A Human Capital Management (HCM) survey says that HCM market is a revolutionary in HCM, enabling innovation across all HR technology segments, because of its extreme interest and adoption by the companies from various industries. Particularly, small and medium-sized businesses are embracing human capital management solutions at a rapid pace.
Earlier, for SMB’s, the cost-effective HR solution used to be outsourcing human resources to Professional Employer Organizations (PEOs). With the advent of cloud HCM technology, the value proposition of PEOs entirely splits up right at the 50 to 100 workforce mark. When these companies grow, they switch from PEO. Because they sense that the high fees are not the good investment anymore.
The cost point is one thing, but there are a lot of factors at play in the changing HCM system. The market’s condition can be described as an excellent storm of opportunity. Majorly two factors are motivating productivity in the workplace. One is growing technology and the other is the tech geeks hungry to embrace it.
Cloud computing technology helped HCM technology foray into the midmarket. Therefore, the mighty HR technology can be delivered to the SMBs sans time consuming implementation, hard administration, or the sluggish legacy software. Companies that want HR software approach cloud mainly for quicker software release cycles, as per the PwC’s 2014 HR Technology Survey. On the contrary, enterprise software gets obsolete every 7 years. Cloud is also cost-effective for the small companies.
According to PwC’s recent survey, lower cost of ownership is the huge motivator for HR software seekers to approach cloud whereas enterprise software comes with a fixed price. The new business professionals are rapidly adopting the cloud solutions. They are majorly looking for HR software on cloud.
They are also are willing to embrace the technology that offers online file storage systems and mobile apps. SMBs are also seeking a workflow that provides information at a flash. They find the Cloud HCM most useful in their day-to-day process. They also find HCM technology as an easily bought, easily implemented tool.
In a nutshell, Cloud HCM is helping them address the various challenges and enabling them to transform their HR operations and maximize their technology investments to answer real world situations.