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When is the Right Time to Make the Switch to the Cloud?

Delivering a good employee experience is a top priority for all companies, regardless of their growth stages. Your HR maturity level will help you determine where to go next.

Companies vary in their processes and technological HR maturity levels, and there is a lot to consider before deciding to move to a cloud-based HR system. By being aware of your organizational structure and current processes, you can pave the way for further advancements.

At What Stage of a Business’s Life Cycle Should HR Move to the Cloud?

Delivering a good employee experience is something all companies are interested in and have a need for, despite being at different stages of growth. The timing for when to get started on a move to cloud-based HR may depend on a few factors, with the journey from a transactional HR system toward a transformational HR system likely to start with one step—followed by more steps. Developing your organization to enable it to take several steps through the implementation and rollout of a new information system is a journey that progresses over time and does not happen instantaneously.

Levels of Maturity

Companies can be seen to be at different evolutionary stages or maturity levels when it comes to process and technological maturity and complexity, as shown in the maturity model below. A company need not strive for the highest level of maturity, nor is it important to move upwards. But it is important to understand that the levels of benefits and possibilities are relative to where an organization is today, which can help determine where to go next. An organization then considers how far they want to move up eventually.

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Size Counts in Human Resources

Obviously, if you are a start-up with a few dozen to a few hundred employees and a close-knit company culture and sense of belonging, the need for structure and processes might not seem as urgent as it would be for a larger organization where the headcount is in the thousands.

Organizational Structure

The way in which a company is organized and your current HR system structure—whether based on a single existing legacy HR system or coming from a more diverse country or specific business division perspective —also have an impact on where you fall on the continuum, as well as where you plan to move to.

How Can Effective People Help You?

Cloud HR software providers like SAP SuccessFactors have revolutionized people processes. While the system is standardized and can be rolled out on a global scale, the cloud is ever evolving. This means that organizations need to embrace continuous improvement alongside efficiency and innovation. Often, a one-size-fits-all approach does not work.

With 20 years of industry experience, and having partnered with SAP SuccessFactors since 2005, Effective People has market-leading expertise in helping clients understand the business impact of HR so that they can focus on driving long-term, sustainable transformation. Our clients are typically category leaders in their industry looking for ways to streamline people operations, gain actionable insights from people data, run payroll and workforce management with less effort, and improve overall employee and manager experiences.

Moving your HR processes to the cloud might seem like a huge undertaking. Indeed, there are several complexities to consider and important decisions to make but working with a team of specialists will put you in a position to reap the rewards of what is fast becoming a must-have step for business continuity and organizational success. Contact us for more information.

If you want to learn more about the importance of understanding your organizational structure and current processes when moving to cloud HR, download our eBook "Human Resources in the Cloud: A Perspective from Effective People".

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Erik Ebert

About the author

Erik Ebert is a Senior Director at Effective People and heads up the Compensation & Benefits team.

With over 20 years of experience in the tech industry, he has supported organizations across industries, implementing digital transformation strategies to improve performance. Erik holds 7 SAP SuccessFactors professional certificates and also serves as an SAP SuccessFactors Confidant, advising the SAP HR cloud team on market development and innovation.

Erik has a vast knowledge of analytics and HR, including Core HR, Competency Management, Talent Management, Compensation, Bonus Programmes, Recruitment and Workforce Analytics.

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