Human resources is all about managing and handling core HR processes such as performance management, offline or an internal platform. Digital technology, artificial intelligence, Cloud-Based Computing Applications, and other facets of the digitalized environment have fully changed almost every aspect of how organizations, including human resource departments, are being run today.
Overview of Cloud HR systems – How important they are
Many data-intensive HR procedures, such as timesheet submission, performance evaluations, and vacation requests, are being automated with cloud-based HR software. Cloud-based HR management systems have basic HR features, such as payroll or recruiting, but a cloud-based HR framework that manages all aspects of HR is by far the best option.
Cloud-based HR systems provide companies with the computing resources and ability to compete in the information age. Market reports predict that the global HR market that was valued at USD 8 billion in 2019 is expected to reach USD 14 billion by the end of 2026 expanding at a CAGR of 9% during the forecast period 2020-26.
The emergence of mobile and cloud deployment, as well as increased automation in HR processes, are driving market development. The global cloud based HR Application Market is projected to expand at a compound annual growth rate of 5.7 percent to $23.8 billion by 2025, up from $18 billion in 2020.
The ten benefits of cloud HR software resulting in transforming the way businesses operate-
The cloud-based HR has the potential to improve employee engagement and as such, having cloud-based HR software has the below mentioned benefits such as-
- Less Paperwork-
Since there is no need to store employee documents in huge file cabinets with cloud HR applications, there is less paperwork. Files or documents are safely stored in the cloud with cloud-based HR applications and can be accessed instantly with apps like Google Drive and Dropbox. Employees can scan and print files from a cloud HR function since the data is stored digitally.
- Actual, reliable evaluation of results
Previously, assessments required a large amount of documentation and a significant amount of time to collect data. Employee performance is automatically monitored in real time with cloud HR apps. Cloud HR tools assist the HR team in putting in place the right system in place or providing additional training in less time.
- Increased employee engagement
The hidden benefit of using cloud HR software is employee engagement that can be further improved with the help of HR analytical tools. It is estimated that a 5% increase in employee engagement is linked to a 3% increased revenue growth in subsequent years.
- 365 days a year access to pay and benefits data
Employees can access information about their pay and benefits from anywhere and at any time using cloud HR tools.
- Fast deployment
Cloud-based HR software is easy to be deployed and managed. With HR based software as a service, organizations do not have to worry about security updates, maintenance with these tasks being managed by SaaS providers.
- Lower costs
Cloud-based HR systems offer more value for lower upfront costs than proprietary HR management software. In the long term, cloud-based HR systems are cheaper as they immediately begin generating decent returns that include better data and timesaving.
The majority of cloud-based HR software systems are secured with all latest mechanisms in place to safeguard the client organization’s sensitive data.
- Easy access to innovation
Organizations irrespective of their size have equal access to innovation in cloud HR solutions. The cloud provides an easy way to update solutions with companies no longer required to invest in technology continuously.
- Bridging the gap between HR team and organization
Cloud-based HR systems can close the gap between the HR team and the rest of the organization. With centralized data in place and accessibility, results in the HR department taking better decisions to improve recruitment, retention as needs of the organization.
- Predictive analytics
Cloud-based HR systems with the help of Artificial Intelligence or AI can perform predictive analytics to know which employees are at risk of becoming dissatisfied and as such proactively address the issue.
Finally, it can be concluded that Cloud-based HR systems and solutions can create a competitive advantage by helping companies manage workforce trends with easier access to insights and reporting.