CLOUD COMPUTING AND THE REINVENTION OF HR STRATEGY

Abstract

Over the years cloud computing has transformed as a powerful force in human resource management (HRM) and organizations are leveraging upon cloud to boost efficiency and cost effectiveness along with workforce engagement. The aim of this study is on how cloud computing could strategically influence HR transformation with respect to the degree to which cloud HR is adopted, drivers and challenges, as well as on the long-term effects of cloud HR in terms of greater HR efficiency, employee satisfaction and decision making. Data was collected from 200 HR professionals working in various industries by the use of a survey that was analyzed statistically using SPSS. The results indicate that data driven HR strategies are used and payroll automation, talent acquisition, HR analytics and employee engagement are the most widely used cloud HR functions. Results of regression analysis proved that usage of HR analytics, cost reduction and payroll automation are significant predictors related to cloud HR adoption and confirm its strategic value in the optimization of HR processes. The study outlines some challenges of the system including data security, implementation costs and system integration and employee resistance to the use of the system. ANOVA and t-tests are used to analyze the results and indicate that companies that have been using cloud HR for three or more years’ experience significantly greater HR efficiency, employee satisfaction and cost savings—all supportive of the benefits of long-term adoption of the cloud model. The results of chi-square test also prove that organization size influences cost savings from cloud HR adoption and that larger organizations enjoy higher level of financial efficiencies.