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Have you moved your HR Processes to the Cloud yet?


Cloud-based HR software is a boon to HR folks as it allows data and services to be accessed remotely through a web-browser; without the need to install and manage the application on local machines. Typically, working on a pay-for use basis (or as a subscription pricing model based on user counts or usage metrics), HR SaaS is rapidly becoming a go-to deployment model that easily differentiates itself from the traditional "licensed" model.

According to Gartner Survey 2012 conducted globally across different sectors, it emerged that 40% of the cloud-based software market is dedicated to small and medium-sized businesses (SMBs) where as 71% of organizations have been using SaaS for less than three years.

Cloud based systems have the benefit of easy installation process without the requirement of an IT team and is especially appealing to the mid-market organization. Users simply need a computer with a web browser and internet access to be able to leverage all the HR system's features. This makes the model highly advantageous to smaller enterprises that have limited IT resources, infrastructure and technical know-how. It also speeds the implementation process thereby accelerating time to value.

The growth in Cloud Softwares for HR functions has definitely been a major contributor. With the inclusion of cloud based HR software, the HR and payroll departments can fasten processes with increased efficiency and effectiveness. Most SaaS HR Softwares pertains to the function of database management, compensation, leave management, attendance tracking etc. They also include multitude of sophisticated features that can deliver needed functionalities (e.g. online processing, remote access, MIS reporting, query builders etc.).

The very nature of the cloud means that SaaS customers are using the most up to date version of the HR software. Cloud HR software are updated with new versions containing new features and enhancements multiple times per year. This is a big step forward from the prior traditional licensed model which typically delivers new versions in about every two years. Further, in the multi-tenant architecture of any quality cloud software, all users are on the same system/version release, eliminating the issue of multiple, and sometimes incompatible versions. Every customer is put on to the latest release version simultaneously and given the option of ‘turning on’ the updates when they are ready. The user does not endure the planning and costs involved with implementing upgrades.

To conclude, cloud based HR software enable organizations (especially SMBs) to work in a more cost effective and flexible way without sacrificing feature sets and continuous innovations. Further, by leveraging already existing hardware and software, implementations can happen faster as and when it’s needed.

Contributed by : Raghunandan SV