIs) can be customized to fit specific business needs. This customization is necessary because research shows that there are 360 integrations important to HR teams. In fact:

14 percent of HR leaders say the ability to integrate with other technologies is their top expectation for an HCM platform.

After all, flexible technology will also be scalable – meeting the needs of HR teams' current working environments and adapting to future needs.


What Can You Automate with Cloud HCM Technology?

Cloud-based HCM can help automate HR tasks like payroll, onboarding, leave management, performance reviews, and more. Automation not only simplifies these processes but also reduces the risk of human error - leading to more accurate data and the ability to make better decisions.


Payroll Management

Payroll is one of the most tedious HR tasks, but cloud-based HCM solutions can help make it faster and simpler. Automated payroll solutions enable organizations to accurately calculate taxes, deductions, overtime pay, and other elements in a fraction of the time it would take manually.


Employee Onboarding

Integrated human capital management solutions can help simplify the onboarding process by automating paperwork and training for new employees. This automation streamlines the hiring process while eliminating many manual, repetitive tasks associated with onboarding new employees and benefits administration.


Leave Management

Cloud HCM technology also easily tracks employee vacations and sick days. Automated leave management systems calculate how many days each employee has remaining, ensuring that the correct number of vacation days are taken and paid out accurately and giving your HR team time back in their day.


Performance Management & Reviews

Performance reviews are essential for HR success, and cloud-based HCM software provides tools to track employee performance more effectively. Automated systems can also be used to store and organize employee records, enabling quick access to information when it's needed.


Reporting & Analytics

Cloud-Based HCM solutions also provide advanced reporting and analytics capabilities. This enables HR staff to quickly analyze employee performance data and make informed decisions that support the organization's short-term and long-term goals.


Analyzing Data & Optimizing Performance with the Help of HR Automation Software

When data is gathered in real-time from cloud-based systems, it eliminates the need for manual data entry. Also, it reduces the potential for human error associated with traditional HR processes. This allows businesses to access up-to-date insights into their employees' performance without the tedious task of manually inputting information into a spreadsheet. Furthermore, cloud-based HR solutions are able to provide advanced analytics capabilities that allow for better decision-making based on accurate data.

Cloud-based HCMs also offer predictive analytics capabilities that enable administrators to forecast future trends in employee activity or performance. These insights help organizations anticipate potential challenges before they arise and plan accordingly, leading to greater efficiency in operations management. Additionally, cloud technology provides enhanced scalability that allows businesses to adjust resources quickly according to changing needs.

HR departments can better understand their personnel's activities while reducing hardware costs associated with traditional HR software solutions.

Cloud technology enables businesses to streamline data collection by automatically collecting key metrics such as task completion times, absenteeism rates, and employee survey results.

Making it easier for HR to analyze these metrics quickly and effectively to identify areas of improvement or recognize successful teams and individuals.

Cloud technology is changing how HR departments manage people while allowing automation with cloud HCM solutions.


The ROI of a Cloud-Based HCM System

A cloud HCM platform makes sense not only because of its simplicity, security, and agility and its impact on a business's bottom line. In fact:

Organizations that switch from manual processes to cloud-based HCM solutions have an average return of 325%. - Source: Nucleus Research 

Some of the ways a cloud-based system can impact ROI include the following:

  • Boosted productivity with a single system and login
  • Minimal downtime is needed to administer regular updates
  • Engagement management tools increase collaboration
  • Learning management capabilities can improve skillsets and retention
  • Self-service functionality eliminates the need for manual processes

While this is not an extensive list of cloud advantages, it identifies some areas where the cloud can impact businesses immediately. Plus, a comprehensive cloud platform can help streamline HR tasks like time and payroll, freeing up more time for strategic operations.

As they say: The most challenging business is the business of people.


Actionable Steps Businesses Can Take to Leverage Cloud HCM Technology for Improved Performance Management


Step 1: Implement Cloud-based HR Systems

Implementing cloud-based HR systems is the first step toward leveraging cloud HCM technology for improved performance management. Cloud technology offers a flexible, secure platform that allows businesses to quickly and accurately track employee data in real-time. This eliminates manual data entry processes and reduces potential errors associated with traditional HR processes.


Step 2: Utilize Data Analysis Tools

Cloud-based HCM solutions provide advanced analytics capabilities that allow businesses to analyze employee data more effectively and make better decisions. These tools enable administrators to assess employee performance trends, identify areas of improvement, and recognize successful teams or individuals quickly and accurately. Additionally, cloud technology can help predict future employee activity and performance, allowing organizations to plan for potential problems in advance.


Step 3: Scale Resources According to Need

Cloud tech provides scalability for businesses to adapt resources swiftly to respond to varying requirements. This allows them to get the most out of their resources and possess the correct data for faster and better decision-making.


Step 4: Educate Employees on Cloud Technologies

This step is essential because it ensures everyone is familiar with the HCM system and how best to utilize it for maximum efficiency and effectiveness. Organizations should train their staff on cloud technology and how it can help improve performance management.


Step 5: Create Integrated Systems

Lastly, businesses should strive to create integrated systems that combine multiple cloud technologies into one platform where all HR operations can be managed from one location. Instead of having separate databases for different applications or departments, HR managers can get important data from one place. This makes decisions more accurate and decreases the cost of running multiple systems.


In Conclusion

Cloud-based HCM solutions have the potential to improve HR processes and maximize enterprise productivity dramatically. By automating mundane HR tasks, cloud technology can help organizations reduce costs, increase accuracy, and better measure the effectiveness of their personnel management strategies.

Leveraging cloud-based analytics tools enables businesses to identify areas of improvement or recognize successful teams with greater efficiency than ever before. With automation being key to success in modern enterprises, a cloud-based HCM is an invaluable investment that can help unlock the full potential of your organization.

Need help implementing a new payroll and HR platform in your organization? Reach out to our HR Advisor Team to see if they can help!


Make HR Automation Easier with Payroll Network

Payroll Network is an employee experience leader. Our HCM platform of choice, isolved People Cloud, seamlessly connects and manages the employee journey across talent management, HR and payroll, workforce management, and engagement management functions. Allowing our clients to boost performance, increase productivity, and accelerate results, all while reducing risk. 

Learn more about how we can help you employ, enable, and empower your workforce today.


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