What is Cloud HR Software and Why It’s A Game-Changer?

Human resource management is crucial for the smoother operation of business. Whether payroll management, onboarding, employee performance, and compliance management. HR software helps them perform these tasks with a single click.

It is often intimidating for HR to manage and update every detail, and keep records of employee performance and documentation. Human resource management has become more hectic than ever with the recent rise of remote and hybrid models.

Cloud HR software emerges as a game-changer tool for businesses. From simplifying repetitive tasks to tracking employee performance it takes care of all. The Human resource management software market size was valued at USD 29.77 billion in 2023 and forecasted with a CAGR of 11.43% between 2024 and 2032. It is driven by the demand for integrating cloud HR software in business operations.

In this blog, we will discuss how integrating cloud HRMS software can be a game changer in boosting your business efficiency. So, without a delay let’s dive in.

What is cloud HR software?

Cloud HR software is a defining assistance for businesses that run virtual databases. It is ideal for businesses looking for simplified, easy, and reliable software to manage tasks, such as payroll, and employee tracking with a click. HR software runs on virtual databases and doesn’t require any physical storage or server.

The SaaS-based HR software allows real-time access remotely for businesses. Integrating HRM software is reliable for the seamless management of global teams, onboarding, employee tracking, and compliance management. The web-based HR software allows remote access, real-time updates, and record-keeping of documents on a remote server without any manual assistance.

If you're a startup looking for the best HR software solutions, check out the best HR software for startups for more tailored options.

Why Cloud HR Emerges As A Game Changer for Business

Cloud-based human resources software became a blessing for HRs who struggle to manage the huge workloads of business operations, such as documentation updates, applicant tracking, and employee performance tracking.

It offers you remote access, customization options, enhanced data security, a cost-effective approach, and seamless applicant tracking and onboarding.

Some of the major benefits of online HR management software are:

1. Remote Access

One of the major challenges of traditional HRM software is its inability to deliver remote access to business operations. A cloud-based HR management system offers seamless remote access to business operations from anywhere with just a click. It runs on virtual databases that eliminate the need for physical inputs for document updates and tracking employee performance or applicant details.

Cloud HR software also offers real-time data sync to ensure all team members are on the same page. It's transformative for businesses in managing huge teams or employees working in remote and hybrid models. This flexibility allows businesses seamless connection with global teams working in remote locations to ensure they are updated with the latest tasks. It also tracks real-time updates on employee performance, onboarding, and other notifications using the virtual database.

2. Customisable

Customizability is a key advantage of using an online human resource management system. Whether growing companies are looking to add new policies, workflow, reports, and employee data, it offers a customisable solution tailored to HR needs.

Cloud HRM software allows HRs to customize the workflow for employee performance tracking, shortlisting new applicants, ATS shortlisting, employee onboarding, and payroll management to align them with updated internal policy.

HR professionals and managers can also design personalized reports, dashboards, and self-service portals based on job roles and employee preferences.

3. Seamless Application Tracking and Onboarding

Shortlisting and hiring top talents is important for sustainable business growth. Cloud HR software provides multiple options for tracking applicants and shortlisting ideal matches. It helps HR professionals streamline the application process and shortlist candidates to enhance the applicant experience and performance.

A cloud-based human resources software has ATS software that automatically shortlists candidates based on their skills and compatibility based on job requirements.

AI-powered ATS software automates screening criteria, extracts key information from resumes based on the job description, and matches the candidate’s skills, education, certifications, and experience. The ATS screening eliminates the struggle of juggling through resumes and ensures HRs get suitable candidates per their requirements.

4. Enhanced Security

Data and privacy safety are major problems in the current scenario. Businesses invest heavily in anti-theft tools and HRM software to keep their data safe.

But big thanks to cloud human resource management software, which keeps the data safe from all kinds of data thieves as well as from cybercriminals. The regular update feature of HR software makes it even more efficient and effective.

These features of the cloud HR software set free to the businesses in focusing other tasks and operations. This results in the work quality and quantity enhancement.

5. Cost Efficient

Cloud human resource software can be cost-effective for growing businesses in various ways. Companies don't need to invest in hefty internal storage, servers, and manual updates. It runs on a web-based database and offers regular updates to stay ahead of the competitive marketplace.

HR Software providers and consultants offer pay-per-use and subscription models to allow businesses to pay as per their requirements. These subscription models assist growing businesses in modifying human resource management software per their teams and internal policies.

Cloud-based HRM software provides regular security updates, maintenance and 24/7 IT support. Cloud based HR tools reduce the need for dedicated IT teams and maintenance charges. It supports scalability for growing businesses, they can add or remove teams, or management tasks without additional fees.

6. Real-Time Employee Performance Tracking

A cloud-based human resource software offers real-time employee performance tracking to monitor productivity and boost engagement for business growth.

Cloud human resource software provides real-time performance dashboards to view key performance indicators. It assists in making data-driven decisions to improve productivity. Plus, it provides real-time updates to managers and hiring professionals on employees' performance, task competitions, and check-ins.

HR and managers can provide instant feedback and recognition to their employees even in remote and hybrid models to boost their morale and productivity and encourage a healthy environment.

7. Regulatory Compliance and Documentation

A cloud-based provider offers seamless support for growing businesses to understand complex regulatory compliance and documentation processes.

HR software reduces the risk of non-compliance, penalty charges, and legal issues by regular updates on labour laws, and regulatory compliance. It provides a centralized record-keeping database to secure employee contracts, tax forms, and performance. The cloud-based database allows real-time access to these documents and records to assist different businesses project’s regulatory compliance and taxation documentation.

8. Seamless Integration with Existing Tools

A cloud-based human resource management system offers seamless integration with existing software and tools. Whether payroll management, application tracking, onboarding, employee performance tracking or regulatory documentation, it provides hassle-free integration.

Human resource cloud software is a simple and user-friendly API that can streamline the human resource management processes without manual entry. It reduces the chance of data errors and saves time to create a productive and healthy work environment.

HR powered tools allow integration with the latest API and plug-ins of payroll management, such as ADP, Quickbooks, and Gusto to automate employee attendance and generate pay slips, deductions and compliances.

Cloud HR software also seamlessly integrates with communication channels, such as Slack, Zoom, and Microsoft Teams to ensure real-time communication and project updates. It is beneficial for growing teams with remote teams and distributed workforces.

Conclusion

Cloud HR software is a demand of the digital revolution, and it should be considered essential, not an option. Whether it’s payroll management, onboarding, employee performance, or compliance management, HR software is a point solution for all.

Cloud HR software is a game-changer for HR professionals and managers looking for a reliable and cost-effective tool to manage repetitive tasks. The real-time working features make it even more efficient for multiple work operations, which often become overloaded manually.

So, what are you waiting for? Leverage human resource cloud software today in your existing business operations.