Human Resources is no longer restricted to the back office, where loads and loads of paperwork have to be dealt with. HR has entirely transitioned into a tech-savvy division that uses cloud-based HR solutions to employ, manage time-off, conduct onboarding and offboarding activities, and much more, thanks to the Internet and technological advancements.
Normally, the human resources department is a whirlwind of activity. HR professionals now have the capabilities to decrease and simplify administrative processes like payroll and record-keeping with the use of cloud HR software.
These Benefits of Cloud Software Changed HR Forever
HR software, which first started in the late 1990s, was designed for small enterprises in dire need of basic automation. Innovation gradually moved into larger businesses as functionality became stronger and more complicated.
Vincent Tuccillo, director of Workday Implementation at Pitney Bowes, while speaking about the problems he faced as an HR professional, pointed to one specific issue:
“To change an HR record, you had to be an HR professional. It’s possible that you’re terminating an employee before the new hire record has been entered into the system!”
Since the early 2000s, there has been a notable yet gradual shift from “one-size-fits-all” HR software and toward specialized systems that can handle recruiting, training, evaluation, and other HR-related operations. Cloud-based HR systems provide businesses with the computational power and flexibility they need to survive and prosper in the digital age.
We’ll look at how the following advantages of cloud HR software have benefited the workplace in the following sections:
The days of maintaining employee records in massive filing cabinets are long gone. All files can now be safely saved in the cloud and retrieved swiftly with apps like Box, Google Drive, and Dropbox. An HR professional can find and print a file from a cloud HR solution within minutes because data is stored digitally.
Real-Time, Accurate Performance Assessments
The evaluation of employee performance is one of the most important functions of Human Resources. Previously, assessments required a lot of paperwork and a lot of time to collect data.
Employee performance is automatically tracked in real-time with cloud HR software. Machine learning as well as built-in dashboards & reports are used to analyze data. In only a few hours, cloud HR solutions can assist the HR team to implement new processes or provide further training.
Increased Employee Engagement
Cloud HR systems use big data and mobile technology to keep employees engaged, which can bridge the communication gap between managers and junior employees. When it comes to employee satisfaction and engagement, communication is crucial.
Another aspect is performance reviews, in which supervisors are asked to rate the performance of their junior employees. Rather than waiting for the dreaded yearly evaluation, the manager now has access to a specialised platform that allows for ongoing performance evaluation.
24/7 Access to Pay and Benefit Information
Employees can access important information about their salary and benefits from anywhere using cloud HR software. They can clearly see how much of their income is spent on taxes and other expenses.
Employees used to access HR information via phone systems using older HR systems. These systems may not be available at all times, need additional storage, and lack the bandwidth of cloud HR services. Cloud HR systems give you access to your data at all times.
Employees can also adjust their salary and benefit settings more easily with cloud HR solutions. Without the assistance of an HR specialist, an employee using a cloud HR system can set up direct deposit, alter their health insurance, and more.
Cheaper HR Solutions
Compared to traditional HR management software, cloud-based HR systems provide more value for less money. Cloud solutions generate instant benefits, such as better data and time savings, once they are implemented. This means your business has more resources to invest in improving products or focusing on employee satisfaction.
Employees can use self-service elements in cloud HR solutions. Employees can accept and alter their perks on their own with these capabilities. Self-service features reduce HR professionals’ burden, requiring fewer HR personnel to maintain the HR system. Staff can instead focus on other HR needs with cloud HR systems.
New Approach to Security
Prior to cloud-based HR, security meant utilizing strong padlocks and ancient fireproofing. Companies must rethink how to keep sensitive information safe now that employee data is maintained digitally. Because of the GDPR law in Europe, data security is especially important for foreign companies. The GDPR redefines personal information and holds companies responsible for securing their employees’ personal info.
The good news is that most cloud HR software providers prioritize security. They conveniently have up-to-date security in place to protect your company’s critical data. As a result, even though requirements change, it is their responsibility to maintain security, not yours.
Easy Access to Innovation
What happens if your HR management software becomes outdated? The overall cost can readily rise due to upgrades, deployment, and training. Startups and large companies now have equal access to cloud HR solutions because of cloud computing. The cloud makes it simple to update software. This means that businesses will no longer need to invest in software or technology on a regular basis.
Access to innovation levels the playing field by allowing small businesses to compete with large organizations by staying ahead of technological trends, adjusting to changes, and implementing new solutions as they progress.
Bringing HR Up to Speed as a Strategic Department
The capacity to bridge the gap between the HR team and the rest of the company is perhaps the most significant consequence of cloud-based HR tools. HR has traditionally been a back-office function, burdened by a lack of timely information and a huge communication gap.
The HR department must be at the forefront — leading the way — today, with the mission to boost employee engagement and establish winning workplace cultures. This is now achievable because of cloud computing. Data is more consolidated and accessible, reporting is immediate, and trend and information analysis are much easier and faster.
The Future of Cloud-Based HR Software as a Service
Many HR programs are now using digital and mobile solutions, according to a Deloitte report. 41% of the HR teams surveyed were aggressively focusing on developing mobile apps, while others use social media to disseminate HR information. Furthermore, 33% of respondents said they were leveraging artificial intelligence to supply HR services and solutions. This constant innovation and extension of HR software can provide insight into the future of cloud-based HR software. There is now a greater emphasis on making services accessible and simple to use for all employees.
You’re behind the times if you haven’t already switched to cloud-based HR management. According to a SelectHub poll, 100 percent of surveyed HR software purchasers were receptive to cloud solutions, and cloud access was the most desired feature among those surveyed. HR tools combine HR functions into a single cloud-based app that is easier to set up than a traditional on-premise solution.
Automation has also been embraced by cloud-based HR solutions, allowing HR managers to save time and customers to serve themselves. Organizations may leverage all-in-one, automated HR software to reduce HR manpower and enable staff to access payroll and benefits data with minimal training.
Next Steps in Cloud HR
Although cloud HR has become the industry standard, it is consistently evolving to better suit the demands of users. The greatest flaws in HR systems, according to the SelectHub study, are a lack of features, automation, and centralization.
As a result, cloud-based HR systems are beginning to offer more functionality into single solutions rather than offering suites of different products, and are also adding new features like automated reporting.
Cloud technology is already delivering on its promise, allowing HR departments to be more dynamic and efficient. It is already having a massive impact on human resource management. What is certain is that businesses that adopt this technology will stay ahead in the game.
Ansh Aggarwal has 6+ years of experience in the B2B Marketing space in India and International markets. Currently associated with Zimyo, Ansh is taking care of the entire gamut of marketing activities for the on-boarding of Enterprise clients. He communicates directly/indirectly with Industry leader CXOs, CHROs, IT Heads to understand their challenges and come up with solutions that are enabling them to transform their company into an employee-centric organization.