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5 advantages of cloud-based HR management

7th Jul 2016
Consultant Bizzmark
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[[{"fid":"9066","view_mode":"large_image","fields":{"format":"large_image","field_image_accreditation[und][0][value]":"www.freepik.com","field_file_image_alt_text[und][0][value]":"cloud management","field_file_image_title_text[und][0][value]":"cloud management","field_folder[und]":"1"},"type":"media","attributes":{"alt":"cloud management","title":"cloud management","height":"352","width":"352","style":"width: 352px; height: 352px; float: left; margin: 3px;","class":"media-element file-large-image"}}]]Once designed mainly as a compliance function, in today’s day and age, Human Resource department has to be data-driven, agile and deeply skilled in attracting and developing new talent. The main question is do HR organizations have the right capabilities to meet today’s business needs. Well, according to a Deloitte survey, less than 30% of managers believe that HR has a reputation for a sound business decision, and only around 20% think that HR is adequately adapting to the ever-changing needs of their workforce.

Reinventing HR is slowly becoming the number one priority for companies around the world. Cloud-based software is becoming more and more popular every year; industries across the board are starting to take advantage of the opportunities it has made available, and the HR sector is no exception.  As a matter of fact, a recent Deloitte study has revealed that almost 40% of companies are leveraging social data in order to support efforts around engagement and recruitment. Cloud computing has enabled HR professionals to rethink how they view management altogether, so let’s look at a couple advantages of using cloud-based HR management.

1. Cost-effectiveness

By removing sensitive hardware, on-spot software maintenance, and troublesome upgrades, HR cloud systems help companies save a lot of dollars. Implementation of the system eliminates the need for initial installment investors and a dedicated IT team to monitor its functioning continuously. The transition to the cloud also reduces the cost of system upgrades, because the provider usually manages the bulk of upgrade tasks. Moreover, extensions move forward with each new upgrade, allowing the users to take advantage of new options and features. Finally, a cloud system is a pay-as-you-go service, which is supported by an affordable subscription model.  

2. Improved security measures

According to the data provided by the Ponemon Institute, more than 50% of Fortune 1000 firms experience a data breach at least once a year, losing anywhere between 1000 and 100000 confidential files in the process, including those of employees. With those alarming numbers in mind, it is easy to see just how important data security is. Luckily, all leading HR software vendors are compliant with the modern industry standards and regulations. Additionally, cloud-based software allows easy access to company documents; reduces the paperwork and keeps your business and employees safe from additional data breaches.

3. Global engagement

As we mentioned before, running a successful HR department can cost a lot of money, which is why around 50% of companies outsource at least part of their HR needs. This allows smaller companies to hire world-class experts for a reasonable price. Cloud-based systems allow managers to connect with each employee individually, and easily customize the engagement with offices in different geographical regions. What’s more, employees from across the world can access their personal benefits information from any device at any time. This definitely increases the communication within the company and ultimately creates a feeling of community, and increases productivity among coworkers.

4. Easy compliance management

Human Resources guidelines and policies will evolve with the growth of your organization and the introduction of new compliance standards. For organizations that operate on a global level, the management of these changing rules and communication is usually pretty tedious, not to mention expensive. With a cloud-based system, and its user-friendly interface, you can easily list all key HR guidelines, policies and labor laws. Furthermore, the system allows you to make them applicable to different types of workers, based on their type of employment, geographical position and other demographic parameters.

In conclusion

Two years ago, Mike Ettling, global head of Human Resources at SAP, predicted that most businesses would abandon on-premise HR systems in favor of cloud-based systems by the end of the decade. Seeing all of the opportunities and advantages of cloud computing, it would not be surprising if the prediction comes true after all. As the cloud technology continues to evolve, it will encompass even more HR activities, leaving HR managers to spend the majority of their time on training new employees and consulting executives on people-related strategies.  

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