Don’t Let Your HR Data Get Lost in Your Transition to the Cloud

It’s no wonder that a growing number of companies are moving their HR systems to the cloud. The opportunity to transform your HR operation is significant. Yet, in the race to capture the benefits of cloud-based technology platforms, HR and Payroll teams need to make sure that their essential historical employee data is not left behind.
Advantages of Cloud-Based HR Are Compelling
With the typical large enterprise employing up to seven HR systems to manage their business—and at a cost of nearly 10% of the annual HR budget (Bersin by Deloitte, 2015)—HR leaders can achieve significant benefits from consolidating service delivery functions into an integrated cloud-based HR platform. Transitioning to cloud-based platforms enables HRIT to lower expenses by eliminating hardware costs and reducing maintenance and necessary internal IT resources.
Meanwhile, HR can experience the transformational impact of improved alignment and productivity. You can drive strategic initiatives such as employee self-service, talent development and employee engagement, while also delivering more informative data analytics and operational efficiencies. Cloud-based HRMS also provide companies with the flexibility to evolve as business needs change.   
It’s no surprise then that the $12B HR software industry continues to experience double-digit growth annually as more companies shift their HR operations to the cloud.
Bringing Your Critical Employee Data with You to the Cloud
As organizations make plans to transition their HR operations to the cloud, one critical area that must be addressed is the management of historical employee information. Most HR service providers place limits on the amount of legacy employee data they will integrate as part of their standard implementation process, leaving companies to develop their own plans. The data oftentimes includes pay and tax statements, which can impact regulatory compliance if not managed properly.
Three important factors to consider during a technology transition are accessibility, reporting and security. Both current and former employees will need access to their past pay and tax statements. And as you consider alternatives for storing and managing your critical employee information, planning for your reporting needs and ensuring proper data security also must be prioritized.
Some companies resort to maintaining their existing HR or payroll systems simply in order to retain their historical data. However, this significantly limits the advantages of moving to a new HR platform as existing software systems need to be maintained both financially and with IT resources. Managing employee data in multiple systems also limits reporting and hinders employee self-service. We also have seen companies convert and store historical statements as PDF files or other similar formats on local company databases, which can quickly become very time consuming and difficult to manage going forward.
Making the wrong decision can greatly impact implementation schedules, budgets and ongoing compliance risks.
Transition with Confidence
At CIC Plus, we believe that the proper management of historical employee information is essential to a successful employer compliance program. A growing number of companies have approached us with the need to manage their critical employee data as they transition to new HR management platforms. They weren’t interested in maintaining legacy systems just to house the data nor did they have the option to store all of the necessary information in their new cloud-based system.
CIC Plus introduced a new Cloud Transition Service to meet our clients’ need to properly store and manage legacy HR and payroll records seamlessly. The online portal enables employers and employees alike to quickly access necessary pay and tax information—all formatted according to local state requirements. Former employees can get their information without needing access to current HR systems. Employers can move forward with transitioning to their cloud-based HR management system with confidence knowing that there will be no disruptions to their payroll processes and that all necessary employee information will be available as needed.
As you develop your future HR technology roadmap, make sure you consider the various requirements for managing your historical HR data up front to avoid costly bumps along your journey.
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