Once you determine that transitioning to a workforce management solution will optimize productivity, your next decision is how to implement it.
For a long time, processes and systems used to house employee information were only found at the company. From implementation to daily administrative duties, HR and IT staff typically held primary duties for ensuring all data remained secure and accurate.
This norm of on-premise systems has a competitor: cloud-based systems that also perform as a workforce management solution, but offers more flexibility and support for most companies. While there is no denying that a workforce management system in the cloud is more cost-effective to deploy, it has yet to monopolize the market.
Yes, small, mid and large companies can implement a cloud-based solution without straining their budgets. But in reality, this quick setup and low-maintenance option for tracking time and attendance, payroll, benefits administration and other data-heavy functions is not always the right choice.
An on-premise system gives you peace of mind about the safety and security of important data.
The debate of cloud vs on-premise will continue. In the meantime, you want to find the better solution for your company – whether you have 50 or 500 employees. Consider the following comparisons to determine which one will work for your company.
Workforce Management Solution in the Cloud
When compared with traditional in-house systems, there are a number of benefits to using the cloud to increase efficiency and productivity.
Implementation and Deployment
Any changes you decide to make cannot be considered without two critical steps: implementation and deployment. It can take several months to successfully install and configure the traditional solution. A workforce management solution is typically much faster in the cloud. Creating a new account, loading data and configuring the system can be completed in a few days or weeks.
Upfront Costs
The choice of implementing a system is often decided by how much it will cost. An on-premise solution costs more. Not only are you buying hardware and software, but you are also paying for installation, configuration and implementation. These costs add up quickly.
However, there is no upfront investment for a workforce management solution in the cloud. Typically, you pay a monthly fee that includes training, maintenance and support.
Operational Costs
Operating costs accrue over time when you implement an on-premise system. you must factor in the cost of running a server onsite. This includes backups, maintenance, upgrades and replacement. These costs can easily exceed budgeted amounts.
If you choose a cloud-based option, you can access the benefits of a workforce management system through shared services. With this option, your operational cost dramatically decreases.
Performance and Scalability
The size and demand of your company may evolve overtime. Making changes to an on-premise management system to meet new demands can be very expensive, if not impossible.
Starting with a cloud solution also gives you scalability due to its multi-tenant cloud computing platform. Being able to maximize the scalability of data-intensive tasks also maximizes your investment in a workforce management solution.
On-Premise Workforce Management Solution
While keeping company data in a cloud works for some companies, there are also benefits to an on-premise solution. Those that choose to deploy this model to aid in overseeing employee operations maintain control over all systems and data. Even with higher implementation costs, peace of mind about critical business infrastructure is worth the price.
Security
If your company requires advanced security, you may want to choose a solution that offers more than the security measures taken in the cloud. Security is a legitimate determining factor in choosing whether it is best to store data in-house or on a server with other companies.
Just think of what it will cost if you lose critical information. The costs upfront to secure company data is a justifiable expense.
Visibility of Data
Can you honestly say where your data is with a cloud-based solution? Many early adopters of the cloud are still trying to come up with a comfortable answer to this question. Truthfully, it becomes very difficult to know exactly where sensitive data is once you place it on a cloud.
Until technology overcomes the visibility hurdle, you may want to simply keep company data in-house.
Ease of Accessibility
Only in a perfect world will cloud users in every location have the right amount of bandwidth and not be constrained in accessing cloud resources. Imagine working efficiently on the cloud with remote sites across the globe.
In this case, a private connection is more reliable and consistent with productivity.
Adaptability to Growing Business Needs
Regardless of the industry, your company is unique and should have systems that reflect individual business needs. If you want this uniqueness to drive the type of workforce management solution you deploy, an on-premise system is probably best.
While you can reduce costs by having a cloud-based system, you also reduce options for adaptability. Cloud-based management solutions provide a basic framework. You do not receive the flexibility of customizing the system to fit your company.
On the contrary, your IT staff can work with an on-premise management solution and fully customize it.
Choosing the Right Solution for Your Company
In the end, there is no right or wrong answer to solving the cloud versus on-premise workforce management solution debate. There is only the right solution for your company.
Here are a few questions to ask that can help you determine what’s best:
• Can your company afford the upfront investment to implement an on-premise solution?
• Does your company have the right tools for top-notch security of data?
• How important is it for you to access the latest compatibility upgrades and functionality processes?
A business – small, medium and large – must manage its workforce in the most efficient way possible. Managing human resources will continue to be a significant portion of operating expenses. Tracking schedules, assigning tasks and projects, etc., directly impacts your company’s success.
Every company is different, even those within the same industry. Those differences determine the requirements that matter most and will influence your deployment strategy for a solution to managing your workforce.
