5 Reasons to Have a Cloud-Based HR Management Software

Cloud based HR management software

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The human resource management department is the beating heart of a company, and Cloud-based HR management software can keep that heart beating effectively.

With HR software, hourlong back-office hustle is already reduced to minutes. But a more advanced Cloud-based HR software can make things even faster.

HR management is one of the most essential and critical operations that help running a company smoothly. And with the help of cutting-edge technologies, the process has become more accessible.

There was a time; companies used to maintain piles of paper works to manage the operation. Many different technics have been developed throughout the process. Yet things were not easy until HR management software came into action.

Offline or conventional HR management systems indeed saved a substantial amount of time and operational cost.

But was it time proof?

The answer is a big no!

In the 90s or early 20s, most big companies used HR software, but they had to make calls every time they needed any information regarding another branch.

Time, preference, technology and work environment have changed over time. To keep up with the time, we needed a more sustainable and accessible solution.

Therefore, the cloud-based HR solution replaced the conventional on-premise HR management software.

Organizations using cloud HR solution are achieving significant HR cost savings. An estimated 70% of companies reported 10% savings or more, and 37% achieved savings of 20% or more. (Source: Businesswire)

The Cloud-based solution even became a necessity due to the opportunity of remote work environment sanctioned by the ongoing  COVID-19.

What is Cloud-based HR Management Software?

Probably you have heard about Cloud and Cloud-HR systems before. Yet, in case you are unaware of the term, it will help you perceive better.

Simply put, a cloud-based HR system is an online version of the previous on-premise HR software. The system is hosted on a server by the service provider to keep it online all the time. Thus, anyone with permission can access the system from anywhere on any device.

Unlike the traditional system, it offers remote access and does not even require installation. Instead, a user can access it with a domain name or mobile app. The cloud-based application also provides a centralised database that facilitates a seamless work environment when you have multiple offices.     

A Great Change in the Office Dynamics

HRMS software brings a great change in today’s office dynamics. Offices with cloud-based HR management software go paperless. It is also changing the entire perception of economic and workload.

the changing Office dynamics; office goes virtual

With the help of technology-based solutions, HR professionals manage to complete critical tasks quickly, which used to take weeks or even months. Moreover, it is a tool that helps to avoid mistakes in HR operations.

Due to the pandemic, HR works are possible remotely only because of online HR software.

Around 94% of US workers, HR professionals claim, have adjusted well to new ways of working. (SHRM, 2020)

68% of hiring managers state that remote work is going more smoothly since the start of the pandemic. (Upwork, 2020)

What do you think about these two statistics? How are they even possible?

It’s possible because of systems like cloud-based HR software.

If companies held up to the traditional HR systems, the pandemic would have been the biggest nightmare.

Therefore, we have to say that cloud-based HR management software is changing the entire office dynamics. 

5 Reasons to Have Cloud-Based HR Management Software

A comprehensive cloud-based HR solution comes with countless benefits. Let’s talk about few key reasons that your company must have a cloud-based HR solution.

1. Centralised Management

Cloud HR software is the need to the hour because of its centralised database. No matter how many branches your company have, you can always control your HR operations remotely.

Unlike traditional software, your data is processed and stored in a single place. Furthermore, all the information is stored on a cloud server, making everything even more secured and accessible. A cloud-based HR solution with an additional backup system makes everything more secure.   

2. 24/7 Remote Access

The necessity of remote access to your HR software never been more important before. Due to the pandemic, a significant number of companies have adopted remote working environments. Besides, the companies running their physical office are also interested in accessing human resource systems anytime they want from anywhere.

Unlike conventional software, with a cloud-based HR management solution, you can access the system 24/7 with an internet connection.     

3. Improves Employee Retention

In this tight talent market, improving employee retention is one of the biggest challenges in HR management.

“Engaged employees make it a point to show up to work and do more work — highly engaged business units realize a 41% reduction in absenteeism and a 17% increase in productivity. Engaged workers also are more likely to stay with their employers.”


Your company’s growth is highly dependent on your employee’s satisfaction. It is not just the financial package they get; it is also about how engaged they feel.

A complete cloud-based HR solution can humanise the workplace. It can also help you track time and employee productivity.

Additionally, getting feedbacks regarding various issues and opportunities can make employees more engaged with the entire operation. Eventually, it improves employee retention and increases your profit margin in the long run.

4. Cost-Effective HR management

Saving operational costs is crucial for all businesses. Unfortunately, traditional HR management software is usually expensive. Besides, they also require a higher management cost.

With cloud HR software, the system becomes less expensive. But it is not about the cost of the software; it is about the cost of the HR operation.

With the traditional on-premise HR software, the human resource operation cost decreased 45%. And with cloud HR software, you can reduce 10-20% more.

5. Timeless Reporting with Cloud-based HR Management Software

The HRM department prepares reports constantly, and it used to consume a lot of time before.

Cloud-based HR management software makes your reporting timeless. If you have a sound HR system, you are just a click away from your desired report.

Because of a centralised system, you can also generate reports of all the branches sitting at your desk.

The cloud HR system helps your HR department stepping into an era of advancement where you save a substantial amount of time. Eventually, it makes your company more profitable.

In short, cloud-based HR management software is the ultimate tool to make your HR operation seamless. It provides 24/7 access to a centralised database that helps your company increase employee retention and revenue by saving time and operational costs.  

Need a Cloud-based HR Management Software?

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