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Benefits of a cloud-based HR system

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Today, human resources are no longer limited to the back office dealing with document batches. Thanks to the Internet and modern technology, the HR department has been completely transformed into a state-of-the-art department using cloud-based software for hiring, managing leave, performing entry and exit activities and much more.

The HR department is usually a frenetic place of activity. Thanks to technology, HR professionals now have tools to reduce and simplify administrative tasks such as payroll and record keeping.  They can then focus on the issues that can make or break a company in this era of fierce competition: employee engagement.

Modern HR Vs 90's HR

Back in the days you had to be an HR professional to update a personnel file. You could fire an employee before the new hiring file entered the system. From today's perspective, HR in the 1990s may seem very old-fashioned, but it was a necessary step in becoming what we are today. The pain of seeing HR become a bottleneck gave employees a window into what "self-service" could look like.

Benefits of a cloud based HR system

Enormous efficiency

One of the reasons cloud-based solutions are so popular is the lack of a large upfront investment to implement the right solution. There is no need for on-site servers or expensive software licenses. Today, the best solutions are available as Solution as a Service or SaaS, allowing companies of all sizes to use the best HR tools to their advantage.

Companies can set up the system and pay a fixed monthly fee directly. For an example the IceHrm, cloud-based HR system, even offers modular solutions, which means companies can tailor the HR system even further to their specific needs. Modules such as Performance Management and Recruitment Management can be added to the online system in real-time.

The immense efficiency offered by cloud-based HR systems does not stop at initial configuration. Operating costs are equally low, which makes the best systems very valuable for small and medium sized businesses. Anyone can have access to the best HR tools in the cloud today.

Improved tools

Efficiency is only the beginning. Today's cloud-based HR systems use new technologies such as artificial intelligence (AI) and large data sets to further enhance the tools available. These tools are designed for HR professionals and enterprises.

A good HR system, for example, allows candidates to be tracked over a longer period of time during recruitment. If a vacancy becomes available and is suitable for candidates that have already been screened, the system automatically proposes these candidates.

Automation is another important aspect of cloud-based HR systems. There is no need to manually enter measurement data during a thorough performance review. HR professionals can focus on more important tasks, such as thoroughly analyzing employees and solving the HR issues facing the business.

Good compliance management

Personnel management is as much about meeting certain standards as it is about managing staff. There are rules that must be followed and it is important that every company ensures that they are followed. This is another area where cloud-based HR systems excel.

Existing systems are already designed with HR regulations in mind. Instead of manually checking compliance, HR professionals can rely on the system to manage changes to regulations and HR policies.

For a large company, this is an incredible benefit that should not be missed. A good HR communication system alone can eliminate the tedious task of socializing new HR policies across the organization. It also saves the company a lot of time and money.

Note that these are not the only benefits of a good cloud-based HR system. Take a look at the best solutions on the market to discover other ways that the move from HR management to the cloud can help your business grow.

Less paperwork

You can save time and money by having easier access to important company documents and employee information. With all of your company's important data stored in a secure cloud, you can avoid spending excessive time searching for documents and paying unnecessary fines for non-compliance.

HR software with seamless cloud storage integration can help you keep every file organized, secure and easily accessible.

Accurate real-time performance evaluations

One of the main functions of the human resources department is to evaluate employee performance. Until now, appraisals have involved a lot of paperwork and data entry has been very time-consuming. Even analyzing the data and setting up the training or systems needed to process an application took forever!

With Cloud HR software, employee performance is monitored in real time. Data analysis is done in the blink of an eye, often using built-in dashboards and reports or even large data trends and machine learning. This allows the HR team to implement appropriate new systems or conduct additional training within hours.

Increased employee engagement

Cloud-based HR systems leverage large amounts of data and mobile technology to retain employees. For example, the human resources department can send an opinion survey to employees in minutes to get feedback on how the company can better serve them.

Why is lack of connection with employees an issue? There's no doubt that HR has learned over the past decade that employee engagement is a key source of competitive advantage. In fact, engagement leads to high levels of customer satisfaction, knowledge sharing, interest from new candidates, business flexibility and profitability. Engaging employees and providing a secure channel through which they can provide feedback are also important factors in retaining them.

Fast deployment of HR systems

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

Lower cost HR solutions

Proprietary human resource management software is ridiculously expensive! Not to mention the installation and training costs. Cloud-based HR systems, on the other hand, offer more value with lower upfront costs. Once deployed, the software immediately begins to generate decent returns, such as better data and time for more strategic tasks. More savings means that the company has more resources to improve its products or the well-being of its employees.

New Approach to Workplace Safety

Before the cloud-based HR department, security meant using permanent padlocks and fireproof archives. Today, security takes another form - digital. With employee data now stored digitally, companies need to think about how to protect sensitive information. This is particularly important because the GDPR law has recently been implemented throughout Europe.

The good news is that most online HR software companies take security seriously. They have the latest mechanisms to protect your company's sensitive data. Therefore, they are the ones who have to ensure security, not you, even if regulations change.

Easy access to innovation

What happens if your proprietary human resources management software becomes obsolete? Upgrades, deployment and training can easily drive up the total cost of ownership. Thanks to cloud computing, start-ups and large enterprises now have equal access to innovation. The cloud offers an easy way to update solutions. This means companies no longer need to continually invest in software or technology.

This creates a level playing field as small businesses can compete with large companies by staying ahead of technology trends, adapting to change and adopting new solutions as they evolve.

Upgrading HR as a strategic department

Perhaps the greatest impact of cloud-based HR systems is the ability to bridge the gap between the HR team and the rest of the organization. Traditionally, HR has always been at the back office level, suffering from an information backlog and a severe communication gap.

Today, with a mission to improve employee engagement and develop winning cultures in the workplace, the HR department needs to be at the forefront - and lead the way. Thanks to cloud computing, this is now possible. Data is centralized and more accessible, reports are instantaneous, and analyzing trends and information is much easier and faster. With these tools, HR can effectively lead the way in making better decisions to improve employee recruitment, retention and performance.

If you’re looking for a cloud based Human Resource Management system, we suggest you IceHrm which is one of the best HRIS systems which has so many HR functions automated into one system.

IceHrm is a Human resource management system for small and medium-sized organizations. This HRM software centralizes employee data and allows only one authorized person to access it, providing a high level of security. The presence module monitors employee time based on information about insertion and perforation. It covers all the basic HRM needs of a company such as Time Management, Training, and Development, Attendance Management, Expense management, leave management, Recruitment management and handling employee information.

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