Cloud-based HCM Tangibly Redefining the Employee Experience, New Bersin Research Finds

  • The study by The Josh Bersin Company revealed the direct impact of cloud-based human capital management systems on employees in retail, hospitality, healthcare, manufacturing, financial services and transport

  • After many years and billions spent by companies to address the complex mesh of HR systems, cloud-based HCM is visibly contributing to a next-level employee experience, not just a “back office clean-up”

  • The most successful projects focus on employee experience, people analytics, talent intelligence, and transforming the HR function

The Josh Bersin Company, a research and advisory company focused on HR and workforce strategies, has revealed the most encouraging findings yet of the enormous and tangible impact of cloud-based human capital management (HCM) systems in taking the employee experience to the next level. The benefits are visible across retail, healthcare, hospitality, manufacturing, financial services, and transportation.

The observations are the result of a year-long research study by The Josh Bersin Company into the implementations of next-generation cloud-based HCM systems at many of the world’s largest global companies across industries, including Boeing, GE, Target, Adobe, Joann, Marks & Spencer, JP Morgan Chase, McDonald’s, Tata Chemicals, and AirAsia.

They confirm that modern cloud-based HCM solutions aren’t only helping HR teams regain control of admin in the back office (although boosting visibility, insights and efficiency is an important part of what these platforms can help achieve). More strategically, they are also playing a fundamental role in helping employers to create the “irresistible organization” now required to attract and hold onto valued employees, during one of the most challenging times for employers and the workplace globally.

The most successful implementations follow an “employee first” approach, unlike older IT-centric implementations that focused primarily on data and software integration, the study found. Where critical employee and workforce needs are now the priority in the planning and delivery, companies are finding they can achieve a far more integrated, useful, and data-driven HCM platform – underpinned by the cloud.

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The study was conducted in partnershipwith HCM implementation specialist Tata Consultancy Services (TCS). The Josh Bersin Company analysts interviewed and studied the implementation of new cloud HCM systems at the diverse range of companies named above, and found very high returns on investment. This is despite the large transformation efforts involved to bring multiple capabilities together, enabling that single, clear line of sight needed to understand and serve employees more effectively.

Kathi Enderes, Senior Vice-President of Research at The Josh Bersin Company and author of the study, said:

“For years HR software was used by back-office payroll and HR professionals but rarely by employees. These new implementations are different: they show how an employee-centric approach can turn the HCM platform into a valuable system for managers, workers, leaders, and staff.”

She explained: “Companies enjoying high ROI from the latest-generation cloud-based HCM solutions are treating them as strategic platforms and building the employee experience on top of them. They are redefining HCM. Where the original users of HCM tended to be HR people, now they are just as likely to be employees and supervisors looking to hire someone.”

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Josh Bersin, global HR research analyst and CEO of The Josh Bersin Company, said:

“After years of work and billions spent, cloud-based HCM systems are at last tangibly transforming HR complexity, with a direct impact on the employee experience. This is no longer just about cleaning up back-office IT or simplifying routine HR processes. This visible pay-off after extensive investments by companies in end-to-end HCM capabilities, managed via the cloud and more easily accessible, will be of great encouragement to all kinds of other organizations now embarking on or still going through their own transformation programs.”

On June 14, The Josh Bersin Company will launch a “Best Practices” report on success with HCM technology from leading tech vendors, a member-exclusive report and part of a series of three examining HCM excellence in 25 of the world’s biggest companies.

The publication of the new research comes hot on the heels of The Josh Bersin Company’s inaugural Irresistible employee-centric global HR event at the University of Southern California in Los Angeles. Irresistible 2022 brought together HR leaders from the world’s top brands to candidly discuss their experiences of how they adapted the employee experience as workplaces around the world continue to reinvent themselves in the face of lasting disruption triggered by the COVID-19 pandemic.

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