Spending on Cloud-based Human Capital Management (HCM) technology is expected to exceed on-premise HCM solutions by 2017, as more businesses understand the financial and productivity benefits of Software-as-a-Service (SaaS).
Businesses looking to make the switch must tread carefully to avoid being locked into the wrong solution or otherwise failing to achieve a strong return on investment.
“Businesses can unlock financial, efficiency and technological advantages by implementing a SaaS HR solution,” says Leslie Tarnacki GPHR, VP of HR and GM, WFS.
“However, it is important that businesses choose the solution that aligns with their business goals. They must also ensure it is supported by a knowledgeable and responsive team.
“With a cloud-based solution, they also need to be confident that the vendor’s cloud architecture will provide the level of security and system availability necessary to achieve the organisation’s goals.
“This is particularly relevant for workforce management solutions, which affect everybody in the organisation.”
Tarnacki advises businesses to ask 10 critical questions when it comes to choosing a SaaS provider:
1. What security measures are in place?
Security is one of the biggest concerns for applications containing employee information and other HR data. Vetting a cloud vendor’s security credentials should be a top priority. A reliable SaaS vendor will uphold strict physical, technical and administrative security measures.
2. Where will my data be stored?
Companies should work with vendors whose data centres are located in countries with stringent privacy laws and a reputation for enforcement to avoid data falling into the hands of unauthorised users.
This protects companies against failure to comply with relevant laws and policies around how data is generated, secured and stored.
3. What is your disaster recovery plan?
A comprehensive, adequate and regularly-tested disaster recovery plan is vital for confidence that the cloud provider’s infrastructure is resilient, and that the company’s data will be protected.
4. What redundancy measures do you have in place?
In the case of a failure, applications and data must still be available whenever and wherever employees need it. Adequate built-in redundancies are critical to ensure data is protected and accessible.