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10 Benefits of the Cloud-Based HR System


As the business world is changing by the day, HR is changing as well. In the past decade, cloud software has indeed gone from “good to have” to a critical tool for all HR teams. This in fact may be the most significant technological development in HR history. Cloud-based HR systems offer businesses and organizations with the flexibility and computational power they require to prosper and survive in this digital age. In this blog, we have collated the 10 different benefits that a cloud-based HR system can add to your company and the value it can generate.

Read on to understand why cloud software does not just make life easy for HR leaders, but redefines what is possible. By systematizing manual administration, all HR teams can concentrate on bigger and more complex things.

Benefits of a Cloud-Based HR System

Cloud-based HR systems are nothing but web applications that are hosted on secure servers by a provider. Users and employees can log in and then access these systems via a native mobile app or a browser. Companies and businesses can subscribe to such platforms by paying recurrent licensing fees that is payable either annually or monthly.

HR Cloud based systems offer end-to-end automatic HR processes, including payroll, onboarding, recruitment, compliance, and much more. These cloud-based systems offer HR analytics and reporting that help monitor employee productivity and performance. Following are the benefits of cloud-based HR systems.

1.  Cloud-Based HR Systems Save Time: Based on the latest research, it has been found that HR teams spend almost 70% of their time on unproductive admin tasks. It does take a lot of time to set up schedules, keep track of employee hours and calculate the payroll each month using spreadsheets. And all this is before you get to the other HR responsibilities, such as succession planning, compensation strategy, and overseeing certifications. Cloud software automates most of these tasks and decreases manual errors.

2. HR Can Be Redefined: Tasks and work that would take hours can now be supervised in minutes. HR leaders now have more time, so they need not spend each day lost in paperwork. Instead, HR departments can concentrate on the bottom line of the business and work to get the most from the workforce. This means planning long-term strategies, diving into people analytics, and working on proactive changes, instead of responding to the latest crisis. With technology taking care of the admin, HR indeed becomes a very interesting job, while adding more value to the organization you serve.

3. Reduced Paperwork: Those days of storing employees’ information in big filing cabinets are long gone. All employee files can now be securely saved in the cloud and accessed instantly using applications such as Google Drive, Box, and Dropbox – all thanks to cloud-based HR systems. An HR staffer can easily search for and print a file from the cloud HR solution in quickly within seconds as data is housed digitally. An HR cloud software can save time and bring in organization.

4. Predictive Analysis: Artificial Intelligence (AI) within HR systems can help with retention of employees and advancement issues once they are hired. By analyzing the data from within the organization, AI can predict which employees will likely turn dissatisfied and take practical steps to resolve the problem. It may reveal a performance drop due to some lack of training, an issue with the workplace environment, or other factors. These HR solutions will recognize identify and resolve staff concerns before resulting in a resignation or a productivity loss. Despite the fact that cloud-based HR systems being a new technology, it is very exciting and critical to HR’s tactical role in keeping firms competitive.

5. Cloud HR Software Saves Money – The more an organization’s HR team can do with the time it has, the higher will be the Return on Investment (ROI). Spending hours on manual admin jobs is not just wasted time but also wasted money. However, the financial benefits do not just stop there. Here is where it is essential to understand the main difference between cloud software and software. Instead of purchasing the software outright, the cloud software functions on a subscription base. This decreases costs for organizations, who also need not worry about deploying, maintaining, and then upgrading software. All this now happens automatically.

6. No Physical Technology – Cloud software is particularly useful for small organizations. Operating technology completely means one takes complete ownership of support costs and hardware. Bigger organizations can afford to have their own, skilled IT support teams who can take care of all the in-house technical problems. Smaller organizations cannot. We have good news for you, with cloud software, one need not have to take care of such problems.

7. New Approach to Security: Before cloud-based HR systems, security basically making use of strong padlocks and also archival fireproofing. Organizations must rethink about making sensitive information safe now that personnel data are stored online. Due to the GDPR regulations in Europe, data security is particularly important for multinational organizations. The good news is that most cloud HR software providers consider security as the top most priority. They have all of the latest safeguards in place to guard your organization’s critical data. Due to this, even as rules and regulations change, it is their main responsibility to continue to maintain security.

8. Boost Employee Productivity: Most cloud-based Hr systems, have mobile-friendly user interfaces. Employees can utilize this platform on the go. It positively affects workforce productivity, particularly for businesses that depend on field agents for services and sales. Reminder notifications, automated workflows, and digital knowledgebase make sure that employees need not spend more time in to-and-fro email interactions and physical follow-ups.

9. Easy Scalability: A cloud-based HR system is easily scalable and can also keep pace with the organization’s growth. Organizations can also increase the number of licenses and add additional modules as their business requirements grow without worrying about having to deploy additional load testing or hardware. Most cloud-based HR systems can store an unlimited number of documents and manage hundreds of transactions each minute without any glitches.

10. Better Employee Engagement: Cloud-based HR systems offer extremely easy-to-use functionalities for employee engagement and interaction. Peer-to-peer badges and internal social platforms offer a sense of community. HR posts and departmental announcement boards streamline the news flow across groups. Digital reward point programs encourage employees offer their best in organizational initiatives.


The transformation from exclusive, custom HR systems to industry-standard cloud-based HR systems is all set to accelerate in the future. The first step towards adopting HR automation is choosing a cloud-based HR system. The choice is based on various factors, such as the size of the business, the industry vertical it operates on, the business use cases where HR automation can generate maximum value and the organization’s strategic vision.

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