Remember when HR departments were all about filing cabinets, endless paperwork, and manual data entry? For many enterprises, those days are a thing of the past. There’s been a significant shift in how companies manage their workforce, thanks in no small part to the emergence of cloud-based Human Capital Management (HCM) technology.
These digital tools are doing more than just moving HR processes online; they’re changing how HR professionals work and how employees interact with HR services. From streamlining payroll to simplifying recruitment, cloud-based HCM makes businesses of all sizes more efficient and productive.
But what’s driving this change, and what does it mean for HR departments and employees alike? Let’s find out.
The numbers tell their own story. In 2022, the global HCM software market was valued at $15.6 billion. But that’s just the beginning. According to a recent report from 360 Market Updates, this figure will grow to $20.8 billion by 2028, with a projected Compound Annual Growth Rate (CAGR) of 4.87%.
A separate report from Mordor Intelligence predicts even stronger growth, with the market value set to grow from $24.92 billion in 2024 to $35.94 billion in 2029 (representing a CAGR of 7.6%)
The changing nature of work is behind much of this growth. The COVID-19 pandemic accelerated the shift towards remote and hybrid work models, creating an urgent need for flexible, accessible HR solutions. Cloud-based HCM systems fulfilled that role, offering the perfect blend of functionality and adaptability.
But it’s not just about remote working. According to Fortune Business Insights, 60% of companies now use cloud-based solutions for tasks ranging from recruitment and workforce management to core HR functions and payroll.
Beyond the numbers and predictions of strong growth, cloud-based HCM makes a positive difference to organisations. Benefits include:
Scalability and flexibility: Cloud-based systems can quickly adapt to changing workforce needs, allowing businesses to scale their HR operations up or down as required. This is particularly beneficial for growing companies or those with fluctuating staffing needs.
Cost-effectiveness: According to Fortune Business Insights, multinational corporations that adopt centralised global payroll systems can decrease labour costs by as much as 50% by streamlining processes, optimising operations, and implementing automation.
Accessibility and remote management: With cloud-based HCM, HR professionals can access critical functions anywhere. This feature became particularly valuable during the COVID-19 pandemic, enabling companies to manage their workforce remotely. It continues to add value, given that many businesses have adopted hybrid or fully remote working structures.
Data security and compliance: Modern cloud-based systems often incorporate advanced security measures and stay updated with the latest data protection regulations, ensuring better compliance and data safety across multiple countries.
Improved employee experience: Cloud-based HCM solutions typically offer self-service options, allowing employees to access and manage their HR-related information. This can lead to increased employee satisfaction and engagement.
Cloud-based HCM solutions are helping to reshape HR departments, transforming traditional processes into streamlined, efficient workflows. These digital tools are enabling HR professionals to focus on more strategic initiatives by enhancing several vital areas, including:
Automating administrative tasks: Time-consuming processes such as payroll, leave management, and benefits administration are handled swiftly and accurately, reducing human error and ensuring timely execution.
Real-time data analytics: HR teams now have instant access to workforce insights, enabling data-driven decision-making on everything from performance tracking to identifying skills gaps.
Enhancing recruitment and onboarding: Cloud-based HCM offers end-to-end hiring process management, from job posting to onboarding, significantly reducing time-to-hire and improving the quality of hires.
Improving employee self-service capabilities: Employees can now manage their HR-related tasks, from updating personal information to requesting leave, empowering staff and reducing HR workload.
Facilitating better compliance management: These systems help ensure adherence to ever-changing regulations by automating compliance processes and providing up-to-date reporting capabilities.
Grosvenor Technology’s GTConnect exemplifies many of these trends in cloud-based HCM, offering a comprehensive solution that addresses the evolving needs of modern HR departments. At its core, GTConnect leverages cloud control for centralised data and device management, providing a simplified ecosystem that streamlines operations and ensures compliance with stringent data and privacy regulations.
In an era where data security is paramount, GTConnect adheres to specific US and UK/EU GDPR regulations, including the protection of sensitive biometric data. This commitment to regulatory compliance is reinforced by Grosvenor’s strategic decision to develop and manage its software, as well as assemble and quality-assure its terminals, within the UK and US. This approach not only ensures compliance with strict data protection standards but also provides customers with an added layer of security and trust.
GTConnect offers an alternative to solutions developed in regions with less stringent data protection laws and state-sponsored data mining. This becomes particularly crucial when considering the broader geopolitical landscape and its implications for data security. By choosing GTConnect, organisations can mitigate potential risks associated with entrusting sensitive workforce data to suppliers operating under different regulatory frameworks.
One of GTConnect’s key strengths is its ability to reduce risk through simple, unified control. The system establishes a scalable and flexible network across devices, which helps organisations reduce both development and operational costs. This scalability is particularly valuable for growing businesses or those with fluctuating workforce needs.
GTConnect addresses common HCM challenges through several key features:
By providing these features in a cloud-based structure developed and managed within regions known for strong data protection laws, GTConnect offers modern businesses the scalability, flexibility, and security needed to adapt to changing requirements without compromising on data protection or regulatory compliance. In an increasingly complex geopolitical landscape, choosing GTConnect means choosing peace of mind for your organisation’s data security.