7 Reasons Why Organizations Now Prefer Cloud-Based HR Software

HR professionals are searching for new software solutions to improve the management of their human resources. An everyday HRMS system in large enterprises today is over 5 years old and some are even 7 years old. Enterprise software becomes virtually obsolete in seven years, leading most businesses to shop around.

In a survey carried out by Forbes Magazine on readers of Human Resource Executive magazine and the Bersin Research Exchange, the majority of HR professionals surveyed indicated that they plan to procure new software within the next 18 months (57 percent) — and most indicated they will both replace and procure new solutions (61 percent). Twenty-three percent are solely replacing existing solutions and 16 percent solely plan to add innovative solutions to their existing HR environments.

Evidently, moving to a cloud-based solution was the top priority among organisations. With majority of organisations still on a traditional locally hosted HRMS, switching to a cloud based HR Software suddenly makes a lot more sense.

Here are seven reasons why you should move from a traditional HR system to a cloud-based one.

  1. A SaaS based approach means quick setup and no time consuming, unexpected software updates

Cloud based HR Software reduces the need for on-premises software installations, updating it every now and then for bug fixes and security updates and upgrading it when the latest version arrives. In addition, when a trouble occurs, there may occur a chance when you might have to uninstall-install it.

Enterprise software, including traditional HR Software solutions depending upon their complexity, number of users, operating system, and licensing structure, takes an eternity to uninstall-install, update and upgrade, consuming many organisation hours. This may be very different from re-installing your anti-virus.

In contrast, when looking at cloud-based solutions, in most cases, the SaaS vendor would simply provide you with log in details to get you going. Assistance with tools and support to get started is also an instant thing. Most HR Software systems that are based out of cloud, nowadays, offer step by step guides.

  1. Databases in the cloud mean accessibility of HR data regardless of place, platform, and device.

Using the cloud means your HR teams in Bangalore, Bangkok, Budapest, or Boston will have access to same set of data. When the HR manager sitting in Boston adds a new employee to the cloud based HR System that he is using, his personal details quickly become accessible to HR managers in all other three offices for evaluation.

A unified and single repository for all HR data is the reason SMEs and start-ups across the globe prefer cloud based HR software. For them, retrieving key HR or payroll software information is no more a scary task. Bid adieu to duplicate entries and redundancies as well.

  1. Cloud HR software is now easy to buy

Almost all major HR software vendors now provide their solutions in the cloud, which arrest the exasperating cycle of upgrading HR systems other year.

Oracle, SAP, Workday, ADP, Ultimate, Infor (Lawson), CornerstoneOnDemand Silkroad, SumTotal, Lumesse, Halogen, PeopleFluent, Saba, and Kenexa.

A cloud-based system ensures evasion from the cycle of major upgrades every other year because the vendor upgrades on your behalf

  1. The Potential for BigData Analytics is Driving Adoption

A latest entrant in the list of buying criteria of HR Software solutions is the wish to fashion better talent analytics. Research by Bersin by Deloitte clearly backs this fact, while most of the core HR technology has reduced to a commodity. Notwithstanding this, analytics is still a newfangled area of HR technology and vendor solutions here vary greatly.

SAP SuccessFactors, Oracle’s Fusion, PeopleSoft, and Oracle E-Business, ADP, Workday and almost all major big talent management solution providers today offer integrated analytics now; finally, providing enterprise HR buyers a unified solution.

No matter how flimsy this sounds, HR Managers love to play Jonah Hill of “Moneyball” with their people data, SaaS based solutions just make the whole thing a lot more accessible and playable.

  1. Safety, Security, Scalability

I know the iCloud hack made people lose some faith in cloud computing. And to the disbelief of many, Apple came out clean. Apple blamed the users and the users blamed Apple.

Apple reported that the leaked images were the result of compromised accounts, using “a very targeted attack on user names, passwords and security questions, a practice that has become all too common on the Internet.”

While cloud based software is more robust in terms of security than hosted software, it is, like any system in the world, is prone to human errors.

And potentially larger than the loss of an expensive gadget is the loss of the important, private data inside it. HR Cloud Software gives you better security when such mishaps happens. The data is stored in the secure cloud; you can access it regardless of the device you are on. In case of such a mishap, when the security of workforce data is in jeopardy, you can even remotely wipe it from lost devices.

  1. Platform Independence and mobile applications

Cloud based HR software do not discriminate as they are based on SaaS architecture. They behave and work, more or less, on every platform. That means the experience remains the same whether the HRMS is accessed by an HR Manager on his windows system, a member of IT Staff on his Ubuntu Machine, or the COO on his iPhone.

Mobile devices are limited by their processing capabilities. With complex processes executed on the cloud side, the mobile device can run complex HRMSs. Vendors can pack cloud based HRMSs in the form of mobile apps and distribute them via various mobile app markets.

Adopting cloud-based HR solutions empowers employees, plain and simple, by giving them more flexibility to access information.

  1. Reduced cost

Since SaaS based HR software comes with budget-friendly subscription models to start with and up and down scaling as the demand increases and decreases, they are cheaper than traditional HR System setups. Above all, you don’t have to invest in costly hardware, software or other set-up peripherals by yourself; your vendor is probably gonna take care of those. In addition, no necessity to employ surplus IT personnel to keep the system up and running without a glitch.

Author: chirantan

Chirantan Mungara helps Companies avoid and solve technical digital marketing disasters. Chirantan has spent the prior 6 years deeply involved with digital marketing & Product development focused on large, technically complex sites such as softwaresuggest & callhippo.

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