Best Cloud HR Software for HR Teams

Every start-up and SME longs for a common goal, i.e., a flaming desire to be efficient and agile in almost everything it does. This is because agility and improved efficiency help a business reap more profits and drive growth.

That being said, most companies today, especially start-ups and SMBs, do have room for improvement in almost every department. And this certainly includes the payroll and human resources departments.

Maintaining HRMS tasks on a routine basis is undoubtedly tedious if executed manually or on some entry-level traditional HR solution. This includes processing payroll, filing tax returns, tax deductions, time/attendance management, etc.

Fortunately, with the advancement of technology, you have cloud-based HR software to take care of all your complex payroll and human resource processes. The figure below shows many reasons why businesses invest in cloud based HR systems.

This article will discuss a few apparent reasons to ditch your traditional HR system/methods and switch to the cloud. 

Essential Reasons to Investing in a Cloud HR Software

1. Takes the load off your IT crew

With everything being stored securely on the cloud, you don’t have to install expensive hardware or set up on-premise systems thus, freeing up your IT personnel. Eureka! No installation means zero maintenance costs as well. Talking about software upgrades and updates, you don’t have to fret about these either, as updates are automatically triggered from cloud servers saving your IT crew from the pains of manual updating.

2. Unmatched mobility

Cloud HR software facilitates easy and instant access to critical HR data anywhere, anytime, and on any device. This renders amazing flexibility to HR managers and personnel while on the run. In addition, the employee self-service feature allows employees to update and maintain their personal details so that you don’t have to do so, helping you save a great deal of time and resources.

The majority of cloud-based HR tool today comes with a mobile application specifically designed for employees. Not only does it help them log in and register their attendance from anywhere, but it also helps them apply for leaves, check holidays and update their information instantly. 

3. Pocket-friendly

Since there is no need to install expensive hardware and set-ups, cloud HRMS system becomes affordable and pocket-friendly. As a result, start-ups and SMEs too can enjoy the benefits of cloud-based HRMS solutions without bombing their budgets.

4. Automation

One of the biggest advantages of a cloud-based HR solution is that it automates and simplifies the core aspects of your payroll processing. For example, the software automates your entire payroll, tax, and TDS calculations saving you big time from the hassles of laborious and manual calculations. But, most importantly, you get to bid farewell to those annoying payroll redundancies and inaccuracies. Did I mention: error-free and seamless payroll processing is here to give operational efficiency a huge boost?

5. Reliability

It certainly is a daunting task to handle all your HR and payroll responsibilities for multiple locations and with multiple systems. If your data is scattered across multiple places and systems, it certainly will incur inaccuracies and inefficiencies. This won’t be the case with a cloud-based HR solution because you get a single and unified platform to take care of all your payroll and HR operations, leaving no room for errors and inconsistencies.

6. Real-time data at hand

Current and real-time data is crucial for HR managers and senior personnel to lay their hands on. This helps them get a comprehensive picture of how their HR crew performs. Unfortunately, it becomes difficult to get this data with traditional HR systems. Nevertheless, with a unified cloud based HR system, you get instant access to real-time data 24×7.

7. Scalable

Cloud HR software quickly adopts organizational changes since it is fully scalable. In addition, with the SaaS-based pay-as-you-go subscription models, you can choose what fits your budget and needs. Pick an affordable plan that suits your company’s size and needs, and you are good to go. It is as simple as that! Scaling up while keeping up with the growing pace of your business is no more a daunting thing.

8. Statutory compliance

Payroll is undeniably complex since numerous regulations and rules regulate it. It is important to reimburse your workforce accurately, complying with various tax regulations. Cloud HR software can help you do that effortlessly since the software is automatically upgraded with new regulations and rules.

If you find yourself walking through piles of spreadsheets doing manual payroll calculations, it is high time that you ditch your traditional payroll tools and switch to a cloud based human resource information solution now. Intuitive, agile, and seamless payroll is just around the corner.

Choosing the Right Cloud-based HR Software

A cloud-based HR solution can address all the pain points of today’s HR personnel, but the million-dollar question is how do you select the best from the herd?

Here are some points to help you cut through the crap when looking for a cloud-based HR tool:

Essential Features To Look For In Cloud HRMS Software

Source: Empxtrack

1. Primarily, you ought to look out for the usability of the software that you intend to pick. It has to be user-friendly and quick to adopt with an easy-to-navigate interface, which helps in faster adoption.
2. The next crucial thing to consider is the flexibility and mobility offered by the software. The reason being a mobile HR solution would render the HR people with the much-needed liberty to perform their core tasks when on the run with ease and grace.
3. Check for its integration capabilities. Yes, this is one of the most important points to consider. Since the HR department never works solo, it ought to collaborate with other departments as well as and including sales, marketing, accounting, etc. Thus, it makes sense to check whether the software can be integrated with other enterprise management solutions.
4. Today, many cloud-based HR platforms come with robust API capabilities allowing easy integration with other business solutions. So it becomes mandatory to make sure that the one you intend to choose has robust API functionalities. For example, check whether the cloud HR software integrates with your biometric device.
5. Last but not least, check whether the solution is scalable or not. A good cloud HR system ought to offer easy to afford SaaS subscription plans. This makes it easy for a growing business to upgrade the plans per its burgeoning needs.

Should I Purchase or Develop Software In-House?

The quintessential question of whether to purchase cloud-based HR software from a vendor or develop one in-house is a long debate. Nevertheless, unison on this topic infers that it is always wise to buy the software rather than develop it in-house due to the scalability, mobility, and budget-friendliness a cloud-based HR software offers.

