Cloud HR Software – How SMEs can benefit from this Unstoppable Technology

Businesses get to up their game by transitioning from the era of spreadsheets and legacy systems to the world of fast-paced and dynamic Cloud

Cloud Technology has come a long way from being viewed with skepticism to being accepted as a mainstream organization feature.

The idea of accessing data, files and critical information from anywhere, anytime has caught the fancy of one and all.

The numbers also support this positive trend.

The adoption of SaaS (Software as a Service) based tools rose from 13% in 2011 to 74% in 2014 (“Future of Cloud Computing Survey, 2014), a huge jump in 3 years that proves how popular cloud based software and apps have become with the corporate crowd.

The adoption of SaaS (Software as a Service) based tools rose from 13% in 2011 to 74% in 2014

So what led to this excited transition of SMEs from being “Cloud-Wary” to going “Pro-Cloud”?

A research report by Microsoft’s Cloud Trust Study, 2013, adequately covers the reasons behind this shift:

  • 68% of the companies covered reported cost savings
  • 94% experienced security benefits
  • 94% gained better legal compliance
  • 92% experienced improved service availability

Elaborating on these facts, cloud based Human Resources Software have replaced the on-premise, high-investment HR Systems that have failed to keep up with the flexible and agile work environment of modern times.

Whether it is cloud HRIS taking care of end-to-end organizational needs or standalone offerings like Absence Management, Leave Tracker, Performance Management, Recruitment or Talent Management Software, the cloud space has room for all HR solutions.

The cloud space has room for all HR solutions

It’s all about hard-cost savings.

Cedar Crestone’s recent “HR Systems Survey” indicates “Cloud based HCM systems require one-third less staff to manage than their licensed on-premises HRMS counterparts.”

It’s fair to deduce that cost savings and efficiencies are the results.

Breed Engaged Workforce

With HR online proposition, employers and employees show improved engagement and connectivity.

This is due to the fact that HR is accessible always and the features are enjoyable to use with unified user experience.

Also, role-based customizable functionalities add to the communication effectiveness at all levels.

Enjoy fast and hassle free Upgrades and Innovation

While the on-premises HRMS involves significant time and cost for any major upgrades and deployment across machines, the cloud-based software are known for their instant upgrades and innovation.

Hence, the ROI on investment is quicker and SMEs always support options that show fast results.

Just to give a perspective on the timelines involved, according to the same Cedar survey mentioned above,

Cloud based HCM solutions take an average of just 9 months to implement, while licensed on-premises HRMS solutions take, on average, 15.3 months to implement.”

Licensed on-premises HRMS solutions take, on average, 15.3 months to implement

These other Advantages are too good to miss!

Cloud HR Software with its inbuilt intuitive and predictive features, delivers useful employee information and analytics in an easy-to use interface tailored to employees’ roles.

Many cloud solutions support social media and mobile capabilities with personalized experience.

Cloud based HR software allow for geo-global solutions that align and adapt to world wide processes and strategic shifts in HR policy, maintaining data consistency at all times.

Interactive, real-time reports and easy to interpret dashboards provide sound decision making base, crucial for SMEs to grow in the dynamic market.

Cloud HR Software: Critical Considerations by SMEs

Though cloud technology is in the market spanning more than two decades, SMEs have voiced some concerns in adopting the cloud technology like:

  • Integrating cloud based services with existing in-house software
  • Customization and Adaptability
  • Data Security
  • Readiness and tech-savvy attitude of the HR staff
  • Delays in implementation
  • Hidden expenses
  • Scalability

SMEs have voiced some concerns in adopting the cloud technology

There are number of variables to be taken into account while choosing the ideal cloud solution for your SME business, however there are certain critical ones that need special mention.

Operational Efficiency

Does the vendor provide applications and services required by the HR function of your company? Also, consider the cost for each of these services

Security Measures

Explore the efforts and compliances ensured by the vendor to keep your data and business processes safe and secure.

Does the cloud provider support legal and financial compliances across various countries? Run a quick check on process followed by vendor for disaster recovery and business continuity

Take Baby Steps

It is a good practice for the SMEs to try the cloud proposition for few HR areas and processes, before going full-throttle with entire gamut of HR initiatives.

Design your own path to cloud by choosing among different permutations and combinations. Some vendors allow incremental progression in their HRIS suite while others allow for a strategic mix of on-premises and Cloud software.

You can also select the most-suited vendor for an area that poses maximum challenge and have different vendors for different HR processes. “Integration” is something many of the cloud software ace at.

There are different software options available to help you initiate your ride on the cloud by offering sleek features, affordable rates and ease of integration.

For Instance, if you are just looking to automate your time-off tracking initially, you can view and compare services most popular software in this domain like CakeHR, Bamboo, Netsuite, and Zenefits by analyzing them on varied factors.

This will not only automate your leave management system but also give you the confidence to adopt cloud on a wider scale.

Manage the Change

Invest time and money in communication and training your staff on the benefits, uses and processes associated with the cloud based HR software.

Have realistic expectations and effectively manage the transition for the cloud software to sustain and succeed.

Finally, Look Beyond Excel Spreadsheets

SMEs are definitely tuning to adopt cloud into their work eco-system.

However, many of them still can’t fathom the idea to part with the old and familiar excel spreadsheets as they feel it is sufficient to manage their current needs or they harbor fear of unknown i.e. cloud software, which acts as a deterrent.

Consider these benefits of cloud HR Software that surpass vintage spreadsheets by an unbeatable margin.

  • Cloud allows centralized and standardized processes with data consistency and backup. No multiple versions or data corruption experiences as in excel
  • Cloud is not person dependent. The role functionality can be assigned to anyone. So your data is safe and available even when the person leaves. Role assignment also enables in-built control of who views and edits the data
  • Allows scalability of data management when you grow in terms of operations and people
  • Less prone to human errors due to pre-defined entry fields
  • Cloud is akin to quick decision making, agility and easy consolidation

If there is any good time for SMEs to adopt cloud, it is now!

Getting affordable, customized and flexible cloud HR software is just a click away.


* * *

There is a subtle difference between a good and a great HR management software. Know how we deliver nothing but “Great” by starting your 14-day free trial at CakeHR!

softwareadvice FrontRunner HRIS HR management software app system CakeHR human resources
HR management software app system CakeHR human resources
mobile apple watch HR management software app system CakeHR human resources
HR management software app system CakeHR human resources
HR management software app system CakeHR human resources
Written By

Mitalee Chhatre

Mitalee, a true professional with over 5 years of corporate experience in Human Resources and Health Sector. Contributor on CakeHR where tracks the newest trends and practices of the work-life world.