Today, the Human Resources is no longer confined in the back-office attending to piles after piles of paperwork. Thanks to the Internet and modern technology, the HR was completely transformed into a tech-savvy department that takes advantage of cloud-based software to hire, manage time-offs and conduct onboarding and offboarding activities.

The human resources department is usually a place of frenzy activity. Thanks to technology, HR professionals now have the tools to reduce and simplify administrative tasks like payroll and record keeping so they can focus on issues that can make or break a company in this era of fierce competition — employee engagement.

A Look into the 90’s HR

In the 90’s, when a manager at one of Hannaford Brothers Co.’s grocery stores wanted to check his 401(k) he needed to dial into a voice-activated telephone system.  

Interactive phone systems are at the heart of the 90’s HR era. For the 15,000 workers of The Scarborough in Maine, the 16-line touch-tone system they used to check on their medical certificates were, at that time, state-of-the-art. HR processes were run on big mainframes hidden in an air-conditioned basement somewhere under the office. While employee training and onboarding were presented on laserdiscs.

“You had to be an HR professional to update an HR record. You could be terminating an employee before the new hire record got into the system!” –Vincent Tuccillo on one of the challenges he faced as an HR professional in the 90’s.

From today’s perspective, the 90’s HR may look very old school but it’s a necessary step towards the right direction — the HR of today.

9 Ways Cloud HR Software is Changing the Workplace

“It was miraculous that you could do it on a computer and not paper.” –Josh Bersin, President, and CEO of Bersin & Associates.

We are living in a very fast-paced world and any organization that still runs in 90’s technology will surely get left behind — if they even still exist today. Cloud-based HR systems give businesses the computing power and ability to survive and thrive in the information era.

Below are some examples of how cloud HR software is changing the way we work.

#1 Less Paperwork

Gone are the years of storing employee records in large file cabinets. Not to mention the frantic search that comes with it every time a certain file is needed.

With cloud-based HR software, all files and paperwork can now be stored securely in the cloud with apps like Box, Google Drive, and Dropbox. And because its digital, an HR employee can search and print a file in a matter of seconds!

HR software with seamless cloud storage integrations, such as CakeHR, can help you keep every record organized, secure, and easily accessible.

#2 Real Time and Accurate Performance Assessments

One of the key functions of Human Resources is to assess employee performance. In the past, assessments involved a number paperwork and took a lot of time to gather data. Data analyses and implementation of the necessary training or systems to address a concern took ages too!

Not today! With cloud HR software, employee performance is tracked real-time. Data analyses are done in a swoosh and the HR can put the right systems in place or provide additional training in just a matter of hours.

#3 Increased Employee Engagement

Cloud HR systems take advantage of big data and mobile technology to engage employees. For example, in just a matter of minutes, the HR can send out a survey among employees on how the company can serve them better.

Why is the lack of employee connection a concern? Without question, HR has learned during the past decade that employee engagement is a key source of competitive advantage, driving high levels of customer satisfaction, knowledge sharing, business agility and bottom line profitability.

Engaging employees and giving them a secure channel where they can give their feedback is a huge bonus to employee retention.

#4 24/7 Access to Pay and Benefit Information

Cloud HR software allows employees to access critical information about their pay and benefits anytime, anywhere. They can see how much of their salary goes to taxes, their 401(k), and more — in real-time and without the hassles of traditional practices.

#5 Fast Deployment of HR Systems

Even with the latest technology, implementing a new management system in the workplace can take up a lot of time and money. With cloud-based HR systems, that should not be a problem.

SaaS HR software is easy to deploy in your organization. It is also more straightforward and easier to understand compared to stand alone or legacy HR systems. In fact, most cloud HR software can be deployed in just a single click! You don’t have to worry about any security updates or maintenance too as these tasks are managed by the SaaS provider.

“People in HR are learning that life doesn’t need to be as hard as it was with on-premise software. They don’t have to wait to get the latest upgrade which has the latest innovations from their vendor because they don’t have to wait for cloud upgrades to be done by IT or hire a systems integrator to do it for them. And, they’re learning they can have a much better user experience designed for everyone in the company and not just for the HR department”. –Bill Kutik, Human Resource Executive Magazine

#6 Cheaper HR Solutions

Proprietary management software is ridiculously expensive! Not even to mention the installation and training costs. Cloud-based HR systems, on the other hand, offers more value. Once deployed, it immediately begins generating decent returns. More savings means that the company has more resources to improve its products or improve the welfare of its employees.

#7 Changing the Way Workplaces Think of Security

Before, security means using durable padlocks and fireproofing archives. Today, security takes a different form — digital. Because employee records are now stored digitally, companies need to rethink how to keep sensitive information safe more especially because of the recent implementation of the GDPR law across Europe.

The good news is that most cloud HR software companies take security seriously and have all the latest systems in place to safeguard your company’s sensitive data.

#8 Giving Companies Easy Access to Innovation

What happens if your proprietary management software gets outdated? Upgrades, deployment, and training can easily ramp up the costs. Not with cloud-based HR. Thanks to cloud computing, startups and big corporations now have equal, easy access to innovation. The cloud provides easy updating solutions so companies no longer need to invest in a software or technology on a continuous basis.

Cloud HR software levels the playing field by allowing small companies to compete with big corporations by staying ahead of technology trends — adapting to changes and adopting new solutions as they move forward.

#9 Bringing the HR at the Forefront of the Competition

Perhaps the biggest impact of cloud-based HR systems in the human resources department is the ability to close the gap between the HR people and the rest of the organization. Traditionally, the HR has always been at the back-office suffering from delayed information and severe communication gap.

Today, with the mandate to improve employee engagement and develop winning workplace cultures, the HR has to be at the forefront — leading the way. Thanks to cloud computing, this is now possible. Data is centralized and more accessible, reporting is instant, and analyses of trends and information is much easier and faster. Now armed with right tools, the HR can effectively lead the way in making better decisions to improve recruitment, retention, and performance of employees.

The Future is in the Cloud

The cloud is the future. According to researchers from Forrester Research, the cloud market is expected to reach $191 billion dollars by 2020. Considering that in 2013, the cloud industry was only valued at $58 billion dollars, it is a big leap. Nonetheless, this report shows us where the future is headed — and the only way is up (pun intended).

In the research, Forester Research project that the public cloud market will reach $191 billion by 2020, from 2013’s total of $58 billion

I think nothing sums up the need for cloud HR software better than these words from Jason Averbook, Chief Innovation Officer of Knowledge Infusion, as published in Forbes:

“In this new era of the cloud computing when all we need to access these collaborative new technologies is a device we can purchase at a convenience store, and can begin to use without training of any kind, boundaries are eliminated and possibilities become endless.

If HR and business leaders resist this kind of thinking, the disadvantage they will find themselves at is much greater than that of legacy technology holding them back. Ignoring the cloud will truly limit the organization’s survival in this new world, in a very short period of time.”

Cloud HR software has changed the workplace for the better in several ways. And some of them are:

1. Lesser paperwork
2. Real-time and accurate performance assessments
3. Increased employee engagement
4. 24/7 access to pay and benefit information
5. Fast deployment of HR systems
6. Cheaper HR solutions
7. Changing the way workplaces think of security
8. Giving companies easy access to innovation
9. Bringing the HR at the forefront of the competition

Lenmark.