Bersin by Deliottes’s research indicates that almost 60% of all large companies are replacing, planning a replacement, or have recently replaced their core HR systems. According to the firm, “companies are reducing the number of HR systems they have today (the average number of core talent systems is seven); they are modernizing those systems with cloud technology; and, more than one- quarter of companies are ripping out old systems (the remainder are bolting on new cloud systems to existing legacy applications).”
Key drivers of HR technology transformation, according to Bersin by Deloitte, are as follows:
- 82% want “easier to use by employees”
- 73% want “integrated data and analytics”
- 66% want “cloud-based solutions”
- 59% want “integrated talent management”
At NTT DATA, we see it every day: Nowhere in business has the impact of cloud computing been felt more keenly than in HR. Decades spent implementing -- and customizing -- on-premise software have created considerable cost, complexity and rigidness, holding companies hostage to legacy processes dating back to the ‘70s (and beyond). The inability of disparate, legacy point solutions to meet today’s challenges is driving the demand for holistic, integrated, cloud-based HR solutions.
Today, mature, cloud-based systems are available for all core HR functions -- payroll, performance and talent management, online learning, employee engagement, wellness and employee communications, and more.
Here are a few, additional cloud HR stats:
- According to research conducted by North Bridge and Wikibon published in 2015, 73.5% of HR & Payroll activities have transitioned to the cloud.
- According to Bersin by Deloitte, as reported in Forbes, there are over 150 million employees using cloud-based HR systems around the world (just by adding up the users of the top HR and talent management software providers).
Meeting demands of the millennial workforce
The millennial generation (also commonly known as Gen-Y and includes births from 1982 – 2000) will represent 40% of the total workforce by 2020, as reported by Forbes, making it the largest age group to emerge since the baby-boom generation.
As the number of millennials grows in the workforce and baby boomers retire, managers and human resources professionals will need to develop new engagement models that take into account the significant generational differences between the two groups.
PwC reports that millennials want a say in the design their contracts, working arrangements, rewards and benefits packages. They want flexibility and mobility, continual feedback on their performance, and easy access to massive open online courses (MOOCs).
A recent survey conducted by PwC sheds additional light on defining characteristics of millennial workers:
- Nearly 60% will deliberately seek employees whose corporate responsibility behavior reflects their own.
- 72% made compromises to get into a company.
- 52% said good opportunities for career progression made an employer attractive (the top response).
- 66% feel they need to gain international experience to further their careers.
- Less than one third of millennials expect to work regular office hours.
The mantra for millennials seeking employment is a resounding “make work-life better.” Putting a finer point to it, millennials believe more in “life” than in “work-life balance.
According to Fidelity Investments’ Evaluate a Job Offer Study, when asked how much of a pay cut they would be willing to take for an improved “quality of work life” (such as career development, purposeful work, work/life balance, company culture), millennials report they are willing to take, on average, a $7,600 pay cut. Furthermore, when asked which is more important when evaluating an offer – financial benefits or improved quality of work life – 58% choose the latter.
The Fidelity Investments’ survey also revealed that millennials are always on the lookout for a new opportunity, with 41% expecting to start a new job in the next two years. Even with 86% of millennial professionals currently happy at work, nearly half (49%) are either actively looking, or open to a new opportunity.
The emergence of a new generation of workers presents an entirely new set of challenges, and talent management will become a key strategic tool, which places great responsibility on the shoulders of HR.
As masters of digital technology and natural-born multi-taskers, millennials are primed for success.
The onus is on HR to employ digital tools and strategies that effectively harness the massive energy and unbridled potential of millennial workers.
SAP SuccessFactors leads in cloud-based HR
SAP SuccessFactors offers an affordable, low-risk hybrid or pure-cloud human capital management (HCM) solution created for any industry and line of business, and is recognized by Forrester, Gartner, IDC, Nucleus, and Ventana Research as a leader in various HCM categories.
With more than 20 years of implementation experience and 200 consultants around the globe, NTT DATA is an ideal partner to deliver a faster, smoother implementation by SuccessFactors Certified Consultants.
Post Date: 4/14/2016