If you’ve ever wondered who thinks they get better customer service from their HR Tech suppliers – Cloud, On-Premise or Privately hosted customers – then the following results from the HR Realities Survey 2016-17 , conducted in association with HRN, will make interesting reading. In every aspect of the customer experience we asked about, including value for money, user expectations, innovation and customer experience, the answer is emphatically – YES! CLOUD IS BETTER.
Here’s a sample of the results from the most recent HR Realities Survey reports from 2016/17.
1) Cloud HR provides customers with higher levels of customer service
The most significant factor in determining satisfaction with customer service from HR systems providers is how your HR solution is hosted. And it’s Cloud HR that gets the highest ratings for delivering great customer service.
When we focus on Core HR, 63% report always or frequently receiving great service. Contrast this with privately hosted solutions, here only 22% report that they always or frequently receive great service. The Cloud is the standout winner for customer service.
Why should this be so? What are the differentiators that make customer service so much more successful in the eyes of HR Cloud customers?
Some of this positivity is the result of vendors’ focus on the Cloud itself. Most have focused on that as their main software proposition – even where they had a large on-premise or privately hosted customer base. This energy and investment must have some effect. But, more importantly, so do the economies of scale and relative simplicity of service that providers gain from having one version of software to maintain and support, by using a Cloud based multi-tenant approach to their software. This inevitably creates efficiencies and makes it easier to support customers and ultimately deliver customer service.
2) Cloud HR solutions provide a significantly higher quality user experience
Compared to privately hosted solutions and on-premise deployments the Cloud provides a better perception of usability. HR Cloud solutions are twice as likely to always or frequently exceed user expectations. Whilst that doesn’t compensate for the poor ratings overall – it is almost a clear recognition that HR Cloud (24%) is the best of what is a bad option when it comes to end user experience.
Now you could argue that exceeding a user experience is a tough measure – especially as HR systems are typically transactional. How can we exceed expectations and how realistic or even desirable is it for us to have anything other than an acceptable experience that is low cost and efficient? That is a fair observation. With the only caveat that most organisations entire business propositions are built on creating great customer experiences, and that the support structures and solutions we offer our people/employees are a representation of the service quality we think customers deserve. The issue is that many internal processes can become the lens onto how employees judge organisations cultural DNA. Organisational culture, brand and identity are only as strong as the weakest link.
Hopefully – that weak link isn’t your HR systems and your HR systems aren’t a poor reflection of how you support your ‘most important asset’ – your people. Sadly though, based on what customers have told us in this survey, it probably is.
3) Cloud is the biggest predictor for customers reporting value for money
With 51% of core HR Cloud customers reporting value for money – there is clearly a strong correlation between customers perceptions about value for money and where solutions are hosted. HR Cloud is the clear winner for customers who believe they get value for money from their HR technology suppliers. Organisations hosted in the Cloud are three times more likely to report always or frequently receiving value for money compared to those who are privately hosted.
The reasons for Cloud HR being viewed so positively for providing value for money are most likely the key benefits often associated typically directly to Cloud solutions overall:
- the higher pace of innovation typically offered by Cloud solutions,
- the lower cost of ownership and the avoidance of ongoing upgrade fees (which have blighted the cost profile of HR systems deployed on-premise in the past)
- the speed of solution updates–has also been the antidote to the stagnation of on-premise HR technology of the past.
Just over 50% report they always or frequently receive value for money. HR Cloud customers are four times more likely to feel they receive value for money than privately hosted solutions. Every cloud it appears – really does have a silver lining!
What should I do next?
We are currently conducting our latest HR Realities Survey for 2017/18 and you can get involved by completing the survey and contributing to the results.
To give you a sense of this year’s flavour, our survey 2017/18 has a big focus on Employee Engagement and the Employee Value Proposition, as well as some long term historic themes about investment in HR and HR’s impact.
We would love to have your input.
The post Do you get a better customer experience with Cloud HR? appeared first on HRN Blog.
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