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Author's profile photo Nilesh Shah

Cloud-based HR Software: Benefits Of It In Building Dynamic Processes

Digital technology helps businesses in making their routine operations cost-effective and easy. For example, the cloud based HR software solution has grabbed the attention of HR experts. Listening to cloud computing, the first thought that comes to mind is that of data storage, safety, and security. The human resource management system covers a wide range of HR operations. So, let’s understand the meaning of cloud based HR software.

What is cloud based HR software?

The need for cloud based HR software solutions arose because of the increase in the need for better scalability and better functionality. A cloud based HR system is the human resource software that can easily be accessed online and standardized across all locations.

A web-based human resource management system helps businesses to streamline their HR operations with no hassle. In addition, they allow the organizations to rapidly adapt themselves to economic changes and business expansion. This includes easy management of:

  • Payroll functioning
  • Onboarding processes
  • Training requirements
  • Recruitment strategies
  • Daily management of employees

The cloud based HR system also assembles all the above functionalities in one piece of HR software.

Benefits of the cloud based HR software

Up-gradation in the functioning of human resource management is undeniable when the economy is digitally growing. This is the reason cloud computing in HR soon became a necessity rather than just being an optional add-on to the work culture. So, now we will emphasize the perks of cloud based HR software, which have made it a necessity for all.

1. It is time-savvy

As per the Paycor research, 70% of the HR team wastes their time on unproductive tasks, like creating schedules, tracking employee hours, data encryption, and payroll using spreadsheets. Apart from this, other HR responsibilities include succession planning, compensation strategy,  and overseeing certifications. Cloud software automatically handles all these tasks and reduces the number of manual errors.

2. It redefines HR management

Tasks that initially took multiple hours or even days to get accomplished get completed within minutes because of the cloud based HR system. The amount of paperwork involved in HR management has been reduced completely. As a result, the HR job responsibilities have got a new definition. Now their responsibility towards the business’s bottom line has increased. They play the role of planning long-term strategy and implementing proactive changes

3. It is cost-effective

Increased productivity means more work is being done in fewer hours. As a result, the overall operational costs get reduced a lot. Also, with an increased level of automation, the cost of making up for errors gets minimized to a negligible level. Apart from this, when the organization goes for cloud based HR software, they don’t have to undergo any infrastructural change or hardware installation. They simply pay for the services being used by them on a subscription basis. Therefore, zero expense on installation and up-gradation.

4. Doesn’t require in-house IT team

Cloud computing software options are of great help to small and medium-scale business enterprises. With a cloud based HR system, there is no need to have an in-house IT team that needs to be present 24*7 for backup support in case of any contingency. Also, there is no requirement for any hardware installation or purchase of regular updates on the software.

5. Remote location friendly

Because of the pandemic situation, the economy experienced a sudden surge in remote office culture. Companies that had cloud based HR software and other online system requirements faced no hurdle, but for others, it became challenging. It was also observed that employees could deliver their tasks more productively and on time when they could operate from their workspace. All of this is possible because of the cloud based HR system.

6. No hassle of installing updates

With a cloud based HR system, the organization need not take stress related to purchasing and implementing system updates. Everything is automated. Whenever there is an upgrade needed, the service provider gets it done, and you, as a user, simply take advantage of the trending software solution.

7. Ensures regular growth

The cloud based HR software is scalable and flexible. It prepares the organization against many market changes. Because of the magnificent potential of cloud computing, it can handle a mammoth extent of work with no hassle. It can easily handle the changes in strategic goals, features, and economy.

8. Ensures the safety and security of data

Cloud based HR software is equipped with features like risk assessment and threat detection. Therefore, the users of web-based HR systems are confident that their data is secure in clouds in an encrypted format. Cloud has so many confidential pieces of information stored under tight security and safety.

9. Provides enormous opportunities

Implementing a cloud based HR software system gives HR leaders an edge over their competitors, too. HR people now not only perform the routine administration task but are involved in making strategic business moves. Decisions that require real-time data analysis can easily be taken up. There is also ease of comparative analysis for recruitment, retention, and compensation.

10. Predictive analysis

Once hired and working, the artificial intelligence support of the HR system helps in employee retention and promotion. It quickly identifies any discrepancy or grievance at the employee’s end and works towards resolving them much before time. These cloud based HR systems combat situations, such as job quitting or loss of productivity, very easily.

Cloud foundations are great, but are they the full answer?

Human resource leaders report major business benefits from cloud based HR systems. With over 70 percent of the dependency on cloud computing for HR services, HR professionals have taken a great sigh of relief. cloud based HR systems report improved productivity and employee experience apart from the on-premise solutions.

cloud based HR software options deliver the administrative portfolio benefits at par with the expectation of the leaders. However, cloud solutions are not a foolproof plan, according to a few. Some HR experts quote that only 37% of their talent management solutions are giving them the desired benefits. While only  38% of workforce analytics, 41% of workforce planning solutions, and 43% of recruiting solutions are effective.

Therefore, the following points need consideration for combating these challenges of cloud based HR systems:

  • Business partners should work more closely with workforce planning and strategy.
  • Increase the dependence on digital mindsets, skills, and behavior when the teams lack them.
  • One can also opt for hybrid technology.

Also, the other point of view quotes that individuals should be enrolled in benefits and be participated in the payroll process because complete automation of work will adversely lead to the non-engagement of employees in the organization’s welfare. As a result, their level of emotional connection with the company they work for also minimizes. Therefore, a balance should be maintained. Training skills can be digitalized to improve the productivity of employees. If people are reluctant to change, then they should not be dropped out of the system. Instead, they should be molded to accept the change for mutual growth.

Make use of cloud based human resource management for managing employee status and engagement within the organization. Cloud computing should provide a dashboard where absenteeism, working hours, training skills, and all the employees should be displayed in an easy to comprehend manner. The presence of a dashboard optimizes the staffing skills and also trains them for future success.



Every human resource manager faces big-time challenges in executing routine operations. But these challenges can be overcome by implication of web-based HR software systems. All you need is to take the initiative and make a shift from traditional to digital platforms.

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