On the other hand, developing HR software in-house is never a good idea unless and until you have a competent and experienced team of programmers and developers.

Features of Online HR Software

So if you plan to invest in a simple online HR software, make sure to look out for the below features before making the final call.

Source: Kismetpeo

1. Security

An average data leak or data hack can cost approximately $15.4 billion to a company, plus reputational damage. For an organization, its employee data should be as important as the client or financial data. Hence there should be appropriate measures to protect it properly.

Check the following while considering the security measures for your cloud HR system:

• HIPAA compliance (along with full-fledged data encryption)
• Menu access to selected employees based on their role
• Restriction on module access (allowing recruitment personnel to view only selected blocks of information and functionality.)

2. Scheduling Capabilities

Your cloud HR solution should come with capabilities to help you create schedules and timetables. You can use this to schedule employee shifts, meetings, etc. Having such a feature helps a company to improve productivity and keep it more organized. Plus, with the help of email, you can remind your employees about their shifts for the week.

3. Employee Goal Tracking

The cloud-based HR tool you are planning to purchase should be efficient enough to adapt to the current agile landscape. Team management is more dynamic than ever before – the same person can be part of multiple teams or can be reassigned to a completely new project. The way goals are assigned, tracked, and managed has also changed with time.

• Transparent goal setting and tracking capabilities, such that individual and team progress both can be measured
• Check-in functionality for the managers should be simple
• A well-built online assessment tool for managers to assist them in conducting personality assessments, managing difficult conversations, and providing data to assist in the decision-making process
• Advanced assessment and progress tracking mechanism such that it goes beyond calculating employee’s desk time
• Personalized task managers for employees so that their daily activities can be tracked

4. Advanced Review Capabilities

Even today, a lot of companies are using the bell curve to assess their employee’s performance. They compare their employees and then place them on the performance curve- the employees on the lower part of the curve get penalized. Labeling your employees with numbers affects their morale. However, the good news is that this forced ranking system has now declined from 42% to 14%.

Therefore make sure you have the following review capabilities when looking for cloud HR software:

• A comprehensive review system that takes the following factors into account
  • Employee’s performance ( goals achieved)
  • Capability (courses are taken and skills developed)
  • Career (improvements within the role measured)
  • Team skills (relationship with their manager and colleagues)
• Compensation that is to be awarded on the basis of performance should take multiple factors into account such as labor market changes, employee contribution in the successful project completion, financial and operational achievements, etc.

5. Employee learning and development

This functionality works closely with the performance management module. It manages individual training along with managing the budget spent on the training expenditure.

Some of the features you should look out for in this module are:

• All learning data in one centralized location.
• Easy setup of the training sessions, schedule assignments, and exams.
• Full visibility into the training process.

6. Recruitment

Choosing the right candidate is important for an organization. You obviously want employees who don’t even last for 45 days. Make sure to look for a strong recruitment module in your cloud HR software. It should be robust enough to create a database of the talent you think will give their best for the progress of the company. The same feature should help you in creating an advertisement, managing applications, and documents along with providing the below feature:

• Application sorting system
• Easy entry of details using different kinds of forms
• Integrated workflow management

7. Time and Attendance Management

Timings, Biometric information, and attendance all should be managed using this module. The feature should keep track of employee attendance along with keeping the data secure for future reference. Some of the most important features of this module are given below:

• Easy integration with biometric readers.
• Facility to apply for short leaves and holidays
• Functionality to take care of the overtime pay.

8. Absence and Leave Management

Automate your leave schedule in alignment with your company policy using the leave management module. Booking, tracking, and approving any kind of work-off can become simpler if you have the module working properly in your cloud-based HR tool. Some of the other features you should look for include:

• Leave balance for the kind of week off chosen
• Facility to apply for leave online
• Allowing employees to have a quick glance at their work and leave history.

Benefits of Cloud Based HR Software Solutions

Let’s understand some of the benefits of moving your HR operations to the cloud:

1. Reduced Time and Effort

Cloud-based HR software requires less time, effort, and resources for human resource management. All the vital company data is stored in a single system, thereby eliminating the need for collating, reconciling, and updating employee information constantly from multiple sources.

2. Reduced Cost

Cloud-based HR software solutions do not generally come with any set-up and installation costs. They do not require any additional hardware or equipment.

Cloud HR software vendors also look after the maintenance and updation of the HR software, so you do not need any skilled resources to manage the same.

3. Improved Employee Engagement and Productivity

Having an easy-to-use HR system helps improve user experience. Cloud-based HR software solutions can be used from anywhere and at any time.

Such features can increase employee engagement dramatically. Employees also appreciate self-service features that allow them to complete tasks without asking the HR team for assistance.

4. Data Security

All your data is stored and automatically backed up on the cloud. You will not have to worry about losing essential data owing to computer/server failure. Advanced settings ensure that only authorized people have access to sensitive information.

5. Improved Workflows

Workflows between different functions and geographical locations improve with cloud-based HR software solutions. Teams across various locations have access to real-time data and can collaborate with each other to improve productivity and efficiency.

Bottom Line

A modern worker doesn’t like to be monitored continuously. Keeping this in mind, companies today are looking for comprehensive cloud HR software that will take care of everything, starting from employee onboarding till the time s/he is no more a part of the organization.

So before taking any final decision, make sure the cloud HR software you are planning to purchase provides you with innovative functionalities, better decision-making abilities, and provides you with smart data insights at every step.