Human Resources Can’t Wait Disruptive Ascension to the Cloud Imminent

Organizations, companies, and businesses with any number of employees need human resources to attract and retain top talent, provide a level playing field, and most importantly deliver business value. Traditionally, the HR function is seen as a more of a peacemaker in the workplace, not a disruptive force. There is a shift coming. HR legacy technology cannot meet the business requirements to support the digital business needs. If this trend continues, we are going to see that the good-natured human resources might not be able to avoid their 'own' disruption. 

Why the predicted disruption? 

The theory behind the forecasted change is relatively straightforward. Human resources manage people. With digital devices, peoples’ digital experience is becoming the ‘new’ norm, and now people expect the same digital experience at work. Here are three reasons supporting the shift:

Reason #1 - Human Connectivity 

In a Pew research study, one reason attributed for the growth is; “People crave connection and convenience, and a tech-linked world serves both goals well.” Wanting to be connected is one of the reasons for the explosion in devices leading to an increase in people's’ consumption of devices and the IoT applications supporting those devices. Just take a look around you; at the office, airport (when people are waiting for their plane), or even at dinner. Now people instinctively grab their devices to see what they might have missed. 

Reason #2 - IoT Devices are Projected to Increase

In Jan of 2017, Gartner predicted that connected devices would increase 31% in 2017 from the number of devices in 2016. Based on these calculations the consumer segment alone should grow to 12.8 Billion units. Business devices plus the consumer segments are predicted to rise to 20 Billion units. 

2018 will be a different story, due to a predicted increase from 2016 to 2018 of almost 220%. The consumer segment will sell more units of IoT, but a larger share of revenue will be coming from business spending. 

Gartner predicted the spend of IoT at nearly 2 trillion dollars in 2017. More recent forecasts show lower projections, an IDC forecasted a more conservative IoT spend of “$1.13 Trillion Market Opportunity in 2021,” based on a report published in Jan 2018. Regardless of the difference in forecasts --- IoT is hot and growing fast.

What are a few of these digital scenarios?

Healthcare is going Digital.

According to a Sbwire report “(IoT) in the healthcare market, which comprises systems and software, medical devices, and services, has had a significant impact on the overall healthcare sector.” The healthcare industry now heavily relies on remote monitoring and other technologies helping “lowering costs, improving efficiency, and bringing the focus back to quality patient care.” 

Security is Going Digital.

Today, you only have a 5% chance of not being recorded on video, security cameras and sensors are at the forefront of security. On a daily basis you are likely to be recorded on video at least 75 times (if in American) and up to 300 times (if in the UK) according to a crime feed report. All these cameras need connections back to their cloud application, connectivity that is driving even more required IoT infrastructure. 

Reason #3 - Money Freely Flowing into HR Tech

In Jan of 2017, there was an SHRM report stating that "HR technology is undergoing one of the most disruptive periods it has seen in a decade." This investment trend is based on data from the past ten years; they identified that investments increased during the period from 2015 to 2016. A CBINSIGHTS report detailed the billions invested over the years. Data show that almost 4.5 billion worth of investment came in over these two years alone.

During July of 2017, data showed continued support, according to Larocque Inc, in 2017 alone, there were 35 HR Tech deals from Jan 2017 to July 2017. The top areas being Talent Management, and Talent Acquisition. 

Jan 2018, larocqueinc.com showed the investment trend cooled some to 1.064B for HR technology. They reported, “Talent Acquisition, with $550 million of investment, was by far the leading HR technology category.” While the dollar amount of investments has decreased some, there are significant investments in the sector. These reports all contribute to the predicted HR disruption in the HR Technology sector. 

The technology investment will start turning over many stones; it is imminent new ‘disruptive’ technology will be found. 

The Shift. What might a shift look like?

Based on investment data, the new capabilities will focus on Talent Management and Talent Acquisition leaving it up to our imaginations as to what these new these new capabilities might be. Imagine advanced integration into social media, such as finding key candidates in social media using contextual search, and creating algorithms to map candidates in other industries even though a qualified candidate might not be advertising they are looking for a job (but could be a great fit). Increased integration with social media, so that when a candidate comes through - HR already has a good understanding of their media habits and ‘social status,’ you can learn a lot about a person by their social posts. HR could get this information as soon as a candidate applies. There are also benefits of streamlining the recruiting process by removing the HR shared email inbox and providing a streamlined process. We can not forget to mention all the great benefits of automation and digital connectivity. With the shift, the next question to answer will be. 

How will we digitally transfer HR?

There are options to get to the cloud. 

One way to get to the cloud is the lift-and-shift approach method, which can force HR into the cloud. A forced lift-and-shift can ‘technically’ move HR technology into the cloud, but a lift and shift might negate the advantages of moving to the cloud, like streamlining HR process, and new technologies. 

The forced lift and shift might work for some, for others, their company’s HR process has grown organically, in many cases over decades. Using a company's ‘current’ process might be time-consuming to do in the cloud, and still not give them all the benefits. The other option is for companies to ‘adopt’ new process, that comes pre-wired into HR Technology, given them lessons learned by using leading practices and a framework that will let them digitally connect. 

The question will be, can HR adopt new HR process, or will they require the technology to adapt to their process?

Examples

Organizations, business’, and corporations will need to see examples of how all this will work in their environments. Many businesses seeking to go digital are going to look for the path of least resistance, that is low risk, and will provide business value. They will need a platform that will connect all their digital systems. Fortunately, there are platforms that can support the digital business, and if they choose to adopt leading practices, they can expedite the process. Just like a builder would show a model home, HR Technology will need to see a model company for human resources, showing them a framework for how all this will come together. 

Conclusion

If the inertia behind these shift continues, it will be safe to say that HR is a bit late to the cloud party, but it’s on its way. HR Technology will soon catch up with the digital age, and human resources will establish its rightful place in the Cloud. Cloud technology that will help lead the way for better HR Services, which will provide advanced ways to attract the very best talent and deliver a consistent digital HR experience. Giving HR more time to focus on the most important asset of any business, their people.

Please post comments below; I would love to get your perspective on Human Resource Technology or other thoughts.

John M. Hawkins is a technologist, author, strategist with over 20+ years consulting to fortune 25-500+ companies. In his most recent book “Coached to Greatness,” he explores how to develop our most important asset, people. Find John on twitter @hawkinsjohn.