Importance of a Cloud-Based HR Software for Your Organization
The HR department performs several key functions such as recruiting, onboarding, performance management and employee data management. A common feature of the various HR functions is that they are heavily data processing intensive. Until the introduction of cloud-based solutions such as IceHrm, managers were used to handle key HR processes such as employee data management and performance management offline or on an internal platform.
The typical scenario was that while applications like IceHrm handled critical functions, a patchwork of other applications, many of which were developed internally, were designed to implement HR business processes.
Companies faced a variety of data-related issues and suffer from sub-optimal process efficiencies due to this type of IT architecture. In addition, the cost of developing and maintaining these IT systems was high and required significant IT staffing. With the advent of the cloud, HR departments have seen a number of benefits in terms of lower maintenance costs and reduced IT staffing requirements.
Let's take a look at the 5 biggest benefits of the cloud for the HR industry:
One of the core functions of the HR department is recruitment and onboarding. Like most HR functions, the recruiting process is data intensive and includes resume processing, interview planning, gathering feedback from the interviews and the rollout of job offers. Some processes, such as CV processing, have been managed by software applications for years, while other processes continue to rely on manual processing. HR managers have become accustomed to errors, confusion and out-of-sync situations in recruitment.
Companies can avoid many of these inefficiencies by using cloud-based software. Cloud-based software is designed so that most data processing takes place in the cloud, with universal access from different types of devices. When a cloud-based HR solution is used, companies can implement candidate tracking from a single point, from receiving resumes to reviewing, interview planning and job rollout.
The use of cloud-based software also provides high quality data analysis. For example, salary data can be used for salary benchmarking. Data related to the last employer and college or university can be used to draw conclusions about the relationship between the background of the applicants and the retention period. The sky is literally the limit for this type of HR analysis.
Another way in which cloud-based HR solutions can excel is by automating many data-intensive processes. The list of such tasks and processes is very long. It includes submitting timesheets, vacation requests, performance reviews, self-updating employee data such as address and emergency contacts, income tax returns, W2 downloads, self-certifications such as agreements on codes of conduct and information security policies. Enabling these features via cloud software eliminates tons of paperwork, reduces errors and cases of incorrect data. It also improves employee satisfaction and overall business efficiency. This can bring some tangential benefits that can have surprising effects.
For example, implementing cloud-based automation can have a demonstrable impact on employee turnover. The second area is cost. While the maintenance of cloud software consumes significant amounts of money, when these costs are viewed in the context of the dollar savings that can be made, the net ROI over the long term is quite significant. Think also about the extent to which compliance requirements can be enabled by installing cloud software. With a single click, you can get a report that meets various types of compliance-related requirements, such as time sheet compliance and employee self-certification.
Most companies today are faced with a constant "war" for talent on several fronts, trying to get noticed in the marketplace by potential talents, customers and prospects. Every tiny edge you can get is important, and it is very important. When you as a company make the decision to implement a cloud-based HR solution, you differentiate yourself in several ways. First, you signal to investors, customers, suppliers, analysts, the media and the general public that you are an actor to be reckoned with when it comes to making major investments based on your vision for future growth. Second, it is a strong indication of your desire and ability to be at the forefront of the market. There is a clear strengthening of your brand and reputation, which consequently occurs.
Human Resources is a function of the organization that deals intensively with compliance issues. A major advantage of using cloud-based solutions, as opposed to applications hosted on-premise, is that software updates are automatic and precisely timely. This is of great value from a compliance perspective.
New business regulations emerge every year, such as employee data privacy requirements and overtime standards. Most of these regulations require companies to generate comprehensive reports at regular intervals and also certify that the software they use complies with the latest regulations. Cloud-based solutions help with both of these aspects. Because cloud-based solutions are maintained by professional vendors, the applications are often updated based on the latest regulations. And because the applications have built-in advanced reporting capabilities, creating reports for compliance purposes becomes an easy task.
Companies that sign a contract with cloud providers for the first time are often skeptical about how secure their data is in the hands of the provider. This applies all the more to HR-related data, which is sensitive in terms of data protection law and contains a lot of demographic and financial information.
The fact is that the security aspects of applications and data are much better addressed by the vendor when you engage them to deliver a cloud-based HR solution. The primary dimension is that cloud software is designed from the ground up for security, with applications and data hosted remotely and encrypted data sent to the customer side only when needed. The second dimension relates to managing and restricting both physical and ID-based data access. The cloud provider also takes better care of this.