The cloud migration road map: Unlocking effective human capital management

With so many companies and business units migrating to the cloud, it’s no surprise that some experience a few rough patches on the journey.

New data from PwC has found that cloud transformation is the third biggest challenge confronting those overseeing human capital management.

At a time when U.S. companies have seen unprecedented turnover in their employee ranks — the Great Resignation — many HR managers still grapple with the processes behind cloud adoption and migration.

The survey, conducted recently of 688 U.S.-based HR leaders, revealed that their investments into these tools are largely meeting or exceeding expectations. Yet, a large number of HR managers say they’re missing opportunities to drive tech adoption, resolve cloud challenges early and build new business cases for disruptive tech.

The biggest challenges

The survey results should serve as a wake up call. When asked the biggest challenges that their organizations face, respondents cited the following top five:

1. HR insights/data analytics (39%)
2. Recruiting/hiring (39%)
3. Cloud transformation/modernization of HR systems (36%)
4. Learning and development/employee upskilling (28%)
5. Retention of key talent (27%).

Cloud computing has ushered in one of the most profound changes to business in modern times. This technology enables companies to spend less on IT services and computing power while simplifying and accelerating the building of applications. Cloud technology helps companies across the globe in their ongoing quest to bring on digitalization.

If HR departments aren’t able to take full advantage of cloud and other groundbreaking solutions at this critical time, then that could limit their ability to manage workforces effectively, optimize productivity and perhaps most importantly, hire the best talent.

A record number of people quit their jobs last year. The rate of people quitting has continued into 2022.

There are several challenges tripping up cloud migrations within HR departments today, which must be addressed in order to retain talent in The Great Resignation era.

These challenges include convincing employees to adopt new cloud tools, difficulties hiring qualified people to oversee cloud solutions, security concerns, dissatisfaction with vendors and finally an unwillingness by management to pick up the check for the latest technology.

One of the biggest challenges HR leaders face when it comes to cloud roll out definitely starts with the lack of empowerment HR managers have historically felt about addressing the skills gap.

Additionally, as workforces change forever, HR executives are expected to execute strategy rapidly. But some have yet to fully form the kind of business case needed to convince decision makers to increase the strategic value of their HR Department.

It also must not be forgotten that there remains in many circles a disconnect between today’s needs versus long-term vision. HR executives must overcome this by helping leaders to anticipate and plan for the future.

How HR departments can solve the issues

Part of overcoming these challenges requires HR executives to prove the necessity of cloud and other modern HR solutions by illustrating the value in terms of cost savings and creating competitive advantages.

When it comes to driving adoption, HR managers should draw from tried-and-true methods. Convincing employees to use new technology isn’t a new problem. HR departments have seen success in this age of remote work by providing mobile access to new solutions. Giveaways of company swag or spot bonuses tend to bring about desired behavior as well.

For HR managers confronted by internal concerns about cloud security or finding the right talent to manage new tools, moving early and decisively is paramount. In this age of rampant ransomware attacks, security concerns are prevalent.

More than one-fifth (21%) of those HR leaders surveyed cited concerns over the security of critical HR data stored on cloud as a top technology challenge. And hiring engineers experienced in cloud management has become a major issue as a separate survey revealed.

Among the chief human resource officers who participated, 44% indicated they had experienced difficulties in attracting cloud talent; 42% struggled to retain cloud talent and 40% worried about upskilling existing employees for the cloud.

To avoid vendor regret, HR managers should recognize that the more vendors involved in the process, the more likely it is to confront integration issues. Companies should search for vendors that provide multiple solutions that impact the company’s most critical systems and practices. They should ensure these vendors can prove their effectiveness and return on investment.

One overriding principle HR managers should adopt is not to take on too much at once. One of the toughest factors involved in achieving HR-tech adoption involves culture. A more effective strategy involves winning over internal allies by consistently producing results and making a strong business case with each new piece of technology.

Once these best practices are established, today’s organizations and their HR departments will almost definitely exit from the COVID-19 pandemic and The Great Resignation in far better shape than when they entered.

Dan Staley, is HR technology leader at PwC and Meg Bear is chief product officer with SAP SuccessFactors.