Cloud HR Software

Cloud HR Software for Effortless HR Management [+ Benefits ]

What does it mean to have your HR department “in the cloud”? Cloud HR software and systems have their advantages and disadvantages. What are the arguments for and against using a cloud-based HR solution? Let’s dive right in…

Overview of the best cloud HR software solutions

Cloud HR software is a solution that is hosted on a system provider’s server and can be accessed from virtually anywhere. It’s an HR solution that’s faster, easier to use and more accessible to your entire workforce.

It is usually part of a subscription-based Software-as-a-Service (SaaS). For a monthly or annual fee, you can build, scale and access a software solution that houses all your data, processes and people work.

With cloud-based HR systems, the providers take care of all your typical technical concerns:

  • Operation
  • Troubleshooting
  • Ongoing innovation

All you have to do is log into the software with your access data and you can get started straight away!

Your data is usually stored on the provider’s servers. As long as you have internet access, you can access your data from anywhere (more on data security later…).

What are the key benefits of cloud HR software?

Let’s talk about some of the key features and benefits of running your HR software in the cloud…

1.Functionality

Cloud-based HR solutions often offer a defined range of functions that can be adapted to individual requirements. Selected functions can be activated or deactivated as required.

When it comes to functionality, it helps to find HR software that can cover every phase of the employee lifecycle. These typically include features such as:

  • Recruitment
  • Onboarding (and offboarding)
  • Performance and development
  • Employee training
  • And more…

These features are also constantly being improved and new features are being added at the same time. That brings us to our next point…

2.Innovation

SaaS providers are constantly evolving their solutions because their customers demand something in return for their monthly subscription fees.

As soon as the provider releases and rolls out (i.e. activates in the software) new features or bug fixes, they are immediately available to all customers, at no additional cost and without additional work.

Because of this, an HR team never has to request a budget or plan an IT project to take advantage of new features and the latest product version. Innovation is embedded in the operating model for cloud-based HR systems.

3.Reliability

Ensuring smooth operation and constant availability is one of the core tasks of every cloud software provider. The data is hosted in state-of-the-art data centers with multiple (“redundant”) hardware sets.

If a system fails, there is always an alternative. The providers guarantee availability of 99.9% and more.

Calculated annually, the software may only be down for a few hours and must otherwise be reliably accessible.

4.Scalability

It is extremely important that software “grows” with your company. Above all, that it remains suitable for more intensive use and a larger number of users.

It also means that scaled software continues to function quickly and smoothly. This is especially important for you if you are a human resources manager at a fast-growing company.

With cloud-based HR systems, you don’t have to worry about future growth as you can easily subscribe to a larger number of users and advanced features.

If you need more or faster servers to access these services, the provider will take care of it in the background.

5.Accessibility

Cloud-based HR software can be accessed from anywhere as long as you are online and using a browser.

The device doesn’t matter either, as the software is accessible from desktop or laptop computers, tablets and smartphones.

6.Interfaces and integration

Cloud-based solutions have a range of standard interfaces and can be integrated into your existing system.

At the same time, cloud-based HR software often offers a variety of integrations with other applications and tools. And the list of these integrations is constantly expanding (or should be expanding if you use the right HR software).

However, developing tailor-made interfaces for your systems is usually not possible or extremely expensive.

Should you use cloud or on-premise HR software?

The software you run yourself (also called on-premise software) is only as good as your IT department. Therefore comparisons are difficult.

If you have generous budgets, sophisticated server technology, and offices full of developers, your in-house developed software will most likely be better than any cloud-based solution.

However, if your IT resources are limited, you need to examine very carefully whether you can even run a purchased software, or how well you can do so.

How much does cloud-based HR software cost?

When it comes to HR software pricing, the final total depends on your individual needs. If HR software for a company with 500 employees costs £2,500 per month (a realistic assumption), you can easily calculate that the annual cost would be £30,000.

But let’s go a little deeper when we talk about costs…

Compare this estimate to a one-off license fee of £20,000 for purchasing on-premise HR software. Sounds like a better deal, right? This is a dangerous comparison that can often lead to the failure of a company’s HR processes.

This ignores the costs of an on-site solution, which include the following

  • Development
  • Maintenance
  • Operation

Therefore, you should consider the “total cost of ownership” when purchasing any type of HR software.

As a general rule, you should expect cloud-based solutions to be more economical for small businesses. The larger a company is, the more attractive it becomes to operate the software on site.

Is data secure in cloud HR software?

This depends on your provider. Software providers should be very aware of the responsibilities they assume when it comes to data protection.

When choosing your own cloud-based software, read the security and privacy information carefully and ask for copies of the relevant certifications. Good providers are prepared for this, have the necessary contracts ready and offer you additional support in the form of guidelines and checklists.

When is HR software from the cloud the right choice?

More and more companies are using cloud-based HR software to simplify their otherwise tedious and time-consuming tasks. So if you find that you

  • Manage countless spreadsheets
  • Process absence requests manually
  • Check multiple inboxes every day
  • Feel the frustration of your employees
  • Lack of support from your managers

Any of these signs or a combination of them is reason enough to consider HR software that better suits your needs.

Because HR software is not intended to make companies do more work – it is intended to help HR departments, supervisors and employees do their work more efficiently.

IceHrm: An ideal cloud HR software solution

IceHrm is an all-in-one HR software designed for every stage of the employee lifecycle.

With IceHrm you can manage all your most important HR processes from one place. Recruit, manage, develop and pay your employees via a central HRIS.

This opens up new dimensions of productivity and influence for HR professionals. Become the HR business partner your company needs and free up time for what matters: your employees.

For managers, IceHrm seamlessly creates automated performance cycles, tracks vacation days, and keeps employee information up to date (and in a compliant manner).

For employees, this means they no longer have to deal with cumbersome tools and processes. Employees can request vacation days, change their dates, track goals and much more. All from one place.

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